QUESTION 1 For each of the following, identify whether or not the amount should be included in the statement of financial position line, Cash and cash equivalents as at the company's June 30 year end (a) Cash in five cash registers (b) Cheque received, post dated for July 5 (c) $US bank account ($CAD equivalent) (d) 30 day GIC (Guaranteed Investment Certificate) (e) Equity investment in subsidiary (f) Income tax refund due, not yet received (g) Savings account at Frist Imperial Bank Calculate the total that should be reported as Cash and cash equivalents as at June 30 QUESTION 2 Ayayai Corporation has conducted a year end review of its outstanding accounts receivable and has determined the following information at December 31, 2021 Outstanding Balance Percentage Estimated to be Uncollectible 0 30 days outstanding $81,200 2 31 60 days outstanding 34,800 7 61 90 days outstanding 17,400 9 91 120 days outstanding 5,800 12 Over 120 days outstanding 2,300 26 (a) Prepare the year end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $2,300 prior to the adjustment (Round answers to 0 decimal places, e g 8,971 Credit account titles are automatically indented when amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Account Titles and Explanation X X Debit Credit (b) Prepare the year end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $1,400 prior to the adjustment (Round answers to 0 decimal places, e g 8,971 Credit account titles are automatically indented when amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Account Titles and Explanation X X Debit Credit QUESTION 3 Bramble Inc transferred $720,000 of its accounts receivable to City Collections on Sept 1, 2021, receiving 96 of the receivables balance as proceeds The agreement specified that the receivables would become the property of City Collections, and City Collections could manage the receivables or resell them as it wished In addition, the agreement specified that Bramble would have no right to repurchase the receivables from City Collections, and included a recourse provision with an estimated value of $14,400 a Does this transaction meet the requirements to be treated as a sale of receivables yes no b Calculate the loss on disposal of receivables c Prepare a journal entry to record this transaction (Credit account titles are automatically indented when amount is entered Do not indent manually If no entry is required, select No Entry for the account titles and enter 0 for the amounts ) Account Titles and Explanation Debit Credit X X X X

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QUESTION 1. For each of the following, identify whether or not the amount should be included in the statement of financial position line, Cash and

QUESTION 1.

For each of the following, identify whether or not the amount should be included in the statement of financial position line, "Cash and cash equivalents" as at the company's June 30 year end. (a) Cash in five cash registers (b) Cheque received, post-dated for July 5 (c) $US bank account ($CAD equivalent) (d) 30-day GIC (Guaranteed Investment Certificate) (e) Equity investment in subsidiary (f) Income tax refund due, not yet received (g) Savings account at Frist Imperial Bank Calculate the total that should be reported as "Cash and cash equivalents" as at June 30.

QUESTION 2.

Ayayai Corporation has conducted a year-end review of its outstanding accounts receivable and has determined the following information at December 31, 2021:

	Outstanding Balance	Percentage Estimated to be Uncollectible
0 - 30 days outstanding	$81,200	2%
31 - 60 days outstanding	34,800	7%
61 - 90 days outstanding	17,400	9%
91 - 120 days outstanding	5,800	12%
Over 120 days outstanding	2,300	26%

(a) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a credit balance of $2,300 prior to the adjustment. (Round answers to 0 decimal places, e.g. 8,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

(b) Prepare the year-end adjusting entry for bad debt expense, assuming allowance for doubtful accounts had a debit balance of $1,400 prior to the adjustment. (Round answers to 0 decimal places, e.g. 8,971. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

QUESTION 3.

Bramble Inc. transferred $720,000 of its accounts receivable to City Collections on Sept 1, 2021, receiving 96% of the receivables balance as proceeds. The agreement specified that the receivables would become the property of City Collections, and City Collections could manage the receivables or resell them as it wished. In addition, the agreement specified that Bramble would have no right to repurchase the receivables from City Collections, and included a recourse provision with an estimated value of $14,400.

a. Does this transaction meet the requirements to be treated as a sale of receivables? yes/no

b. Calculate the loss on disposal of receivables.

c. Prepare a journal entry to record this transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit