December 2010
Intermediate to advanced
848 pages
31h 28m
English
Content preview from Financial Accounting: In an Economic ContextBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
EXERCISES
E6-1
Classifying cash on the balance sheet
Boyer International is currently preparing its financial statements for 2011. The company has several different sources of cash and is trying to decide how to classify them. The sources of cash follow:
a. $30,000 in a checking account with The First National Bank.
b. $3,000 in checks dated December 4, 2011, received from customers.
c. $250,000 in certificates of deposit through The First National Bank, which are to mature on November 15, 2014.
d. $40,000 in a savings account with The First National Bank.
e. $1,000 in the petty cash fund. As of December 31, 2011, there are receipts totaling $600 in the petty cash drawer.
f. $50,000 held as a compensating balance for a loan with The First National Bank. The loan agreement requires Boyer International to maintain a compensating balance equal to 10 percent of the loan balance. During 2012, the outstanding principal balance will be reduced to $350,000.
g. $8,000 in a checking account with Interstate Federal Savings.
Indicate how each source listed should be classified on the December 31, 2011, balance sheet. Explain each answer.
E6-2
Classifying cash on the balance sheet
The following items were taken from the financial records of Melvin Construction Company.
a. $2,000 in a checking account.
b. $8,000 invested in a treasury note due to mature in 90 days.
c. $3,000 in a savings account that cannot be withdrawn until a $10,000 outstanding debt is paid off.
d. $18,000 invested in securities ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.