Check no. 2350 was outstanding from June. The credit memo was for collection of notes receivable. All checks were paid at the correct amount. The debit memo was for printed checks. The June 30 bank reconciliation showed a deposit in transit of $1,101. The unadjusted Cash account balance at July 31 was $14,128. Required a. Prepare the bank reconciliation for Park Valley Spa at the end of July. b. Record in general journal form any necessary entries to the Cash account to adjust it to the true cash balance. Check no. 2350 was outstanding from June. The credit memo was for collection of notes receivable. All checks were paid at the correct amount. The debit memo was for printed checks. The June 30 bank reconciliation showed a deposit in transit of $1,101. The unadjusted Cash account balance at July 31 was $14,128. Required a. Prepare the bank reconciliation for Park Valley Spa at the end of July. b. Record in general journal form any necessary entries to the Cash account to adjust it to the true cash balance.

Paar corporation bought 100 percent of kimmel, inc., on january 1, 2012. on that date, paar’s equipment (10-year life) has a book value of $420,000 but a fair value of $520,000. kimmel has equipment (10-year life) with a book value of $272,000 but a fair value of $400,000. paar uses the equity method to record its investment in kimmel. on december 31, 2014, paar has equipment with a book value of $294,000 but a fair value of $445,200. kimmel has equipment with a book value of $190,400 but a fair value of $357,000. the consolidated balance for the equipment account as of december 31, 2014 is $574,000. what would be the impact on consolidated balance for the equipment account as of december 31, 2014 if the parent had applied the initial value method rather than the equity method? the balance in the consolidated equipment account cannot be determined for the initial value method using the information given. the consolidated equipment account would have a higher reported balance. the consolidated equipment account would have a lower reported balance. no effect: the method the parent uses is for internal reporting purposes only and has no impact on consolidated totals.

Match the given situations to the type of risks that a business may face while taking credit. 1. beta ltd. had taken a loan from a bank for a period of 15 years, but its sales are gradually showing a decline. 2. alpha ltd. has taken a loan for increasing its production and sales, but it has not conducted any research before making this decision. 3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession. 4. delphi ltd. has taken a short-term loan from the bank, but its supply chain logistics are not in place. a. foreign exchange risk b. operational risk c. term of loan risk d. revenue projections risk

Down under products, ltd., of australia has budgeted sales of its popular boomerang for the next four months as follows: unit salesapril 74,000may 85,000june 114,000july 92,000the company is now in the process of preparing a production budget for the second quarter. past experience has shown that end-of-month inventory levels must equal 10% of the following month’s unit sales. the inventory at the end of march was 7,400 units.required: prepare a production budget by month and in total, for the second quarter.