Loose Leaf Intermediate Accounting
9th Edition
ISBN: 9781260029901
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Chapter 1, Problem 1.12BYP
To determine
Revenue Recognition Principle:
Revenue Recognition Principle emphasizes, that the revenue and incurrence of related service must pertain to same period; hence it requires the recognition of revenue, in the same period as the service is provided.
The revenue received in advance, should not be included under the revenues in income statement, as the service is yet to be provided, and the revenue, though received has not been actually earned.
To Decide: Whether to agree or disagree with the position of Company W.
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Q 26
Question 26
Assuming that the Rector Company uses the Balance Sheet Approach to estimate bad debt expense. Based on aging of accounts receivable management estimates that the desired balance in the allowance for uncollectible accounts should be $18,000. The balance in the allowance for uncollectible accounts before the adjusting entry is made is $1,000 CREDIT balance. The entry to record bad debt expense would be:
Select one:
a. Dr. Allowance for Uncollectible Accounts 17,000 and Cr. Accounts Receivable 17,000
b. Bad Debt Expense 17,000 and Cr. Allowance for Uncollectible Accounts 17,000
c. Dr. Allowance for Uncollectible Accounts 18,000 and Cr. Accounts Receivable 18,000
d. Dr. Bad Debt Expense 18,000 and Cr. Allowance for Uncollectible Accounts 18,000
3-16A • LO 5
See Example 3-6 on page 3-20, Example 3-8 on page 3-32,
Example 3-9 on page 3-32
Vulcan Company is a monthly depositor whose tax liability for March 20-- is $2,505.
1. What is the due date for the deposit of these taxes?
2. Assume that no deposit was made until April 29 (14 days late). Compute the following penalties:
a. Penalty for failure to make timely deposit.
b. Penalty for failure to fully pay tax.
c. Interest on taxes due and unpaid (assume a 6% interest rate).
d. Total penalty imposed.
$
$
2$
D吗
*
25
26
A Moving to another question will save this responJI
Question 14
At December 31, 2017, ABC Corporation's accounting records included the following, before any adjustments:
• Accounts Receivable $250,000 (debit)
• Allowance for Doubtful Accounts $3,000 (debit)
The credit manager's analysis indicates that 6.5% of year-end A/R are uncollectible (i.e., not expected to be collected in cash). After making the
appropriate adjusting journal entry on December 31, what are the balances for the Allowance for doubtful accounts and Bad debt expense?
O a. Allowance for Doubtful Accounts $16,250, Bad Debt Expense $19,250.
O b. Allowance for Doubtful Accounts $16,250, Bad Debt Expense $13,250.
O C. Allowance for Doubtful Accounts $16,055 Bad Debt Expense $19,055
O d. Allowance for Doubtful Accounts $16,055 Bad Debt Expense $3,000
10:39 AN
5/5/202
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Chapter 1 Solutions
Loose Leaf Intermediate Accounting
Ch. 1 - Prob. 1.1QCh. 1 - What is meant by the phrase efficient allocation...Ch. 1 - Identify two important variables to be considered...Ch. 1 - What must a company do in the long run to be able...Ch. 1 - Prob. 1.5QCh. 1 - Prob. 1.6QCh. 1 - Prob. 1.7QCh. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - Prob. 1.10Q
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Prob. 1.15QCh. 1 - Explain what is meant by: The benefits of...Ch. 1 - Prob. 1.17QCh. 1 - Briefly define the financial accounting elements:...Ch. 1 - Prob. 1.19QCh. 1 - What is the going concern assumption?Ch. 1 - Prob. 1.21QCh. 1 - Prob. 1.22QCh. 1 - What are two advantages to basing the valuation of...Ch. 1 - Describe how revenue recognition relates to...Ch. 1 - What are the four different approaches to...Ch. 1 - In addition to the financial statement elements...Ch. 1 - Briefly describe the inputs that companies should...Ch. 1 - Prob. 1.28QCh. 1 - Prob. 1.29QCh. 1 - Prob. 1.30QCh. 1 - Prob. 1.31QCh. 1 - Prob. 1.32QCh. 1 - Accrual accounting LO12 Cash flows during the...Ch. 1 - Financial statement elements LO17 For each of the...Ch. 1 - Prob. 1.3BECh. 1 - Basic assumptions and principles LO17 through...Ch. 1 - Prob. 1.5BECh. 1 - Prob. 1.6BECh. 1 - Accrual accounting LO12 Listed below are several...Ch. 1 - Accrual accounting LO12 Listed below are several...Ch. 1 - Prob. 1.3ECh. 1 - Prob. 1.4ECh. 1 - Prob. 1.5ECh. 1 - Financial statement elements LO17 For each of the...Ch. 1 - Concepts; terminology; conceptual framework LO17...Ch. 1 - Prob. 1.8ECh. 1 - Prob. 1.9ECh. 1 - Prob. 1.10ECh. 1 - Basic assumptions and principles LO18, LO19...Ch. 1 - Prob. 1.12ECh. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15ECh. 1 - Prob. 1.1BYPCh. 1 - Research Case 12 Accessing SEC information through...Ch. 1 - Prob. 1.3BYPCh. 1 - Prob. 1.4BYPCh. 1 - Ethics Case 18 The auditors responsibility LO14...Ch. 1 - Prob. 1.9BYPCh. 1 - Judgment Case 110 GAAP, comparability, and the...Ch. 1 - Prob. 1.11BYPCh. 1 - Prob. 1.12BYPCh. 1 - Analysis Case 113 Expense recognition LO19...Ch. 1 - Prob. 1.14BYPCh. 1 - Real World Case 115 Elements; disclosures; The...Ch. 1 - Prob. 1.16BYPCh. 1 - Target Case LO19 Target Corporation prepares its...
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