Financial Accounting 8th Edition
8th Edition
ISBN: 9781119210818
Author: Kimmel, Weygandt, Kieso
Publisher: WILEY
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Chapter 3, Problem 3.1EYCT
(a)
To determine
Normal balance:
Normal balance refers to the heavier side of an account. When an account shows balance on the left side of the account, it has a normal debit balance. Similarly, when an account shows balance on the right side of the account, it has a normal credit balance. Usually, all asset accounts have normal debit balance, and all the liabilities, and
To determine: The normal balance for each account and the increase, and decrease side of each account.
(b)
To determine
To identify: The other probable account involved in the transaction and the effects of that account.
(c)
To determine
To identify: The other account that ordinarily involved.
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Revision Questions
Question 1
As at 30.3.20X7, your business has the following balances on its ledger accounts.
Accounts Balance
Shs
Bank loan
12,000
Cash at bank
11,700
Capital
13,000
Local business taxes
1,880
Trade accounts payable
11,200
Purchases
12,400
Sales
14,600
Sundry payables
1,620
Trade accounts receivable
12,000
Bank loan interest
1,400
Other expenses
11,020
2,020
Vehicles
During 31.3.20X7, the business made the following transactions.
(a) Bought materials for shs 1,000, half for cash and half on credit
(b) Made shs1,040 sales, shs 800 of which was for credit
(c) Paid wages to shop assistants of shs 260 in cash
You are required to draw up a trial balance showing the balances as at the end of
31.3.20X7.
Comparative figures for Apple and Google follow.
millions
Accounts receivable, net
Net sales
Current Year
$ 28,184
394,328
Apple
One Year
Prior
$ 26,278
365,817
Two Years
Prior
$ 16,120
274,515
$ 40,258
282,836
Current Year
Google
One Year
Prior
$ 39,304
257,637
Two Years
Prior
$ 30,930
182,527
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Compute the accounts receivable turnover for the two most recent years for (a) Apple and (b) Google.
Note: Round your answers to 1 decimal place.
Accounts Receivable Turnover
Company
Current Year
Prior Year
a. Apple
b. Google
14.5 times
times
times
times
Required 2 >
Please answer following question
Q5:
Company
Name
Net Credit
Sales
Beginning
Net Receivables
Ending
Net Receivables
Brown
$180,000
$ 5,000
$30,000
Pink
$400,000
$52,000
$42,000
Yellow
$ 75,000
$ 5,400
$ 5,800
(a)Which company is doing the best job of managing its accounts receivable? Why? Be sure to support your answer with computations.
(b)What are your concerns about these companies?
BR,
Chapter 3 Solutions
Financial Accounting 8th Edition
Ch. 3 - Prob. 1QCh. 3 - Can a business enter into a transaction that...Ch. 3 - Are the followingevents recorded in the accounting...Ch. 3 - Prob. 4QCh. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Misty Reno, a beginning accounting student,...Ch. 3 - Prob. 9QCh. 3 - What is the normal balance for each of these...
Ch. 3 - Prob. 11QCh. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 15QCh. 3 - (a) When entering a transaction in the journal,...Ch. 3 - (a) Should accounting transaction debits and...Ch. 3 - Journalize these accounting transactions. (a)...Ch. 3 - Prob. 19QCh. 3 - Prob. 20QCh. 3 - Prob. 21QCh. 3 - Prob. 22QCh. 3 - Prob. 3.1BECh. 3 - Prob. 3.2BECh. 3 - Prob. 3.3BECh. 3 - For each of the following accounts, indicate the...Ch. 3 - Prob. 3.5BECh. 3 - Prob. 3.6BECh. 3 - Prob. 3.7BECh. 3 - Tilton Corporation has the following transactions...Ch. 3 - Prob. 3.9BECh. 3 - Selected transactions for Montes Company are...Ch. 3 - Prob. 3.11BECh. 3 - Prob. 3.12BECh. 3 - Prob. 3.1DIECh. 3 - Prob. 3.2DIECh. 3 - Prob. 3.3DIECh. 3 - Prob. 3.4DIECh. 3 - Prob. 3.5DIECh. 3 - Prob. 3.1ECh. 3 - Prob. 3.2ECh. 3 - Prob. 3.3ECh. 3 - Prob. 3.4ECh. 3 - Prob. 3.5ECh. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Prob. 3.10ECh. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - Prob. 3.20ECh. 3 - Prob. 3.21ECh. 3 - Prob. 3.22ECh. 3 - Prob. 3.1APCh. 3 - Prob. 3.2APCh. 3 - Prob. 3.3APCh. 3 - Prob. 3.4APCh. 3 - Prob. 3.5APCh. 3 - Prob. 3.6APCh. 3 - Prob. 3.7APCh. 3 - Prob. 3.8APCh. 3 - Prob. 3.9APCh. 3 - Prob. 3.10APCh. 3 - Prob. 3.11APCh. 3 - Prob. 3.1EYCTCh. 3 - Prob. 3.2EYCTCh. 3 - Prob. 3.3EYCTCh. 3 - Prob. 3.4EYCTCh. 3 - Prob. 3.6EYCTCh. 3 - Prob. 3.7EYCTCh. 3 - Prob. 3.8EYCTCh. 3 - Prob. 3.9EYCTCh. 3 - Prob. 3.11EYCTCh. 3 - Prob. 3.1IFRS
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