"Assume a company's November 1, 2020, financial position was: Assets: P400,000 and Liabilities P150,000. During November, the company completed the following transactions: (a) paid on a note payable P40,000 (no interest); (b) collected trade receivables amounting to P40,000; (c) paid trade payables P20,000; and (d) purchased a truck P10,000 cash and P80,000 notes payable. How much did company report as owner's equity on November 30, 2020? [DO NOT PUT PEŚO SIGN, CÓMMA, SPACĖJ"

"Assume a company's November 1, 2020, financial position was: Assets: P400,000 and Liabilities P150,000. During November, the company completed the following transactions: (a) paid on a note payable P40,000 (no interest); (b) collected trade receivables amounting to P40,000; (c) paid trade payables P20,000; and (d) purchased a truck P10,000 cash and P80,000 notes payable. How much did company report as owner's equity on November 30, 2020? [DO NOT PUT PEŚO SIGN, CÓMMA, SPACĖJ"

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10% interest rate. Each annual payment is in the amount of $39,569 and payment is due each Dec. 31. What is the journal entry on Jan. 1 to record the cash received and on Dec. 31 to record the annual payment? (You will need to prepare the first row in the amortization table to determine the amounts.)
Prepare journal entries to record the following transactions. You are required to show all calculations: 3.1 The company adopted the straight-line depreciation method. Record the 15% depreciation on the plant and equipment purchased On 1 December 2020 for R125 000. 3.2 The allowance for credit losses account has an opening balance of R4 500. The policy requires the allowance to equate 8% of the total accounts receivable. The debtors sub-ledger totaled R52 000 prior receiving 40c in the rand on an account of R3 000. The financial manager instructed the write off on the balance.
Banksia Company completed the following transactions during 2018-2019. The annual accounting period ends 30 June 2019. a) b) Purchased inventory on credit at cost of AUD 16,800; perpetual inventory system is used. Received a customer deposit of AUD 18,000 from ABC Ltd for services to be rendered in the future. c) Borrowed AUD 900,000 from the bank on 1 March 2019 by giving the bank a six-month, 9% interest bearing note payable. Performed AUD 8,000 of the services paid for by ABC Ltd; the rest will be rendered in August d) 2019. e) f) Received the electricity bill for AUD 24,200, which will be paid in early July. On 1 June 2019 received rent in advance of AUD 21,600 from XYZ Ltd for a 3 month lease of premises from 1 June until 31 August 2019. Wages accrued in the last weekly payroll amounted to AUD 23,000 and will be paid on 5 July 8) 2019. Required: 1) Prepare the journal entries for each of these transactions. 2) Prepare all adjusting entries required on 30 June 2019
The Receivables account of Jennie Co. shows an amortized cost of $1,950,000 on December 31, 2019. The following information presents the subsidiary details:Trade accounts receivable - $725,000Trade notes receivable - 100,000Installments receivable, normally due one or two years - 300,000Customers' accounts reporting credit balances arising from sales returns - (30,000)Advance payments for purchase of merchandise - 150,000Customers' accounts reporting credit balances arising from advance payments - (20,000)Cash advances to subsidiary - 400,000Claims from insurance company - 15,000Subscription receivable due in 180 days - 300,000Accrued rent receivable - 10,000 What amount should be presented as trade and other receivables under current assets?
ABC Company, as of December 31, 2021 provided the following balances: Cash, net of a P7,000 overdraft 80,000 Receivable, net of customer credit balances totaling P6,000 30,000 Inventory (P20,000 of which are held on consignment 60,000 Prepayments 10,000 Property, plant and equipment, net of accumulated depreciation of P15,000 90,000 Accounts payable net of debit balances in suppliers' accounts of P3,000 45,000 Notes payable – bank, due on July 2022 25,000 Income tax payable 15,000 17. Total current assets reported in the December 31, 2021 balance sheet is a. 176,000 b. 156,000 c. 173,000 d. 170,000
The trial balance of Novak Ltd. at December 31, 2020, follows: Debits Credits Cash $295,000 Sales revenue $10,299,000 FV-NI investments (at fair value) 323,000 Cost of goods sold 6,400,000 Bond investment at amortized cost 429,000 FV—OCI investments (fair value $445,000) 378,000 Notes payable (due in six months) 99,000 Accounts payable 805,000 Selling expenses 2,460,000 Investment income or loss* 11,000 Land 320,000 Buildings 2,940,000 Dividends payable 56,000 Income tax payable 106,000 Accounts receivable 705,000 Accumulated depreciation—buildings 232,000 Allowance for doubtful accounts 37,000 Administrative expenses 930,000 Interest expense 251,000 Inventory 767,000 Gain on disposal of land…
Carmela Company, as of December 31, 2021 provided the following balances: Cash, net of a P7,000 overdraft 80,000 Receivable, net of customer credit balances totaling P6,000 30,000 Inventory (P20,000 of which are held on consignment) 60,000 Prepayments 10,000 Property, plant and equipment, net of accumulated depreciation of P15,000 90,000 Accounts payable net of debit balances in suppliers' accounts of P3,000 45,000 Notes payable - bank, due on July 2022 25,000 Income tax payable 15,000 Total current assets reported in the December 31, 2021 balance sheet is
Carmela Company, as of December 31, 2021 provided the following balances: Cash, net of a P7,000 overdraft 80,000 Receivable, net of customer credit balances totaling P6,000 30,000 Inventory (P20,000 of which are held on consignment) 60,000 Prepayments 10,000 Property, plant and equipment, net of accumulated depreciation of P15,000 90,000 Accounts payable net of debit balances in suppliers’ accounts of P3,000 45,000 Notes payable – bank, due on July 2022 25,000 Income tax payable 15,000 Total current assets reported in the December 31, 2021 balance sheet is
3) The trial balance of Pina Colada Ltd. at December 31, 2020, follows: Debits Credits Cash $235,000 Sales revenue $9,035,000 FV-NI investments (at fair value) 213,000 Cost of goods sold 4,900,000 Bond investment at amortized cost 479,000 FV—OCI investments (fair value $465,000) 415,000 Notes payable (due in six months) 106,000 Accounts payable 795,000 Selling expenses 2,560,000 Investment income or loss* 14,000 Land 370,000 Buildings 2,240,000 Dividends payable 46,000 Income tax payable 112,000 Accounts receivable 655,000 Accumulated depreciation—buildings 322,000 Allowance for doubtful accounts 42,000 Administrative expenses 930,000 Interest expense 381,000 Inventory 877,000 Gain on disposal of…
The following item has been extracted from the ledger of Jonaz Trading for the year ending September 30, 2020. Cash 12,100Account receivable 27,700Inventory 1 October 2019 55,200Supplies 6,200Machine 120,000Accumulated Depreciation- Machine 36,000Lorry 180,000Accumulated Depreciation- Lorry 72,000Notes Payable 40,000Account payable 48,500Loan 56,000Owner’s Capital 88,000Drawings 5,000Sales 758,800Sales Return and Allowances 15,800Purchases 489,200Purchase returns and Allowances 16,500Salaries and Wages Expense 136,000Advertising Expense 22,100Utilities Expense 14,000Maintenance and Repair Expense 12,100Rent Expense 18,000Prepaid Insurance 2,400 Additional information as at 30 September 2020: • Stock on 30 September 2020 was valued at RM70,000.• Supplies on hand at 30 September 2020 total RM540• Invoice representing RM7,500 sales in September has not been recorded.• The insurance policy is for a year ending 30 April 2021.• Machine and lorry were depreciated at 10% of the cost each year.…
Banksia Company completed the following transactions during 2018-2019. The annual accounting period ends 30 June 2019. a) Purchased inventory on credit at cost of AUD 16,800; perpetual inventory system is used. Received a customer deposit of AUD 18,000 from ABC Ltd for services to be rendered in the b) future. c) Borrowed AUD 900,000 from the bank on 1 March 2019 by giving the bank a six-month, 9% interest bearing note payable. Performed AUD 8,000 of the services paid for by ABC Ltd; the rest will be rendered in August d) 2019. Received the electricity bill for AUD 24,200, which will be paid in early July. On 1 June 2019 received rent in advance of AUD 21,600 from XYZ Ltd for a 3 month lease of premises from 1 June until 31 August 2019. Wages accrued in the last weekly payroll amounted to AUD 23,000 and will be paid on 5 July f) 2019. Required: 1) Prepare the journal entries for each of these transactions. 2) Prepare all adjusting entries required on 30 June 2019.
On January 1,2021, FPD Company’s Trade Loans and Receivable has an outstanding balance of P500,000. Below are the transactions in its Trade Loans and Receivable and other relate accounts during 2021: Total Sales including a 500,000 cash sales, P7,700,000. Account receivable written off, P500,000; Purchases on account, P7,800,000; Payments to creditors , P6,400,000; Purchase discounts, P520,000; Total sales returns, P50,000 of which P20,000 were sales on a cash basis; Amount received from credit customer, P4,900,00 (including a P40,000 recovery of 2020 write-off); Sales discount P80,000; Notes given to settle accounts, P500,000; Purchased returns, P140,000; Payments of notes, P200,000; Proceeds from collection on notes receivable including interest of P10,000. P370,000 Provision for future returns and discounts on outstanding receivables, P25,000. What is the amortized Cost of the Loans and Receivables on December 31, 2021?