Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 3, Problem 60PA
Following is a partial list of financial statement items from the records of Marshall’s Company at December 31, 2010, before any adjustments have been made:
Additional information includes the following:
- The insurance policy indicates that on December 31, 2010, only five months remain on the 24-month policy that originally cost $18,000 (purchased on June 1, 2009).
- Marshall’s has a note receivable with $2,500 of interest due from a customer on January 1, 2011. This amount has not been recorded.
- The accounting records show that one-third of the revenue paid in advance by a customer on July 1, 2010, has now been earned.
- The company paid $18,000 for rent for nine months starting on August 1, 2010, recording the total amount as prepaid rent.
- At year end, Marshall’s owed $7,000 worth of salaries to employees for work done in December 2010. The next payday is January 5, 2011. The salary expense has not been recorded.
Requirements
- 1. Use the
accounting equation to show the adjustments that must be made prior to the preparation of the financial statements for the year ended December 31, 2010. - 2. For the accounts shown, calculate the account balances that would be shown on Marshall’s financial statements for the year ended December 31, 2010; balance sheet at December 31, 2010.
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Johnson company’s financial year ended on December 31, 2010. All thetransactions related to the company’s uncollectible accounts are can be found below:
The accounts receivable account had a balance of $114,630 and the beginning balance in the allowance for uncollectible accounts was $6,200.
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Prepare the balance sheet extract as at Dec 31 to show the net realizable value for the Accounts Receivable.
Shown below are selected transactions of Gulf Corp. during the month of December 2011.
Dec. 1 Accepted a one-year, 8 percent note receivable from a customer, Glenn Holler. The note is in settlement of an existing $1,500 account receivable. The note, plus interest, is due in full on November 30, 2012.
Dec. 8 An account receivable from S. Willis in the amount of $700 is determined to be uncollectible and is written off against the Allowance for Doubtful Accounts.
Dec. 15 Unexpectedly received $200 from F. Hill in full payment of her account. The $200 account receivable from Hill previously had been written off as uncollectible.
Dec. 31 The month-end bank reconciliation includes the following items: outstanding checks, $12,320; deposit in transit, $3,150; check from customer T. Jones returned “NSF,” $358; bank service charges, $10; bank collected $20,000 in maturing U.S. Treasury bills (a cash equivalent) on the company’s behalf. (These Treasury bills had cost $19,670, so the amount…
Weldon Corporation's fiscal year ends December 31. The following is a list of transactions involving receivables that occurred during
2024:
March 17 Accounts receivable of $2,600 were written off as uncollectible. The company uses the allowance method.
March 30 Loaned an officer of the company $33,000 and received a note requiring principal and interest at 7% to be
paid on March 30, 2025.
May 30 Discounted the $33,000 note at a local bank. The bank's discount rate is 8 %. The note was discounted without
recourse and the sale criteria are met.
June 30 Sold merchandise to the Blankenship Company for $21,000. Terms of the sale are
4/10/30 Weldon uses the
gross method to account for cash discounts.
July 8 The Blankenship Company paid its account in full.
August 31 Sold stock in a nonpublic company with a book value of $5,900 and accepted a $6,900 noninterest-bearing note
with a discount rate of 8%. The $6,900 payment is due on February 28, 2025. The stock has no ready market
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Chapter 3 Solutions
Financial Accounting
Ch. 3 - Prob. 1YTCh. 3 - Prob. 2YTCh. 3 - Prob. 3YTCh. 3 - Prob. 4YTCh. 3 - Prob. 5YTCh. 3 - Prob. 6YTCh. 3 - Prob. 7YTCh. 3 - How does accrual basis accounting differ from cash...Ch. 3 - Prob. 2QCh. 3 - Prob. 3Q
Ch. 3 - Prob. 4QCh. 3 - What are accrued expenses?Ch. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Name two common deferred expenses.Ch. 3 - What does it mean to recognize revenue?Ch. 3 - How does matching relate to accruals and...Ch. 3 - What is depreciation?Ch. 3 - Why is depreciation necessary?Ch. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - Prob. 5MCQCh. 3 - Prob. 6MCQCh. 3 - Prob. 7MCQCh. 3 - Prob. 8MCQCh. 3 - When prepaid insurance has been used, the...Ch. 3 - Prob. 10MCQCh. 3 - Prob. 1SEACh. 3 - Prob. 2SEACh. 3 - Account for interest expense. (LO 1, 2). UMC...Ch. 3 - Prob. 4SEACh. 3 - Account for insurance expense. (LO 1, 3). Catrina...Ch. 3 - Prob. 6SEACh. 3 - Account for unearned revenue. (LO 1, 3). Able...Ch. 3 - Prob. 8SEACh. 3 - Prob. 9SEACh. 3 - Prob. 10SEACh. 3 - Calculate profit margin on sales ratio. (LO 5)....Ch. 3 - Prob. 12SEBCh. 3 - Prob. 13SEBCh. 3 - Prob. 14SEBCh. 3 - Prob. 15SEBCh. 3 - Prob. 16SEBCh. 3 - Prob. 17SEBCh. 3 - Prob. 18SEBCh. 3 - Prob. 19SEBCh. 3 - Calculate net income. (LO I, 4). Suppose a company...Ch. 3 - Prob. 21SEBCh. 3 - Prob. 22SEBCh. 3 - Prob. 23EACh. 3 - Prob. 24EACh. 3 - Prob. 25EACh. 3 - Prob. 26EACh. 3 - Prob. 27EACh. 3 - Prob. 28EACh. 3 - Account for insurance expense. (LO 1, 3). Yodel ...Ch. 3 - Prob. 30EACh. 3 - Prob. 31EACh. 3 - Prob. 32EACh. 3 - Prob. 33EACh. 3 - Prob. 34EACh. 3 - Southeast Pest Control, Inc., was started when its...Ch. 3 - Prob. 36EACh. 3 - Prob. 37EACh. 3 - Prob. 38EACh. 3 - Prob. 39EACh. 3 - Prob. 40EBCh. 3 - Prob. 41EBCh. 3 - Prob. 42EBCh. 3 - TJs Tavern paid 10,800 on February 1, 2010, for a...Ch. 3 - Prob. 44EBCh. 3 - Prob. 45EBCh. 3 - Account for insurance expense. (LO 1, 3). All...Ch. 3 - Prob. 47EBCh. 3 - Prob. 48EBCh. 3 - Prob. 49EBCh. 3 - Prob. 50EBCh. 3 - Prob. 51EBCh. 3 - Prob. 52EBCh. 3 - From the following list of accounts (1) identify...Ch. 3 - Prob. 54EBCh. 3 - Prob. 55EBCh. 3 - Prob. 56EBCh. 3 - Prob. 57PACh. 3 - Prob. 58PACh. 3 - Prob. 59PACh. 3 - Following is a partial list of financial statement...Ch. 3 - Prob. 61PACh. 3 - Record adjustments. (LO 1, 2, 3). The Gladiator...Ch. 3 - Prob. 63PACh. 3 - Transactions for Pops Company for 2011 were as...Ch. 3 - Record adjustments and prepare financial...Ch. 3 - Prob. 66PACh. 3 - Prob. 67PACh. 3 - Record adjustments and prepare income statement....Ch. 3 - Prob. 69PBCh. 3 - Prob. 70PBCh. 3 - Following is a partial list of financial statement...Ch. 3 - Prob. 72PBCh. 3 - Record adjustments. (LO 1, 2, 3). Summit Climbing...Ch. 3 - Prob. 74PBCh. 3 - Prob. 75PBCh. 3 - Record adjustments and prepare financial...Ch. 3 - Prob. 77PBCh. 3 - Prob. 78PBCh. 3 - Identify and explain accruals and deferrals. (LO...Ch. 3 - Prob. 2FSACh. 3 - Prob. 3FSACh. 3 - Prob. 1CTPCh. 3 - Prob. 1IECh. 3 - Prob. 3IECh. 3 - Prob. 4IE
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