Discussion Questions

Internal control is the system, plan, or organization established to ensure, as far as practical, the orderly and efficient conduct of business. In part, it is used to ensure accurate record-keeping and the timely preparation of financial statements, safeguard the assets of the business, and promote efficiency.

A bank reconciliation is a comparison of the items shown on the bank statement with the entries made in the records of the entity. A reconciliation leads to the update of the accounting records and the correction of errors, if any. Thus, control over cash is enhanced.

Different reconciling items that may appear in a bank reconciliation are as follows:

The steps in preparing a bank reconciliation are (for which there is no specific order):

Cancelled cheques returned by the bank are compared with cheques recorded as cash disbursements (both outstanding cheques from previous months and cheques written in current month's cash disbursements). Any outstanding cheques must be deducted from the bank statement ending balance.

Other disbursements made by the bank are examined. These could include NSF (not sufficient funds) cheques or bank service charges. These must be deducted from the companies Cash account balance in the general ledger.

The deposits shown on the bank statement are compared with the amounts recorded in the company records.

The prior month's bank reconciliation is reviewed for outstanding deposits at the current date.

Errors in the bank statement and in the company's record must be entered on the reconciliation.

A cheque received from trade customers that has been deposited but cannot be cleared by the bank because the customer's own bank balance is less than the amount of the cheque is an NSF (Not Sufficient Funds) cheque.

A petty cash system reimburses petty cash for an amount equal to the amounts disbursed when the fund has been depleted.

When a petty cash fund is established, a regular cheque is written for the amount to be held in the petty cash fund. The general ledger account Petty Cash is debited and Cash is credited. The cheque is cashed and the funds are held by the petty cash fund custodian.

When the balance of cash in the funds held by the custodian is low, a cheque is written to reimburse the fund for the amount of all receipts held. The cheque is recorded as a debit to the applicable expense accounts and a credit to the Cash account in the general ledger.

Allowance for doubtful accounts is a contra accounts receivable account showing the estimated amount that will not be collected. To set it up, bad debt expense is debited and the allowance is credited for the estimated amount. In this way, the bad debt expenses for the period are matched with revenues for that period.

The income statement method for calculating the estimated amount of doubtful accounts assumes that a certain percentage of sales made on account will become uncollectible. The percentage is applied to credit sales and is chosen on the basis of bad debt experience of previous years. The estimated bad debt expense is calculated independently of any current balance in the Allowance for Doubtful Accounts general ledger account.

Ageing of accounts receivable is the detailed analysis of trade accounts receivable based on time that has elapsed since the creation of the receivable. An estimated loss percentage is applied to each time category to estimate an uncollectible amount. The estimated bad debt expense consists of the difference between the current balance in the Allowance for Doubtful Accounts general ledger account and the amount required to be set up based on this analysis.

The usual balance in the Accounts Receivable general ledger account is a debit. Occasionally, as a result of double payments, merchandise returns, or allowances granted for example, a credit balance occurs in some accounts. Theoretically, the credit balance should be transferred to liabilities. In practice, the net amount of accounts receivable is reported on the balance sheet unless the credits would materially distort the numbers reported.

Adjusting entries resulting from bank reconciliation:

Adjusting entries:

Entry to record the estimated uncollectible accounts at December 31, 2023:

There is a difference in the estimates because different methods are used. The first method is based on a percentage of sales; the second on percentage of accounts receivable, a simplified balance sheet method.

The calculation made in part (a) above better matches revenues and expenses: the revenues (sales) is directly related to the amount that is written off as bad debt expense. The calculation made in part (b) above better matches accounts receivable to allowance for doubtful accounts and thus produces a better balance sheet valuation.

Amount of bad debt expense in 2022:

lyryx case study 10 answers

Entry recorded at December 31, 2022 to account for bad debts:

Amount of bad debt expense in 2023:

lyryx case study 10 answers

Entry recorded at December 31, 2023 to account for bad debts:

* When a note is dishonoured, a 'new' note is recorded that includes the interest and principal to be recovered.

Acid test ratio

Accounts receivable turnover ratio

The change in both the acid-test and accounts receivable turnover ratios was unfavourable. Although Salzl Corp.'s acid-test is greater than one indicating that it has sufficient quick current assets to cover current liabilities as they come due, that amount decreased from 2022 to 2023. The decrease in the accounts receivable turnover indicates that Salzl Corp. Is collecting receivables at a much slower rate in 2023 than in 2022 which is unfavourable. Receivables should be collected as quickly as possible so the accounts receivable turnover ratio should be as high as possible.

Entry to record the write-off of $25,000:

Entry to record the recovery of $15,000:

The entries required for bad debts based on three per cent of credit sales:

Calculation of uncollectible amount at December 31, 2023:

Both methods are estimates and attempt to match expenses with revenues. Over time, the allowance for doubtful accounts under either method should be approximately the same. If not, management should review the percentage estimates under each method to ensure that they are reasonable.

For entry from part (2):

Note that no attempt is made to reconcile the AFDA balance to the estimated bad debt amount when using the income statement method.

For entry from part (3):

Note that the AFDA balance is adjusted so that its ending balance is equal to the estimated bad debt amount when using the balance sheet method.

To compute the March 15 date:

Maturity date of the Feb 10 note receivable:

May 11, 2023 will be the maturity date for the February 10 note receivable.

Note (a) accrued interest from Jan 1 to Dec 31, 2023:

Note (b) accrued interest from Jan 15 to Dec 31, 2023:

Note (c) accrued interest from Jun 21 to Dec 31, 2023:

Note (d) accrued interest from Dec 1 to Dec 31, 2023:

Note (a) cash payment amount collected at maturity:

Note (b) cash payment amount collected at maturity:

Note (c) cash payment amount collected at maturity:

Note (d) cash payment amount collected at maturity:

If the turnover ratio from the previous year was 5.25 times per year, the company is not as efficient at collecting its accounts receivable in 2023 compared to the previous year.

lyryx case study 10 answers

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Business Math: A Step-by-Step Handbook

This textbook was written to meet the needs of a twenty-first century …

This textbook was written to meet the needs of a twenty-first century student. It takes a systematic approach to helping students learn how to think and centers on a structured process termed the PUPP Model (Plan, Understand, Perform, and Present). This process is found throughout the text and in every guided example to help students develop a step-by-step problem-solving approach.

This textbook simplifies and integrates annuity types and variable calculations, utilizes relevant algebraic symbols, and is integrated with the Texas Instruments BAII+ calculator. It also contains structured exercises, annotated and detailed formulas, and relevant personal and professional applications in discussion, guided examples, case studies, and even homework questions.

Calculus: Early Transcendentals

Calculus: Early Transcendentals, originally by D. Guichard, has been redesigned by the …

Calculus: Early Transcendentals, originally by D. Guichard, has been redesigned by the Lyryx editorial team. Substantial portions of the content, examples, and diagrams have been redeveloped, with additional contributions provided by experienced and practicing instructors. This approachable text provides a comprehensive understanding of the necessary techniques and concepts of the typical Calculus course sequence, and is suitable for the standard Calculus I, II and III courses. To practice and develop an understanding of topics, this text offers a range of problems, from routine to challenging, with selected solutions. As this is an open text, instructors and students are encouraged to interact with the textbook through annotating, revising, and reusing to your advantage. Suggestions for contributions to this growing textbook are welcome.

Lyryx develops and supports open texts, with editorial services to adapt the text for each particular course. In addition, Lyryx provides content-specific formative online assessment, a wide variety of supplements, and in-house support available 7 days/week for both students and instructors.

A First Course in Linear Algebra

This text, originally by K. Kuttler, has been redesigned by the Lyryx …

This text, originally by K. Kuttler, has been redesigned by the Lyryx editorial team as a first course in linear algebra for science and engineering students who have an understanding of basic algebra. All major topics of linear algebra are available in detail, as well as proofs of important theorems. In addition, connections to topics covered in advanced courses are introduced. The text is designed in a modular fashion to maximize flexibility and facilitate adaptation to a given course outline and student profile. Each chapter begins with a list of student learning outcomes, and examples and diagrams are given throughout the text to reinforce ideas and provide guidance on how to approach various problems. Suggested exercises are included at the end of each section, with selected answers at the end of the text. Lyryx develops and supports open texts, with editorial services to adapt the text for each particular course. In addition, Lyryx provides content-specific formative online assessment, a wide variety of supplements, and in-house support available 7 days/week for both students and instructors.

Intermediate Financial Accounting Volume 1

This text is intended for a first course in Intermediate Financial Accounting. …

This text is intended for a first course in Intermediate Financial Accounting. It presumes that students have already completed one or two Introductory Financial Accounting courses. The book reflects current International Financial Reporting Standards (IFRS), such as IFRS 15 - Revenue from Contracts With Customers. It focuses on more difficult intermediate accounting topics that match prerequisite requirements for students advancing to a second level Intermediate Financial Accounting course. Advanced topics that are covered in Advanced Financial Accounting courses, such as consolidations and foreign exchange, are not included here. The text is written with an approachable style that focuses on key concepts that will be relevant to students' future careers as accountants.

Intermediate Financial Accounting Volume 2

This new text by G. Arnold and S. Kyle, developed in collaboration …

This new text by G. Arnold and S. Kyle, developed in collaboration by Athabasca University and Lyryx, is intended for the second of two in Intermediate Financial Accounting courses. It presumes that students have already completed the Introductory Financial Accounting, and the first Intermediate Financing Accounting course. The text reflects both current International Financial Reporting Standards (IFRS) and ASPE.

This text covers all topics essential to a second level Intermediate Accounting course: current, long-term and complex liabilities, income taxes, pensions, leases, shareholders' equity, earnings per share, statement of cash flows including the direct approach, effects of changes and errors, and disclosures and analysis.

Topics that are covered in Advanced Financial Accounting courses, such as consolidations and foreign exchange, are not included here.

Introduction to Financial Accounting

This text, originally by D. Annand and H. Dauderis, is intended for …

This text, originally by D. Annand and H. Dauderis, is intended for a first course in introductory financial accounting. It has been extensively edited by Athabasca University and reflects current International Financial Reporting Standards (IFRS). A corporate approach is utilized versus beginning with a sole proprietorship emphasis and then converting to a corporate approach.

The text focuses on core introductory financial accounting topics that match pre-requisite requirements for students advancing to Intermediate Financial Accounting. Excluded are advanced topics that are covered in Intermediate Financial Accounting, such as leases and bond amortization.

The text covers all essential topics, including: the accounting cycle; merchandising; assigning costs to inventory; cash and receivables; property, plant and equipment; debt financing; equity financing; statement of cash flows; financial statement analysis; and proprietorships and partnerships.

Introduction to Financial Accounting: U.S. GAAP Adaptation

This textbook, originally by D. Annand and H. Dauderis, was intended for …

This textbook, originally by D. Annand and H. Dauderis, was intended for a first course in introductory financial accounting. It was extensively edited by Athabasca University to reflect current International Financial Reporting Standards (IFRS). This most recent revision by D. Marchand converted the text from IFRS to reflect the Generally Accepted Accounting Principles of the United States (U.S. GAAP). A corporate approach is utilized versus beginning with a sole proprietorship emphasis and then converting to a corporate approach.

Linear Algebra with Applications

After being traditionally published for many years, this formidable text by W. …

After being traditionally published for many years, this formidable text by W. Keith Nicholson is now being released as an open educational resource and part of Lyryx with Open Texts! Supporting today’s students and instructors requires much more than a textbook, which is why Dr. Nicholson opted to work with Lyryx Learning.

Overall, the aim of the text is to achieve a balance among computational skills, theory, and applications of linear algebra. It is a relatively advanced introduction to the ideas and techniques of linear algebra targeted for science and engineering students who need to understand not only how to use these methods but also gain insight into why they work.

The contents have enough flexibility to present a traditional introduction to the subject, or to allow for a more applied course. Chapters 1–4 contain a one-semester course for beginners whereas Chapters 5–9 contain a second semester course. The text is primarily about real linear algebra with complex numbers being mentioned when appropriate (reviewed in Appendix A).

Principles of Macroeconomics - 2020-A

Principles of Macroeconomics is an adaptation of the textbook, Macroeconomics: Theory, Markets, …

Principles of Macroeconomics is an adaptation of the textbook, Macroeconomics: Theory, Markets, and Policy by D. Curtis and I. Irvine, and presents a complete and concise examination of introductory macroeconomics theory and policy suitable for a first introductory course.

Examples are domestic and international in their subject matter and are of the modern era — financial markets, monetary and fiscal policies aimed at inflation and debt control, globalization and the importance of trade flows in economic structure, and concerns about slow growth and the risk of deflation, are included.

This textbook is intended for a one-semester course, and can be used in a two-semester sequence with the companion textbook, Principles of Microeconomics. The three introductory chapters are common to both textbooks.

Principles of Microeconomics

Principles of Microeconomics is an adaptation of the textbook, Microeconomics: Markets, Methods, …

Principles of Microeconomics is an adaptation of the textbook, Microeconomics: Markets, Methods, and Models by D. Curtis and I. Irvine, which provides concise yet complete coverage of introductory microeconomic theory, application and policy in a Canadian and global environment.

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  1. Solved lyryx case study 10

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  2. Case Study solution

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  3. Case Study 10 Lyryx.pdf

    1/3 9/29/2020 Case Study 10 (Part 1) ~ Lyryx Learning Inc 2/3b)Posting: Posting from the general journal into the subledgers is required. Posting in the general ledger is notrequired. The subledgers used in this case study are Accounts Receivable (AR), Accounts Payable (AP), Merchandise Inventory (MI), and Property, Plant and Equipment (PPE).

  4. Lyryx 10

    Case Study solution - MANDATORY ASSIGNMENT ; Preview text. ... Lyryx 10 - Ratio - MANDATORY ASSIGNMENT . Course: Financial Accounting Concepts (Acct 2121) 122 Documents. Students shared 122 documents in this course. University: Mount Royal University. Info More info. AI Quiz.

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  6. Case Study 10 Part 1 Lyryx Learning Inc.pdf

    View Case Study 10 (Part 1) _ Lyryx Learning Inc.pdf from ACCT 3224 at Mount Royal University. 9/22/2020 Case Study 10 (Part 1) ~ Lyryx Learning Inc Spreadsheet Print Preferences Help Case Study 10

  7. ACCT 3224 :

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  8. Solutions ~ Lyryx Learning Inc

    Common shareholders receive the balance of assets after other claims have been satisfied—in the case of a bankruptcy or liquidation, there are usually few or no other assets to distribute to common shareholders; preferred shareholders have prior claims. ... 10%: Preferred: Common: bonds: shares: shares: Income before interest and income taxes ...

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  10. Case Study 10 (Part 6) Lyryx Learning Inc (pdf)

    Uploaded by AmbassadorRose10118 on coursehero.com. Accounting document from University of Calgary, 2 pages, 3/6/23, 2:41 PM Case Study 10 (Part 6) ~ Lyryx Learning Inc Spreadsheet Print Preferences Help Printer Friendly Case Study 10 (Part 6) Name: Akosua Amponsah Date: 2023-03-06 14:40 Part 6 [60 points] a) Prepare the adjusted trial balance ...

  11. Case Studies -- Financial Accounting

    Donald Wheeler 5 years ago Views: 691 Transcription 1 Case Studies -- Financial Accounting Case Study #1: The Accounting Cycle Lyryx was created to provide students and instructors with high quality assessment material, with content closely aligned to the text and critical thinking as a learning objective.

  12. Solutions ~ Lyryx Learning Inc

    Allowance for Doubtful Accounts = 3,000 + 11,700 = 14,700 (or 10% \times 147,000). There is a difference in the estimates because different methods are used. The first method is based on a percentage of sales; the second on percentage of accounts receivable, a simplified balance sheet method.

  13. Case Study 10 Part 1 Lyryx Learning Inc.pdf

    Spreadsheet Print Preferences Help Case Study 10 (Part 1) Name: Curtis Mak Date: 2021-09-12 Part 1 [140 points] It is March 1, 2015, the first business day of the month, and you have just been hired as the accountant for Global Filter Corp., which operates with monthly accounting periods. For simplicity, ignore all sales tax considerations and assume that Global Filter Corp. sells one product.

  14. Lyryx case study getting started and tips.pdf

    3 9) Closing entries automatically posted to ledgers for the student. 5 marks 10) Prepare a Post-closing trial balance. 30 marks 11) Answer a few analysis questions based on the previous 10 parts. 8 marks Reference Material for the Case Study The textbook will be your best reference, or your textbook from introductory accounting. The review materials provided on Lyryx with the case study can ...

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  16. ACCT 3220

    This textbook will be used to supplement the main course text (Weygand et al), and is available as a free download from Lyryx. It is also available on the course D2L site in the "Lyryx Case Study and textbook" section. Lyryx: Case Study 10. Purchase information posted on D2L. Separate system to WileyPLUS. Calculator: A non-programmable ...

  17. Anyone struggling with ACCT253? : r/AthabascaUniversity

    My best advice is to use the Study Guide in LYRYX. My last three study sessions before my midterm were entirely using the study guide. And then on the day of the exam, I reviewed the ratios briefly and went over the learning objectives. My short answers were absolute word vomit. I ended up getting a 90% on the Final exam.

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  19. Lab 8.5 (Question 2) Lyryx Learning Inc

    Your solution was: a) Prepare the entry (entries) to record any impairment losses at July 31, 2015. Assume the company recorded no impairment losses in previous years. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan).

  20. P1

    This will cost you 1 mark. Total marks for this question: 5 Your mark has NOT been recorded because this question was run for practice only. 10/28/2020 Practice ~ Lyryx Learning Inc laecon1.lyryx/student-servlets/LabServlet?ccid=3768&lab=999999&course=3768&ident=685927&questionID=10384&command=answer 2/

  21. ACCT 253 : introductory finacial accounting

    Access study documents, get answers to your study questions, and connect with real tutors for ACCT 253 : introductory finacial accounting at Athabasca University, Athabasca. ... 6/24/23, 10:51 PM Case Study Part 1 Solution ~ Lyryx Learning Inc Spreadsheet Print Help Preferences Case Study Part 1 Solution Name: Megan Durrant Date: 2023-06-24 20: ...

  22. Case Study4- Part 2 Solution (pdf)

    ACC610 Milestone One. Accounting document from Athabasca University, Athabasca, 3 pages, 6/24/23, 11:03 PM Case Study 4 (Part 2) ~ Lyryx Learning Inc Yry Spreadsheet Print Preferences Help Case Study 4 (Part 2) Name: Megan Durrant Date: 2023-06-24 21:03 Part 2 [20 points] Binarium Inc.'s December journal entries have been posted to the genera.

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