Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 2, Problem 2.20E
Worksheet
• Appendix 2A
The December 31, 2018, unadjusted
Account Title | Debits | Credits |
Cash | 20,000 | |
Accounts receivable | 35,000 | |
Prepaid rent | 5,000 | |
Inventory | 50,000 | |
Equipment | 100,000 | |
Accumulated depreciation—equipment | 30,000 | |
Accounts payable | 25,000 | |
Salaries and wages payable | –0– | |
Common stock | 100,000 | |
29,000 | ||
Sales revenue | 323,000 | |
Cost of goods sold | 180,000 | |
Salaries and wages expense | 71,000 | |
Rent expense | 30,000 | |
Depreciation expense | –0– | |
Utility expense | 12,000 | |
Advertising expense | 4,000 | |
Totals | 507,000 | 507,000 |
The following year-end
a. Depreciation expense for the year on the equipment is $10,000.
b. Accrued salaries and wages payable at year-end should be $4,000.
Required:
1. Prepare and complete a worksheet similar to Illustration 2A–1.
2. Prepare an income statement for 2018 and a balance sheet as of December 31, 2018.
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Morry Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31:
Customer
Amount
J. Jackson
$10,000
L. Stanton
9,500
C. Barton
13,100
S. Fenton
7,400
Total
$40,000
Required:
a. Journalize the write-offs for the current year under the direct write-off method. If an amount box does not require an entry, leave it blank.
Bad Debt Expense
Bad Debt Expense
Accounts Receivable-J. Jackson
Accounts Receivable-J. Jackson
Accounts Receivable-L. Stanton
Accounts Receivable-L. Stanton
Accounts Receivable-C. Barton
Accounts Receivable-C. Barton
Accounts Receivable-S. Fenton
Accounts Receivable-S. Fenton
b. Journalize the write-offs for the current year under the allowance method. Also, journalize the adjusting entry for uncollectible receivables assuming the company made…
AC
The January 1 Year 1 trial balance for the Lewis Company is found on the trial balance tab. The beginning balances are assumed.
Center Company entered into the following transactions involving short-term liabilities. (Use 360 days a year.)
April 20 Purchased $42,750 of merchandise on credit from Griffin, teras a/36.
May 19 Replaced the April 20 sccount payable to Griffin with a 90-day, 121, $16,000 note payable along with paying
July Borrowed $96,000 cash from MMR Bank by signing a 120-day, 6, $96,000 note payable.
August 17 Paid the amount due on the note to Griffin at the maturity date.
November 3 Paid the amount due on the note to MMR Bank at the maturity date.
November 28 Borrowed $57,000 cash from Austin Bank by signing a 60-day, 8, $57,000 note payable.
December 31 Recorded an adjusting entry for socrued interest on the note to Austin Bank.
January 27 Paid the amount due on the note to Austin Bank at the maturity date.
Requirement
Journal
General
Ledger
F
Total interest…
Problem 6-3: The Kissagram Corporation
The Kissagram Corporation produced the following summary of its Accounts Receivable on October 31, 2021:
Customer
Total $
Notes
Aniston
9000
25% over 30-60 days; Remainder 90.
Leblanc
9000
100% > 90 days outstanding.
Required
1. Prepare an aged schedule of Accounts Receivable. Use the following categories: 90 days (delinquent).
2. Compute the balance for the Allowance for Doubtful accounts (rounded to the nearest $). Assume bad debt percentages for each category
of 0.7%, 7%, 12% and 22%.
Upon completion, enter the following data here:
Allowance for Doubtful Accounts
submit
Chapter 2 Solutions
Intermediate Accounting
Ch. 2 - Explain the difference between external events and...Ch. 2 - Each economic event or transaction will have a...Ch. 2 - What is the purpose of a journal? What is the...Ch. 2 - Explain the difference between permanent accounts...Ch. 2 - Describe how debits and credits affect assets,...Ch. 2 - Describe how debits and credits affect temporary...Ch. 2 - What is the first step in the accounting...Ch. 2 - Prob. 2.8QCh. 2 - Prob. 2.9QCh. 2 - Prob. 2.10Q
Ch. 2 - What is an unadjusted trial balance? An adjusted...Ch. 2 - Define adjusting entries and discuss their...Ch. 2 - Define closing entries and their purpose.Ch. 2 - Define prepaid expenses and provide at least two...Ch. 2 - Deferred revenues represent liabilities recorded...Ch. 2 - Define accrued liabilities. What adjusting journal...Ch. 2 - Prob. 2.17QCh. 2 - [Based on Appendix A] What is the purpose of a...Ch. 2 - [Based on Appendix B] Define reversing entries and...Ch. 2 - [Based on Appendix C] What is the purpose of...Ch. 2 - Prob. 2.21QCh. 2 - Transaction analysis LO21 The Marchetti Soup...Ch. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Prob. 2.3BECh. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; income determination LO24,...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Income determination LO24 If none of the...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Financial statements LO26 The following account...Ch. 2 - Financial statements LO26 The following account...Ch. 2 - Closing entries LO27 The year-end adjusted trial...Ch. 2 - Prob. 2.13BECh. 2 - Transaction analysis LO21 The following...Ch. 2 - Journal entries LO22 Prepare journal entries to...Ch. 2 - T-accounts and trial balance LO23 Post the...Ch. 2 - Journal entries LO22 The following transactions...Ch. 2 - Prob. 2.5ECh. 2 - Debits and credits LO22 Indicate whether a debit...Ch. 2 - Transaction analysis; debits and credits LO22...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; solving for unknowns LO24,...Ch. 2 - Adjusting entries LO25 The Mazzanti Wholesale...Ch. 2 - Financial statements and closing entries LO26,...Ch. 2 - Closing entries LO27 American Chip Corporations...Ch. 2 - Prob. 2.14ECh. 2 - Cash versus accrual accounting; adjusting entries ...Ch. 2 - External transactions and adjusting entries LO22,...Ch. 2 - Accrual accounting income determination LO24,...Ch. 2 - Cash versus accrual accounting LO28 Stanley and...Ch. 2 - Prob. 2.19ECh. 2 - Worksheet Appendix 2A The December 31, 2018,...Ch. 2 - Reversing entries Appendix 2B The employees of...Ch. 2 - Reversing entries Appendix 2B Refer to E 29 and...Ch. 2 - Reversing entries Appendix 2B Refer to E 29 and...Ch. 2 - Special journals Appendix 2C The White Companys...Ch. 2 - Prob. 2.25ECh. 2 - Accounting cycle through unadjusted trial balance ...Ch. 2 - Accounting cycle through unadjusted trial balance ...Ch. 2 - Adjusting entries LO25 Pastina Company sells...Ch. 2 - Accounting cycle; adjusting entries through...Ch. 2 - Adjusting entries LO25 Howarth Companys fiscal...Ch. 2 - Accounting cycle LO22 through LO27 The general...Ch. 2 - Adjusting entries and income effects LO22, LO25...Ch. 2 - Adjusting entries LO25 Excalibur Corporation...Ch. 2 - Accounting cycle; unadjusted trial balance through...Ch. 2 - Prob. 2.10PCh. 2 - Prob. 2.11PCh. 2 - Cash versus accrual accounting LO28 Zambrano...Ch. 2 - Worksheet Appendix 2A Using the information from...Ch. 2 - Judgment Case 21 Cash versus accrual accounting;...Ch. 2 - Prob. 2.2BYPCh. 2 - Communication Case 23 Adjusting entries LO24 I...Ch. 2 - Continuing Cases Target Case LO24, LO28 Target...
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