Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter B, Problem 15SEB
To determine
Describe the effect the each transaction on cash account and identify whether it is a debit or credit.
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If a company accepts credit cards, they must record the expense on their books. Please prepare the journal entries for the following scenario: Company A sells $480,000 on credit card sales. The credit card charges a 4.5% fee for the use of the card. The card company also deposits the cash into the company’s bank account the same night as the credit cards are accepted.
Prepare a cash receipts journal and then record the following cash receipts transactions. July 1 The company borrowed $5,000 cash by signing a note payable to the bank. 2 C. Ming, the owner, contributed $1,000 cash to the company. 11 The company sold merchandise costing $100 to Mulan for $400 cash. 29 The company received $950 cash from Chan in payment of a July 7 purchase (where the company sold merchandise costing $700 on credit to Chan for $1,000, subject to a $50 sales discount if paid by end of month).
Could anyone explain this problem? How would you put these statements in a cash receipt journal?
Dec 1: Made cash sales of $15,000.
Dec 1: Received $9,000 cash for a three-month rental of equipment. Note: Wolfpack uses the traditional approach for recording deferrals.
Dec 4: Received cash from Dalgado for the balance owed.
Dec 4: After the above return, Eastern paid Wolfpack the remaining balance that is owed.
Dec 5: Received $16,000 in cash on the accounts receivable from Winters. Note: Receipts are first applied to the oldest invoice.
Dec 6: Received payment in full from Townsend.
Dec 7: Received a check for payment in full from Rogers.
Dec 8: Recorded weekly cash sales of $45,000.
Dec 12: Received a check in the amount of $4,000 from Winters towards the balance owed.
Dec 12: Wolfpack received cash dividends of $5,000 on some of its investments.
Dec 13: Received a check from Wilson for $29,400.
Dec 15: Recorded weekly cash sales of $27,000.
Dec 15: Received a check from Wilson in…
Chapter B Solutions
Financial Accounting
Ch. B - Indicate whether each of the following accounts...Ch. B - Prob. 2YTCh. B - Prob. 1QCh. B - Prob. 2QCh. B - Prob. 3QCh. B - Prob. 4QCh. B - Prob. 5QCh. B - Prob. 6QCh. B - Prob. 7QCh. B - Prob. 8Q
Ch. B - Prob. 9QCh. B - Prob. 1MCQCh. B - Prob. 2MCQCh. B - Prob. 3MCQCh. B - Prob. 4MCQCh. B - Prob. 5MCQCh. B - Prob. 6MCQCh. B - Prob. 7MCQCh. B - Prob. 8MCQCh. B - Prob. 9MCQCh. B - Prob. 10MCQCh. B - Prob. 1SEACh. B - Prob. 2SEACh. B - Prob. 3SEACh. B - Prob. 4SEACh. B - Prob. 5SEACh. B - Prob. 6SEACh. B - Prob. 7SEACh. B - Prob. 8SEACh. B - Prob. 9SEACh. B - Prob. 10SEBCh. B - Prob. 11SEBCh. B - Prob. 12SEBCh. B - Prob. 13SEBCh. B - Prob. 14SEBCh. B - Prob. 15SEBCh. B - Prob. 16SEBCh. B - Prob. 17SEBCh. B - Prob. 18SEBCh. B - Prob. 19EACh. B - Prob. 20EACh. B - Record transactions to T-accounts and prepare an...Ch. B - Prob. 22EACh. B - Prob. 23EACh. B - Record closing entries and compute net income. (LO...Ch. B - Record journal entries, record adjusting entries,...Ch. B - Record journal entries, post to T-accounts, and...Ch. B - Prob. 27EBCh. B - Prob. 28EBCh. B - Prob. 29EBCh. B - Prob. 30EBCh. B - Prob. 31EBCh. B - Prob. 32EBCh. B - Prob. 33EBCh. B - Prob. 34EBCh. B - Prepare a trial balance and financial statements....Ch. B - Record journal entries, post to T-accounts, and...Ch. B - Prepare closing entries and financial statements....Ch. B - Record adjusting journal entries, post to...Ch. B - Prob. 39PACh. B - Prob. 40PACh. B - Prob. 41PACh. B - Prob. 42PACh. B - Prob. 43PBCh. B - Prob. 44PBCh. B - Prob. 45PBCh. B - Prob. 46PBCh. B - Prob. 47PBCh. B - Prob. 48PBCh. B - Prob. 49PBCh. B - Prob. 50PBCh. B - Prob. 51FSACh. B - Prob. 52CTP
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- Chicken Wings Company is engaged in buying and selling of office equipment which caters both cash and on account sales to customers. The following are the transactions that affect accounts receivable during 2021:Sales (cash and on account), P591,050Cash received from cash customers, P205,175Cash received from credit customers (281,300 was received from customers who took advantage of the discount feature of the company’s credit term 3/10, n/30, P320,800Accounts written of as worthless, P4,955Credit memoranda issued to credit customers for sales returns and allowances, P26,275Cash refunds given to cash customers for sales returns and allowances, P16,972Recoveries on accounts written off as uncollectible in prior periods (not included in cash collections stated above), P6,615An aging of the receivables indicates that P17,300 of the accounts receivable balance are deemed uncollectible.The following balances were taken from the December 31, 2020 statement of financial position:Accounts…arrow_forwardPart of the Fry’s Electronics, Inc. ’s experience involves providing technical support to its customers. This includes in-home installations of electronics and also computer support at their retail store locations. Requirements Suppose Fry’s Electronics, Inc. provides $10,500 of computer support at the Dallas-Fort Worth store during the month of November. How would Fry's Electronics record this transaction? Assume all customers paid in cash. What financial statement(s) would this transaction affect? Assume Fry’s Electronics, Inc.’s Modesto, California, location received $24,000 for an annual contract to provide computer support to the local city government. How would Fry’s Electronics record this transaction? What financial statement(s) would this transaction affect? What is the difference in how revenue is recorded in requirements 1 and 2? Clearly state when revenue is recorded in each requirement.arrow_forwardOf the following transactions, which should be recorded as income? Of the following transactions, which should be recorded as income? Harry's Hats sold inventory on credit for $ 3000. Chandler & Co Plumbing's owner contributes $10 000 of personal funds to the business. M. Witham borrowed $80 000 from the bank. T. O'Toole pays $5500 for goods sold to her on credit last month.arrow_forward
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- Durafabric was a very successful company. Banner was a new customer of Durafabric, who wants to apply the credit application. Banner was applying for a $25,000 credit line; that is, the ability to purchase up to $25,000 of material and have 30 days to pay the bill. The forms use to evaluate an applicant's ability to pay bills. Balance sheet of Banner 1997 1996 1995 Current Assets Cash & equivalents 75 $1,498 $2,253 Accounts receivable 22,015 25,655 23,282 Inventory 31,767 34,606 31,730 Prepaids 7,344 7,358 8,341 Deferred income taxes 7,371 4,815 Total current assets 61,201 76,488 70,421 Property, plant & equipment Land and buildins 7,143 7,002 6,418 Machinery & equipment 8,532 9,206 8,134 Leasebold improvements 2,424 1,810 1,688 18,099 18,018 16,240 Less accumulated depreciation -4,846 -4,048 -3,080 13,253 13,970 13,160 Other assets 5,807 3,992 2,263 Total assets 80,261…arrow_forwardDurafabric was a very successful company. Banner was a new customer of Durafabric, who wants to apply the credit application. Banner was applying for a $25,000 credit line; that is, the ability to purchase up to $25,000 of material and have 30 days to pay the bill. The forms use to evaluate an applicant's ability to pay bills. Balance sheet of Banner 1997 1996 1995 Current Assets Cash & equivalents 75 $1,498 $2,253 Accounts receivable 22,015 25,655 23,282 Inventory 31,767 34,606 31,730 Prepaids 7,344 7,358 8,341 Deferred income taxes 7,371 4,815 Total current assets 61,201 76,488 70,421 Property, plant & equipment Land and buildins 7,143 7,002 6,418 Machinery & equipment 8,532 9,206 8,134 Leasebold improvements 2,424 1,810 1,688 18,099 18,018 16,240 Less accumulated depreciation -4,846 -4,048 -3,080 13,253 13,970 13,160 Other assets 5,807 3,992 2,263 Total assets 80,261…arrow_forwardIn order to produce a set of accounts for a business, the total sales and purchases must be known. A business can often provide details of cash sales and purchases. In order to find the total credit sales and credit purchases, control accounts can be used. Elizabeth Berry provided the following information: At the beginning of the financial year debtors were £5,610. During the year receipts from debtors amounted to £69,630. At the end of the year debtors owed her £7,710. We can find the total credit sales by constructing a control account.arrow_forward
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