中级财务会计英文ch04

Chapter4-1CashandReceivablesChapter4IntermediateAccounting12thEditionKieso,Weygandt,andWarfieldPreparedbyCobyHarmon,UniversityofCalifornia,SantaBarbaraChapter4-21.Identifyitemsconsideredascash.2.Indicatehowtoreportcashandrelateditems.3.Definereceivablesandidentifythedifferenttypesofreceivables.4.Explainaccountingissuesrelatedtorecognitionofaccountsreceivable.5.Explainaccountingissuesrelatedtovaluationofaccountsreceivable.6.Explainaccountingissuesrelatedtorecognitionofnotesreceivable.7.Explainaccountingissuesrelatedtovaluationofnotesreceivable.8.Explainaccountingissuesrelatedtodispositionofaccountsandnotesreceivable.9.Describehowtoreportandanalyzereceivables.LearningObjectivesChapter4-3Cashistheresourceonhandtomeetplannedexpendituresandemergencysituations.CashChapter4-4Cashincludes:BalancesondepositwithfinancialinstitutionsCoinsandcurrencyPettycashCertainnegotiableinstrumentsCashier’schecksCertifiedchecksMoneyordersCashChapter4-5Cashequivalentsareshort-term,highlyliquidinvestmentsthatarereadilyconvertibleintoknownamountsofcashandneartheirmaturity(90days)whenpurchased.•Treasurybills•Commercialpaper•MoneymarketfundsCashEquivalentsChapter4-6ItemsthatarenotcashPostdatedchecksTraveladvancestoemployeesPostagestampsReceivablesfromcompanyemployeesCashadvancestoemployeesoroutsidepartiesCashChapter4-7OverdraftNegativebankaccountbalancereportedasacurrentliability.CompensatingbalanceMinimumbalancethatmustbemaintainedinacompany’saccountassupportforfundsborrowedfromthebank.CashChapter4-8Policiesandproceduresdesignedto:Protectassets.Ensurecompliancewithlawsandcompanypolicies.Provideaccurateaccountingrecords.Evaluateperformance.InternalControlChapter4-9Separatecustodyofandaccountingforcash.Maintainonlytheminimumcashbalanceneeded.Provideforperiodictestcountsofcashbalances.Permitreconciliationofledgerandbankcashaccountbalances.Resultinthephysicalcontrolofcash.InternalControlforCashChapter4-10Separateresponsibilityforhandlingcash,recordingcashtransactions,andreconcilingcashbalances.Cash-handlingandcash-recordingactivitiesassignedtodifferentpeople.Closesupervisionofcash-handlingandcash-recordingactivities.ControlofCashReceiptsChapter4-11Separateresponsibilitiesfor:Cashdisbursementdocuments,Checkwriting,Checksigning,Checkmailing,andRecordkeeping.Adequatesourcedocumentsmustsupportallchecks.ControlofCashDisbursementsChapter4-12ImprestfundprovidinglimitedcashforroutinedisbursementsIntendedforpaymentofMinortransportationcostsPostageOfficesuppliesDeliverychargesPettyCashChapter4-13OnlyentriestoPettyCashEstablishthefund.Increase,decreaseorclosefund.PettyCashChapter4-14JacksonCompanymaintainsapettycashfundof$400.ThefollowingsummaryinformationwastakenfrompettycashvouchersforJuly:TravelExpenses$79.30CustomerBusinessLunches93.42ExpressMailPostage55.00MiscellaneousOfficeSupplies32.48PreparethejournalentrytorecordreplenishingfundifthebalanceonJuly31was$137.80.PettyCashExampleChapter4-15Whatamountofcashwillberequiredtoreplenishthepettycashfund?a.$260.20b.$262.20c.$139.80d.$137.80PettyCashExampleChapter4-16Whatamountofcashwillberequiredtoreplenishthepettycashfund?a.$260.20b.$262.20c.$139.80d.$137.80DesiredBalance$400.00ActualBalance137.80AmountNeeded$262.20PettyCashExampleChapter4-17GENERALJOURNALPage56DateDescriptionPost.Ref.DebitCreditJul31TravelExpense79.30EntertainmentExpense93.42PostageExpense55.00OfficeSuppliesExpense32.48CashOverorShort2.00Cash262.20PettyCashExampleChapter4-18BankReconciliationispreparedperiodicallyto:Explainthedifferencebetweencashreportedonbankstatementandcashbalanceoncompany’sbooks.Arriveattheadjusted(correct)cashbalance.Provideinformationforreconcilingjournalentries.BankReconciliationChapter4-19Startwithbalanceperbankstatement.Adddepositsintransit.Deductoutstandingchecks.Addordeductbankerrorsasappropriate.BankReconciliationBalancePerBankSectionChapter4-20Startwithbalanceperbooks.Adddepositscreditedbybank,butnotrecordedinbooks.DeductbankservicechargesandNon-SufficientFunds(NSF)checks.Addordeductbookerrorsasappropriate.BankReconciliationBalancePerBookSectionChapter4-21PrepareaJuly31bankreconciliationstatementandtheresultingjournalentriesfortheSimmonsCompany.TheJuly31bankstatementindicatedacashbalanceof$9,610,whilethecashledgeraccountonthatdateshowsabalanceof$7,430.Additionalinformationnecessaryforthereconciliationisshownonthenextpage.BankReconciliationExampleChapter4-22Outstandingcheckstotaled$2,417.A$500checkmailedtothebankfordeposithadnotreachedthebankatthestatementdate.Thebankreturnedacustomer’sNSFcheckfor$225receivedaspaymentofanaccountreceivable.Thebankstatementshowed$30interestearnedonthebankbalanceforthemonthofJuly.Check781forsuppliesclearedthebankfor$268butwaserroneouslyrecordedinourbooksas$240.A$486depositbyAcmeCompanywaserroneouslycreditedtoouraccountbythebank.BankReconciliationExampleChapter4-23Endingbankbalance,July319,610$Additions:Depositintransit500Deductions:Bankerror486$Outstandingchecks2,417(2,903)Correctcashbalance7,207$Endingbookbalance,July317,430$Additions: