Question

Question 7 Not yet answered Joseph was preparing a bank reconciliation as of December 28, 2017 The following items were identified: Joseph's book balance $15,000, Outstanding Checks $2,500, Deposit in transit, $1,000, Bank service charge $100, Customer's NSF check returned by the bank $200. What amount will Joseph report as its adjusted cash balance at December 28, 2017? Marked out of 250 P Flag question Select one A $18,200 B. $13,700 C. $16,200 O D $14.700 Question 8 Not yet answered Benjamin Corp. offers terms of 2/10,n/30 to credit customers. Gibson Inc, purchased 100 units with a list price of $30 each on March 5, 2017, on account. If Gibson Inc. pays the amount of the invoice for its purchase on March 14, 2017. how much cash will Benjamin receive from Gibson Inc? Marked out of 2 50 P Flag question Select one: A $60 B. $2,500 C. $3,000 D. $2.9.40 Question 9 Mallory Company borrowed on a one-year, 12%, $100.000 note on May 1, with interest and principal to be paid at maturity How much interest payable will be reported on Malory's balance sheet as of November 30 of the same year? Not yet answered Marked out of 2.50 P Flag question Select one A $7,000 B. $6,000 C. $12.000

Answer 1

Ans: Numbering is given as mentioned in the question.

7. The correct answer is (B) $16200. Joseph will report $16200 as his adjusted cash balance as at December 28, 2017.

Joseph

Bank Reconciliation Statement

December 28, 2017

Balance as per Book		$15000
Add: Outstanding Checks		$2500
		$17500
Deduct: Deposit in Transit		($1000)
		$13500
Deduct: NSF Check	$200
Bank Service Charges	$100	($300)
Adjusted Cash Balance		$16200

8. The correct answer is (D) $2940. Benjamin will receive $2940 in cash from Gibson inc.

Gibson Inc purchased 100 units at a list price of $30 per unit on MArch 5, 2017 i.e total payable amount is $3000. And if he pays the amount within 10 days of purchase then Benjamin will give 2% discount on the list Price or else Gibson Inc will have to pay the full amount. Ginson Inc paid the amount on March 14, 2017 i.e on exactly 10th day after the purchase and hence he will be eligible to 2% discount on $3000 which comes to $600. Therefore, Gibson Inc will pay $2940 ($3000-$600) to Benjamin.

9. The correct answer is (D) $5000. Mallory Company borrowed a one year 12%, $100000 note with interest and principal payabl at the maturity. Total interest amountb will be $12000 ($100000 * 12%). On November 30, interest to be recognized as an expense will ne for 7 months (from may 1 to November 30) of $7000 ($100000 * 12% * 7/12) and the amount of interest payable i.e,. outstanding interest on November 30 will be $5000 ($12000-$7000).

Therefore, Interest of $5000 will be reported as Interest payable in Mallory's Balancesheet as on November 30.