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Short Answer Questions 125. Costa Co. has the following cash balances at

Question : Short Answer Questions 125. Costa Co. has the following cash balances at : 1412688

 

 


Short Answer Questions
 

125.

Costa Co. has the following cash balances at local banks as of 12/31/2016:

 

National Bank:

$100,000

K&P Bank:

25,000

Insolvent Trust

25,000



Required:

1. Prepare the Current Assets and Current Liabilities section of Costa's 2016 balance sheet, assuming Parker reports under U.S. GAAP.
2. Prepare the Current Assets and Current Liabilities section of Costa's 2016 balance sheet, assuming Parker reports under IFRS.  
 
 

 

 

 

 

126.

On May 12, 2016, Falwell Computing sold five computers to Computing Plus for $10,000, subject to terms 3/10, n/30. Falwell uses the net method of accounting for sales discounts.

Required:

1. Prepare the journal entry to record the sale.
2. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on May 20, 2016.
3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on June 5, 2016. 
 
 

 

 

 

 

 

127.

On July 18, 2016, Philly Furniture Factory sold 20 reclining rockers to Dave's Discount Furniture for $8,000, subject to terms 2/10, n/30. Philly uses the net method of accounting for sales discounts.

Required:

1. Prepare the journal entry to record the sale.
2. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on July 26, 2016.
3. Prepare the journal entry to record receipt of the payment, assuming the correct amount was received on August 15, 2016.  
 
 

 

 

 

 

 

Solution
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