PB2. LO 5.1 The following selected accounts and normal balances existed at year-end. Make the four journal entries required to close the books: Accounts receivable Prepaid insurance $33,200
Q: Peta, SA manufactures a single product that had the following cost structure this year: Variable…
A: Valuation of ending inventory under variable costing only considers the variable manufacturing cost…
Q: P Company acquired 90% of S Corporation on January 1, 2014 for $2,250,000. S had net assets at that…
A: The equity method of accounting is a method for accounting for investment in another company.…
Q: Give reasons why migration and income inequality is positively related.
A: Migration means the movement and settlement of people, usually in large numbers, from one area to…
Q: Exercise 12A-2 Basic Present Value Concepts [LO12-7] Julie has just retired. Her company's…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: . The SF Method (Sinking Fund Method)
A: Given data is − Initial cost of Asset, X = $60,000 Scrap value of Asset, S = $12,000 Useful life of…
Q: How to establish budget planning and control system for department stores?
A: budget is considered to be an document in the business that is used to track the income and expenses…
Q: A company sells 280,000 units annually , at a price of ( 65 S / unit ) . The company wanted to…
A: To know sales for a desirable profit the following formula will be used (Fixed cost + desired…
Q: True or False 1. The EUP will be the same under FIFO method and weighted average method if there is…
A: Equivalent units means where the some goods remain incomplete at the end of process and we need to…
Q: Is this correct
A: Amounts are transferred or recorded into respective ledger accounts is the activity which are…
Q: ormation to answer the questions 34 and 35. con Corporation had 40,000 shares of $10 k issued and…
A: The treasury stock includes the own shares of the company repurchased from the shareholders.
Q: 3,An often-heard criticism of Basel III by banking practitioners is that "increased regulation…
A: Basel III norms are the banking regulations introduced by the Basel Committee on Banking Supervision…
Q: P Company acquired 90% of S Corporation on January 1, 2014 for $2,250,000. S had net assets at that…
A: Investment in accounting means that the asset or the item which is acquired with the objective of…
Q: Exercise 3-44 (Algorithmic) Revenue Expense and Recognition Carrico Advertising Inc. performs…
A: Account Receivable: - It is the amount which is received by the company in the future for the goods…
Q: Determine the total product cost for the year. Determine the total cost of the ending inventory.…
A: Product Cost Product cost refers to the costs incurred to create a product. These costs include…
Q: he following is the sales budget for the given months of Hecto, Ltd.: Cash Sales Credit Sales May…
A: The cash budget is prepared by the management to estimate the expected cash receipt and cash…
Q: Whispering Winds Company manufactures tablecloths. Sales have grown rapidly over the past 2 years.…
A: The flexible overhead budget is prepared on the basis of budgeted costs as decided by the company.
Q: A8 (Understanding entries) This question tests your ability to understand accounting entries. Each…
A: Journal Entry: Journal entries are entries that are made in the book of original entry to record…
Q: PA3. LO 5,1 The following selected accounts and normal balances existed at year-end. Notice that…
A: Closing entries are the same as the journal entries. The only difference being that the closing…
Q: Exercise 1. Prepare an income statement for Dr. Waters for the year ended December 31, 20... by…
A: Income statement means the statement which shows all nominal account and reflect the net profit or…
Q: True or False 1. The weighted average method includes the work in process beginning inventory cost…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: A printing machine initially costs ₱156,000. It can be sold for ₱15,000 at the end of its 10-year…
A: Depreciation refers to the allocation of cost over the expected life of the assets and in short, it…
Q: At the beginning of current year, Alto Company declared 1 for 5 reverse share split, when the market…
A: When a stock split is effected, the par value and total shares outstanding are adjusted to reflect…
Q: One proposal for reforming the welfare system is to create a negative income tax. Under the negative…
A: Budget constraint means the maximum amount of money that will end up in the hands of the person who…
Q: Assume that a country is endowed with 8 units of oil reserve. There is no oil substitute available.…
A: Given details Marginal willingness to pay for oil, P = 8 - 0.57q Quantity = 8 units Marginal Cost =…
Q: 1. If P5,000 is invested in a time-deposit for 2 years in a bank that offers 4% annual interest…
A: For calculation of interest with compounded interest= Principal amount (1+r)n - principal amount…
Q: 2. The income tax payable of Company E were $10,000 and $15,000 for the years ended 2020 and 2019,…
A: >Statement of Cash flows is one of the financial statements, and is prepared for a particular…
Q: Assume that Provident Health System, a for-profit hospital, has $1 million in tax-able income for…
A: After tax dividend is the dividend amount which is actual return to the shareholder who has…
Q: Chowkie Company has the ff information: Inventory Accounts payable December 31, 2010 USD 2,000,000…
A: Formulas: Cost of goods sold = Beginning inventory + Cost of goods purchased - Ending inventory…
Q: Q1: Calculate (PW) for annual payments (900$/year) if the first payment will deposit at the present…
A: PW is the present worth. The person is investing 900$ annually at the beginning of the year. The…
Q: CASE II: ABC purchased 8,000, P1,000 face amount, 9% bonds to yield 10%. The carrying amount of the…
A: Given that, Carrying amount of bond (January 1, 2026) = P7,800,000 Maturity date = june 20, 2029…
Q: ly amalgamated wit
A: The intermediaries like the wholesalers, merchants, distributors, agents and facilitators are an…
Q: e to reduce collection time to er year to operate.
A: Lock box is a system where that can be utilized to reduce the time between customer sending a check…
Q: P Company acquired 90% of S Corporation on January 1, 2014 for $2,250,000. S had net assets at that…
A: The net income increases the balance of retained earnings. Whereas, the dividend decreases the…
Q: Q2: A company plans to update its equipment so that its trucks are replaced after ten years from…
A: Given :- Total cost is $750,000. Its 65% is paid now, that means 65% of 750,000 = $487,500
Q: From the trial of Johnson Moving, classify each account as an asset, liability, an owne equity, a…
A: Account Titles Debit Credit Classificiation Cash $ 25,000 Asset Accounts…
Q: Determine the Tax Credit Relief (if any) due to Professor Mohammed Ibrahim in the year 2019. The…
A: Tax credit relief is a form of tax relief that directly reduces the amount of tax owed(not taxable…
Q: Given the following cost and activity observations for Wondrous Company's utilities, use the…
A: High low method: Variable cost per unit = (Highest activity cost - Lowest activity cost) / (Highest…
Q: Tyeso Company has the following accounts in its liabilities section of the Balance Sheet as of…
A: CURRENT LIABILITIES ARE THOSE LIABILITIES WHICH ARE EXPECTED TO BE PAID WITHIN NORMAL OPERATING…
Q: Determine the net income attributable to Pakito Corporation.
A: Here, some of the sales have been made to the subsidiary. The profit on such a sale has to be…
Q: PA2. ILO 5.1 The following selected accounts and normal balances existed at year-end. Make the four…
A: As a result, diary entries are rarely utilized to document mass-production jobs. When you make the…
Q: Fraulein Company had the following cash flows during the current year: 4,000,000 Cash receipts from…
A: >Statement of Cash flows is one of the financial statements, and is prepared for a particular…
Q: Diversity Ltd. produces and sells a product called Star. The company is currently selling 9,560…
A: Break-even sales mean that contribution is only covering the fixed costs. Any sales above the BEP…
Q: CLV1: Calculate the customer lifetime value for the first 5 years of the relationship if the annual…
A: Annual Profit contribution: For first 3 years = $500 per year For last 2 years = $500 x 80% = $400…
Q: Q2: A company plans to update its equipment so that its trucks are replaced after ten years from…
A:
Q: Exercise 2. Prepare an income statement for Blueberry Cleaners for the month ended October 30, 20..…
A: Income statement means the statement which shows all nominal account and reflect the net profit or…
Q: 19 Era Company has 6,000 shares of 5%, $100 par non-cumulative preferred stock outstanding at…
A: In case of non cumulatively preferred stock if dividend payable for any year is not paid then it…
Q: To do: You are going to make up the ledger accounts (T accounts) and income statement
A: In order to determine whether the entity is making, the expenses are deducted from the income to…
Q: When a noncurrent asset is classified as held for sale a. depreciation ceases at the date it is…
A: As per IFRS 5 Non current assets held for sale and discontinued operations An Non-current asset…
Q: Ken Lewin, a factory worker in Toronto, Ontario asks you to help him find out how much he is worth…
A: Accounting equation means the relation between the assets , liabilities and owner equity. Assets…
Q: Imagine you are the financial accountant of Happiness Ltd. You have the following final balances for…
A:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Tantrum Company provided the following information in relation to accounts receivable at year-end: Days outstanding estimated amount %uncollectible www M 1% 1,200,000 900,000 0-60 61-120 2% 1,000,000 3,100,000\ During the current year, the entity wrote off P70,000 in accounts receivable and recovered P20,000 that had been written off in prior years. At the beginning of current year, the allowance for uncollectible accounts was Over 120 6% P60,000. Under the aging method, what amount of uncollectible accounts expense should be reported for the current year?(c) What is the balance of accounts receivable on it December 31 balance sheet? Estimating Uncollectible Accounts and Reporting Accounts ReceivableLaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollectible. Age Group Accounts Receivable Estimated Loss % 0-30 days past due $ 180,000 1% 31-60 days past due 40,000 2 61-120 days past due 22,000 5 121-180 12,000 10 Over 180 days past due 8,000 25 Total accounts receivable $ 262,000E. Accounts receivable P 60,000 Allowance for doubtuful accounts 350 (credit balance) Doubtul of collection % 2% 1. Provide Adjusting Entries by the year end Dec. 31, 2021
- Problem 4-10 (AICPA Adapted) Rapture Company had the following information for eurrent year relating to accounta receivable: 13000 50000 4.750.000 125.000 Accounts receivable, January 1 Credit eales Collectiona from customers, excluding recovery Accounta written off Collection of accounta written off in prior year. customer credit waa not reestablished Eatimated uncollectible receivables per aging at December 31 25.000 165 000 What is the balance of accounta receivable, before allowane for doubtful accounts, on December 317 a. 1,825,000 b. 1,850,000 c. 1,950,000 d. 1,990,000Inc. is a retailer. Its accountants are preparing the company's 2nd quarter master budget. The company has the following balance sheet as of March 31. Inc. Balance Sheet March 31 Assets Cash $ 83,000 Accounts receivable Inventory 126,000 69, 750 220,000 Plant and equipment, net of depreciation Total assets $ 498,750 Liabilities and Stockholders' Equity Accounts payable Common stock $ 81,000 348,000 69, 750 Retained earnings Total liabilities and stockholders' equity $ 498,750 accountants have made the following estimates: 1. Sales for April, May, June, and July will be $310,000, $330,000, $320,000, and $340,000, respectively. 2. All sales are on credit. Each month's credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at March 31 will be collected in April. 3. Each month's ending inventory must equal 30% of next month's cost of goods sold. The cost of goods sold is 75% of sales. The company pays for 40% of its…Mirror Mart uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. 0-30 days 31-90 days Over 90 days past due past due past due Accounts receivable amount $55,000 $34,000 $20,000 Percent uncollectible 8% 15% 30% Total per category ? ? ? Total uncollectible ? To manage earnings more efficiently, Mirror Mart decided to change past-due categories as follows. 0-60 days 61-120 days Over 120 days past due past due past due Accounts receivable Amount $84,000 $13,000 $6,000 Percent uncollectible 8% 15% 30% Total per category ? ? ? Total uncollectible ? Complete the following.
- Brickman’s ending balance of Accounts Receivable is $19,500. Use the data in the preceding question to compute the net realizable value of Accounts Receivable at year-end. $16,800 $19,500 $17,400 $17,900The following summarizes the aging of accounts receivable for Orange Incorporated as of July 31, Year 1: Number of Days Unpaid Not yet due 1 to 30 days past due 31 to 60 days past due Over 60 days past due Total Accounts Receivable 11.130 $ 175,982 89,200 53,600 31,800 Historical % Uncollectible 17,424 margin of error +/-3 www. 29 12% 18% The unadjusted balance of the Allowance for Doubtful Accounts of Orange Incorporated is a credit balance in the amount of $17.578 on July 31, Year 1. What is the amount of the adjusting entry to be recorded on July 31 Year 17 35%38. The company’s accounts receivable under “61-90 days” category totaleda. P32,600b. P44,320c. P44,600d. P42,000 39. The allowance for bad debts to be reported on the balance sheet at December 31, 20x7, isa. P13,199b. P6,199c. P9,699d. P9,043 40. What entry should be made on December 31, 20x7, to adjust the allowance for bad debts account?a. Bad debt expense 13,699Allowance for bad debts 13,699b. Bad debt expense 5,199Allowance for bad debts 5,199c. Allowance for bad debts 5,199Bad debts expense 5,199d. Bad debt expense 9,699Allowance for bad debts 9,699
- 36. Starboy Company has the following data relating to accounts receivable for the year ended December 31, 2022: Accounts receivable, January 1, 2022 P 480,000Allowance for doubtful accounts, 1/1/22 28,600Cash sales 300,000Sales on account, terms: 2/10, 1/15, n/30 2,560,000Cash received from customers during the year 2,400,000Accounts written off during the year 17,600Cash refunds given to cash customers for sales returns and allowances 15,000Credit memoranda issued to credit customers for sales returns and allowances 25,000 The P2,400,000 collection is composed of the following: Collection from customers availing the 10-day discount period: Gross selling price P 1,440,000Discount taken (1,440,000 x 2%) ( 28,800) P 1,411,200 Collection from customers availing the 15-day discount period: Gross selling price 800,000 Discount taken (800,000 x 1%) ( 8,000) 792,000 Collection from customers paying beyond the discount period: 192,000 Collection of accounts previously written and subsequent…ble The balance sheet of Omni, Inc., at the end of last year included the following Offs and coverles items: Notes receivable from customers Accrued Interest on notes receivable Accounts recelvable...... .$ 5 40,000 10,800 Less: Allowance for doubtful accounts 2,268,000 54,000 STRUCTIONS You are to record the following events of the current year in general journal en- tries: a Accounts receivable of $51,840 are vritten off as uncollectible. b Acustomer's note for $14,850, on which interest of $810 has been accrued in the accounts, is deemed uncollectible, and both balances are written off against the Allowance for Doubtful Accounts. c An account receivable for $7,020 previously written off is collected. d Aging of accounts receivable at the end of the current year indicates a need for an $81,000 allowance to cover possible failure to collect accounts currently out- standing. (Consider the effect of entries for a, b, and e on the amount of the Allowance for Doubtful Accounts.)Requlred Informatlon [The following information applies to the questions displayed below.] The Company prepared the following aging of receivables analysis at December 31. Days Past Due Total $678,00e 1 to 30 $110, eee 3% 31 to 60 61 to 90 Over 90 Accounts receivable Percent uncollectible $38, e00 9% $50, 0ee 12% $416,000 $56,000 7% 4% a. Complete the below table to calculate the estimated balance of Allowance for Doubtful Accounts using aging of accounts receivable. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $5.600 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2.100 debit. Complete this question by entering your answers in the tabs below. Reg A Reg B and C Complete the below table to calculate the estimated balance of Allowance for…