Using Financial Accounting Information
10th Edition
ISBN: 9781337276337
Author: Porter, Gary A.
Publisher: Cengage Learning,
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Chapter 4, Problem 4.4.1AAP
Use of Account Balances as a Basis for Annual Adjustments
The following account balances are taken from the records of Laugherty Inc. at December 31, 2017. The Supplies account represents the cost of supplies on hand at the beginning of the year plus all purchases. A physical count on December 31, 2017, shows only $1,520 of supplies on hand. The Deferred Revenue account represents the cash received from a customer on May 1, 2017, for 12 months of service beginning on that date. The Note Payable represents a six-month promissory note signed with a supplier on September 1, 2017. Principal and interest at an annual rate of 10% will be paid on March 1, 2018.
Required
Identify and analyze the adjustments necessary on the books of Laugherty on December 31, 2017. Assume that Laugherty prepares adjustments only once a year, on December 31.
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Johnson company’s financial year ended on December 31, 2010. All the transactions 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.
Prepare journal entries for each transaction.
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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.
Required:
Prepare the balance sheet extract as at Dec 31 to show the net realizable value for the Accounts Receivable.
Chapter 4 Solutions
Using Financial Accounting Information
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