ACC 537 Week 1 Textbook Problems P7 1Francis Equipment Co
Include reference . ===================================================
ACC 537 Week 1 Textbook Problems P7 1Francis Equipment Co
FOR MORE CLASSES VISIT www . acc537study . com
P7-1 ( Determine Proper Cash Balance ) Francis Equipment Co . closes its books regularly on December 31 , but at the end of 2014 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes . Cash receipts and disbursements for the first 10 days of January were recorded as December transactions . The information is given below .
1 . January cash receipts recorded in the December cash book totaled $ 45,640 , of which $ 28,000 represents cash sales , and $ 17,640 represents collections on account for which cash discounts of $ 360 were given .
2 . January cash disbursements recorded in the December check register liquidated accounts payable of $ 22,450 on which discounts of $ 250 were taken .
3 . The ledger has not been closed for 2014 .
4 . The amount shown as inventory was determined by physical count on December 31 , 2014 . The company uses the periodic method of inventory .
===================================================