Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter B, Problem 8SEA
To determine
Identify the account which will be affected and identify whether the affected account will increase or decrease and debited or credited for each transactions.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Assume that Dennis Savard Inc. has the following accounts at the end of the current year.
1. Common Stock
2. Discount on Bonds Payable
3. Treasury Stock (at cost)
4. Notes Payable (short-term)
5. Raw Materials
6. Equity Investments (long-term)
7. Unearned Rent Revenue
8. Work in Progress
9. Copyrights
10. Buildings
11. Notes Receivable (short-term)
12. Cash
13. Salaries and Wages Payable
14. Accumulated Depreciation-Buildings
15. Restricted Cash for Plant Expansion
16. Land Held for Future Plant Site
17. Allowance for Doubtful Accounts
18. Retained Earnings
19. Paid-in Capital in Excess of Par-Common Stock
20. Unearned Subscriptions Revenue
21. Receivables-Officers (due in on year)
22. Inventory (finished goods)
23. Accounts Receivable
24. Bonds Payab;e (due in 4 years)
Prepare a classified balance sheet in good form. (No monetary amounts are necessary). (For Land, Treasury Stock, Notes Payable, Preferred Stock Investments, Notes Receivable, Receivables-Officers, Inventory, Bonds…
Suppose the income statement for Goggle Company reports $95 of net income, after deducting depreciation of $35. The company bought equipment costing $60 and obtained a long-term bank loan for $70. The company’s comparative balance sheet, at December 31, is presented here.
Refer to the 10-K for Abercrombie & Fitch.
Required:
1. What does the company report for the following accounts for the most current fiscal year:
Enter your answer in thousands.
a. Cash
b. Short-term investments (or marketable securities)
c. Accounts receivable
d. Inventory
e. Other current assets
f. Accounts payable
g. Other current liabilities
h. Cash flow from operations
A
A
AA
A
A
好
2. The company projects the following to occur in the next fiscal year:
• Accounts payable will decrease by 25%.
• Other current liabilities are expected to increase by 33%.
• Cash flow from operations is expected to decrease by 32%.
Assume all other items remain unchanged from the prior year.
Provide the next year's forecasted balances for the following accounts and cash flow from operations.
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
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.arrow_forwardUsing the January 1 and December 31, 20Y8, data given in Question 10, answer the following question: If Sylvester Consulting paid $18,000 of dividends during 20Y8, what was the amount of net income for 20Y8?arrow_forward4. Assume a business sold a total of $839,500 during the current year and its accounts receivable balance at the end of the year was $73,600. What is the number of days' sales in receivables?|arrow_forward
- The AHAI Company's balance sheet of December 31, 2018 is given below: Accounts payable Notes payable Accrued wages and taxes Long-term debt Common equity Total liabilities & equity Cash Accounts receivable Inventory Net fixed assets Total assets O a. $6 O b. $7 O c. $8 O d. $40 O e. $5 $10 25 40 95 $170 $20 25 15 30 80 $170 Sales during the past year were $1,000, and they are expected to increase to $2,000 during 2019. AHAI's fixed assets were used to 60% of capacity during 2018, but its current assets were at their proper levels. All assets except fixed assets increase at the same rate as sales, and fixed assets would also increase at the same rate if the current excess capacity did not exist. Assume that AHAI's profit margin will remain constant at 4.25 percent and that the company will continue to pay out 40 percent of its earnings as dividends. What amount of additional funds (AFN) will be needed during the next year assuming the company would use up the excess capacity before…arrow_forwardDuring 2020, Harper Corp. entered into the following transactions. Borrowed $70,000 by issuing a note. Paid $10,000 cash dividend to stockholders. Received $14,000 cash from a previously billed customer for services performed. Purchased supplies on account for $4,000. Using the tabular analysis shown on the next page, show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses in the right-hand margin. For retained earnings, use separate columns for revenues, expenses, and dividends if necessary.arrow_forwardThe following data is extracted from the financial records of AU Tiles. The data is in relation to the financial year ending 30 June 2020 and 30 June 2021. 30 June 2020 30 June 2021 $ $ Cash at bank 17,050 20,150 Inventories 1,013,700 1,171,800 Accounts receivable 740,000 755,000 Bills receivable 13,175 15,190 Bad debts written off during the year 9,610 - Sales revenue for the year 2,821,000 4,030,000 Discount allowed 4,960 4,340 The business uses the Income Statement method to estimate its’ doubtful debts each year. It has been estimated that 1% of the sales revenue of the year will be the bad debts expense for the year. At the beginning of the financial year of 2020 (1 July 2019), the Allowance for Doubtful Debts account has a credit balance of $19,000. Required: Determine the amounts of the following accounts. Show your workings for each item.…arrow_forward
- The following data is extracted from the financial records of AU Tiles. The data is in relation to the financial year ending 30 June 2020 and 30 June 2021. 30 June 2020 30 June 2021 $ $ Cash at bank 17,050 20,150 Inventories 1,013,700 1,171,800 Accounts receivable 740,000 755,000 Bills receivable 13,175 15,190 Bad debts written off during the year 9,610 - Sales revenue for the year 2,821,000 4,030,000 Discount allowed 4,960 4,340 The business uses the Income Statement method to estimate its’ doubtful debts each year. It has been estimated that 1% of the sales revenue of the year will be the bad debts expense for the year. At the beginning of the financial year of 2020 (1 July 2019), the Allowance for Doubtful Debts account has a credit balance of $19,000. Calculate the receivable turnover ratio for year 2021 and comment on the ratioarrow_forward5) Use the following information to calculate the company's accounting net income for the year. Sales on credit Sales (cash) Administrative Expenses Selling and marketing Expenses Interest Expenses Accounts Receivable (Beg. of Year) Accounts Receivable (End of Year) Accounts Payable (Beg. of Year) Accounts Payable (End of Year) Corporate Tax Rate $900,000 $900,000 $100,000 $800,000 $100,000 $50,000 $80,000 $50,000 $100,000 21%arrow_forwardYates Company's records provide the following information concerning certain account balances and changes in these account balances during the current year. Accounts Receivable: Jan. 1, balance $41,000, Dec. 31, balance $55,000, uncollectible accounts written off during the year, $6,000; accounts receivable collected during the year, $159,000. Compute Sales revenue for the year.arrow_forward
- Assume that Denis Savard Inc. has the following accounts at the end of the current year. 1. Common Stock. 2. Discount on Bonds Payable. 3. Treasury Stock (at cost). 4. Notes Payable (short-term). 5. Raw Materials. 6. Preferred Stock Investments (long-term). 7. Unearned Rent Revenue. 8. Work in Process. 9. Copyrights. 10. Buildings. 11. Notes Receivable (short-term). 12. Cash. 13. Salaries and Wages Payable. 14. Accumulated Depreciation—Buildings. 15. Restricted Cash for Plant Expansion. 16. Land Held for Future Plant Site. 17. Allowance for Doubtful Accounts. 18. Retained Earnings. 19. Paid-in Capital in Excess of Par—Common Stock. 20. Unearned Subscriptions Revenue. 21. Receivables—Officers (due in one year). 22. Inventory (finished goods). 23. Accounts Receivable. 24. Bonds Payable (due in 4 years). 25. Noncontrolling Interest. Instructions Prepare a classified balance sheet in good form. (No monetary amounts…arrow_forwardAs of May 31, 2014, how much is the net realizable value of the accounts receivable? * Given the following unadjusted ledger balances on fiscal year ending May 31, 2014: Account Titles Debit Credit Utilities Expense Advertising Expense Rent Expense Salaries Expense 5,000 7,000 50,000 140,000 357,100 100,000 15,000 Service Income X, Capital Notes Payable Office Equipment Office Furniture 75,000 73,500 95,400 26,200 Accounts Receivable Cash Relevant information: a. No interest has yet been recorded on a 60-day 15% note issued by the company on May 3, 2014. (Use 365 days) b. Office equipment was purchased on July 1, 2013, and estimated to have a useful life of 5 years with no scrap value. c. Office furniture was purchased on June 1, 2013 and estimated to be useful for 10 years with a salvage value of P12,000 at the end of its useful life. d. Management estimated that only 90% of the receivables will be collected. O 95,400 85,860 O 9,540arrow_forward1. The following account balances were extracted from the accounting records of Macy Corporation at the end of the year:Accounts Receivable $1,100,000Allowance for Uncollectible Accounts (Credit) $37,000Uncollectible-Account Expense $63,000What is the net realizable value of the accounts receivable? Select one:A. $1,163,000B. $1,137,000C. $1,100,000D. $1,063,000 Please show all steps.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY