Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 2, Problem 11QS
To determine
To prepare a
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Cashaun Wo x
CCU
brightspace.wiltech.edu/d2l/le/7659/discussions/topics/2429/View
Subscribe
New Wave Images is a graphics design firm that prepares its financial statements using a calendar year.
Manny Kinn, the company treasurer and vice president of finance, has prepared a classified balance sheet
as of December 31. In January, this balance sheet will be submitted along with an application for a loan
from First Peoples Community Bank. An excerpt from the balance sheet follows:
Cash
$ 25,000
Accounts Receivable
85,000
Total Assets
$ 250,000
The accounts receivable balance includes a $56,000 loan to Tom Morrow, the company president. Tom
borrowed the money from New Wave 18 months earlier for a down payment on a new home. Tom has
orally assured Manny that he will pay off the loan within the next year. Because Tom is the company
president, Manny treats the amount due as a trade account receivable. In addition, Manny knows that the
bank will consider a large balance in trade accounts…
Notes Receivable
Crowne Cleaning provides cleaning services for Amber Inc., a business with four buildings. Crowne assigned different cleaning charges for each building based on the amount of square feet to be cleaned. The charges for the four buildings are $87,600, $82,200, $102,000, and $62,400. Amber secured this amount by signing a note bearing 10% interest on June 1.
Required:
Question Content Area
1. Prepare the journal entry to record the sale on June 1. If an amount box does not require an entry, leave it blank.
blank
- Select -
- Select -
- Select -
- Select -
Question Content Area
2. Determine how much interest Crowne will receive if the note is repaid on December 1.$fill in the blank 59d6dd028fbe01b_1
Question Content Area
3. Prepare Crowne’s journal entry to record the cash received to pay off the note and interest on December 1. If an amount box does not require an entry, leave it blank.
blank
- Select -
- Select…
Purchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger
Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October are as follows:
Oct. 2.
Purchased office supplies on account from Meade Co., $6,260.
5.
Purchased office equipment on account from Peach Computers Co., $9,000.
9.
Purchased office supplies on account from Executive Office Supply Co., $650.
13.
Purchased field supplies on account from Yamura Co., $7,120.
14.
Purchased field supplies on account from Omni Co., $940.
17.
Purchased field supplies on account from Yamura Co., $16,950.
24.
Purchased field supplies on account from Omni Co., $4,780.
29.
Purchased office supplies on account from Executive Office Supply Co., $420.
31.
Purchased field supplies on…
Chapter 2 Solutions
Principles of Financial Accounting.
Ch. 2 - Amalia Company received its utility bill for the...Ch. 2 - On May 1, Mattingly Lawn Service collected 2,500...Ch. 2 - Prob. 3MCQCh. 2 - A trial balance prepared at year-end shows total...Ch. 2 - Prob. 5MCQCh. 2 - Prob. 1DQCh. 2 - What is the difference between a note payable and...Ch. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Are debits or credits typically listed first in...
Ch. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Define (a) assets, (b) liabilities, (c) equity,...Ch. 2 - Which financial statement is sometimes called the...Ch. 2 - APPLE Review the Apple balance sheet in Appendix...Ch. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Prob. 1QSCh. 2 - Identifying financial statement accounts C2...Ch. 2 - Prob. 3QSCh. 2 - Prob. 4QSCh. 2 - Linking debit or credit with normal balance C4...Ch. 2 - Analyzing transactions and preparing journal...Ch. 2 - Prob. 7QSCh. 2 - Identifying a posting error A trial balance has...Ch. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Prob. 11QSCh. 2 - Preparing an income statement P3 Liu Zhang...Ch. 2 - Prob. 13QSCh. 2 - Preparing a balance sheet P3 Use the information...Ch. 2 - Prob. 15QSCh. 2 - Prob. 1ECh. 2 - Identifying and classifying accounts Enter the...Ch. 2 - Identifying a ledger and chart of accounts C3...Ch. 2 - Prob. 4ECh. 2 - Analyzing effects of a compound entry A1 Groro Co....Ch. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Preparing T-accounts (ledger) and a trial balance...Ch. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prob. 11ECh. 2 - Analyzing and journalizing transactions involving...Ch. 2 - Prob. 13ECh. 2 - Prob. 14ECh. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Identifying effects of posting errors on the trial...Ch. 2 - Analyzing a trial balance error You are told the...Ch. 2 - Calculating and interpreting the debt ratio A2...Ch. 2 - Prob. 23ECh. 2 - Prob. 5APCh. 2 - Prob. 6APCh. 2 - Prob. 7APCh. 2 - The accounting records of Tama Co. show the...Ch. 2 - Prob. 6BPCh. 2 - Prob. 7BPCh. 2 - Prob. 1AACh. 2 - Prob. 2AACh. 2 - GLOBAL ANALYSIS A2 Key comparative figures for...Ch. 2 - Prob. 1BTNCh. 2 - COMMUNICATING IN PRACTICE Lila Corentine is an...Ch. 2 - Prob. 3BTNCh. 2 - Prob. 5BTNCh. 2 - Prob. 6BTN
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
- Read through the transactions impacting JumpStart Co. and answer the question below: On November 10, JumpStart Co. provides $2,900 in services to clients. At the time of service, the clients paid $600 in cash and put the balance on account. On November 20, JumpStart Co. clients paid an additional $900 on their accounts due. Document the journal entries that reflect the November 10 and 20th transactions. Edit View Insert Format Tools Table 12pt v Paragraph v BIUAY O wordsarrow_forwardA Screen Shot 2020-02-20 at 12.36.49 PM Q Search 3. Journalize the transactions for October (in chronological order), using the purchases journal below (p. 30) similar to the one illustrated in this chapter. Post to the creditor accounts in the accounts payable subsidiary ledger (in part 2) immediately after each entry. Shot 2020-02-20 at 12.37.13 4. Post the purchases journal to the accounts in the general ledger (in part 1). If an amount box does not require an entry, leave it blank. If no other account is needed in the "Other Accounts Dr." column select "No entry required". PURCHASES JOURNAL PAGE 30 Post. Date Account Credited Accounts Payable Cr. Field Supplies Dr. Office Supplies Dr. Other Accounts Dr. Post. Ref. Amount Ref. Oct. 2 Oct. 5 Oct. 9 Oct. 13 Oct. 14 Oct. 17 Oct. 24 Oct. 29 Oct. 31 Oct. 31 Oct. 31 (v)arrow_forwardPurchases, Accounts Payable Subsidiary Account, and Accounts Payable Ledger Sterling Forest Landscaping designs and installs landscaping. The landscape designers and office staff use office supplies, while field supplies (rock, bark, etc.) are used in the actual landscaping. Purchases on account completed by Sterling Forest Landscaping during October are as follows: Oct. 2. Purchased office supplies on account from Meade Co., $6,260. 5. Purchased office equipment on account from Peach Computers Co., $9,000. 9. Purchased office supplies on account from Executive Office Supply Co., $650. 13. Purchased field supplies on account from Yamura Co., $7,120. 14. Purchased field supplies on account from Omni Co., $940. 17. Purchased field supplies on account from Yamura Co., $16,950. 24. Purchased field supplies on account from Omni Co., $4,780. 29. Purchased office supplies on account from Executive Office Supply Co., $420. 31. Purchased field supplies on…arrow_forward
- Your activity: Posting to the ledger The following journal entries were found in the books of Lagumang Pagsusulit Photocopying Services in the month of January 2019: January 2019 Cash on Hand Php 30,000.00 Machines 450,000.00 Building Granfon, Capital 500,000.00 Php 980,000.00 3 Permits and Licenses 7,500.00 Cash on Hand 7,500.00 4 Cash on hand 5,500.00 Service Revenue 5,500.00 5 Cash on Hand 4,650.00 2,300.00 Accounts Receivable Service Revenue 6,950.00 6 12,000.00 Prepaid Insurance Cash on hand 12,000.00 9 Supplies 10,000.00 Accounts Payable 10,000.00 13 Cash on Hand 15,500.00 Service Revenue 15,500.00 15 Accounts Receivable 8,000.00 Service Revenue 8,000.00 Salaries Expense Cash on Hand 16 3,000.00 3,000.00arrow_forwardThe cash payments and purchases journals for Outdoor Artisan Landscaping follow. The accounts payable control account has a June 1, 20Y1, balance of 2,230, consisting of an amount owed to Augusta Sod Co. Prepare a schedule of the accounts payable creditor balances and determine that the total agrees with the ending balance of the accounts payable controlling account.arrow_forwardM MISLANG MANAGEMENT CONSULTANCY SERVICES Your Sut s Is My ExiNta " Journalize: July 9, 2019: Made sales of 17,000 (12,000 cash sales, 5,000 credit sales). a. Provide entry under Perpetual b. Provide entry under Periodic July 30, 2019: The cost of the sales made on July 9, 2019 amounted to 8,500. a. Provide entry under Perpetual b. Provide entry undr Doriodio meetgoogie.com ang rour acreen. Stap sheringarrow_forward
- Instructions: Prepare a Statement of Financial Position of Happy Selling Co. using the following accounts (one in report form and one in account form): Cash – 5,000 Loans Payable – 77,500 Accounts Receivable – 2,600 Supplies – 2,300 Equipment – 17,000 Owner’s equity – 40,000 Accounts Payable – 22,400 Building – 113,000 Instruction: Answer the following situation and apply what you’ve learned regarding the preparation of Balance Sheet or Statement of Financial Position. You were hired by Ms. Annalyn Chua to prepare her General Merchandise Statement of Financial Position. In order to prepare the statement, you identified the following assets and liabilities of Ms. Chua. You may choice any of the format. Cash deposited in a bank account amounting to P50,000 Store had a lot of uncollected sales from customers amounting to P75,000 The total amount of merchandise left inside the store is P30,000 She already paid one year’s rent in advance amounting to P12,000 The value of all the…arrow_forward1. Listed below are selected transactions of Schultz Department Store for the current year ending December 31: HINT: Chapter 12: Customer Advances, Example 12.12 Unearned Revenues, Example LO 12.2 REQUIRED: Prepare journal entries for the transactions listed below: 3A). On December 5, the store received $500 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. 3B). 3C). 3D). During December, cash sales totaled $798,000, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. On December 10, the store purchased for cash, three delivery trucks that cost $120,000. The trucks were purchased in a state that applies a 5% sales tax. The store sold 25 gift cards for $100 per card. At year-end, 20 of the gift cards are redeemed. Schultz expects three of the cards to expire unused. LORarrow_forwardComprehensive Problem – Journalizing, Posting. Trial Balance Ulysses Dela Cruz established an enterprise he registered with the DTI under the name: The Storm Decorators, on May 1, 2020. During the month he completed the following transactions: 01 - Mr. Ulysses Dela Cruz transferred cash from a personal bank account to an account to be used for the business, P31,000. 02 - Purchased supplies for cash, P750. 02 - Paid P1,230 worth of local government taxes and business permits. 02 - Purchased tools on account from Tonyo General Merchandise, P4,600. 03 - Purchased a second-hand van from Bagyo Used Cars Inc. for P48,000, paying P8,00 cash and giving a note payable in 3 months for the remainder. 05 - Paid rent of the office space for the month, P2,250. 06 – Received cash for a job completed, P8,600. 08 – Purchased supplies on account from Tonyo General Merchandise, P2,450. 10 - Paid premiums on property insurance, P2,440. 12 - Paid in full creditor for the tools purchased on May 2. 14 - Paid…arrow_forward
- Question : Pass the journal entries for the following. May 2013 Date 1 : Set up the entity with capital in cash Rs. 2,500,000. 2 : Bought good on credit from the following supplies : The Bushes company Rs. 5,40,000, Flower city Rs. 8,70,000, D Gibson Rs. 2,50,000, Weedkill Rs. 7,60,000, T greenery Rs. 6,40,000 3 : Sold goods on credit to : The office company Rs. 4,30,000, V Cork Rs. 6,40,000, Texas Chain Stores Rs. 17,60,000. 4 : Paid rent Rs. 1,20,000. 5 : The office company paid the Rs. 4,30,000 that it owed. 6 : Texas Chain Stores paid Rs. 15,00,000. 7 : The following payments were made : to D Gibson Rs. 2,50,000, and to The Bushes Company 5,40,000. 8 : Advertising costs of Rs. 2,30,000 were paid to the Local news Publisher. 9 : Bought goods on credit from the following suppliers : The Bushes Company Rs. 4,30,000, Landscape 11,00,000. 10 : Sold good on credit to Public Parks Rs. 6,70,000. 11 : Paid rent Rs. 1,80,000arrow_forwardAnalyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.arrow_forwardPlumb Line Surveyors provides survey work for construction projects. The office staff use office supplies, while surveying crews use field supplies. Purchases on account completed by Plumb Line Surveyors during May are as follows: Instructions 1. Insert the following balances in the general ledger as of May 1: 2. Insert the following balances in the accounts payable subsidiary ledger as of May 1: 3. Journalize the transactions for May, using a purchases journal (p. 30) similar to the one illustrated in this chapter. Prepare the purchases journal with columns for Accounts Payable, Field Supplies, Office Supplies, and Other Accounts. Post to the creditor accounts in the accounts payable subsidiary ledger immediately after each entry. 4. Post the purchases journal to the accounts in the general ledger. 5. a. What is the sum of the creditor balances in the subsidiary ledger at May 31? b. What is the balance of the accounts payable controlling account at May 31? 6. What type of e-commerce application would be used to plan and coordinate transactions with suppliers?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY