The following events apply to Equipment Services Inc. in its first year of operation: 1. Acquired $60,000 cash from the issue of common stock. 2. Received an $8,200 cash advance for services to be provided in the future. 3. Purchased $2,000 of supplies on account. 4. Earned $36,000 of service revenue on account. 5. Incurred $16,100 of operating expenses on account. 6. Collected $28,500 cash from accounts receivable. 7. Made a $15,100 payment on accounts payable. 8. Paid a $2,000 cash dividend to the stockholders. 9. Recognized $1,600 of supplies expense. 0. Recorded $3,100 of accrued salaries expense. 11. Recognized $3,100 of revenue for services provided to the customer in Event 2. Required a. Record the events in T-accounts and determine the ending account balances. b. Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.

The following events apply to Equipment Services Inc. in its first year of operation: 1. Acquired $60,000 cash from the issue of common stock. 2. Received an $8,200 cash advance for services to be provided in the future. 3. Purchased $2,000 of supplies on account. 4. Earned $36,000 of service revenue on account. 5. Incurred $16,100 of operating expenses on account. 6. Collected $28,500 cash from accounts receivable. 7. Made a $15,100 payment on accounts payable. 8. Paid a $2,000 cash dividend to the stockholders. 9. Recognized $1,600 of supplies expense. 0. Recorded $3,100 of accrued salaries expense. 11. Recognized $3,100 of revenue for services provided to the customer in Event 2. Required a. Record the events in T-accounts and determine the ending account balances. b. Test the equality of the debit and credit balances of the T-accounts by preparing a trial balance.

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 13GI

See similar textbooks

Similar questions

All transactions entered in this window result in a debit to the Accounts Receivable account. a. Invoice b. Undeposited Funds c. Accounts Payable d. Cash
Which account is least likely to be debited when revenueis recorded?a. Accounts Payableb. Accounts Receivablec. Cashd. Unearned Revenue
Which of the following accounts is increased by a debit?A. Common StockB. Accounts PayableC. SuppliesD. Service Revenue
__________ is the crediting of one account through the abstraction of money from another account.A. SkimmingB. LappingC. RiggingD. Padding
Use the following T-account for Careful Corporation to answer questions 11 and 12: Accounts Receivable Beg. Bal. $ 187 18 150 6 64 15 19 End. Bal. $ ? The ending balance of Accounts Receivable for Careful is: Group of answer choices A. $401 debit B. $343 debit C. $343 credit D. $ 58 credit
estion A "receipt on account" results in a credit to: An A/P account Bank An A/R account Capital
Consider the recorded transactions below. Debit Credit 1. Accounts Receivable 7,800 Service Revenue 7,800 2. Supplies 2,000 Accounts Payable 2,000 3. Cash 9,600 Accounts Receivable 9,600 4. Advertising Expense 1,000 Cash 1,000 5. Ассounts Payable 3,100 Cash 3,100 6. Cash 1,100 Deferred Revenue 1,100 Required: Post each transaction to T-accounts and compute the ending balance of each account. The beginning balance of each account before the transactions is: Cash, $2,800; Accounts Receivable, $3,600; Supplies, $340; Accounts Payable, $2,900; Deferred Revenue, $240. Service Revenue and Advertising Expense each have a beginning balance of zero.
Account for accountspayable and analyzeaccounts payableturnover
Listed below are selected events transactions relating to Kingbird, Inc. for the current year ending December 31. Kingbird manufactures laptop computers for sale in its own stores and for sale by other retailers. On December 1, Kingbird accepted an order from a new customer, Coronado Computers. Coronado has a questionable credit history, so Kingbird requires a $12,000 deposit from Coronado in order to begin production on its order. 1. During December, cash sales at Kingbird's retail locations totaled $5,029,000, which includes the 7% sales tax Kingbird must remit to the state by the fifteenth day of the following month. 2. During the year, Kingbird was sued by a competitor for a patent violation. The competitor is claiming that Kingbird's liability is $3,000,000. Kingbird's attorneys have advised it that it is probable that the court will find for the company's competitor. The attorneys estimate that the liability under the suit could be as little as $120,000 or as much as $600,000.…
question b: (...) amount in accounts receivable?
hen a company receives cash from customers before earning the revenue,----------------------will be credited.a. accounts receivableb. estimated cashc. unearned revenued. accounts payable
2. The time period during which the invoice is paid is called: A. Rate of discount В. Discount period C. Credit period D. Net amount