Chapter 3, Problem 3.10AP

[The following information applies to the questions displayed below.]  The general ledger of Zips Storage at January 1, 2024, includes the following account balances:  Accounts Debits Credits Cash $24,600   Accounts Receivable 15,400   Prepaid Insurance 12,000   Land 148,000   Accounts Payable   $6,700 Deferred Revenue   5,800 Common Stock   143,000 Retained Earnings   44,500 Totals $200,000 $200,000   The following is a summary of the transactions for the year:   1. January 9 Provide storage services for cash, $134,100, and on account, $52,200. 2. February 12 Collect on accounts receivable, $51,500. 3. April 25 Receive cash in advance from customers, $12,900. 4. May 6 Purchase supplies on account, $9,200. 5. July 15 Pay property taxes, $8,500. 6. September 10 Pay on accounts payable, $11,400. 7. October 31 Pay salaries, $123,600. 8. November 20 Issue shares of common stock in exchange for $27,000 cash. 9. December 30 Pay $2,800 cash…

[The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Accounts Debit Credit $ 59,000 25,600 Cash Accounts Receivable Allowance for Uncollectible Accounts $ 2,500 Inventory Notes Receivable (5%, due in 2 years) 36,600 15,600 Land 158,000 Accounts Payable 15,100 Common Stock 223,000 Retained Earnings 54,200 Totals $294,800 $294,800 During January 2021, the following transactions occur: January 1 Purchase equipment for $19,800. The company estimates a residual value of $1,800 and a six-year service life. January 4 Pay cash on accounts payable, $9,800. January 8 Purchase additional inventory on account, $85,900. January 15 Receive cash on accounts receivable, $22,300. January 19 Pay cash for salaries, $30,100. January 28 Pay cash for January utilities, $16,800. January 30 Sales for January total $223,000. All of these sales are on account. The cost of the units sold is $116,500.…

[The following information applies to the questions displayed below.] On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: Accounts Debit Credit $ 59,000 25,600 Cash Accounts Receivable Allowance for Uncollectible Accounts $ 2,500 Inventory Notes Receivable (5%, due in 2 years) 36,600 15,600 Land 158,000 Accounts Payable 15,100 Common Stock 223,000 Retained Earnings 54,200 Totals $294,800 $294,800 During January 2021, the following transactions occur: January 1 Purchase equipment for $19,80O. The company estimates a residual value of $1,800 and a six-year service life. January 4 Pay cash on accounts payable, $9,800. January 8 Purchase additional inventory on account, $85,900. January 15 Receive cash on accounts receivable, $22,300. January 19 Pay cash for salaries, $30,100. January 28 Pay cash for January utilities, $16,800. January 30 Sales for January total $223,000. All of these sales are on account. The cost of the units sold is $116,500.…

On January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Debit Credit Cash Accounts Receivable Allowance for Uncollectible Accounts $ 23, 300 48, e00 $ 4, 580 Inventory Land Accounts Payable Notes Payable (6%, due in 3 ycars) 37, 200 72,188 28,980 37,000 63, 0ee 39, 0ee Common Stock Retained Earnings Totals $172,400 $172,480 The $37,000 beginning balance of inventory consists of 370 units, eoch costing $100. During Janusry 2021, Big Blast Fireworks had the following inventory transections: January 3 Purchase 1,62e units for $168, 800 on account ($1es cach). January 8 Purchase 1,7e8 units for $187,800 on account ($118 cach). January 12 Purchase 1,88e units for $207, 8ee on account ($115 cach). January 15 Return 135 of the units purchased on January 12 because of defects. January 19 Sell 5,200 units on account for $780,eee. The cost of the units sold is deternined using a FIFO perpetual inventory systen. January 22 Receive $753, eee…

The following data is extracted from the financial records of AU Tiles. The data is in relation to the financial year ending 30 June 2020 and 30 June 2021.    30 June 2020 30 June 2021   $ $ Cash at bank 17,050        20,150 Inventories 1,013,700      1,171,800 Accounts receivable 740,000        755,000 Bills receivable 13,175         15,190 Bad debts written off during the year 9,610              -   Sales revenue for the year 2,821,000      4,030,000 Discount allowed 4,960          4,340   The business uses the Income Statement method to estimate its’ doubtful debts each year. It has been estimated that 1% of the sales revenue of the year will be the bad debts expense for the year. At the beginning of the financial year of 2020 (1 July 2019), the Allowance for Doubtful Debts account has a credit balance of $19,000. Calculate the receivable turnover ratio for year 2021 and comment on the ratio

The following data is extracted from the financial records of AU Tiles. The data is in relation to the financial year ending 30 June 2020 and 30 June 2021.    30 June 2020 30 June 2021   $ $ Cash at bank 17,050        20,150 Inventories 1,013,700      1,171,800 Accounts receivable 740,000        755,000 Bills receivable 13,175         15,190 Bad debts written off during the year 9,610              -   Sales revenue for the year 2,821,000      4,030,000 Discount allowed 4,960          4,340   The business uses the Income Statement method to estimate its’ doubtful debts each year. It has been estimated that 1% of the sales revenue of the year will be the bad debts expense for the year. At the beginning of the financial year of 2020 (1 July 2019), the Allowance for Doubtful Debts account has a credit balance of $19,000.   Required: Determine the amounts of the following accounts. Show your workings for each item.…

The following information is available for Reigen Company relating to 2019 operations:   Accounts Receivable, January 1                                                                 4,000,000 Accounts receivable collected                                                                    8,400,000 Cash sales                                                                                                           2,000,000 Inventory, Jan. 1                                                                                              4,800,000 Inventory, Dec. 31                                                                                           4,400,000 Purchases                                                                                                           8,000,000 Gross Margin on Sales                                                                                   4,200,000   What is the balance of accounts receivable on December 31, 2019?

[The following information applies to the questions displayed below.]      The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances:   Accounts Debits   Credits Cash $ 47,500           Accounts Receivable   31,700           Land   116,800           Accounts Payable           15,900   Notes Payable (due in 2 years)           36,000   Common Stock           106,000   Retained Earnings           38,100   Totals $ 196,000     $ 196,000       The following is a summary of the transactions for the year:   1.   January   12   Provide services to customers on account, $68,400. 2.   February   25   Provide services to customers for cash, $78,300. 3.   March   19   Collect on accounts receivable, $46,300. 4.   April   30   Issue shares of common stock in exchange for $36,000 cash. 5.   June   16   Purchase supplies on account, $13,300. 6.   July   7   Pay on accounts payable, $11,900. 7.   September   30   Pay…

Library Company provided the following data: On January 1, the company’s account receivable and accounts payable were P1,200,000 and P1,500,000, respectively. On December 31, account receivable and accounts payable are P1,350,000 and P1,850,000, respectively. During the current year, accounts written off amounted to P100,000. Sales returns totaled P250,000, of which P50,000 was paid to customers. Cash receipts from customers after P500,000 sales discount amounted to P8,000,000. Cash payments to trade creditors totaled P5,000,0000 after purchase discount of P200,000. Purchase returns amounted to P400,000, of which P100,000 was received from supplier. Under accrual, what amount should be reported as gross sales?