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Proli Footwear Lead Schedule - Cash diciembre 31, 2014 Account Balance per T/B - - -...

Proli Footwear
Lead Schedule - Cash
diciembre 31, 2014
Account Balance per T/B - - - - Adjustments - - - - Balance per Audit
Number Account Title Debit Credit Debit Credit Debit Credit
1000 Imprest Petty Cash Fund 3,000
1010 Cash - Operating 166,083
1020 Imprest Payroll Cash Account 0
1030 Cash - Money Market Account 150,000 X
Impact of AJEs for this assignment on net income before income taxes = DR/CR
Total 319,083

X=Interest Income of $4,700 included in Misc Non-Operating Income (Account #8500) – Not material for reclassification   RP

x = account has impact on income before taxes amount
Impact on income before taxes = DR/CR

Do we need to separate the interest earned in the Momey Market account? How the adjustment should be?

AJEs= Adjustments

RP= Review Partner
Business   Accounting   
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Answer #2

Whether to separate the interest earned on money market account depends on circumstances of case. If dealing in money market is a business, along with footwear business then the same shall be treated as a part of direct revenue. But if it is just for one time purpose say for example you just invest in money market and want to earn interest which is the only sole motive then in a such case, it will be taken or can be taken under miscellaneous income. And a narration to such entry can be given as interest earned under money market. Therefore, interest earned on Money Market Account should be treated as normal interest.

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