Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 2, Problem 4E
a.
To determine
Show the effects of the events on the financial statements using horizontal statements model that is given.
b.
To determine
Identify the amount of total assets at the end of 2018.
c.
To determine
Identify the amount of balance accounts receivable at the end of the year 2018.
d.
To determine
Identify the amount of balance accounts payable at the end of the year 2018.
e.
To determine
Explain the difference between accounts receivable and accounts payable.
f.
To determine
Identify the net income for the 2018.
g.
To determine
Identify the amount of net
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
PROBLEM 1: You obtained the following information on the current account of BUGOY CORP. During your
examination of its financial statements for the year ended December 31, 2021.
The bank statement on November 30, 2021 showed a balance of P918,000. Among the bank credits in November
was customer's note for P300,000 collected for the account of the company which the company recognized in
December among its receipts. Included in the bank debits were cost of checkbooks amounting to P3,600 and a
P120,000 check which was charged by the bank in error against Bugoy's account. Also in November you
ascertained that there were deposits in transit amounting to P240,000 and outstanding checks totaling P510,000.
The bank statement for the month of December showed total credits of P1,248,000 and total charges of P612,000.
The Company's books for December showed total debits of P2,206,800, total credits of P1,221,600 and a balance
of P1,456,800. Bank debit memos for December were: No. 121 for service…
Problem 19
When examining the accounts of Ayala Corporation, it is ascertained that balance relatingto both receivables and payables are included in a single controlling account called“Receivables control” that has a debit balance of P4,850,000. An analysis of the make-upof this account revealed the following:Debit Accounts receivable – customers 7,800,000Accounts receivable – officers 500,000Debit balances – creditors 300,000Postdated checks from customers 400,000Subscriptions receivable 800,000CreditAccounts payable for merchandise 4,500,000Credit balances in customer’s accounts 200,000Cash received in advance from customers 100,000Expected bad debts 150,000After further analysis of the aged accounts receivable, it is determined that the allowancefor doubtful accounts be P200,000. What is the correct total of current net receivables?__________.
Problem 1.5: Anne Corporation accounts for its sales under the cash basis. Anne
Corporation cash receipts books amounted to P 1,400,000. Total collections from
customers, including cash sales made and recoveries of previously written-off accounts.
Based on Audit investigation, they revealed that the additional information are the
following:
Accounts receivable, January 1, 2021
Accounts receivable, December 31, 2021
Notes receivable, trade outstanding, January 1, 2021
Notes receivable, trade outstanding, December 31, 2021
Sales discount taken by customers
Sales returns before collections were made (Evidenced by issued credit memos)
Sales returns after collections were made, thus refunds were given
Write-off worthless accounts receivable
Cash recoveries from accounts previously write-off
100,000
140,000
80,000
90,000
40,000
25,000
5,000
30,000
10,000
Requirements: Compute for the following under the accrual basis of accounting:
a. Gross sales for the year
b. Net sales for the year
c.…
Chapter 2 Solutions
Survey Of Accounting
Ch. 2 - 1. What does accrual accounting attempt to...Ch. 2 - 2. Define recognition. How is it independent of...Ch. 2 - 3. What does the term deferral mean?Ch. 2 - 4. If cash is collected in advance of performing...Ch. 2 - Prob. 5QCh. 2 - 6. What effect does the issue of common stock have...Ch. 2 - 7. How does the recognition of revenue on account...Ch. 2 - 8. Give an example of an asset source transaction....Ch. 2 - 9. When is revenue recognized under accrual...Ch. 2 - 10. Give an example of an asset exchange...
Ch. 2 - 11. What is the effect on the right side of the...Ch. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14QCh. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - 17. Why may net cash flow from operating...Ch. 2 - Prob. 18QCh. 2 - Prob. 19QCh. 2 - 20. What is the difference between a cost and an...Ch. 2 - Prob. 21QCh. 2 - Prob. 22QCh. 2 - 23. What does the term expense mean?Ch. 2 - Prob. 24QCh. 2 - 25. What is the purpose of the statement of...Ch. 2 - Prob. 26QCh. 2 - 27. Why is the balance sheet dated as of a...Ch. 2 - 28. In what order are assets listed on the balance...Ch. 2 - Prob. 29QCh. 2 - Prob. 30QCh. 2 - 31. What types of accounts are closed at the end...Ch. 2 - 32. Give several examples of period costs.Ch. 2 - 33. Give an example of a cost that can be directly...Ch. 2 - Prob. 34QCh. 2 - Prob. 1ECh. 2 - Exercise 2-2 Effect of accrued expenses on the...Ch. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Exercise 2-9 Supplies on financial statements Yard...Ch. 2 - Prob. 10ECh. 2 - Exercise 2-11 Prepaid items on financial...Ch. 2 - Exercise 2-12 Effect of an error on financial...Ch. 2 - Exercise 2-13 Unearned items on financial...Ch. 2 - Prob. 14ECh. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 20ECh. 2 - Exercise 2-21 Adjusting the accounts Norell Inc....Ch. 2 - Prob. 22ECh. 2 - Prob. 23ECh. 2 - Prob. 24ECh. 2 - Prob. 25ECh. 2 - Prob. 26ECh. 2 - Exercise 2-27 Identifying transaction type and...Ch. 2 - Exercise 2-27A Effect of accounting events on the...Ch. 2 - Prob. 29ECh. 2 - Exercise 2-29A Identifying source, use, and...Ch. 2 - Prob. 31ECh. 2 - Problem 2-32 Recording events in a horizontal...Ch. 2 - Problem 2-37A Effect of adjusting entries on the...Ch. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Problem 2-36 Identifying and arranging elements on...Ch. 2 - Problem 2-37 Missing information in financial...Ch. 2 - Problem 2-38 Events for two complete accounting...Ch. 2 - Prob. 1ATCCh. 2 - ATC 2-3 Research Assignment Identifying accruals...Ch. 2 - ATC 2-4 Writing Assignment Revenue Recognition and...
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
- Assume that an organization asserts that it has $35 million in net accounts receivable. Describe specifically what management is asserting with respect to net accounts receivable.arrow_forwardFINANCIAL RATIOS Use the work sheet and financial statements prepared in Problem 15-8B. All sales are credit sales. The Accounts Receivable balance on January 1 was 38,200. REQUIRED Prepare the following financial ratios: (a)Working capital (b)Current ratio (c)Quick ratio (d)Return on owners equity (e)Accounts receivable turnover and the average number of days required to collect receivables (f)Inventory turnover and the average number of days required to sell inventoryarrow_forwardQUESTION 1 The summary of the bank column in the cash book of APINO Ltd. for the month ended October 31, 2020 is presented to you below; CASH BOOK Bal. b/d 11,000 Total Payments 54,000 Receipts 79,000 Bal. c/d 36,000 90,000 90,000 When the bank statement of the company was received on 31st October 2020, it showed a balance which differed from that of the cash book. Your investigation of the accounting records for the period reveals the following information. Bank charges of GH¢320 appear in the bank statement on 30th October 2020 but have not been recorded in the cash book. Cheques from a customer Papa Kay totaling GH¢2,890 entered in the cash book on 29th October, 2020 were credited by the bank on 2nd November, 2020. A cheque for GH¢ 1,000 entered in the cash book was yet to be submitted for payment by the payee. A cheque for GH¢12, 900 drawn by APINO Ltd. To pay for a new item of plant had been mistakenly entered…arrow_forward
- Financial Accounting I QUESTION TWO The John trading company has undertaken the following transactions during the month of May 2016. May 01: Cash balance $2,200, bank overdraft $365. May 03: Paid J & Co. by check $1,200, discount received from him $15. May 05: Received from A & Co. a check for $980, discount allowed to them $20. May 07: Deposited into bank the check received from A & Co. on May 05. May 10: Purchased stationary for cash, $150. May 15: Purchased merchandise for cash, $1,300. May 15: Cash sales for the first half of the month, 2,350. May 16: Deposited into bank $1,600. May 18: Cash withdrawn from bank for personal expenses $150. May 19: Issued a check for merchandise purchased, $1,650. May 21: Drew from bank for office use, $650. May 24: Received a check from S & Sons and deposited the same into bank, $1,560. May 25: Paid a check to Ali Inc. for $400 and received a discount of $15. May 27: Bought furniture for cash for office use, $390. May 29: Paid…arrow_forwardView Policies Current Attempt in Progress The following information relates to Sunland Limited's Cash account. The reconciled cash balance from June's bank reconciliation is $25,100. During the month of July, Sunland recorded cash receipts of $28,260 and cash payments of $15,670 in the general ledger Cash account. At July 31, Sunland Limited had an reconciled cash balance of $37,690. An examination of the company's July bank statement shows a balance of $19,547 on July 31; outstanding cheques $3,917; deposits in transit $1,737; EFT collections on account that were not yet recorded on the books $2,189; NSF cheque $1,251; NSF fee $69; and bank service charges $109. Prepare the necessary journal entries required on July 31 for Sunland. (List all debit entries before credit entries. Credit account titles are automatically indented when the 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.) Date Account…arrow_forwardProblem 17: Use the following information for the next five questions: Sky Blue Corporation's bank account for May and June of 2021, were as follows: May data are as follows: Balance per bank, May 31 Balance per books, May 31 Deposits in transit Checks outstanding Bank service charge 10,500 11,864 1,500 150 14 June data are as follows: Bank Books Receipts Deposits recorded Deposits received Collection by bank (P2,000 noteplus interest) Disbursements Checks issued and recorded Checks paid Service charges recorded Check payment for utilities erroneously charge by the bank against the account of Royal Blue Company on June 30 9,000 8,100 2,100 11,800 11,500 12 14 50 47. How much is the correct disbursements for the month of June? 48. How much is the correct receipts for the month of June? 49. How much is the correct cash balance for the month of June? 50. How much is the correct cash balance for the month of May? 51. How much is cash shortage/ (overage)? 52. Prepare adjusting entries, if…arrow_forward
- Question 2 Safe Security Doors Ltd. undertakes bank reconciliation at the end of each month before preparing its monthly financial statements. The following information is produced by comparing the cash deposits and withdrawals recorded by the business in September with their bank statement received for the month ending 30 September 2021: Safe Security Doors Ltd.’s cash at bank ledger account has a debit balance of $141,999 at 30 September 2021. The bank statement for the month of September shows a credit balance of $145,925 as at 30 September 2021. Bank statement shows a direct electronic transfer from a customer of $15,405 that has not been recorded by the entity. $10,205 cash received from a customer Adam on 29 September (invoice no. 411) and $14,359 cash received from another customer Brian on 30 September (invoice no. 413) are recorded in the entity’s accounting record but are not…arrow_forwardAccounting Q/ Prepare a Bank Reconciliation Statement for XYZ company that has: Bank statement of SR9,000. Cash account of SR7,500. Additional information for the reconciliation: Deposit in transit. NSF Check. Outstanding check. Collections made by the bank. Required: provide an amount of each information to bring the adjusted balances to be equal.arrow_forwardQuestions: The following is a summary of Jane’s bank account for the year ended 31 December 2021: $ $ Balance 1.January .2002 4,100 Payments to creditors for goods 67,360 Receipts from debtors 91,190 Rent 3,950 Balance 31Dec.2002 6,300 Insurance 1,470 Sundry expenses 610 Drawings 28,200 101,590 101,590 All of the…arrow_forward
- Problem 10 You are assigned to assess the collectibility of the receivables carried in the books Goliath Company, your company's audit client. The working trial balance are prepared at December 31, 2021 showed the following balances: Notes Receivable 6,000,000 Accounts Receivable 4,000,000 In the course of your examination, you discovered the following: Notes Receivable from Company A Notes Receivable from Company B 2,000,000 3,000,000 Notes Receivable from Company C 1,000,000 No interest has yet been recorded by Goliath during 2021 on any of the notes above. Company A is undergoing bankruptcy proceedings and has negotiated for a restructuring of its notes receivable. The note was for a four-year period and interest of 10% is collectible annually. All interest accrued before 2021 has been collected. The note matured on December 31, 2021. Collection of Interest was last made on December 31, 2020. The restructuring agreement with Company A calls for annual payment of P550,000 starting…arrow_forwardInstructions The following data were gathered to use in reconciling the bank account of Reddan Company: Balance per bank $18,250 Balance per company records 9,780 Bank service charges 30 Deposit in transit 3,650 Note collected by bank with $120 interest 5,050 Outstanding checks 7,100 Instructions a. What is the adjusted balance on the bank reconciliation? b. Journalize any necessary entries for Reddan Company based on the bank reconciliation. Refer to the Chart of Accounts for exact wording of account titles. 181 Land 532 Delivery Expense CHART OF ACCOUNTS 191 Office Equipment 533 Insurance Expense Reddan Company 192 Accumulated Depreciation-Office Equipment 534 Office Supplies Expense General Ledger 193 Store Equipment 535 Rent Expense 194 Accumulated Depreciation-Store Equipment 536 Repairs Expense ASSETS REVENUE 537 Selling Expenses 110 Cash 410 Sales LIABILITIES 538 Store Supplies Expense 111 Petty Cash 610 Interest Revenue 210 Accounts Payable 561 Depreciation Expense-Office…arrow_forwardExercise 1-12 Based on the following information, prepare a bank reconciliation statement for ROSAL COMPANY as of Dec. 31, 2019, Use the bank to book format. 1. Balance per bank statement, Dec. 31, 2019, P85,938.46. 2. Balance per books, Dec. 31, 2019, PSB,489.12. 3. Outstanding checks, Dec. 31, P31,108.42. 4. Receipts of Dec. 31, 2019 deposited Jan. 5, 2015, P5,317.20. S. Service charges for Nov. per bank DM of Dec. 15, 2019, P203.85 6. Proceeds of bank loan, Dec. 15, 2019, omitted from the company's books, P9,875.00. 7, Deposit of Dec. 23, 2019 omitted from the bank statement, P2,892.41. 8. Check of Rome Products Co., returned by the bank for lack of countersignature. No entry was made on the books to record the return, P417.50. 9. Error on bank statement in entering deposit of Dec, 16, 2019: Correct amount P3,182.40 Entered as 3,181.40 10. Check no. 3917 of Camila Company charged by bank in error to Rosal Company, P2,690.00. 11. Proceeds of Natalia Company note, collected by bank on…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
College Accounting, Chapters 1-27 (New in Account...AccountingISBN:9781305666160Author:James A. Heintz, Robert W. ParryPublisher:Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L...AccountingISBN:9781337619455Author:Karla M Johnstone, Audrey A. Gramling, Larry E. RittenbergPublisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
College Accounting, Chapters 1-27 (New in Account...
Accounting
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:Cengage Learning
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY