COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
4th Edition
ISBN: 9781260255157
Author: Haddock
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 4E
To determine
Provide the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Louvers, Incorporated, accepted a $15,000, 180-day, 10 percent note from a customer on May 31. On June 30, Louvers prepared a period-end adjusting entry to accrue the $125 of interest owed on the note. The note is honored on November 27.
Prepare the necessary November 27 entry for Louvers by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. If there are multiple debits or multiple credits, please enter the account titles in alphabetical order.
Water Closet Co. wholesales bathroom fixtures. During the current year ending December 31, Water Closet received the following notes:
Â
Required: 1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number. Assume a 360-day year.
2. Journalize the entry to record the dishonor of Note (3) on its due date. Refer to the Chart of Accounts for exact wording of account titles.
3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.
4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January and February. Refer to the Chart of Accounts for exact wording of account titles.
Reed Co. had the following transactions (see below) during November and December of 2025.
Requirements:
1. What amount of interest will Reed pay in 2025 (use 360 days in calculations as needed)?
Record the journal entries for each of the transactions listed below.
Record any necessary year-end adjusting journal entries for related to these transactions.
Record the payment of the note in 2026.
Transactions
Â
Â
Â
1-Nov-25
Issued a note to the bank with the following terms. Interest and principal paid at maturity.
Â
Days
75
Â
Â
Â
Interest Rate
5.00%
Â
Â
Â
Face Amount
 $     75,000.00
Â
Â
Â
Â
Â
Â
Â
1-Dec-25
Received $18,000 cash from a customer as an advanced payment for services to be provided and earned evenly for 1 year.
Â
Â
Â
Â
Â
Â
Â
Â
Â
Â
Â
10-Dec-25
Made cash sales, not including sales tax) of
 $   100,000.00
Â
Â
Â
Cost of goods sold for these sales of
         81,000.00
Â
Â
Â
Associated sales tax rate isÂ
6%
Â
Â
Â
Â
Â
Â
Â
30-Dec-25
Paid the sales…
Chapter 12 Solutions
COLLEGE ACCOUNTING (LL)W/ACCESS>CUSTOM<
Ch. 12 - Why is a 10-column worksheet used as part of the...Ch. 12 - Prob. 1.2SRQCh. 12 - Prob. 1.3SRQCh. 12 - Prob. 1.4SRECh. 12 - Prob. 1.5SRECh. 12 - Your company prepares financial statements each...Ch. 12 - Prob. 2.1SRQCh. 12 - Prob. 2.2SRQCh. 12 - The trial balance in the first two columns of the...Ch. 12 - Prob. 2.4SRE
Ch. 12 - Prob. 2.5SRECh. 12 - Explain why an error in the amount of an adjusting...Ch. 12 - Why is the accrual basis of accounting favored?Ch. 12 - Prob. 2CSRCh. 12 - How, if at all, does accrued income differ from...Ch. 12 - Prob. 4CSRCh. 12 - Prob. 5CSRCh. 12 - On July 1, 2019, a landlord received 36,000 cash...Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Income Summary amounts are extended to which...Ch. 12 - Prob. 4DQCh. 12 - What types of assets are subject to depreciation?...Ch. 12 - Prob. 6DQCh. 12 - What adjustment is made for depreciation on office...Ch. 12 - What is an accrued expense? Give three examples of...Ch. 12 - Prob. 9DQCh. 12 - What is a prepaid expense? Give three examples of...Ch. 12 - Prob. 11DQCh. 12 - What adjustment is made to record expired...Ch. 12 - What is the alternative method of handling prepaid...Ch. 12 - What is accrued income? Give an example of an item...Ch. 12 - Prob. 15DQCh. 12 - Prob. 16DQCh. 12 - Prob. 17DQCh. 12 - Prob. 18DQCh. 12 - Prob. 19DQCh. 12 - Prob. 20DQCh. 12 - How does the worksheet help the accountant to...Ch. 12 - The beginning inventory of Norcal Wholesalers was...Ch. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - For each of the following independent situations,...Ch. 12 - Prob. 1PACh. 12 - Prob. 2PACh. 12 - Prob. 3PACh. 12 - The Green Thumb Gardener is a retail store that...Ch. 12 - Healthy Eating Foods Company is a distributor of...Ch. 12 - The Artisan Wines is a retail store selling...Ch. 12 - Prob. 1PBCh. 12 - On June 1, 2019, Raquel Ramirez established her...Ch. 12 - Prob. 3PBCh. 12 - Fun Depot is a retail store that sells toys,...Ch. 12 - Whatnots is a retail seller of cards, novelty...Ch. 12 - The Game Place is a retail store that sells...Ch. 12 - The unadjusted trial balance of Bens Jewelers on...Ch. 12 - Prob. 2CTPCh. 12 - The president of Murray Stainless Steel...Ch. 12 - Prob. 1FSA
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Record the following transactions for Concord Co. in the general journal. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 2020    May 1  Received a $33,000, 12 months, 10% note in exchange for Mark Chamber’s outstanding accounts receivable. Dec. 31  Accrued interest on the Chamber note. Dec. 31  Closed the interest revenue account. 2021    May 1  Received principal plus interest on the Chamber note. (No interest has been accrued in 2021.)  Date Account Titles and Explanation Debit Credit  May 1, 2020Dec. 31, 2020May 1, 2021         May 1, 2020Dec. 31, 2020May 1, 2021         (To record accrued interest on note.)    May 1, 2020Dec. 31, 2020May 1, 2021         (To close the…arrow_forwardIncluded in Windsor NV's December 31 trial balance is a note receivable of € 8,880. The note is a 4-month, 10% note dated October 1. Prepare Windsor's December 31 adjusting entry to record € 222 of accrued interest, and the February 1 journal entry to record receipt of € 9,176 from the borrower. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit >arrow_forwardAt December 31, 2019, Blue Spruce Corp. Company had a credit balance of $17,000 in Allowance for Doubtful Accounts. During 2020, Blue Spruce Corp. wrote off accounts totaling $13,400. One of those accounts ($2,700) was later collected. At December 31, 2020, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $28,800.Prepare journal entries to record the 2020 transactions of Blue Spruce Corp. Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit enter an account title to record amount written off enter a debit amount enter a credit amount enter an account title to record amount written off enter a debit amount enter a credit amount (To record amount written off)   enter an account title to reverse write-off enter a debit amount enter a credit amount enter an account title to reverse write-off enter a debit…arrow_forward
- Minnie has asked you to review the methods Min Armin Wastege uses when dealing with Accounts Receivable. Minnie has compiled the following information for the past 2 months andwants you to update her records on August 31, 2020.On June 30, 2020 the Account Receivable balance for Min Armin Wastege was $13,585 Dr withan Allowance for Doubtful Debts of $462 Cr. In the last two monthsSales (net of GST)S4 800Sales Returns & Allowances (net of GST) 400Cash Collected3 550Bad Debts to be written off (Including GST) 660The bad debts listed above have not been written off as yet. Minnie has also calculated based on past experience that 7% of net credit sales go bad. All sales are made on credit. REQUIRED:Prepare the following General Journal entries to1. account for the write off of the bad debt during the past two months2. the adjusting entry on August 31 using the information Minnie has provided. b. Update the Accounts Receivable and Allowance for doubtful debts accounts.arrow_forwardConcord Company borrows $52,800 on July 1 from the bank by signing a $52,800, 12%, one-year note payable. (a) Prepare the journal entry to record the proceeds of the note. (b) Prepare the journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) No. Date Account Titles and Explanation Debit Credit (a) (b)arrow_forwardBramble Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at December 31. How would I journalize the transactions for Bramble Supply Co? (Ignore entries for cost of goods sold.) Nov. 1  Loaned $ 13,200 cash to Manny Lopez on a  12-month,  10% note. Dec. 11  Sold goods to Ralph Kremer, Inc., receiving a $ 24,750,  90-day,  8% note. 16  Received a $ 29,100,  180 day,  8% note in exchange for Joe Fernetti’s outstanding accounts receivable. 31  Accrued interest revenue on all notes receivable.arrow_forward
- a. On December 31, 2019, the Notes Payable account at Northwood Manufacturing Company had a balance of $13,500. This balance represented a three-month, 10 percent note issued on November 1. Journal entry worksheet  Record the adjustment for interest. Note: Enter debits before credits.     Date General Journal Debit Credit Dec 31, 2019arrow_forwardAtty. Namjoonie began business on January 1, 2020. The unadjusted trial balance for the first year of operation is found below. The following data were collected for adjustments: 1. The balance in the Notes Receivable is for a single P60,000 note from a customer dated December 16, 2020. The note, due February 14, 2021, carries an interest rate of 20%. 2. A count of office supplies showed P12,000 still on hand as at December 31. 3. Bad accounts should be established amounting to P7,000 which seems to be uncollectible. 4. Atty. Namjoonie invested P35,000 of the furniture and fixtures when the clinic was opened on January 1. It is estimated to have a useful life of five years, no scrap value. 5. The office equipment was purchased on February 28 for P280,000. It has as estimated useful life of five years and a residual value of P40,000. 6. The salary of a newly hired secretary, Miss Queenie, amounting to P9,000 for the month of December, has not been paid and recorded. 7. Only P7,000 shown…arrow_forwardatty. namjoonie began business on january 1, 2020. the unadjusted trial balance for the first year of operation is found below. the following data were collected for adjustments: 1. the balance in the notes receivable is for a single p60,000 note from a customer dated december 16, 2020. the note, due february 14, 2021, carries an interest rate of 20%. 2. a count of office supplies showed p12,000 still on hand as at december 31. 3. bad accounts should be established amounting to p7,000 which seems to be uncollectible. 4. atty. namjoonie invested p35,000 of the furniture and fixtures when the clinic was opened on january 1. it is estimated to have a useful life of five years, no scrap value. 5. the office equipment was purchased on february 28 for p280,000. it has as estimated useful life of five years and a residual value of p40,000. 6. the salary of a newly hired secretary, miss queenie, amounting to p9,000 for the month of december, has not been paid and recorded. 7. only p7,000 shown…arrow_forward
- Sadaf Oman Company's ledger showed an ending accounts receivable balance of RO 25,000 on April 30, 2020. During the next month, May, the company provided services for RO 24,000 in total. Customers made down payment of RO 3,000; and the remaining balance was on account. The Company received payments on this account of RO 15.000. The balance in the T-account for the accounts receivable at the end of May, 2020 is: O a. RO 31,000 debit. O b. RO 19,000 debit. O. RO 26,000 debit. O d. RO 28,000 debit. O e. None of the options are correctarrow_forwardOn December 31, 2019, the Notes Payable account at Vanessa’s Boutique Shop had a balance of $62,800. This amount represented funds borrowed on a six-month, 9 percent note from the firm’s bank on December 1.Record the journal entry for interest expense on this note that should be recorded on the firm’s worksheet for the year ended December 31, 2019. Journal entry worksheet  Record the adjustment for interest. Note: Enter debits before credits.     Date General Journal Debit Credit Dec 31, 2019arrow_forwardAce Company uses the Aging of receivables method to account for uncollectible accounts. The company had the following balances on January 01, 2019. Part A Accounts receivable.. .$2,800,000 Allowance for uncollectible accounts... . .$88,800 (credit) The company completed the following transactions during 2019. • April 20- Wrote off the balance of $1,000 from Shari Wickham's account as uncollectible. • November 27 Re-instated the account of Louis Benn and recorded the collection of $1,500 as payment in full for her account which had been written off earlier. • December 31st- i. Recorded the uncollectible account expense based on the aging schedule. The schedule showed that $124,500 of accounts receivable was estimated as uncollectible. ii. Made the closing entry for the uncollectible expense account. Requirements: 1. Prepare journal entries for each transaction (No narrations required) 2. Prepare the Allowance for Uncollectible and the Accounts Receivable accounts based on the…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
IAS 29 Financial Reporting in Hyperinflationary Economies: Summary 2021; Author: Silvia of CPDbox;https://www.youtube.com/watch?v=55luVuTYLY8;License: Standard Youtube License