Questions from Intermediate Accounting

Q: Gringo Corporation factors $250,000 of accounts receivable with Winkler

Gringo Corporation factors $250,000 of accounts receivable with Winkler Financing, Inc. on a with recourse basis. Winkler Financing will collect the receivables. The receivables records are transferre...

Q: SEK Corp. factors $400,000 of accounts receivable with

SEK Corp. factors $400,000 of accounts receivable with Mays Finance Corporation on a without recourse basis on July 1, 2012. The receivables records are transferred to Mays Finance, which will receive...

Q: On July 1, 2012, Rentoul Inc. made two sales

On July 1, 2012, Rentoul Inc. made two sales. 1. It sold land having a fair value of $900,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,416,163. The land...

Q: On December 31, 2011, Hurly Co. performed environmental consulting

On December 31, 2011, Hurly Co. performed environmental consulting services for Cascade Co. Cascade was short of cash, and Hurly Co. agreed to accept a $300,000 zero-interest-bearing note due December...

Q: Presented below is information for Grant Company. 1. Beginning

Presented below is information for Grant Company. 1. Beginning-of-the-year Accounts Receivable balance was $15,000. 2. Net sales (all on account) for the year were $100,000. Grant does not offer cash...

Q: Use the information for Grant Company as presented in E7-20

Use the information for Grant Company as presented in E7-20. Grant is planning to factor some accounts receivable at the end of the year. Accounts totaling $10,000 will be transferred to Credit Factor...

Q: McMann, Inc. decided to establish a petty cash fund to

McMann, Inc. decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. The following information is available for the month of April. 1. On April 1, it e...

Q: The petty cash fund of Teasdale’s Auto Repair Service, a sole

The petty cash fund of Teasdale’s Auto Repair Service, a sole proprietorship, contains the following. The general ledger account Petty Cash has a balance of $300. Instructions Pre...

Q: Kipling Company deposits all receipts and makes all payments by check.

Kipling Company deposits all receipts and makes all payments by check. The following information is available from the cash records. June 30 Bank Reconciliation Balance per bank …&...

Q: Aragon Company has just received the August 31, 2012, bank

Aragon Company has just received the August 31, 2012, bank statement, which is summarized below. The general ledger Cash account contained the following entries for the month of August. Deposits i...