Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 5.9SE
Use the following information to answer Short Exercises S5-8 and S5-9.
Carissa Communications reported the following figures from its adjusted
| Cash | $ 4,100 |
| Cost of Goods Sold | $ 18,800 |
| Selling Expenses | 1,300 |
| Equipment, net | 8,500 |
| Accounts Payable | 4,900 |
| Accrued Liabilities | 2,000 |
| Common Stock | 2,820 |
| Sales Revenue | 42,000 |
| Notes Payable, long-term | 400 |
| Accounts Receivable | 3,400 |
| Merchandise Inventory | 1,200 |
| Interest Expense | 20 |
| Administrative Expenses | 3,100 |
| Sales Discounts | 4,300 |
| Sales Returns and Allowances | 7,400 |
Preparing a merchandiser’s statement of
1. Prepare Carissa Communications’s statement of retained earnings for the year ended July 31, 2016. Assume that there were no dividends declared during the year and that the business began on August 1, 2015.
2. Prepare Carissa Communications’s classified balance sheet at July 31, 2016. Use the report format.
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Students have asked these similar questions
At the beginning of 2009, Pental Company had the following balances:
A/R = $122,000
Allowance for Uncollectible Accounts = $7,900
During 2009, their credit sales were $1,173,000 and collections on A/R were $1,150,000.
The following additional transactions occurred during the year:
Feb 17, wrote off XXX Account, $3.600
May 28, wrote off YYY Account, $2,400
Dec 15, wrote off ZZZ Account, $900
Dec 31, recorded bad debts expense assuming that Penman's policy is to record bad debts expense at 0.8% of credit sales (Hint: The allowance account is increased by 0.8% of credit sales regardless of write-offs.)
Compute the ending balance in A/R and the allowance for uncollectible accounts. Show how Pental's Dec 31, 2009 balance sheet reports the two accounts.
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In its first year of operations, Cloudbox has credit sales of $230,000. Its year-end balance in accounts receivable is $13,000, and the
company estimates that $3,000 of its accounts receivable is uncollectible.
a. Prepare the year-end adjusting entry to estimate bad debts expense.
b. Prepare the current assets section of Cloudbox's classified balance sheet assuming Inventory is $29,500, Cash is $21,500, and
Prepaid Rent is $3,750. Note: The company reports Accounts receivable, net on the balance sheet.
Complete this question by entering your answers in the tabs below.
Required A Required B
Prepare the year-end adjusting entry to estimate bad debts expense.
View transaction list
Journal entry worksheet
1
Record the year-end adjusting entry to estimate bad debts expense.
Note: Enter debits before credits.
Date
December
31
General Journal
Bad debts expense
8 Allowance for doubtful accounts
Debit
Credit
Carolina Communications reported the following figures from its adjusted trial balance
for its first year of business:
Cash
Selling Expenses
Accounts Payable
Common Stock
Notes Payable, long-term
Merchandise Inventory
Administrative Expenses
Sales Returns and Allowances
Requirements
1.
2.
3.
$
3 800 Cost of Goods Sold
1 000 | Equipment, net
4 100 Accrued Liabilities
4 230 Sales Revenue
700 Accounts Receivable
500 Interest Expense
2 500 Sales Discounts
7 200
Prepare Carolina Communications' multi-step income statement for the year ended July 31, 2022.
Prepare Carolina Communications' statement of owner's equity.
Prepare Carolina Communications' classified balance sheet in report form.
es
18 000
10 200
1 700
40 000
2 700
30
4 800
Chapter 5 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 5 - Which account does a merchandiser use that a...Ch. 5 - The two main inventory accounting systems are the...Ch. 5 - The journal entry for the purchase of inventory on...Ch. 5 - JC Manufacturing purchase d inventory for 5,300...Ch. 5 - Prob. 5QCCh. 5 - Suppose Daves Discounts Merchandise Inventory...Ch. 5 - Which of the following accounts would be closed at...Ch. 5 - What is the order of the subtotals that appear on...Ch. 5 - Prob. 9QCCh. 5 - The journal entry for the purchase of inventory on...
Ch. 5 - What is a merchandiser, and what is the name of...Ch. 5 - Prob. 2RQCh. 5 - Describe the operating cycle of a merchandiser.Ch. 5 - What is Cost of Goods Sold (COGS), and where is it...Ch. 5 - How is gross profit calculated, and what does it...Ch. 5 - What are the two types of inventory accounting...Ch. 5 - What is an invoice?Ch. 5 - What account is debited when recording a purchase...Ch. 5 - Prob. 9RQCh. 5 - What is a purchase return? How does a purchase...Ch. 5 - Prob. 11RQCh. 5 - How is the net cost of inventory calculated?Ch. 5 - What are the two journal entries involved when...Ch. 5 - When granting a sales allowance, is there a return...Ch. 5 - Prob. 15RQCh. 5 - Prob. 16RQCh. 5 - Prob. 17RQCh. 5 - What are the four steps involved in the closing...Ch. 5 - Prob. 19RQCh. 5 - Prob. 20RQCh. 5 - Prob. 21RQCh. 5 - Prob. 22RQCh. 5 - Prob. 23ARQCh. 5 - When recording purchase returns and purchase...Ch. 5 - What account is debited when recording the payment...Ch. 5 - Prob. 26ARQCh. 5 - Is an adjusting entry needed for inventory...Ch. 5 - Highlight the differences in the closing process...Ch. 5 - Describe the calculation of cost of goods sold...Ch. 5 - Comparing periodic and perpetual inventory systems...Ch. 5 - Journalizing purchase transactions Consider the...Ch. 5 - Journalizing purchase transactions Consider the...Ch. 5 - Journalizing sales transactions Journalize the...Ch. 5 - Journalizing purchase and sales transactions...Ch. 5 - Adjusting for inventory shrinkage Carlas...Ch. 5 - Journalizing closing entries Rockwall RV Centers...Ch. 5 - Use the following information to answer Short...Ch. 5 - Use the following information to answer Short...Ch. 5 - Computing the gross profit percentage Morris...Ch. 5 - Journalizing purchase transactions-periodic...Ch. 5 - Prob. 5.12SECh. 5 - Journalizing closing entries-periodic inventory...Ch. 5 - Computing cost of goods sold in a periodic...Ch. 5 - For all exercises, assume the perpetual inventory...Ch. 5 - Journalizing purchase transactions from an invoice...Ch. 5 - Journalizing purchase transactions Hartford...Ch. 5 - Computing missing amounts Consider the following...Ch. 5 - Journalizing sales transactions Journalize the...Ch. 5 - Journalizing purchase and sales transactions...Ch. 5 - Journalizing adjusting entries and computing gross...Ch. 5 - Use the following information to answer Exercises...Ch. 5 - Prob. 5.23ECh. 5 - Use the following information to answer Exercises...Ch. 5 - Computing the gross profit percentage Cupcake...Ch. 5 - Journalizing purchase transactionsperiodic...Ch. 5 - Journalizing sales transactions-periodic inventory...Ch. 5 - Journalizing purchase and sales...Ch. 5 - Journalizing dosing entries-periodic inventory...Ch. 5 - Computing cost of goods sold in a periodic...Ch. 5 - Journalizing purchase and sale transactions...Ch. 5 - Journalizing purchase and sale transactions...Ch. 5 - Preparing a multi-step income statement,...Ch. 5 - Journalizing adjusting entries, preparing adjusted...Ch. 5 - Preparing a single-step income statement,...Ch. 5 - Journalizing purchase and sale...Ch. 5 - A Preparing a multi-step income statement and...Ch. 5 - Journalizing purchase and sale transactions...Ch. 5 - Prob. 5.39BPCh. 5 - Prob. 5.40BPCh. 5 - Journalizing adjusting entries, preparing adjusted...Ch. 5 - Prob. 5.42BPCh. 5 - Prob. 5.43BPCh. 5 - Preparing a multi-step income statement and...Ch. 5 - Journalizing purchase and sale transactions,...Ch. 5 - Journalizing purchase and sale transactions,...Ch. 5 - Comprehensive Problem for Chapters 1-5 Completing...Ch. 5 - Prob. 5.1CTDCCh. 5 - Dobbs Wholesale Antiques makes all sales under...Ch. 5 - Rae Philippe was a warehouse manager for Atkins...Ch. 5 - Prob. 5.1CTFSC
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