Question 19 of 31 F Dickens Co. reported net income of $58,000 for the year ended December 31, 2022. January 1 balances in accounts receivable and accounts payable were $26,000 and $26,500 respectively. Year-end balances in these accounts were $21,000 and $30,000, respectively. January 1 balances in long-term notes receivable and long-term notes payable were $131,000 and $96,500 respectively. Year-end balances in these accounts were $113,000 and $84,000, respectively. Assuming that all relevant information has been presented, Dickens Co's cash flows from operating activities would be: A $66,500 B $59,500 C $58,000 D $67,000 E $56,500 No pol

Question 19 of 31 F Dickens Co. reported net income of $58,000 for the year ended December 31, 2022. January 1 balances in accounts receivable and accounts payable were $26,000 and $26,500 respectively. Year-end balances in these accounts were $21,000 and $30,000, respectively. January 1 balances in long-term notes receivable and long-term notes payable were $131,000 and $96,500 respectively. Year-end balances in these accounts were $113,000 and $84,000, respectively. Assuming that all relevant information has been presented, Dickens Co's cash flows from operating activities would be: A $66,500 B $59,500 C $58,000 D $67,000 E $56,500 No pol

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...

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Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
Dickens Co. reported net income of $58,000 for the year ended December 31, 2022. January 1 balances in accounts receivable and accounts payable were $26,000 and $26,500 respectively. Year-end balances in these accounts were $21,000 and $30,000, respectively. January 1 balances in long-term notes receivable and long-term notes payable were $131,000 and $96,500 respectively. Year-end balances in these accounts were $113,000 and $84,000, respectively. Assuming that all relevant information has been presented, Dickens Co's cash flows from operating activities would be: A $66,500 B $59,500 C $58,000 D $67,000 E $56,500
Vauxall Holdings showed the following information regarding its notes receivable: Note Date of Note Principal Interest Rate Term Maturity Date Days of Accrued Interest at Dec. 31, 2023 Accrued Interest at Dec. 31, 2023* 1 Nov. 1/22 $ 340,000 4.0 % 180 days 2 Jan. 5/23 140,000 5.0% 90 days 3 Nov. 20/23 130,000 4.5% 45 days 4 Dec. 10/23 170,000 5.5% 30 days *Round calculations to the nearest whole cent. Required: For each of Vauxall Holdings note receivable given below: (Do not round intermediate calculations. Round the "Amount of Accrued Interest at Dec. 31, 2023" answers to 2 decimal places.) Determine the maturity date. Calculate the days of accrued interest, if any, at December 31, 2023 (Vauxall Holdings' year-end). Calculate the amount of accrued interest, if any, at December 31, 2023. For Note 3: d. Prepare the entry to record the accrued interest at December 31, 2023. (Do not round intermediate calculations. Round your answers to 2 decimal places.) e. Prepare the entry to record…
Cypress Oil Company's December 31, 2021, balance sheet listed $727,000 of notes receivable and $21,300 of interest receivable included in current assets. The following notes make up the notes receivable balance: Note 1 Dated 8/31/2021, principal of $390,000 and interest at 9% due on 2/28/2022. Note 2 Dated 6/30/2021, principal of $240,000 and interest due 3/31/2022. Note 3 $100,000 face value noninterest-bearing note dated 9/30/2021, due 3/31/2022. Note was issued in exchange for merchandise. The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2021. Required: 1. Determine the rate used to discount the noninterest-bearing note. 2. Determine the explicit interest rate on Note 2. (Round your intermediate calculations to the nearest whole dollar amount.) 3. What is the amount of interest revenue that appears in the company's 2021 income statement related to these notes? 1. 2. 3. Discount rate Interest rate Interest revenue Answer…
Cypress Oil Company's December 31, 2021, balance sheet listed $735,000 of notes receivable and $21,600 of interest receivable included in current assets. The following notes make up the notes receivable balance: Note 1 Dated 8/31/2021, principal of $340,000 and interest at 12% due on 2/28/2022. Note 2 Dated 6/30/2021, principal of $200,000 and interest due 3/31/2022. Note 3 $200,000 face value noninterest-bearing note dated 9/30/2021, due 3/31/2022. Note was issued in exchange for merchandise. The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2021. Required: 1. Determine the rate used to discount the noninterest-bearing note. 2. Determine the explicit interest rate on Note 2. (Round your intermediate calculations to the nearest whole dollar amount.) 3. What is the amount of interest revenue that appears in the company's 2021 income statement related to these notes? Discount rate 1. 2. Interest rate 3. Interest revenue
The balance sheet of Omni, Inc., at the end of last year included the following EXERCISE 8-5 Write-Offs and Recoverles items: Notes receivable from cusfomers Accrued Interest on notes receivable. .. . . A .... . $ 540,000 10,600 Accounts recelvable Less: Allowance for dɔubtful accountS .... ... . .. . c 2,268,000 54,000 uSTRUCTIONS 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 A customner'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 Acçounts. 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 £ailure to collect accounts currently out- standing. (Consider the effect of entries for a, b, and e on the amount of…
Transactions: Apr. 30 Issued a $198,000, 30-day, 6% note dated April 30 to Misner Co. on account. May 30 Paid Misner Co. the amount owed on the note dated April 30. Required: Journalize the above transaction, assuming a 360-day year is used for interest calculations. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Accounts Receivable 112 Interest Receivable 113 Notes Receivable 115 Inventory 116 Supplies 118 Prepaid Insurance 120 Land 123 Building 124 Accumulated Depreciation-Building 125 Office Equipment 126 Accumulated Depreciation-Office Equipment LIABILITIES 211 Accounts Payable-Batson Company 212 Accounts Payable-Jergens Inc. 213 Accounts Payable-Misner Co. 214 Accounts Payable-Scotland Company 221 Notes Payable-Batson Company 222 Notes Payable-Jergens Inc. 223 Notes Payable-Misner Co. 224 Notes Payable-Scotland…
Cypress Oil Company's December 31, 2024, balance sheet listed $645,000 of notes receivable and $16,000 of interest receivable included in current assets. The following notes make up the notes receivable balance: Note 1 Dated 8/31/2024, principal of $300,000 and interest at 10% due on 2/28/2025. Note 2 Dated 6/30/2024, principal of $150,000 and interest due 3/31/2025. Note 3 $200,000 face value noninterest-bearing note dated 9/30/2024, due 3/31/2025. Note was issued in exchange for merchandise. The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2024. Required: 1. Determine the rate used to discount the noninterest-bearing note. 2. Determine the explicit interest rate on Note 2. 3. What is the amount of interest revenue that appears in the company's 2024 income statement related to these notes? 1. Discount rate 2. Interest rate 3. Interest revenue % %
Cypress Oil Company's December 31, 2024, balance sheet listed $905,000 of notes receivable and $22,400 of interest receivable included in current assets. The following notes make up the notes receivable balance: Note 1 Dated 8/31/2024, principal of $450,000 and interest at 8% due on 2/28/2025. Note 2 Dated 6/30/2024, principal of $260,000 and interest due 3/31/2025. Note 3 $200,000 face value noninterest-bearing note dated 9/30/2024, due 3/31/2025. Note was issued in exchange for merchandise. The company records adjusting entries only at year-end. There were no other notes receivable outstanding during 2024. Required: 1. Determine the rate used to discount the noninterest-bearing note. 2. Determine the explicit interest rate on Note 2. 3. What is the amount of interest revenue that appears in the company's 2024 income statement related to these notes? Answer is complete but not entirely correct. 1. Discount rate 10 % 2. Interest rate 80 % 3. Interest revenue $ 53,696
Chamberlain Enterprises Incorporated reported the following receivables in its December 31, 2024, year-end balance sheet: Current assets: Accounts receivable, net of $26,000 in allowance for uncollectible accounts $ 228,000 Interest receivable 7,850 Notes receivable 280,000 Additional Information: The notes receivable account consists of two notes, a $55,000 note and a $225,000 note. The $55,000 note is dated October 31, 2024, with principal and interest payable on October 31, 2025. The $225,000 note is dated June 30, 2024, with principal and 6% interest payable on June 30, 2025. During 2025, sales revenue totaled $1,360,000, $1,290,000 cash was collected from customers, and $ 24,000 in accounts receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year -end by adjusting the allowance account to an amount equal to 10% of year-end accounts receivable. On March 31, 2025, the $225,000 note receivable was discounted at the Bank of Commerce. The…
What is the interest income to be reported from the note Н. of Company A in the income statement for the year ended, December 31, 2020? 2-2 Notes Receivables The trial balance for BLUE Corporation prepared at December 31, 2020 showed a balance of P4,000,000 for Notes Receivables broken as follows: Notes receivable from Company A Notes receivable from Company B 3,000,000 1,000,000 Total 4,000,000 Additional information: The notes receivable from Company A is a three-year non- interest bearing note, with face value of P3,000,000. The note was received in exchange for a piece of land sold by BLUE on May 1, 2020. The land was carried in the books at the date of sale at P2,600,000. The difference between the face amount of the note and the carrying value of the land was credited to gain on sale of land. The market interest rate for a note of this type is 10%. The notes receivable from Company B bears interest at 10%. The note was received from sale of goods in the normal course of business.…