The controller of the Red Wing Corporation is in the process of preparing the company's 2021 financial statements. She is trying to determine the correct balance of cash and cash equivalents to be reported as a current asset in the balance sheet. The following items are being considered: a. Balances in the company's accounts at the First National Bank; checking $15,000, savings $23,600. b. Undeposited customer checks of $6,700. c. Currency and coins on hand of $730. d. Savings account at the East Bay Bank with a balance of $550,000. This account is being used to accumulate cash for future plant expansion (in 2023). e. $50,000 in a checking account at the East Bay Bank. The balance in the account represents a 20% compensating balance for a $250,000 loan with the bank. Red Wing may not withdraw the funds until the loan is due in 2024. f. U.S. Treasury bills; 2-month maturity bills totaling $30,000, and 7-month bills totaling $35,000. Required: 1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2021 balance sheet. Cash and cash equivalents includes: a. Balance in checking account Balance in savings account b. Undeposited customer checks c. Currency and coins on hand d Balance in savings account Balance in checking account f. U.S. treasury bills Total Mountain High Ice Cream Company transferred $61,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $5,100). Mountain High anticipates a $3,100 recourse obligation. The bank charges a 3% fee (3% of $61,000), and requires that amount to be paid at the start of the factoring arrangement. Required: Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the transfer of accounts receivable. Note: Enter debits before credits. Event General Journal Debit Credit 1 Miller Company reported the following information in its 2017 financial statements ($ in millions): 2017 2016 Balance Sheet: Accounts receivable, net Income statement: Sales revenue $ 2,548.6 $1,875.8 $18,879.6 A note disclosed that the allowance for uncollectible accounts had a balance of $36.4 million and $34.9 million at the end of 2017 and 2016, respectively. Bad debt expense for 2017 was $25.2 million. Required: Determine the amount of cash collected from customers during 2017. (All sales are on credit. Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Cash collections The petty cash fund of Ricco's Automotive contained the following items at the end of September 2021: $ 70 Currency and coins Receipts for the following expenditures: Delivery charges Printer paper Paper clips and rubber bands Lent money to an employee Postage Total $ 22 17 10 49 31 38 $188 The petty cash fund was established at the beginning of September with a transfer of $188 from cash to the petty cash account. Required: Prepare the journal entry to replenish the fund at the end of September. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet
