Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter 2, Problem 2.8SE
Preparing a
Henderson Floor Coverings reported the fo1lowing summarized data at December 31, 2016. Accounts appear in no particular order, and all have normal balances.
| Service Revenue | $38,000 |
| Salaries Payable | $15,000 |
| Equipment | 45,000 |
| Salaries Expense | 1,800 |
| Rent Expense | 10,000 |
| Cash | 12,000 |
| Common Stock | 25,000 |
| Accounts Receivable | 4,000 |
| Accounts Payable | 1,500 |
| Interest Payable | 7,500 |
| Dividends | 12,900 |
| Utilities Expense | 1,300 |
Prepare the trial balance of Henderson Floor Coverings at December 31, 2016.
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Hunter, Inc. analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible:
% Considered
Age Group
Balance Uncollectible
0-30 days past due
$90,000
1%
31-60 days past due
20,000
2%
61-120 days past due
11,000
5%
121-180 days past due
6,000
10%
Over 180 days past due
4,000
25%
$131,000
The company handles credit losses using the allowance method.
The credit balance of the Allowance for Doubtful Accounts is $520 on December 31, before any adjustments.
a. Determine the amount of the adjustment for estimated credit losses on December 31.
$ 0
b. Determine the financial statement effect of a write off of the Rose Company's account on April 10 of the following year in the amount of $425.
Use negative signs with answers, when appropriate.
If a transaction increases and decreases the same Balance Sheet category, enter the increase amount in the first row and the decrease amount directly…
Maxwell Inc., analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible:
% Considered
Age Group
Balance Uncollectible
0-30 days past due
$300,000
1%
31-60 days past due
54,000
3%
61-120 days past due
60,000
6%
121-180 days past due
21,000
10%
Over 180 days past due
6,000
20%
$441,000
The company handles credit losses using the allowance method.
The credit balance of the Allowance for Doubtful Accounts is $2,520 on December 31, before any adjustments.
a. Determine the amount of the adjustment for estimated credit losses on December 31.
b. Determine the financial statement effect of a write off of Porter Company's account on the following May 12, in the amount of $1,440.
Use negative signs with answers, when appropriate.
If a transaction increases and decreases the same Balance Sheet category, enter the increase amount in the first row and the decrease amount directly below (in…
(c) What is the balance of accounts receivable on it December 31 balance sheet?
Estimating Uncollectible Accounts and Reporting Accounts ReceivableLaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollectible.
Age Group
Accounts
Receivable
Estimated
Loss %
0-30 days past due
$ 180,000
1%
31-60 days past due
40,000
2
61-120 days past due
22,000
5
121-180
12,000
10
Over 180 days past due
8,000
25
Total accounts receivable
$ 262,000
Chapter 2 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 2 - The detailed record of the changes in a particular...Ch. 2 - Which of the following accounts is a liability? a....Ch. 2 - The left side of an account is used to record...Ch. 2 - Which of the following statements is correct? a....Ch. 2 - Prob. 5QCCh. 2 - Prob. 6QCCh. 2 - Posting a 2,500 purchase of office supplies on...Ch. 2 - Prob. 8QCCh. 2 - Which sequence correctly summarizes the accounting...Ch. 2 - Nathville Laundry reported assets of 800 and...
Ch. 2 - Identify the three categories of the accounting...Ch. 2 - What is the purpose of the chart of accounts?...Ch. 2 - What does a ledger show? Whats the difference...Ch. 2 - Prob. 4RQCh. 2 - Prob. 5RQCh. 2 - Prob. 6RQCh. 2 - When are credits increases? When are credits...Ch. 2 - Prob. 8RQCh. 2 - What are source documents? Provide examples of...Ch. 2 - Prob. 10RQCh. 2 - Explain the five steps in journalizing and posting...Ch. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - What is the purpose of the trial balance?Ch. 2 - Prob. 15RQCh. 2 - If total debits equal total credits on the trial...Ch. 2 - What is the calculation for the debt ratio?...Ch. 2 - Identifying accounts Consider the following...Ch. 2 - Identifying increases and decreases in accounts...Ch. 2 - Identifying normal balances For each account,...Ch. 2 - Prob. 2.4SECh. 2 - Journalizing transactions Arkansas Sales...Ch. 2 - Prob. 2.6SECh. 2 - Prob. 2.7SECh. 2 - Preparing a trial balance Henderson Floor...Ch. 2 - Calculating debt ratio Vacuum Magic Carpet Care...Ch. 2 - Using accounting vocabulary March the accounting...Ch. 2 - Creating a chart of accounts Raymond Autobody Shop...Ch. 2 - Identifying accounts, increases in accounts, and...Ch. 2 - Identifying increases and decreases in accounts...Ch. 2 - Identifying source documents For each transaction,...Ch. 2 - Analyzing and journalizing transactions As the...Ch. 2 - Use the following information to answer Exercises...Ch. 2 - Use the following information to answer Exercises...Ch. 2 - Use the following information to answer Exercises...Ch. 2 - Use the following information to answer Exercises...Ch. 2 - Analyzing transactions from T-accounts The first...Ch. 2 - Journalizing transactions from T-accounts In...Ch. 2 - Preparing a trial balance The accounts of Aker...Ch. 2 - Preparing a trial balance from T-accounts The...Ch. 2 - Journalizing transactions, posting journal entries...Ch. 2 - Prob. 2.25ECh. 2 - Prob. 2.26ECh. 2 - Correcting errors in a trial balance The following...Ch. 2 - Prob. 2.28ECh. 2 - Problems Group A Journalizing transactions,...Ch. 2 - Journalizing transactions, posting journal entries...Ch. 2 - Journalizing transactions, posting journal entries...Ch. 2 - Journalizing transactions, posting journal entries...Ch. 2 - Correcting errors in a trial balance The trial...Ch. 2 - Preparing financial statements from the trial...Ch. 2 - Journalizing transactions, posting journal entries...Ch. 2 - Journalizing transactions, posting journal entries...Ch. 2 - Journalizing transactions, posting journal entries...Ch. 2 - Prob. 2.38BPCh. 2 - Prob. 2.39BPCh. 2 - Prob. 2.40BPCh. 2 - Journalizing transactions, posting to T-accounts,...Ch. 2 - Journalizing transactions, posting to T-accounts,...Ch. 2 - Your friend, Dean McChesney, requested that you...Ch. 2 - Prob. 2.1CTEICh. 2 - Roy Akins was the accounting manager at Zelco, a...Ch. 2 - Prob. 2.1CTFSCCh. 2 - In 35 words or fewer, explain the difference...
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