Study the following items related to transactions during the year to September 30, 2020 for Thompson’s Tours’ Inc. All transactions are reported on the financial statements in $XCD. I. A bank overdraft of $200,000 in a chequing account at St Kitts National Bank. II. A saving account with a balance of $400,000 at Open Campus Bank and chequing account with an overdraft of $100,000 at the same bank repayable on demand. III. The Operation Manager was given a salary advance of $2,000 on August 24, 2020 and this amount was deducted from his October salary. IV. CAD$3,045 on hand from tips up to March 31, 2020, its pre-COVID operations when the exchange rate was CAD$1 = $2.01 XCD. On September 30, 2020, the exchange rate was CAD$1 = $1.95 XCD V. Special Edition Independence postage stamps on hand valued at $200. VI. Cash holdings of US$100,000, the exchange rate on September 30, 2020 is $2.70. VII. Petty cash on hand valued at $1,500. VIII. A cheque in the amount of $5,000 and dated October 23, 2020 was received from a customer on September 27, 2020. IX. Short term 60 days treasury bill valued at $35,000. X. Thompson’s Tours’ Inc. invested $1,000,000 in a money market fund with Mona Campus Bank on July 10, 2020 which will mature on October 9, 2020 required: a. Prepare the necessary journal entry at September 30, 2020 to account for Item IV. b. Using the information in B above, calculate the cash and cash equivalent value that would appear in Thompson’s Tours’ Inc. Statement of Financial Position on September 30,2020
. Study the following items related to transactions during the year to September 30,
2020 for Thompson’s Tours’ Inc. All transactions are reported on the financial
statements in $XCD.
I. A bank overdraft of $200,000 in a chequing account at St Kitts National Bank.
II. A saving account with a balance of $400,000 at Open Campus Bank and
chequing account with an overdraft of $100,000 at the same bank repayable on
demand.
III. The Operation Manager was given a salary advance of $2,000 on August 24, 2020 and this amount was deducted from his October salary.
IV. CAD$3,045 on hand from tips up to March 31, 2020, its pre-COVID operations when the exchange rate was CAD$1 = $2.01 XCD. On September 30, 2020, the exchange rate was CAD$1 = $1.95 XCD
V. Special Edition Independence postage stamps on hand valued at $200.
VI. Cash holdings of US$100,000, the exchange rate on September 30, 2020 is $2.70.
VII. Petty cash on hand valued at $1,500.
VIII. A cheque in the amount of $5,000 and dated October 23, 2020 was received from a customer on September 27, 2020.
IX. Short term 60 days treasury bill valued at $35,000.
X. Thompson’s Tours’ Inc. invested $1,000,000 in a
required:
a. Prepare the necessary
b. Using the information in B above, calculate the cash and cash equivalent value that would appear in Thompson’s Tours’ Inc.
Step by step
Solved in 2 steps with 4 images
