FUNDAMENTAL ACCOUNTING PRINCIPLES
25th Edition
ISBN: 9781307703733
Author: Wild
Publisher: McGraw Hil
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Chapter 1, Problem 12E
To determine
Introduction: The financial statements of a company include a
To identify: The transaction that best suits the explanation.
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You are an accounting intern working for SpringFit Corporation. You have recently been assigned to help one of the accountants who is doing an internal audit of the business. You will be assisting with a review of the payables issued by SpringFit Corporation. Your first task is to review the previous year’s journal entries, shown as follows:
Journal Entries, 20Y4
PAGE 15
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
1
Jan. 1
Cash
1,008,960.00
↑
2
Premium on Bonds Payable
58,960.00
↑
3
Bonds Payable
950,000.00
↑
4
Jun. 30
Interest Expense
18,427.00
↓
5
Premium on Bonds Payable
2,948.00
↓
6
Cash
21,375.00
↓
7
Jul. 1
Cash
1,729,164.00
↑
8
Discount on Bonds Payable
70,836.00
↓
9…
Journalize Transactions
Galle Inc. entered into the following transactions during January.
a. January 1: Borrowed $201,000 from First Street Bank by signing a note payable.
b. January 4: Purchased $25,000 of equipment for cash.
c. January 6: Paid $500 to landlord for rent for January.
d. January 15: Performed services for customers on account, $4,200.
e. January 25: Collected $3,000 from customers for services performed in Transaction d.
f. January 28: Purchased land for $260,000 by paying $21,000 cash and obtaining a loan for the balance.
g. January 30: Paid salaries of $3,000 for the current month.
Required:
Prepare journal entries for the transactions. If an amount box does not require an entry, leave it blank.
Jan. 1
4
6
15
25
28
Question
Carlene Johnson is the Accountant in the Finance Department at Fairway Trading Limited who
manages the company Accounts Receivables. She was given the following information by the
Finance Manager which was extracted from the debtor's ledger as at December 31, 2022.
Category of Total value of
Customers
Sales
To Customer
$
Keith
Green
Karen White
June Hinds
John Wayne
180,0000
240,000
390,000
380,000
Paul Gayle 346,000
Date of Sales
December 16, 30 days
2021
December 10, 60 days
2021
November
15, 2022
30 days
June 26, 2022
30 days
30 days
August 25,
2022
Terms
Percentage provision to
be created
Date of Last
Payment on
A/C
January 15,
2022
February
14, 2022
December 20,
2022
October 24,
2022
September
24, 2022
Total
Amount
Paid to Date
on Account
S
90,500
180,000
170,000
295,000
235,000
The Accountant decided that she would age the debt outstanding in the following category and
the percentage to be provided for bad debt in the amount stated beside each category
accordingly.
Aging…
Chapter 1 Solutions
FUNDAMENTAL ACCOUNTING PRINCIPLES
Ch. 1 - Prob. 1QSCh. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - This icon highlights assignments that enhance...Ch. 1 - Prob. 8QSCh. 1 - Prob. 9QSCh. 1 - Prob. 10QS
Ch. 1 - Prob. 11QSCh. 1 - Identifying items with financial statements P2...Ch. 1 - P2
Classify each of the following items as...Ch. 1 - P2
Classify each of the following items as assets...Ch. 1 - Preparing an income statement P2...Ch. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Prob. 18QSCh. 1 - Prob. 19QSCh. 1 - Prob. 20QSCh. 1 - Prob. 21QSCh. 1 - Prob. 1ECh. 1 - Exercise 1-2 Identifying accounting users and uses...Ch. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Prob. 9ECh. 1 - Prob. 10ECh. 1 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Prob. 16ECh. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Prob. 23ECh. 1 - Prob. 24ECh. 1 - Prob. 25ECh. 1 - Prob. 1PSACh. 1 - Prob. 2PSACh. 1 - Prob. 3PSACh. 1 - Prob. 4PSACh. 1 - Prob. 5PSACh. 1 - Prob. 6PSACh. 1 - Prob. 7PSACh. 1 - Prob. 8PSACh. 1 - Prob. 9PSACh. 1 - Prob. 10PSACh. 1 - Prob. 11PSACh. 1 - Prob. 1PSBCh. 1 - Prob. 2PSBCh. 1 - Prob. 3PSBCh. 1 - Prob. 4PSBCh. 1 - Prob. 5PSBCh. 1 - Prob. 6PSBCh. 1 - Prob. 7PSBCh. 1 - Prob. 8PSBCh. 1 - Prob. 9PSBCh. 1 - Prob. 10PSBCh. 1 - Prob. 11PSBCh. 1 - On October 1. 2019, Santana Rev launched a...Ch. 1 - Prob. 1AACh. 1 - Prob. 2AACh. 1 - Prob. 3AACh. 1 - Prob. 1DQCh. 1 - Technology is increasingly used to process...Ch. 1 - Prob. 3DQCh. 1 - What are at least three questions business owners...Ch. 1 - Prob. 5DQCh. 1 - Describe the internal role of accounting for...Ch. 1 - Identify three type of services typically offered...Ch. 1 - Prob. 8DQCh. 1 - Why is accounting described as a service activity?Ch. 1 - What are some accounting-related professions?Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - A business reports its own office stationary on...Ch. 1 - Why is the revenue recognition principle needed?...Ch. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - What events or transactions change equity?Ch. 1 - Prob. 19DQCh. 1 - What do accountants mean by the term revenue?Ch. 1 - 21. Define net income and explain its...Ch. 1 - Identify the four basics financial statements of a...Ch. 1 - Prob. 23DQCh. 1 - 24. Give two examples of expenses a business might...Ch. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Prob. 28DQCh. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Visit the EDGAR database at SEC.gov. Access the...Ch. 1 - Prob. 4BTN
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