Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 15AE
Adjusting
Calculate the missing amounts for each of the following Prepaid Insurance situations. For situation A, journalize the
Situation | ||||
A | B | C | D | |
Beginning Prepaid Insurance................................ | $ 800 | $1,100 | ? | $ 500 |
Payments for Prepaid insurance during the year....... | 1,300 | ? | 2,000 | ? |
Total amount to account for.................................. | ? | ? | 3,600 | 2,200 |
Ending Prepaid Insurance..................................... | 1,000 | 300 | ? | ? |
Insurance Expense................................................ | $ ? | $1,500 | $2,200 | $1,800 |
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(Learning Objectives 4, 5: Account for accounts receivable and uncollectibleaccounts) Perform the following accounting for the receivables of Hawkins and Harris, a CPAfirm, at December 31, 2018.Requirements1. Set up T-accounts and start with the beginning balances for these T-accounts:■ Accounts Receivable, $104,000■ Allowance for Uncollectible Accounts, $12,000Post the following 2018 transactions to the T-accounts:a. Service revenue of $695,000, all on accountb. Collections on account, $720,000c. Write-offs of uncollectible accounts, $8,000d. Uncollectible-account expense (allowance method), $15,0002. What are the ending balances of Accounts Receivable and Allowance for UncollectibleAccounts?3. Show how Hawkins and Harris will report accounts receivable on its balance sheet atDecember 31, 2018.
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E-F:8-14 Defining common receivables terms (Learning Objective 1)
Match the terms with their correct definition.
Terms
1. Accounts receivable
2. Other receivables
3. Debtor
4. Notes receivable
5. Maturity date
6. Creditor
Definitions
a. The party to a credit transaction who takes on an
obligation/payable.
b. The party who receives a receivable and will collect cash in
the future..
c. A written promise to pay a specified amount of money at a
particular future date.
d. The date when the note receivable is due.
e. A miscellaneous category that includes any other type of
receivable where there is a right to receive cash in the
future.
f. The right to receive cash in the future from customers for
goods sold or for services performed.
Chapter 3 Solutions
Financial Accounting, Student Value Edition (5th Edition)
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