Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Textbook Question
Chapter 7, Problem 61PA
Account for current liabilities. (LO 1, 5). On March 1, 2011, the accounting records of Stein Company showed the following liability accounts and balances:
Accounts payable $21,600
Short-term notes payable 10,000
Interest payable 800
Unearned service revenue 12,500
- a. On March 1, 2011, Stein Company signed a three-month note for $12,000 at 7.5%.
- b. During March, Stein Company paid off the $10,000 short-term note and the interest payable shown on the March 1
balance sheet . - c. Stein paid off the beginning accounts payable.
- d. During the month, Stein purchased $25,000 of merchandise on account.
- e. Also during March, Stein’s employees earned salaries of $36,000. Withholdings related to these wages were $2,232 for social security (FICA), $3,800 for federal income tax, and $1,140 for state income tax. The company will pay March salaries and taxes withheld on April 1. No entry had been recorded for salaries or payroll tax expense as of March 31.
Requirements
- 1. Use the
accounting equation to show each of the transactions. - 2. Use the accounting equation to show the adjustments needed for interest on the notes payable for the month of March and for salary expense and payroll tax expense.
- 3. Prepare the current liabilities section of the balance sheet at March 31, 2011.
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On June 30, 2018, the High Five Surfboard Company had outstanding accounts receivable of $600,000. On July1, 2018, the company borrowed $450,000 from the Equitable Finance Corporation and signed a promissory note.Interest at 10% is payable monthly. The company assigned specific receivables totaling $600,000 as collateral forthe loan. Equitable Finance charges a finance fee equal to 1.8% of the accounts receivable assigned.Required:Prepare the journal entry to record the borrowing on the books of High Five Surfboard.
The following is a summary of account receivable and related accounts for three years for Tommy Enterprise the financial year ends 30 April each year.
Year ended 30 April
Account receivable as at 30 April (before writing off bad
debts)
RM
Bad debts
written off
RM
Provision for
doubtful debt
2017
70,000
Nil
2%
2018
61,000
1,000
2%
2019
83,000
3,000
2%
For the year ending 30 April 2017, 2018, 2019, show the:
a) Provision for doubtful debts account
The following is a summary of account receivable and related accounts for three
years for Tommy Enterprise the financial year ends 30 April each year.
Provision for
Bad debts
written off
Year ended 30
Account receivable
doubtful debt
as at 30 April (before
writing off bad
debts)
RM
April
RM
Nil
2%
70
70,000
61,000
83,000
2017
6.
2%
1,000
3,000
2018
2%
2019
For the year ending 30 April 2017, 2018, 2019, show the:
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Chapter 7 Solutions
Financial Accounting
Ch. 7 - Prob. 1YTCh. 7 - Prob. 2YTCh. 7 - Prob. 3YTCh. 7 - If a 1,000 bond is selling for 95.5, how much cash...Ch. 7 - Prob. 5YTCh. 7 - Prob. 6YTCh. 7 - Prob. 7YTCh. 7 - Prob. 1QCh. 7 - Prob. 2QCh. 7 - What is a mortgage?
Ch. 7 - Prob. 4QCh. 7 - Prob. 5QCh. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10QCh. 7 - Prob. 11QCh. 7 - Prob. 12QCh. 7 - Prob. 13QCh. 7 - Prob. 1MCQCh. 7 - All of the following are current liabilities...Ch. 7 - Prob. 3MCQCh. 7 - Prob. 4MCQCh. 7 - Prob. 5MCQCh. 7 - Prob. 6MCQCh. 7 - Prob. 7MCQCh. 7 - Prob. 8MCQCh. 7 - A 1,000 bond with a stated rate of 8% is issued...Ch. 7 - Prob. 10MCQCh. 7 - Prob. 1SEACh. 7 - Prob. 2SEACh. 7 - Prob. 3SEACh. 7 - Prob. 4SEACh. 7 - Account for mortgages. (LO 3). Nunez Company has...Ch. 7 - Prob. 6SEACh. 7 - Account for bonds. (LO 4). If a 1,000 bound is...Ch. 7 - Prob. 8SEACh. 7 - Prob. 9SEACh. 7 - Prob. 10SEACh. 7 - Prob. 11SEACh. 7 - Prob. 12SEBCh. 7 - Prob. 13SEBCh. 7 - Prob. 14SEBCh. 7 - Prob. 15SEBCh. 7 - Account for mortgages. (LO 3). Curtain Company...Ch. 7 - Prob. 17SEBCh. 7 - Prob. 18SEBCh. 7 - Prob. 19SEBCh. 7 - Prob. 20SEBCh. 7 - Prob. 21SEBCh. 7 - Prob. 22SEBCh. 7 - Prob. 23EACh. 7 - Prob. 24EACh. 7 - Prob. 25EACh. 7 - Prob. 26EACh. 7 - Account for long-term liabilities. (LO 3, 5)....Ch. 7 - Prob. 28EACh. 7 - Prob. 29EACh. 7 - Prob. 30EACh. 7 - Prob. 31EACh. 7 - Prob. 32EACh. 7 - Prob. 33EACh. 7 - Prob. 34EACh. 7 - Prob. 35EACh. 7 - Prob. 36EACh. 7 - Prob. 37EACh. 7 - Prob. 38EACh. 7 - Prob. 39EACh. 7 - Prob. 40EACh. 7 - Prob. 41EACh. 7 - Prob. 42EBCh. 7 - Prob. 43EBCh. 7 - Prob. 44EBCh. 7 - Prob. 45EBCh. 7 - Prob. 46EBCh. 7 - Prob. 47EBCh. 7 - Prob. 48EBCh. 7 - Account for long-term liabilities. (LO 3, 5). On...Ch. 7 - Prob. 50EBCh. 7 - Prob. 51EBCh. 7 - Prob. 52EBCh. 7 - Prob. 53EBCh. 7 - Prob. 54EBCh. 7 - Prob. 55EBCh. 7 - Prob. 56EBCh. 7 - Prob. 57EBCh. 7 - Prob. 58EBCh. 7 - Prepare an amortization schedule for a bond issued...Ch. 7 - Prob. 60EBCh. 7 - Account for current liabilities. (LO 1, 5). On...Ch. 7 - Prob. 62PACh. 7 - Prob. 63PACh. 7 - Prob. 64PACh. 7 - Prob. 65PACh. 7 - Prob. 66PACh. 7 - Prob. 67PBCh. 7 - Prob. 68PBCh. 7 - Prob. 69PBCh. 7 - Prob. 70PBCh. 7 - Prob. 71PBCh. 7 - Prob. 72PBCh. 7 - Prob. 1FSACh. 7 - Prob. 2FSACh. 7 - Prob. 3FSACh. 7 - Prob. 1IECh. 7 - Prob. 2IECh. 7 - Do owners or creditors have more claims on the...Ch. 7 - Prob. 4IE
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