Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter C, Problem 32AP
American Rare Coins (ARC) was formed on January 1, 2018. Additional data for the year follow:
- a. On January 1, 2018, ARC issued no par common stock for 5450,000.
- b. Early in January, ARC made the following cash payments:
- 1. For store fixtures, $53,000
- 2. For merchandise inventory, $340,000
- 3. For rent expense on a store building, $20,000
- c. Later in the year, ARC purchased merchandise inventory on account for $239,000. Before year-end, ARC paid $139,000 of this accounts payable.
- d. During 2018, ARC sold 2,400 units of merchandise inventory for $275 each. Before year-end, the company collected 85% of this amount. Cost of goods sold for the year was $250,000, and ending merchandise inventory totaled $329,000.
- e. The store employs three people. The combined annual payroll is $96,000, of which ARC still owes $3,000 at year-end.
- f. At the end of the year, ARC paid income tax of $17,000. There are no income taxes payable.
- g. Late in 2018, ARC paid cash dividends of $44,000.
- h. For store fixtures, ARC uses the
straight-line depreciation method , over five years, with zero residual value.
Requirements
- 1. What is the purpose of the statement of
cash flows ? - 2. Prepare ARC’S income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses listed together.
- 3. Prepare ARC’S
balance sheet at December 31, 2018. - 4. Prepare ARC’s statement of cash flows using the indirect method for the year ended December 31, 2018.
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During August 2024, Texit Company recorded the following:
• Sales of $37,000 ($22,000 on account; $15,000 for cash). Ignore Cost of Goods Sold.
• Collections on account, $11,800.
• Write-offs of uncollectible receivables, $1,480.
• Recovery of receivable previously written off, $600.
C
Requirements
Journalize Texit's transactions during August 2024, assuming Texit uses the direct write-off method.
Journalize Texit's transactions during August 2024, assuming Texit uses the allowance method.
1.
2.
Requirement 1. Journalize Texit's transactions during August 2024, assuming Texit uses the direct write-off method.
Sales of $37,000 ($22,000 on account; $15,000 for cash). Ignore Cost of Goods Sold. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Prepare a single compound journal entry.)
Credit
Accounts and Explanation
Debit
Date
Aug.
Tyrell Company entered into the following transactions involving short-term liabilities.
Year 1
April 20 Purchased $37,500 of merchandise on credit from Locust, terms n/30.
May 19 Replaced the April 20 account payable to Locust with a 90-day, 8 %, $35,000 note payable along
with paying $2,500 in cash.
July 8 Borrowed $57,000 cash from NBR Bank by signing a 120-day, 11%, $57,000 note payable.
_?Paid the amount due on the note to Locust at the maturity date.
Paid the amount due on the note to NBR Bank at the maturity date.
November 28 Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 9%, $24,000 note payable.
December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.
Year 2
_?_ Paid the amount due on the note to Fargo Bank at the maturity date.
5. Prepare journal entries for all the preceding transactions and events.
Note: Do not round your intermediate calculations.
View transaction list
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Journal entry worksheet
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Purchased $37,500 of…
During August 2024, Texit Company recorded the following:
• Sales of $37,000 ($22,000 on account: $15,000 for cash). Ignore Cost of Goods Sold.
• Collections on account, $11,800.
• Write-offs of uncollectible receivables, $1,480.
• Recovery of receivable previously written off, $600.
Requirements
Journalize Texit's transactions during August 2024, assuming Texit uses the direct write-off method.
Journalize Texit's transactions during August 2024, assuming Texit uses the allowance method.
1.
2.
Chapter C Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Prob. 6TICh. C - Prob. 7TICh. C - Prob. 8TICh. C - Muench Inc.s accountant has partially completed...Ch. C - Prob. 1QC
Ch. C - Prob. 2QCCh. C - Prob. 3QCCh. C - Prob. 4QCCh. C - Prob. 5QCCh. C - Prob. 6QCCh. C - Prob. 7QCCh. C - Prob. 8QCCh. C - Prob. 9QCCh. C - Prob. 10QCCh. C - Prob. 1RQCh. C - Prob. 2RQCh. C - Prob. 3RQCh. C - Prob. 4RQCh. C - Prob. 5RQCh. C - Prob. 6RQCh. C - Prob. 7RQCh. C - If a company experienced a loss on disposal of...Ch. C - Prob. 9RQCh. C - Prob. 10RQCh. C - Prob. 11RQCh. C - Prob. 12RQCh. C - Prob. 13RQCh. C - Prob. 14RQCh. C - How does the direct method differ from the...Ch. C - Prob. 16RQCh. C - Prob. 1SECh. C - Prob. 2SECh. C - Prob. 3SECh. C - DVR Equipment, Inc. reported the following data...Ch. C - Prob. 5SECh. C - Prob. 6SECh. C - Prob. 7SECh. C - Prob. 8SECh. C - Prob. 9SECh. C - Julie Lopez Company expects the following for...Ch. C - Prob. 11SECh. C - Prob. 12SECh. C - Prob. 13SECh. C - Prob. 14SECh. C - Prob. 15SECh. C - Prob. 16ECh. C - Prob. 17ECh. C - Prob. 18ECh. C - Prob. 19ECh. C - Prob. 20ECh. C - The income statement of Boost Plus, Inc. follows:...Ch. C - Prob. 22ECh. C - Rouse Exercise Equipment, Inc. reported the...Ch. C - Use the Rouse Exercise Equipment data in Exercise...Ch. C - Prob. 25ECh. C - Prob. 26ECh. C - Prob. 27ECh. C - Prob. 28ECh. C - Prob. 29ECh. C - Prob. 30ECh. C - Prob. 31ECh. C - American Rare Coins (ARC) was formed on January 1,...Ch. C - Prob. 33APCh. C - Prob. 34APCh. C - Prob. 35APCh. C - Boundary Rare Coins (BRC) was formed on January 1,...Ch. C - Use the Rolling Hills, Inc. data from Problem...Ch. C - Prob. 38APCh. C - Classic Rare Coins (CRC) was formed on January 1,...Ch. C - Accountants for Benson, Inc. have assembled the...Ch. C - Prob. 41BPCh. C - Prob. 42BPCh. C - Prob. 43BPCh. C - Use the Sweet Valley data from Problem P14-41B....Ch. C - Prob. 45BPCh. C - Prob. 47PCh. C - Before you begin this assignment, review the Tying...Ch. C - Prob. 1DCCh. C - Prob. 1EICh. C - Details about a companys cash flows appear in a...
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