Financial Accounting
9th Edition
ISBN: 9781259222139
Author: Robert Libby, Patricia Libby, Frank Hodge Ch
Publisher: McGraw-Hill Education
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Chapter 2, Problem 2.9ME
To determine
Prepare the appropriate T-accounts of Company D, and determine the ending balance of each account.
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MULTIPLE CHOICE
1.
These represent open accounts with customers.
a. Trade receivables
b. Nontrade receivables
c. Accounts receivable
d. Notes receivables
2.
Upon initial recognition, accounts receivable are measured at
а.
Face value
b. Discounted value
c. Maturity value
d. Net realizable value
3.
Trade receivables that are expected to be collected within 12 months after the reporting
period shall be presented in the statement of financial position at
a. Net realizable value
b. Maturity amounts
c. Face amounts
d. Discounted values
4.
Receivables denominated in a foreign currency should be
a. Translated to local currency using the exchange rate at the time of recognition
b. Shown at face value of the foreign currency
c. Translated to local currency using the exchange rate at closing rate
d. Translated to local currency using the exchange rate when the financial statements are
authorized for issue
5.
Which valuation allowance is a proper deduction from trade accounts receivable in…
Q L. From the following Trial Balance prepare Trading and Profit and Loss Account for the year ended 31 December, 2020 and Balance Sheet as on that date:
Cr. (Rs.)
Dr. (Rs.)
10,000
46,000
1,50,200
3,400
22,660
600
38,600
840
1,640
280
3,300
4,000
200 29,000
Drawings
Stack on 01/01/2019
Purchases and Purchases Returns
Cash in Hand
Bank Balance
Freehold Premises
Trade Expenses Printing, stationery and Advertising
Professional Charges
Commission Received
Investments as on 1" Jan. @ 10% Interest on above
Sundry Debtors and Creditors Wages
Salaries Capital
Income Tax Discount allowed and received
Sales Returns and Sales
Bills Receivable /Bills Payable
Office furniture
Rent, Rates and Insurance Bad Debts Provisions
Total Adjustments:
36,000
25,000
14,000
1,14,000
1,600
6,300
550 3.200
4,600
2,08,950
10,000
3,050
4,000
670 3.71,320
3,71,320
(a) Provide for wages Rs. 5,000.
(b) Write Off 5%…
Harrigan Service Company, Inc., was incorporated by lan Harrigan and five other managers.
The following activities occurred during the year:
1. Received $71,400 cash from the managers; each was issued 1,190 shares.
2. Purchased equipment for use in the business at a cost of $50,000; one-fourth was paid in
cash and the company signed a note for the balance (due in six months).
3. Signed an agreement with a cleaning service to pay it $690 per week for cleaning the
corporate offices, beginning next week.
4. Ian Harrigan borrowed $19,500 for personal use from a local bank, signing a one-year
note.
Chapter 2 Solutions
Financial Accounting
Ch. 2 - Prob. 1QCh. 2 - Define the following: a. Asset b. Current asset c....Ch. 2 - Explain what the following accounting terms mean:...Ch. 2 - Why are accounting assumptions necessary?Ch. 2 - For accounting purposes, what is an account?...Ch. 2 - What is the fundamental accounting model?Ch. 2 - Prob. 7QCh. 2 - Explain what debit and credit mean.Ch. 2 - Prob. 9QCh. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - How is the current ratio computed and interpreted?Ch. 2 - Prob. 14QCh. 2 - Prob. 1MCQCh. 2 - Which of the following is not an asset? a....Ch. 2 - Total liabilities on a balance sheet at the end of...Ch. 2 - The dual effects concept can best be described as...Ch. 2 - The T-account is a tool commonly used for...Ch. 2 - Prob. 6MCQCh. 2 - The Cash T-account has a beginning balance of...Ch. 2 - Prob. 8MCQCh. 2 - At the end of a recent year, The Gap, Inc.,...Ch. 2 - Prob. 10MCQCh. 2 - Matching Definitions with Terms Match each...Ch. 2 - Matching Definitions with Terms Match each...Ch. 2 - Identifying Events as Accounting Transactions...Ch. 2 - Classifying Accounts on a Balance Sheet The...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Prob. 2.6MECh. 2 - Prob. 2.7MECh. 2 - Prob. 2.8MECh. 2 - Prob. 2.9MECh. 2 - Prob. 2.10MECh. 2 - Prob. 2.11MECh. 2 - Computing and Interpreting the Current Ratio...Ch. 2 - Identifying Transactions as Investing or Financing...Ch. 2 - Matching Definitions with Terms Match each...Ch. 2 - Identifying Account Titles The following are...Ch. 2 - Classifying Accounts and Their Usual Balances As...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Recording Investing and Financing Activities Refer...Ch. 2 - Prob. 2.7ECh. 2 - Recording Investing and Financing Activities...Ch. 2 - Analyzing the Effects of Transactions In...Ch. 2 - Analyzing the Effects of Transactions In...Ch. 2 - Prob. 2.11ECh. 2 - Inferring Investing and Financing Transactions and...Ch. 2 - Recording Journal Entries Nathanson Corporation...Ch. 2 - Prob. 2.14ECh. 2 - Analyzing the Effects of Transactions Using...Ch. 2 - Prob. 2.16ECh. 2 - Prob. 2.17ECh. 2 - Prob. 2.18ECh. 2 - Inferring Typical Investing and Financing...Ch. 2 - Prob. 2.20ECh. 2 - Identifying the Investing and Financing Activities...Ch. 2 - Prob. 2.22ECh. 2 - Identifying Accounts on a Classified Balance Sheet...Ch. 2 - Determining Financial Statement Effects of Various...Ch. 2 - Prob. 2.3PCh. 2 - Prob. 2.4PCh. 2 - Prob. 2.5PCh. 2 - Prob. 2.6PCh. 2 - Prob. 2.1APCh. 2 - Determining Financial Statement Effects of Various...Ch. 2 - Recording Transactions in T-Accounts, Preparing...Ch. 2 - Prob. 2.4APCh. 2 - Accounting for the Establishment of a New Business...Ch. 2 - Prob. 2.1CPCh. 2 - Prob. 2.2CPCh. 2 - Prob. 2.3CPCh. 2 - Prob. 2.4CPCh. 2 - Prob. 2.5CPCh. 2 - Prob. 2.6CPCh. 2 - Prob. 2.7CPCh. 2 - Prob. 2.8CP
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