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    The Cash Account in The General Ledger of Hendry Corporation

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    amit raaj
    The document provides financial information for Hendry Corporation as of December 31, 2011. It details balances in Hendry's cash account, bank statement, deposits and checks outstanding. It also lists money market accounts, commercial paper, stock investments and a note receivable from the sale of a warehouse. Hendry uses an income statement approach to calculate uncollectible accounts based on accounts receivable balances and credit sales.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    The Cash Account in The General Ledger of Hendry Corporation

    Uploaded by

    amit raaj
    196 views1 page
    The document provides financial information for Hendry Corporation as of December 31, 2011. It details balances in Hendry's cash account, bank statement, deposits and checks outstanding. It also lists money market accounts, commercial paper, stock investments and a note receivable from the sale of a warehouse. Hendry uses an income statement approach to calculate uncollectible accounts based on accounts receivable balances and credit sales.

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    The Cash Account in the General Ledger of Hendry Corporation

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    The document provides financial information for Hendry Corporation as of December 31, 2011. It details balances in Hendry's cash account, bank statement, deposits and checks outstanding. It also lists money market accounts, commercial paper, stock investments and a note receivable from the sale of a warehouse. Hendry uses an income statement approach to calculate uncollectible accounts based on accounts receivable balances and credit sales.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    196 views1 page

    The Cash Account in The General Ledger of Hendry Corporation

    Uploaded by

    amit raaj
    The document provides financial information for Hendry Corporation as of December 31, 2011. It details balances in Hendry's cash account, bank statement, deposits and checks outstanding. It also lists money market accounts, commercial paper, stock investments and a note receivable from the sale of a warehouse. Hendry uses an income statement approach to calculate uncollectible accounts based on accounts receivable balances and credit sales.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    The Cash account in the general ledger of Hendry

    Corporation
    The Cash account in the general ledger of Hendry Corporation shows a balance of $96,990
    atDecember 31, 2011 (prior to performing a bank reconciliation). The company’s bank
    statement shows a balance of $100,560 at the same date. An examination of the bank
    statement reveals the following:1. Deposits in transit amount to $24,600.2. Bank service
    charges total $200.3. Outstanding checks total $31,700.4. A $3,600 check marked “NSF” from
    Kent Company (one of Hendry Corporation’s customers) was returned to Hendry Corporation
    by the bank. This was the only NSF check that Hendry Corporation received during 2011.5. A
    canceled check (no. 244) written by Hendry Corporation in the amount of $1,250 for office
    equipment was incorrectly recorded in the general ledger as a debit to Office Equipment of
    $1,520, and a credit to Cash of $1,520.In addition to the above information, Hendry Corporation
    owns the following assets at December 31, 2011: (1) money market accounts totaling $75,000,
    (2) $3,000 of high-grade, 90-day, commercial paper, and (3) highly liquid stock investments
    valued at $86,000 at December 31, 2011 (these investments originally cost Hendry Corporation
    $116,000).On December 1, 2011, Hendry Corporation sold an unused warehouse to Moran
    Industries for $100,000. Hendry accepted a six-month, $100,000, 6 percent note receivable
    from Moran. The note, plus accrued interest, is due in full on May 31, 2012. Hendry Corporation
    adjusts for accrued interest revenue monthly.Hendry Corporation uses the income statement
    approach to compute its uncollectible accounts expense. The general ledger had reported
    Accounts Receivable of $2,150,000 at January 1, 2011.At that time, the Allowance for Doubtful
    Accounts had a credit balance of $40,000. Throughout 2011, the company wrote off actual
    accounts receivable of $140,000 and collected $21,213,600 on account from credit customers
    (this amount includes the $3,600 NSF check received from Kent Company). Credit sales for the
    year ended December 31, 2011, totaled $20,000,000. Of these credit sales, 2 percent were
    estimated to eventually become uncollectible.Instructionsa. Prepare Hendry Corporation’s bank
    reconciliation dated December 31, 2011, and provide the journal entry necessary to update the
    company’s general ledger balances.b. Compute cash and cash equivalents to be reported in
    Hendry Corporation’s balance sheet dated December 31, 2011.c. Prepare the adjusting entry
    necessary to account for the note receivable from Moran Industries at December 31, 2011.d.
    Determine the net realizable value of Hendry Corporation’s accounts receivable at December
    31, 2011.e. Determine the total dollar amount of financial assets to be reported in Hendry
    Corporation’s balance sheet dated December 31, 2011.f. Assume that it is normal for firms
    similar to Hendry Corporation to take an average of 45 days to collect an outstanding
    receivable. Is Hendry Corporation’s collection performance above or below this average?View
    Solution:
    The Cash account in the general ledger of Hendry Corporation
    SOLUTION-- http://solutiondone.online/downloads/the-cash-account-in-the-general-ledger-of-
    hendry-corporation/

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