1.
Introduction:
Financial Statements: The financial statements of a company are prepared at the end of an accounting year to calculate the total liabilities, total assets, net profit or loss, and increase or decrease in cash during the year. The financial statements are used by various external and internal parties.
To prepare: The
2.
Introduction:
Financial Statements: The financial statements of a company are prepared at the end of an accounting year to calculate the total liabilities, total assets, net profit or loss, and increase or decrease in cash during the year. The financial statements are used by various external and internal parties.
To state: The accounts that will be misstated if adjusting entries are not recorded.
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HORNGREN'S FINANCIAL & MANGERIAL ACCOUNT
- The company estimates future uncollectible accounts. The company determines $4,400 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) Record the adjusting entry for uncollectible accounts. Note: I really need to see full calculations because I don't understand how to get these numbers.arrow_forwardFragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $850. Fragmental collected the entire $6,800 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be: Multiple Choice A debit to Unearned Rent and a credit to Rent Revenue for $4,250. A debit to Rent Revenue and a credit to Cash for $2.550. A debit to Rent Revenue and a credit to Unearned Rent for $2,550. A debit to Unearned Rent and a credit to Rent Revenue for $2,550. A debit to Cash and a credit to Rent Revenue for $6,800. < Prey 17 of 30 Next MacBook Airarrow_forwardThe general ledger of the Jumper Incorporated is showing an Accounts Receivable balance of $80,000, Sales Revenue of $650,000, and Sales Returns and Allowances of $30,000. If Jumper Inc used the direct write-off method to account for uncollectible accounts, do the adjusting journal entry on December 31st, assuming Jumper Inc determines that John Hancock's $2,500 balance is uncollectable.arrow_forward
- Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accou $148,000, and it estimates that 5% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance f has: (a) a $2,516 credit balance before the adjustment. (b) a $740 debit balance before the adjustment. View transaction list Journal entry worksheet 1 Jhry Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has a $740 debit balance before the adjustment. <arrow_forwardPrepare Adjusting Journal Entries on the general journal using the following information. Please make sure the interest is up to date and the depreciation is recorded. On 3/1/21, the company purchased a large fishing boat for $20,000 of which had a down payment of $5,000 and the rest of borrowed from First Hawaiian Bank. The Note Payable’s principle has a 4% annual interest rate due every 8-months while the principle is due at maturity date in 5 years. The boat has a useful life of 10 years and salvage of $4,000. Straight-line depreciation method is used. Liability insurance was purchased on 5/1/21. The 18 month policy cost $4,600 and was paid in full. Shark Bait purchased $12,000 of office supplies and lures from Huge Minnows Company on 4/1/21 on account. Also, on 11/5/21, Shark Bait received $3,400 cash for the sale of some unused lures that were bought on 4/1/21 for $2,900. On 12/31/21, due to the use of office supplies, the Office Supplies and lures only added up to $2,000. On…arrow_forwardJohnson Inc. has the following information available: On November 1, 20X1, Johnson lent $15,000 cash to one of its employees. The employee signed a one-year, 12%, promissory note. The note's principal plus interest is repaid to Johnson on November 1, 20X2. Interest calculations are rounded to the nearest whole month. Prepare journal entries to record the November 1, 20X1 transaction, the adjusting entry on 12/31/X1, and the November 1, 20X2 transaction.arrow_forward
- Crane-on Ltd. sells rock-climbing products and operates an indoor climbing facility for climbing enthusiasts. On July 1, 2021, Crane-on received a three-month $22,000 bank loan from City Credit Union due on September 30, 2021, and bearing interest at 3%. Interest is payable at maturity. The company records adjusting entries annually at its year end, December 31. During the next four months, Crane-on incurred the following: Sept. 1 Purchased inventory on account for $17,000 from Black Diamond, terms n/30. The company uses a perpetual inventory system. 30 Repaid the $22,000 bank loan payable to City Credit Union (see opening balance), as well as any interest owed. Oct. 1 Issued a six-month, 4%, $17,000 note payable to Black Diamond in exchange for the account payable (see September 1 transaction). Interest is payable on the first of each month. 2 Borrowed $20,000 cash from Montpelier Bank for 12 months at 3% to finance the building of a new climbing area for advanced climbers. Interest…arrow_forwardAt the beginning of the year, Mitchum Enterprises allows for estimated uncollectible accounts of $15,000. By the end of the year, write-offs of bad debts total $17,000. Determine the financial statement effects of the write-offs of $17,000 and compute the ending balance of Allowance for Uncollectible Accounts. Complete this question by entering your answers in the tabs below. Financial Ending Statem... Balance Determine the financial statement effects of the write-offs of $17,000. Note: Amounts to be deducted should be indicated by a minus sign. Balance Sheet Assets Accounts Receivable Allowance for Uncollectible Accounts $ 17,000 $ (17,000) Liabilities Stockholders' Equity Common Stock Retained Earnings Income Statement Expenses 11 Net Incomearrow_forwardAt the end of the year, a company has a balance in Allowance for Uncollectible Accounts of $220 (credit) before any year-end adjustment. The balance of Accounts Receivable is $15,900. The company estimates that 14% of accounts receivable will not be collected over the next year. Record the adjustment for uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the adjustment for uncollectible accounts. Note: Enter debits before credits. Event General Journal Debit Credit 30 F3 888 F7 F9 F10 # 2$ % & 3 4 6 7 8 9. E R Y P { F K L < ? C V alt command option + || .. .. | Harrow_forward
- Fragmental Co. leased a portion of its store to another company for eight months beginning on October 1, at a monthly rate of $1,025. Fragmental collected the entire $8,200 cash on October 1 and recorded it as unearned revenue. Assuming adjusting entries are only made at year-end, the adjusting entry made by Fragmental Co. on December 31 would be: Multiple Choice A debit to Cash and a credit to Rent Revenue for $8.200. A debit to Unearned Rent and a credit to Rent Revenue for $5,125. A debit to Rent Revenue and a credit to Unearned Rent for $3,075. m 8:05 PM 1009% e here to search 2/21/2022arrow_forwardAt the end of the year, a company has a balance in Allowance for Uncollectible Accounts of $220 (credit) before any year-end adjustment. The balance of ACcounts Receivable is $15,900. The company estimates that 14% of accounts receivable will not be collected over the next year. Record the adjustment for uncollectible accounts. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record the adjustment for uncollectible accounts. Note: Enter debits before credits. Event General Journal Debit Credit 吕0 F3 888 4 F5 F6 F7 FB # 2$ & * 4 5 7 9 E R Y U P S F G J K C V alt mand command option *3arrow_forwardAt the end of the year, Mercy Cosmetics’ balance of Allowance for Uncollectible Accounts is $440 (credit) before adjustment. The balance of Accounts Receivable is $17,000. The company estimates that 12% of accounts will not be collected over the next year. What adjustment would Mercy Cosmetics record for Allowance for Uncollectible Accounts? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)arrow_forward
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