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On November 1, Year 1, Salem Corporation sold land priced at $380,000 in exchange for a 3%, six-month note receivable. 35 Sal34 Bert had accounts receivable of $335,000 and an allowance for doubtful accounts of $13,100 just before writing off as wort33 The Cash account in the records of Hensley, Incorporated showed a balance of $3,250 at June 30. The bank statement, howeve32 A bank statement shows a balance of $8,945 at June 30. The bank reconciliation is prepared and includes outstanding checks31 As of December 31, Year 1, Valley Company has $12,760 cash in its checking account, as well as several other items listed

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Answer #1

Required 35:

The correct option is A. i.e Note receivable of $380,000 and interest receivable of $5,700.

Interest receivable = [($380,000 * 3%) * 6/12] = $5,700.

Required 34:

The correct option is A i.e $10,900 credit balance. ($13,100 - $2,200).

Required 33:

The correct option is A i.e $1,404

Cash bal (-) Bank charges (-) Deposit in transit (+) Outstanding checks = Balance as per bank.

$3,250 - $4 - $400 + Outstanding checks = $4,250

Outstanding check = $4,250 - $3,250 + $4 + $400

Outstanding check = $1,404.

Required 31:

The correct option is D i.e $82,880.

Cash bal in checking account $12,760
(+) Bank credit card slip by customer $1,400
(+) Money market fund balance $27,000
(+) Investment in US Treasury bills $40,000
(+) Checks received from customers $1,720
Cash and cash equivalent $82,880
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