None Rush Corporation borrowed $25,000 from the bank. Which of the followingaccurately shows the effects of the transaction?a. Increase cash by $25,000 and decrease notes payable by $25,000.b. Increase cash by $25,000 and increase notes payable by $25,000.c. Decrease cash by $25,000 and decrease notes payable by $25,000.d. Decrease cash by $25,000 and increase notes payable by $25,000.

Step 1: Introduction to Accounting Equation:An accounting equation helps in understanding the…

Answered: Rush Corporation borrowed $25,000 from…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 2PB: To demonstrate the difference between cash account activity and accrual basis profits (net income),...

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Assume that Johnson and Johnson company received the cheque of OMR 197 form it's debtor ( Accounts receivables ) . But the accountant of the company recorded it as OMR 179 and sent to bank for deposit How will you adjust the above reconciliation item in Bank reconciliation statement ? a . Add OMR 197 to cash book balance b . Add OMR 18 to cash book balance c . Deduct OMR 18 from Bank statement balance d . Less OMR 179 from bank statement balance
Xanthe Corporation had the following transactions occur in the current year: 1. Cash sale of merchandise inventory. 2. Sale of delivery truck at book value. 3. Sale of Xanthe common stock for cash. 4. Issuance of a note payable to a bank for cash. 5. Sale of a security held as an available-for-sale investment. 6. Collection of loan receivable. How many of the above items will appear as a cash inflow from investing activities on a statement of cash flows for the current year? Question 128 options: Five items Four items Three items Two items
28. On receipt of bank statements, a company has identified that bank has collected interest OMR 100, but was not recorded in the cash book. How do you treat this item while preparing bank reconciliation statement? a. Add to the cash book balance b. Deduct from the bank statement balance c. Add to the bank statement balance d. Deduct from the cash book balance
19. A bank deducted OMR 50 from the customer’s account as a bank charge and customer noticed this only on the receipt of bank statements. How to reconcile this item in the bank reconciliation statement? a. Deduct from the bank statement balance b. Add to the bank statement balance c. Deduct from the cash book balance d. Add to the cash book balance
Bank Reconciliation Activity The accounting records and bank statement of Entity A shows the following information: (The attached picture) Additional Information:a. The payments of P2,000 and P50,000 shown on the bank statement pertain to the cost of checkbook requested from the bank and the monthly amortization of a bank loan,respectively. The loan payment includes payment for interest of P8,000. b. Deposits shown on the bank statement but not on the cash ledger represent collections of accounts receivable. Requirements:1. Prepare the bank reconciliation.2. Prepare the journal entries to record the adjusting entries on the books of Entity A.
1. A company makes a sale to a customer on credit and borrows cash (70-90% of the amount of sales) from a bank using receivables as security. When the company receives the customer payment, it sends this money to the lender. This transaction is an example of what? Factoring with recourse Securitization Collateralized borrowing Nonrecourse factoring 2. Which of the following statements about the direct and indirect methods for presenting Cash Flow Statement is NOT true? According to the indirect method, cash flows begin with net income or loss and is followed by subsequent additions to or deductions from that amount for non-cash revenue and expense items, resulting in cash flow from operating activities. The direct method is based on use of actual cash inflows and outflows from a company’s operations. Using direct and indirect methods leads to different amounts shown as cash flow from operations, investing, and financing activities.…
ROK Company has a material bank overdraft of $2,000 in ABC Bank and $95,000 in XYZ bank. The bank overdraft in ABC bank should be: O reported as a deduction from the current asset section O reported as a deduction from cash. Onetted against cash and a net cash amount reported. O reported as a current liability.
Horton Corporation is preparing a bank reconciliation and has identified the following potential reconciling items. For each item, indicate if it is (1) added to balance per bank statement, (2) deducted from balance per bank statement, (3) added to balance per books, or (4) deducted from balance per books. a.Deposit in transit $5,500. b.Bank service charges $25. c.Interest credited to Horton's account $31. d.Outstanding checks $7,422. e.NSF check returned $377 Use the information above for Horton Corporation. Prepare any entries necessary to make Horton's accounting records correct and complete.
An amount of P1,000 is debited twice in the bank statement. When overdraft as per the cash book is the starting point? A. P1,000 will be added B. P1,000 will be deducted C. P2,000 will be added D. P2,000 will be deducted
Assume that a bank receives a deposit of $1,000 in cash, puts aside $200 as required reserves, and makes a loan of $800, these transactions imply that: the money multiplier is 10. the money multiplier is 5. the money multiplier is 4. the money multiplier is 2. the money multiplier is 2.
4) Eastern Company's bank statement for the month of December included the following information: Ending balance Bank service charge for December Interest paid by the bank to Eastern for December 2,800,000 12,000 10,000 In comparing the bank statement to its own cash records, Eastern Company found the following: Deposits made but not yet recorded by the bank Checks written and mailed but not yet recorded by bank 350,000 650,000 In addition, Eastern Company discovered that it had drawn and erroneously recorded a check for P46,000 that should have been recorded for P64,000. What is the cash balance per ledger on December 31? A. 970,000 B. 610,000 C. 2,520,000 D. 2,500,000
The following items may appear on a bank statement: 1. Bank correction of an error from recording a $6,200 deposit as $2,600 2. EFT payment 3. Note collected for company 4. Service charge Using the following format, indicate whether each item would appear as a debit or credit memo on the bank statement and whether the item would increase or decrease the bal- ance of the company's account: Appears on the Bank Statement as Increases or Decreases the Balance of the Company's Bank Account a Debit or Credit Memo Item No.

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