1 computer for $12 000 on Space Age Computers Ltd. The serial no. was JVX 1302 Jan. March 15 Equipment valued on the books at $325 was sold at that price to Anne Maynard, who agreed to pay in 30 days April 17 Furniture valued at $420 on the books was sold for $540 on credit to C. Jason 21 Dennis Chung, who was a debtor for $290, died of a heart attack. Jackson decided to write off the debt as a June gesture of sympathy to his family 25 S.T. Lau & Co., a debtor for $420, went bankrupt. On liquidation they were able to pay only $0.25 in the dollar. Jackson received a cheque for this amount. The rest was July written off as a bad debt 15 Office machinery valued at $850 was sold for $730 on credit to Browne & Co. Nov. 10 Jenn Dade, whose debt of $320 was Oct. written off some time ago, sent a cheque for $335 representing repayment of the debt with interest 31 The microcomputer purchased by Jackson on 1 January is to be Dec.

1 computer for $12 000 on Space Age Computers Ltd. The serial no. was JVX 1302 Jan. March 15 Equipment valued on the books at $325 was sold at that price to Anne Maynard, who agreed to pay in 30 days April 17 Furniture valued at $420 on the books was sold for $540 on credit to C. Jason 21 Dennis Chung, who was a debtor for $290, died of a heart attack. Jackson decided to write off the debt as a June gesture of sympathy to his family 25 S.T. Lau & Co., a debtor for $420, went bankrupt. On liquidation they were able to pay only $0.25 in the dollar. Jackson received a cheque for this amount. The rest was July written off as a bad debt 15 Office machinery valued at $850 was sold for $730 on credit to Browne & Co. Nov. 10 Jenn Dade, whose debt of $320 was Oct. written off some time ago, sent a cheque for $335 representing repayment of the debt with interest 31 The microcomputer purchased by Jackson on 1 January is to be Dec.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bronkey Alazma Inc. manufactures thought glasses (a creepy device that records the thoughts of people who look your eyeglasses). The products cost $60 to manufacture and sells for $500 each. On January 1, 20X1, Bronkey Alazma Inc.’s trial balance reported a $3,480 credit balance in its “Allowance for Warranties” liability account, representing its liability for estimated repairs on thought glasses sold through December 31, 20X0. Under the terms of its customer sales contract, Bronkey agrees to replace any device that fails within one year of sale. Based on its experience, Bronkey estimates that 4 percent of the devices that it sells during a year will need to be replaced. During 20X1, Bronkey sold 12,000 of the devices and replaced 270 defective devices (each costing $60 per unit). Of the 270 replacement devices, 71 relate to sales made during 20X0 and 199 relate to sales made during 20X1. Ignoring any shipping and handling costs, what is Bronkey’s warranty expense for the year ended…
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Robinson’s, an electrical supply company, sold $8,000 of equipment to Jim Coates Wiring, Incorporated Coates signed a promissory note May 12 with 5.2% interest. The due date was August 10. Short of funds, Robinson’s contacted Capital One Bank on July 20; the bank agreed to take over the note at a 6.9% discount. (Use Days in a year table.) What proceeds will Robinson’s receive? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.
Valley Spa purchased $8,000 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 12% promissory note for $8,000. If the note is dishonored, but Tubman intends to continue collection efforts, what is the journal entry to record the dishonored note? (Use 360 days a year.) Multiple Choice Debit Accounts Receivable $8,160; debit Bad Debt Expense $160; credit Notes Recelveble $8,000 Debit Bad Debt Expense $8,160; credit.Accounts Recelvable $8,160. Debit Bad Debt Expense $8,000; credit Notes Receiveble $8,000. Debit Accounts Receivable-Valley Spa $8,000; crecit Notes Receivable $8,000. Debit Accounts Receivable-Valley Spe $8.160, credit interest Revenue $160, credit Notes Recevable $8,000 Prey 10 of 10
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Required information [The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $39,500 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 $4,500 in cash. July 8 Borrowed $63,000 cash from NBR Bank by signing a 120-day, 12%, $63,000 note payable. Paid the amount due on the note to Locust at the _?- maturity date. ? November 28 December 31 Paid the amount due on the note to NBR Bank at the maturity date. Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 7%, $24,000 note payable. 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…
21. M. Bassie sold the balance in its accounts receivable account of $120,000 to a factor, giving 3% factoring fee. How will this sale be journalized in Kassie's books?