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BA 220 Week 5 Homework Latest Grantham

Question Posted By

  • James
  • Questions : 36
  • Solutions : 226

Question Description

BA 220 Week 5 Homework Latest Grantham


  • What is the importance of the turnover of accounts receivables?
  • Why is it is essential for organizations to keep cash reserves on hands?
  • Is it possible to still bring in a lot of revenue, but still be short on cash?
  • How can this happen or not happen?

Problem 6-7 A

Han’s Supplies’ bank statement contained a $270 NSF check that one of its customers had written to pay for supplies purchased.


  1. Show the effects of recognizing the NSF check on the financial statements by recording the
  2. appropriate amounts in a horizontal statements model like the following one:

Assets = Liab. + Equity

  1. Cash + Accts. Rec. Rev - Exp. = Net. Inc Cash Flow b. Is the recognition of the NSF check on Han’s books an asset source, use, or exchange transaction?
  2. Suppose the customer redeems the check by giving Han $290 cash in exchange for the bad

check. The additional $20 paid a service fee charged by Han. Show the effects on the

  1. financial statements in the horizontal statements model in Requirement a.
  2. Is the receipt of cash referenced in Requirement c an asset source, use, or exchange transaction?
  3. Record in general journal form the adjusting entry for the NSF check and the entry for
  4. redemption of the check by the customer.

Problem 6-10 A

As of June 30, 2016, the bank statement showed an ending balance of $19,500. The unadjusted

 Cash account balance was $15,200. The following information is available:

  1. Deposit in transit, $2,400.
  2. Credit memo in bank statement for interest earned in June, $30.
  3. Outstanding check, $6,690.
  4. Debit memo for service charge, $20.


  1. Determine the true cash balance by preparing a bank reconciliation as of June 30, 2016, using
  2. the preceding information.
  3. Record in general journal format the adjusting entries necessary to correct the unadjusted
  4. book balance.

Problem 6-11 A

The following information is available for Trinkle Company for the month of June:

  1. The unadjusted balance per the bank statement on June 30 was $81,500.
  2. Deposits in transit on June 30 were $3,150.
  3. A debit memo was included with the bank statement for a service charge of $40.
  4. A $5,611 check written in June had not been paid by the bank.
  5. The bank statement included a $950 credit memo for the collection of a note. The principal of the note was $900, and the interest collected amounted to $50.


 Determine the true cash balance as of June 30, (Hint: It is not necessary to use all of the

 preceding items to determine the true balance.)


Available Solutions

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