ACCOUNTING PRINCIPLES 222 5/16 >C<
2nd Edition
ISBN: 9781323461525
Author: Horngren
Publisher: PEARSON C
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Textbook Question
Chapter 1, Problem E1.33E
Use the following information to answer Exercises E1−31 through E1−33.
The account balances of Wilford Towing Services at June 30, 2016, follow:
| Equipment |
$ 17,500 |
Service Revenue |
$ 13,000 |
| Office Supplies |
1,300 |
8,200 |
|
| Notes Payable |
6,900 |
Accounts Payable |
6,000 |
| Rent Expense |
800 |
Wilford, Capital, June 1, 2016 |
7,700 |
| Cash |
1,900 |
Salaries Expense |
1,900 |
| Wilford Withdrawals |
2,000 |
E1-33 Preparing the
- Prepare the balance sheet for Wilford Towing Service as of June 30. 2016
- What does the balance sheet report?
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When examining the accounts of Palma Company, you ascertain that balance relating to bothreceivables and payables are included in a single controlling account (called receivables),which has a P23,050 debit balance. An analysis of the details of this account revealed thefollowing:
Items
Debit
Credit
Accounts Receivable - customers
P 40,000
Accounts receivable - officers (Current collection expected)
2,500
Debit balances - creditors
450
Expense advances to salespersons
1,000
Share capital subscriptions receivable
4,600
Accounts payable for merchandise
P 19,250
Unpaid salaries
3,300
Credit balance in customer accounts
2,000
Cash received in advance from customers for goods not yet shipped
450
Expected bad debts, cumulative
500
Required:1. How should each item be reported on Palma Company’s statement of financial position?
When examining the accounts of Palma Company, you ascertain that balance relating to bothreceivables and payables are included in a single controlling account (called receivables),which has a P23,050 debit balance. An analysis of the details of this account revealed thefollowing:
Items
Debit
Credit
Accounts Receivable - customers
P 40,000
Accounts receivable - officers (Current collection expected)
2,500
Debit balances - creditors
450
Expense advances to salespersons
1,000
Share capital subscriptions receivable
4,600
Accounts payable for merchandise
P 19,250
Unpaid salaries
3,300
Credit balance in customer accounts
2,000
Cash received in advance from customers for goods not yet shipped
450
Expected bad debts, cumulative
500
Required:1. Give the journal entry to eliminate the above account and to set up the appropriateaccounts to replace it.
The details of the accounts receivable of AA Corporation as December 31, 2022
shows the following:
Beginning balance
P3,450,000
Sales on account made to customers
2,800,000
Collection of accounts receivable during the year
4,200,000
Accounts written off as uncollectible
90,000
The following transactions were included in the recorded transactions during the
year:
1. Invoice dated December 28, 2022 for P350,000 was shipped and received by
the buyer on December 31, 2022, this invoice was recorded in the book at
P35,000.
2. Invoice dated and recorded on November 30, 2022 was erroneously priced at
P32 per unit. There were 11,000 units of goods delivered which were received
on December 10, 2022. The agreed price should be at P22 per unit only.
AA's policy is to provide 5% of the outstanding balance of accounts receivable as
uncollectible and there is beginning balance of allowance for bad debts of P40,000.
Statement 1: The amount of bad debt expense in 2022 is P158,250.
Statement 2: The…
Chapter 1 Solutions
ACCOUNTING PRINCIPLES 222 5/16 >C<
Ch. 1 - Prob. 1QCCh. 1 - Which of the following is not an external user of...Ch. 1 - Prob. 3QCCh. 1 - Prob. 4QCCh. 1 - Prob. 5QCCh. 1 - Which of the following requires accounting...Ch. 1 - At the end of a recent year, Global Cleaning...Ch. 1 - Consider the overall effects on Global Cleaning...Ch. 1 - Assume that Global Cleaning Service performed...Ch. 1 - The balance sheet reports the Learning Objective 5...
Ch. 1 - Assume Global Cleaning Service had net income of...Ch. 1 - What is accounting?Ch. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - A business purchases an acre of land for $5,000....Ch. 1 - What does the going concern assumption mean for a...Ch. 1 - Which concept states that accounting information...Ch. 1 - Financial statements in the United States are...Ch. 1 - Prob. 12RQCh. 1 - What is the accounting equation? Briefly explain...Ch. 1 - What are two ways that equity increases? What are...Ch. 1 - How is net income calculated? Define revenues and...Ch. 1 - What are the steps used when analyzing a business...Ch. 1 - List the four financial statements. Briefly...Ch. 1 - What is the calculation for ROA? Explain what ROA...Ch. 1 - Prob. S1.1SECh. 1 - Determining organizations that govern accounting...Ch. 1 - Identifying types of business organizations...Ch. 1 - Prob. S1.4SECh. 1 - Applying accounting assumptions and principles...Ch. 1 - Prob. S1.6SECh. 1 - Prob. S1.7SECh. 1 - Identifying accounts Learning Objective 3 Consider...Ch. 1 - Prob. S1.9SECh. 1 - Using the accounting equation to analyze...Ch. 1 - Identifying accounts on the financial statements...Ch. 1 -
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