Affiliate Marketing Secrets

Which of the following information would be on a balance sheet?
6.025% Long-Term Note Payable (only long term portion) 230,000
Accounts Payable 220,000
Accounts Receivable 110,000
Accumulated Depreciation – Building & Equip 109,600
Allowance of Doubtful Accounts 5,800
Building and Equipment 400,000
Capital Stock 2$ par, Authorized 100,00 Shares 60,000
Cash on Hand 44,725
Cash Surrendered Value of Life Insurance Policies 10,800
Current Installment of Long-term Debt (6.025% note) 20,000
Depreciation Expense 19,900
Discontinued Operational Loss 42,000
Dividends Received as Revenue 4,500
Error in Inventory Pricing in 2005 12,500
Goodwill 55,000
Inventories, at FIFO Cost (with market value of 360,000) 332,600
Long-Term Advance to Affiliated Company (Note Receivable) 50,000
Paid-in Capital in Excess Par 155,200
Prepaid 6 Months of Rent 3,600
Real Estate Tax Payable due 3/31/2010 6,625
Retain Earnings – Ending 12/31/09 262,800
Sales 450,000
Sales Return and Allowances 3,100
Savings Account Balance as of 12/31/09 26,000
Trading Marketable Securities (Listed at Cost, with a Market value of 51,800) 58,500
Uncollectible Account Expense 12,000
Unearned Revenue – Current Portion 14,500
~Notes are not required as of 12/31/09

1. Hamilton Company has cash in bank of $10,000, restricted cash in a separate account of $3,000, and a bank overdraft in an account at another bank of $1,000. Hamilton should report cash of
$9,000
$10,000
$12,000
$13,000
2. What is the preferable presentation of accounts receivable from officers, employees, or affiliated companies on a balance sheet?
As offsets to capital.
By means of footnotes only.
As assets but separately from other receivables.
As trade notes and accounts receivable if they otherwise qualify as current assets.
3.
If a company purchases merchandise on terms of 1/10, n/30, the cash discount available is equivalent to what effective annual rate of interest (assuming a 360-day year)?
1%
12%
18%
30%
4. Holtzman Corporation had a 1/1/07 balance in the Allowance for Doubtful Accounts of $10,000. During 2007, it wrote off $7,200 of accounts and collected $2,100 on accounts previously written off. The balance in Accounts Receivable was $200,000 at 1/1 and $240,000 at 12/31. At 12/31/07, Holtzman estimates that 5% of accounts receivable will prove to be uncollectible. What is Bad Debt Expense for 2007?
$2,000.
$7,100.
$9,200.
$12,000.
5.
On December 31, 2007, Eller Corporation sold for $75,000 an old machine having an original cost of $135,000 and a book value of $60,000. The terms of the sale were as follows:
$15,000 down payment
$30,000 payable on December 31 each of the next two years
The agreement of sale made no mention of interest; however, 9% would be a fair rate for this type of transaction. What should be the amount of the notes receivable net of the unamortized discount on December 31, 2007 rounded to the nearest dollar? (The present value of an ordinary annuity of 1 at 9% for 2 years is 1.75911.)
$52,773.
$67,773.
$60,000.
$105,546.
6. On January 1, 2006, Marr Co. exchanged equipment for a $400,000 zero-interest-bearing note due on January 1, 2009. The prevailing rate of interest for a note of this type at January 1, 2006 was 10%. The present value of $1 at 10% for three periods is 0.75. What amount of interest revenue should be included in Marr’s 2007 income statement?
$0
$30,000
$33,000
$40,000
7. Which of the following is true when accounts receivable are factored without recourse?
The transaction may be accounted for either as a secured borrowing or as a sale, depending upon the substance of the transaction.
The receivables are used as collateral for a promissory note issued to the factor by the owner of the receivables.
The factor assumes the risk of collectibility and absorbs any credit losses in collecting the receivables.
The financing cost (interest expense) should be recognized ratably over the collection period of the receivables.
8. Nottingham Corporation had accounts receivable of $100,000 at 1/1. The only transactions affecting accounts receivable were sales of $900,000 and cash collections of $850,000. The accounts receivable turnover is
6.0
6.6
7.2
9.0
9.
In preparing its August 31, 2007 bank reconciliation, Adel Corp. has available the follow-ing information:
Balance per bank statement, 8/31/07 $21,650
Deposit in transit, 8/31/07 3,900
Return of customer’s check for insufficient funds, 8/30/07 600
Outstanding checks, 8/31/07 2,750
Bank service charges for August 100
At August 31, 2007, Adel’s correct cash balance is
$22,800
$22,200
$22,100
$20,500
10. The cash account shows a balance of $45,000 before reconciliation. The bank statement does not include a deposit of $2,300 made on the last day of the month. The bank statement shows a collection by the bank of $940 and a customer’s check for $320 was returned because it was NSF. A customer’s check for $450 was recorded on the books as $540, and a check written for $79 was recorded as $97. The correct balance in the cash account was
$45,512.
$45,548.
$45,728.
$47,848.

PepsiCo, Inc. and Subsidiaries
December 31, 2005 and December 25, 2004
(in millions except per share amounts) 2005 2004
ASSETS
Current Assets
Cash and cash equivalents………………………..… $ 1,716 $ 1,280
Short-term investments ………………………………….… 3,166 2,165
4,882 3,445
Accounts and notes receivable, net……………………………….… 3,261 2,999
Inventories………………………… 1,693 1,541
Prepaid expenses and other current assets…………………………….… 618 654
Total Current Assets ………………………………….… 10,454 8,639
Property, Plant and Equipment, net ………………………………….… 8,681 8,149
Amortizable Intangible Assets, net……………………………….… 530 598
Goodwill…………………………… 4,088 3,909
Other nonamortizable intangible assets…………………………….… 1,086 933
Nonamortizable Intangible Assets…………………………….… 5,174 4,842
Investments in Noncontrolled Affiliates ………………………………….… 3,485 3,284
Other Assets ………………………………….… 3,403 2,475
Total Assets…………………………….… $31,727 $27,987