The general ledger of Zips Storage at January 1, 2024, includes the following account balances: Accounts Cash Debits $25,700 Credits
The general ledger of Zips Storage at January 1, 2024, includes the following account balances: Accounts Cash Debits $25,700 Credits
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 14P: Analyzing Accounts Receivable Upham Companys June 30, 2019, balance sheet included the following...
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
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The general ledger of Zips Storage at January 1, 2024, includes the following account balances:
Accounts
Cash
Accounts Receivable
Prepaid Insurance
Land
Accounts Payable
Deferred Revenue
Common Stock
Retained Earnings
Totals
Debits
Credits
$25,700
16,500
14,200
159,000
$7,800
6,900
154,000
46,700
$215,400
$215,400
The following is a summary of the transactions for the year:
1. January 9
2. February 12
3. April 25
4. May 6
5. July 15
6. September 10
7. October 31
8. November 20
9. December 30
Provide storage services for cash, $145,100, and on account, $57,700.
Collect on accounts receivable, $52,600.
Receive cash in advance from customers, $14,000.
Purchase supplies on account, $11,400.
Pay property taxes, $9,600.
Pay on accounts payable, $12,500.
Pay salaries, $134,600.
Issue shares of common stock in exchange for $38,000 cash.
Pay $3,900 cash dividends to stockholders.
Required:
2. Record each of the summary transactions listed above. (If no entry is required for a particular transaction/event, select "No
Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
<
1
2
3 4 5 6 7 8 9
>
Provide storage services for cash, $145,100, and on account, $57,700.
Note: Enter debits before credits.
Transaction
January 09
General Journal
Debit
Credit
Record entry
Clear entry
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffd566eeb-b715-44d6-add2-35b712fbf6db%2Ff3c0425a-0a89-4a4c-b017-78dd88c04dca%2Fg85nndg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The general ledger of Zips Storage at January 1, 2024, includes the following account balances:
Accounts
Cash
Accounts Receivable
Prepaid Insurance
Land
Accounts Payable
Deferred Revenue
Common Stock
Retained Earnings
Totals
Debits
Credits
$25,700
16,500
14,200
159,000
$7,800
6,900
154,000
46,700
$215,400
$215,400
The following is a summary of the transactions for the year:
1. January 9
2. February 12
3. April 25
4. May 6
5. July 15
6. September 10
7. October 31
8. November 20
9. December 30
Provide storage services for cash, $145,100, and on account, $57,700.
Collect on accounts receivable, $52,600.
Receive cash in advance from customers, $14,000.
Purchase supplies on account, $11,400.
Pay property taxes, $9,600.
Pay on accounts payable, $12,500.
Pay salaries, $134,600.
Issue shares of common stock in exchange for $38,000 cash.
Pay $3,900 cash dividends to stockholders.
Required:
2. Record each of the summary transactions listed above. (If no entry is required for a particular transaction/event, select "No
Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
<
1
2
3 4 5 6 7 8 9
>
Provide storage services for cash, $145,100, and on account, $57,700.
Note: Enter debits before credits.
Transaction
January 09
General Journal
Debit
Credit
Record entry
Clear entry
View general journal
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