Concept explainers
a.
Introduction: Accounting is a process under which the financial transactions are identified, recorded, analyzed, and summarized, and at the end of the year, the financial results are reported. The various financials prepared at the end of the year are the
To prepare: The classified balance sheet as of December 31, 2020.
b.
Introduction: Accounting is a process under which the financial transactions are identified, recorded, analyzed, and summarized, and at the end of the year, the financial results are reported. The various financials prepared at the end of the year are the balance sheet, cash flow statement, and income statement.
To provide: A comment on the liquidity of the company.
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EBK ACCOUNTING PRINCIPLES
- 1. Prepare the entry to record the write-off ofuncollectible accounts during 2019. 2. Prepare the entries to record the recovery ofthe uncollectible account during 2019 3. Prepare the entry to record bad debt expense(BDE) at the end of 2019. Ending balance ofAFDA was Rp18,200 (Cr.) 4. Determine the ending balance of AccountsReceivable as of December 31, 2019. 5. What is the net realizable value of thereceivables at the end of 2019? 6. The company has a notes receivable ofRp24,000 at January 15, 2019 for 3 months at10% interest rate. Prepare journal entry as ofApril 15, 2019, on its due date.arrow_forwardOn June 7,2019, Dilby Mechanical Corp completed $50,00 of servicing work for a client and billed them for that amount plus a GST of $2,500 and PST of $3,50; terms are N20. Required: a. Prepare the journal entry as it would appear in Dilby's accounting records. b. Assume the receivable established on June 7 was collected on June 27. Record the entry.arrow_forwardThe following transactions took place during 2020 for Webb Industries. 1-1-2020 – established that $85,000 will be deemed to be uncollectable during 2020. 12-31-2020 – it was determined that $30,000 were actually to be written off as uncollectable accounts during 2020. Please prepare both journal entries for Webb Industries assuming they use the Allowance Method for writing off Accounts Receivable. In the spirit of saving time, WELL-ORGANIZED T Accounts will be accepted.arrow_forward
- On December 31, 2020, Extreme Fitness has adjusted balances of $1,000,000 in Accounts Receivable and $95,000 in Allowance for Doubtful Accounts. On January 2, 2021, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $30,000. Required: a. What amount would the company report as its net accounts receivable on December 31, 2020? b.Prepare the journal entry to write off the accounts on January 2, 2021. c-1. Assuming no other transactions occurred between December 31, 2020, and January 3, 2021, what amount would the company report as its net accounts receivable on January 3, 2021? c-2. Has net accounts receivable changed from December 31, 2020? Complete this question by entering your answers in the tabs below. Req A Req B Req C1 Check my work Req C2 What amount would the company report as its net accounts receivable on December 31, 2020? Net Accounts Receivablearrow_forwardOn January 1, 2019, Northern Manufacturing Company bought a piece of equipment by signing a non-interest-bearing $80,000, 1-year note. The face value of the note includes the price of the equipment and the interest. The effective interest rate is an annual rate of 16%, and the note is to be paid in four $20,000 quarterly installments on March 31, June 30, September 30, and December 31. The price of the equipment is the present value of the four payments discounted at the effective interest rate.arrow_forwardSadaf Oman Company's ledger showed an ending accounts receivable balance of RO 25,000 on April 30, 2020. During the next month, May, the company provided services for RO 24,000 in total. Customers made down payment of RO 3,000; and the remaining balance was on account. The Company received payments on this account of RO 15.000. The balance in the T-account for the accounts receivable at the end of May, 2020 is: O a. RO 31,000 debit. O b. RO 19,000 debit. O. RO 26,000 debit. O d. RO 28,000 debit. O e. None of the options are correctarrow_forward
- Assume and list down some of the adjusting entries of your own choices and then prepared a worksheet for the month ended December 31, 2020. Below information are: At December 31, cash per company records was $17445; the cash per bank statement was$15981. Debit memoranda accompanied the bank statement; services charges for the December $24 and a $600 check drawn by Michel marked NSF. Cash receipts of $4353 on December 31 were not deposited until January 2. Checks issued in December but were not included among the paid checks returned by the bank, no.520 for $978, no.521 for $2052 and no.522 for $483.arrow_forwardPrepare the correct Creditors Control account for May 2020 after taking into account the additional information, errors and omissions. Balance the account. (10)INFORMATIONThe Creditors control account given below was extracted from the records of Oyster Traders for May 2020 before the additional information, errors and omissions provided were considered: Additional information, errors and omissions1. The debit balance in the account of a creditor, R300, must be transferred to the Debtors ledger.2. An invoice for goods purchased from Super Suppliers was entered in the Purchases journal as R6 400 instead of R4 600.3. A credit purchase of equipment from Minto Enterprises was not recorded, R5 000.4. A credit note received from HD Wholesalers for trading goods returned was not recorded in the Purchases Returns Journal, R1 000.5. Stardom Traders, a creditor, charged Oyster Traders interest on overdue account, R50arrow_forwardPlanning Wizards, LLC is an event-planning company. Which of the following would be included in the current asset section of a classified balance sheet dated December 31, 2019? a. 15-month certificate of deposit b. Customer advances on New Year's parties c. Last month rent payment (lease expires in 2021) d. Investment in stocks, to be sold in 2020 e. Income tax refund receivable f. Inventory Select one: d, e, and f e and f a, b, c, e, and f a, b, c, d, e, and f b, e, farrow_forward
- Please help with the following question in regards with accounting homework: Taking into account all the errors/omissions noted above, prepare the corrected Creditors Control account for the month of June 2021. Balance the account. Please follow up on the format and information attached , god bless youarrow_forwardThe following accounts and their balances appear in an unadjusted trial balance of Hydro Company as of December 31, 2019.Cash, P40000; Accounts receivable, P200000; Inventory, P50000; Accounts payable, P30000; Notes payable, P20000.· The cash account includes collection in January 2020 of P20000 account from customer who was given a cash discount of P1000.· It also includes a January 2020 cash sale of P5000. Gross profit on the sale was 40%.· From the amount collected, the company fully paid a bank loan of P10000 with interest of P2000 accruing January 2020.What is the correct amount of working capital on December 31, 2019?arrow_forwardConsider the following information from a company's unadjusted trial balance at December 31, 2020. All accounts have normal balances. Accounts Receivable Accounts Payable Cash Service Revenue Common Stock Equipment Insurance Expense Land Notes Payable, Due 2023 Notes Receivable, Matures 2021 Prepaid Insurance Rent Expense Multiple Choice O Retained Earnings, January 1, 2020 Salaries and Wages Expense What is the total of the debit side of the unadjusted trial balance? O $19,510 $25,105 $20.205 $ 5,400 695 1,790 6,670 4,900 5,800 445 $16,605 4,700 4,900 1,290 445 1,445 7,940 3,790arrow_forward
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning