Assignment Questions -
A. What amount should be reported as Cash and Cash Equivalents on Green Construction Company's June 30, 2015 balance sheet? Use the following balances reported by Green Construction Company at year end June 30, 2015:
Cash in checking account $ 22,500
Cash in money market account $ 35,000
US Treasury bill, purchased 5/1/2015, maturing 7/31,2015 $200,000
US Treasury bill, purchased 1/1/2015 maturing 12/31/2015 $150,000
B. Green Construction Company had a credit balance of $260,000 in its Allowance for Uncollectible Accounts at year end June 30, 2015. Based on past experience, 4% of Green's credit sales have been uncollectible. During Green's fiscal year, he wrote off $325,000 of uncollectible accounts. Credit sales for Green's fiscal year were $7,000,000.
1) In its June 30, 2015 balance sheet, what amount should Green report as allowance for uncollectible accounts?
2) Prepare the journal entries to record the write-off of customers' accounts and the bad debt expense.
C. Simmons Industries sold merchandise to a customer and invoiced them for $500,000 on December 1, 2014. In exchange for payment, the customer signed a 6% note requiring the payment of interest and principal on March 1, 2015.
1) Prepare the journal entry to record the sale in exchange for the note.
2) How much interest revenue will Simmons recognize for 2014?
3) Prepare the journal entry to record the collection of the note on March 1, 2015.
PLEASE SUBMIT YOUR ANSWER USING EXCEL WITH EACH PROBLEM ON A SEPARATE TAB.