Use the following to answer questions 1-4 Determine whether the firm reports each of the following items as part of cash, cash equivalents, or neither in the balance sheet. Item Cash, Cash equivalent, or neither 1 Inventory that will be sold in 30 days 2. 30 day US Treasury bill 3 Accounts receivable to be collected in 30 days 4. Investments with maturities of six months Use the following to answer questions 5-8 Bank Reconciliation: Identify whether the item should be added or subtracted from the bank balance or the company balance. Use the number (1-4) for your response. For instance, if the amount should be added to bank statement balance you would input 1. 1. Added to bank statement balance 2. Subtracted from bank statement balance 3. Added to company cash balance 4. Subtracted from company cash balance 6 8 Item 5 Bank error cleared the same check twice Company error, wrote check for $890 but recorded it as $980 7 Checks outstanding Interest earned on bank account Use the following to answer questions 9-11 On February 28th, the general ledger of the company shows a balance for cash of $186,200. Cash receipts yet to be deposited into the checking account total $27,200, while checks written by the company but not yet processed by the bank total $18,900. The company's balance of cash does not reflect a NSF check of $1,500, a service fee of $125 and interest earned of $25 and customer payments collected by the bank of $8,000; however, these amounts are included in the balance of cash of $184,300 reported by the bank as of the end of February Answer the following based on the process of doing the bank reconciliation: 9. $ Determine the total amount that is used to reconcile the Bank balance (include "-" If needed): 10. $ Determine the total amount that is used to reconcile the Company cash balance (include "if needed) 11. S What is the balance in the company's cash account after the reconciliation? Use the following to answer questions 12-15 Transaction Cash involved? (Yes or No) Type of CASH FLOW Operating, Investing, Financing, or None Use the first letter (O.1, F, N) 12. Issue common stock 13. 14. Purchased building and land with cash Provide services to customers on account Paid utilities used in the manufacturing plant 15. Use the following to answer questions 16-20 Following are the transaction of TAR Inc., which provides consulting services related to mining of precious metals. Amount of Transaction B Transaction Cash used for payment of employee salaries Cash provided from sale of equipment that had been used in operations Cash used for purchase of office supplies Cash used for purchase of office equipment Cash used to pay office utilities Cash used for payment of office rent Cash provided from consulting customers Cash provided from long-term borrowing Cash used to pay the bank for a loan due this month Purchase of company vehicle paying 1/10 cash and borrowing the rest. $450,000 25,000 15,000 250,000 36,000 mo F 48,000 G 690,000 H 300,000 1 100,000 38,000 16. S _Refer to transaction , how much should be included in cash used from investing activities? 17. S Determine the net cash flows from operating activities (include "" If needed) 18. $ Determine the net cash flows from investing activities (include if needed) 19. S Determine the net cash flows from financing activities (include "If needed) 20. $ How much did cash change over the year? Use the following to answer questions 21 - 25 The Company's cash ledger reports the following for the month ending October 31, 20XE. Deposits Checks Date No. Date Amount 3-Oct 4-Oct 10-Oct 1151 1152 1153 6-Oct Amount $45,000 32,000 49,000 41,000 22,000 $189,000 17-Oct 24-Oct Cash receipts 10/26 -10/27 15-Oct 16-Oct $15,000 11,000 78,000 12,000 6,800 9,200 1154 1155 20-Oct 1156 22-Oct 1157 29-Oct Balance on October 1 29,000 $161,000 Receipts Disbursements Balance on October 31 $65,200 189,000 161,000 $93,200 Information from October's bank statement and company records reveals the following additional information: a) The ending cash balance shown on the bank statement is $110,760. b) Cash receipts of $22,000 from 10/26-10/27 are outstanding. c) Checks 1156 and 1157 are outstanding. d) The deposit on 10/24 includes a customer's check for $1,500 that did not clear the bank (NSF check). e) Check 1154 was written for $11,200 for a desk purchased in October. The bank properly recorded the check for this amount. f) An automatic withdrawal for November rent was made on October 29 for $3,000. g) The company's checking account earns interest based on the average daily balance. The amount of interest earned for October is $20. h) Last year, one of the company's customers requested their A/R be converted to a Note Receivable (they owed $5,000 to the company). On October 29th, the customer paid $5,100 ($5,000 note amount plus $100 interest) directly to the bank in payment for the amount they owed the company. i) The bank charged the following service fees: $50 for NSF check and $10 account maintenance fee. Prepare a bank reconciliation for October 31, 20XE to assist answering the questions following: 21. $ of the total checks written during the month, what amount should be deducted from the bank balance during reconciling the bank account? Of the cash receipts, what amount should be added to the bank balance during reconciling 22. $ the bank account? Chapter 4 Page 4-3 23. When performing the bank reconciliation, how should the company treat check 1154? A. add $800 to the company cash account B. subtract $800 from company cash account C. add $800 to bank statement balance D. subtract $800 from bank statement balance 24. S The total amount needed to reconcile the company cash account was: 25. $ What is the company's cash balance after the reconciliation? Use the following to answer questions 26 - 32 Below is a summary of all transactions of KEV Consulting for the month of October Cash transactions Cash collections from: Sale of unused office furniture Borrowing from bank Customers Cash payments for: Employee salaries Dividends to stockholders $15,000 100,000 850,000 500,000 100,000 Cash transactions Cash collections from: Sale of unused office furniture $15,000 Borrowing from bank 100,000 Customers 850,000 Cash payments for: Employee salaries 500,000 Dividends to stockholders 100,000 Advertising expense 225,000 Utilities expense 18,000 Purchased office equipment 80,000 Office supplies 2,500 Noncash Transactions Issue note payable for equipment $300,000 Services to customers on account 45,000 Purchase office equipment on account 25,000 Prepare a statement of cash flows for the month of October, properly classifying each of the transactions into operating, Investing, and financing activities. The cash balance at the beginning of October is $25,000. 26. $. 27. $ 28. $ 29. $ 30. $ 31. $ 32. $ What is the amount of cash inflows from operating activities? What is the amount of cash outflows from operating activities? What is the Net Cash Flows from Operating Activities (if cash used, use "-")? What is the Net Cash Flows from Investing Activities (if cash used, use "-"? What is the Net Cash Flows from Financing Activities (if cash used, use "-"')? How much did cash change (if decrease, use".") What is the ending cash balance for the company? Use the following to answer questions 1-4 Determine whether the firm reports each of the following items as part of cash, cash equivalents, or neither in the balance sheet. Item Cash, Cash equivalent, or neither 1 Inventory that will be sold in 30 days 2. 30 day US Treasury bill 3 Accounts receivable to be collected in 30 days 4. Investments with maturities of six months Use the following to answer questions 5-8 Bank Reconciliation: Identify whether the item should be added or subtracted from the bank balance or the company balance. Use the number (1-4) for your response. For instance, if the amount should be added to bank statement balance you would input 1. 1. Added to bank statement balance 2. Subtracted from bank statement balance 3. Added to company cash balance 4. Subtracted from company cash balance 6 8 Item 5 Bank error cleared the same check twice Company error, wrote check for $890 but recorded it as $980 7 Checks outstanding Interest earned on bank account Use the following to answer questions 9-11 On February 28th, the general ledger of the company shows a balance for cash of $186,200. Cash receipts yet to be deposited into the checking account total $27,200, while checks written by the company but not yet processed by the bank total $18,900. The company's balance of cash does not reflect a NSF check of $1,500, a service fee of $125 and interest earned of $25 and customer payments collected by the bank of $8,000; however, these amounts are included in the balance of cash of $184,300 reported by the bank as of the end of February Answer the following based on the process of doing the bank reconciliation: 9. $ Determine the total amount that is used to reconcile the Bank balance (include "-" If needed): 10. $ Determine the total amount that is used to reconcile the Company cash balance (include "if needed) 11. S What is the balance in the company's cash account after the reconciliation? Use the following to answer questions 12-15 Transaction Cash involved? (Yes or No) Type of CASH FLOW Operating, Investing, Financing, or None Use the first letter (O.1, F, N) 12. Issue common stock 13. 14. Purchased building and land with cash Provide services to customers on account Paid utilities used in the manufacturing plant 15. Use the following to answer questions 16-20 Following are the transaction of TAR Inc., which provides consulting services related to mining of precious metals. Amount of Transaction B Transaction Cash used for payment of employee salaries Cash provided from sale of equipment that had been used in operations Cash used for purchase of office supplies Cash used for purchase of office equipment Cash used to pay office utilities Cash used for payment of office rent Cash provided from consulting customers Cash provided from long-term borrowing Cash used to pay the bank for a loan due this month Purchase of company vehicle paying 1/10 cash and borrowing the rest. $450,000 25,000 15,000 250,000 36,000 mo F 48,000 G 690,000 H 300,000 1 100,000 38,000 16. S _Refer to transaction , how much should be included in cash used from investing activities? 17. S Determine the net cash flows from operating activities (include "" If needed) 18. $ Determine the net cash flows from investing activities (include if needed) 19. S Determine the net cash flows from financing activities (include "If needed) 20. $ How much did cash change over the year? Use the following to answer questions 21 - 25 The Company's cash ledger reports the following for the month ending October 31, 20XE. Deposits Checks Date No. Date Amount 3-Oct 4-Oct 10-Oct 1151 1152 1153 6-Oct Amount $45,000 32,000 49,000 41,000 22,000 $189,000 17-Oct 24-Oct Cash receipts 10/26 -10/27 15-Oct 16-Oct $15,000 11,000 78,000 12,000 6,800 9,200 1154 1155 20-Oct 1156 22-Oct 1157 29-Oct Balance on October 1 29,000 $161,000 Receipts Disbursements Balance on October 31 $65,200 189,000 161,000 $93,200 Information from October's bank statement and company records reveals the following additional information: a) The ending cash balance shown on the bank statement is $110,760. b) Cash receipts of $22,000 from 10/26-10/27 are outstanding. c) Checks 1156 and 1157 are outstanding. d) The deposit on 10/24 includes a customer's check for $1,500 that did not clear the bank (NSF check). e) Check 1154 was written for $11,200 for a desk purchased in October. The bank properly recorded the check for this amount. f) An automatic withdrawal for November rent was made on October 29 for $3,000. g) The company's checking account earns interest based on the average daily balance. The amount of interest earned for October is $20. h) Last year, one of the company's customers requested their A/R be converted to a Note Receivable (they owed $5,000 to the company). On October 29th, the customer paid $5,100 ($5,000 note amount plus $100 interest) directly to the bank in payment for the amount they owed the company. i) The bank charged the following service fees: $50 for NSF check and $10 account maintenance fee. Prepare a bank reconciliation for October 31, 20XE to assist answering the questions following: 21. $ of the total checks written during the month, what amount should be deducted from the bank balance during reconciling the bank account? Of the cash receipts, what amount should be added to the bank balance during reconciling 22. $ the bank account? Chapter 4 Page 4-3 23. When performing the bank reconciliation, how should the company treat check 1154? A. add $800 to the company cash account B. subtract $800 from company cash account C. add $800 to bank statement balance D. subtract $800 from bank statement balance 24. S The total amount needed to reconcile the company cash account was: 25. $ What is the company's cash balance after the reconciliation? Use the following to answer questions 26 - 32 Below is a summary of all transactions of KEV Consulting for the month of October Cash transactions Cash collections from: Sale of unused office furniture Borrowing from bank Customers Cash payments for: Employee salaries Dividends to stockholders $15,000 100,000 850,000 500,000 100,000 Cash transactions Cash collections from: Sale of unused office furniture $15,000 Borrowing from bank 100,000 Customers 850,000 Cash payments for: Employee salaries 500,000 Dividends to stockholders 100,000 Advertising expense 225,000 Utilities expense 18,000 Purchased office equipment 80,000 Office supplies 2,500 Noncash Transactions Issue note payable for equipment $300,000 Services to customers on account 45,000 Purchase office equipment on account 25,000 Prepare a statement of cash flows for the month of October, properly classifying each of the transactions into operating, Investing, and financing activities. The cash balance at the beginning of October is $25,000. 26. $. 27. $ 28. $ 29. $ 30. $ 31. $ 32. $ What is the amount of cash inflows from operating activities? What is the amount of cash outflows from operating activities? What is the Net Cash Flows from Operating Activities (if cash used, use "-")? What is the Net Cash Flows from Investing Activities (if cash used, use "-"? What is the Net Cash Flows from Financing Activities (if cash used, use "-"')? How much did cash change (if decrease, use".") What is the ending cash balance for the company