1 The company's bank statement shows a cash balance of $12,000. Comparing the company's cash recordswith the monthly bank statement reveals several additional cash transactions such as checks outstandingof $7,000, deposits outstanding of $7,500, NSF check of $200, and service fee of $25 and a $1,200 notereceivable collected by the bank. Calculate the correct balance of cash: $2 At December 31, the company had account balances in Accounts Receivable of $50,000 and inAllowance for Uncollectible Accounts (AUA) of $300 (credit) before any adjustments. An analysis ofthe company's December 31 accounts receivable suggests that the allowance for uncollectible accountsshould be 5% of accounts receivable. After the adjusting entry, what is the balance in the AUA account?2$3 The company had $30,000 of inventory on December 31, Year 2. During the year they purchased$650,000 and cost of goods was $640,000. What was the company's beginning inventory for Year 2?$4 Use the following to calculate pretax income (IBT): $_5,000 Sales revenueInterest revenue300,000Income tax expense4,000 Cost of goods sold175,000Selling expenses14,000 Salaries expense85,000Utilities expense5,000 Rent expense6,000The company purchased new equipment at the beginning of year 1 for $300,000. Managementestimated they would use the equipment for 4 years and when they were done using it they estimated the5residual value would be $30,000. What is the equipment's book value at the end of year 3 assuming thecompany uses straight-line deprecation? $

Pretax income is the excess of sales over cost of goods sold and all operating and non-operating…

1 The company's bank statement shows a cash balance of $12,000. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of $7,000, deposits outstanding of $7,500, NSF check of $200, and service fee of $25 and a $1,200 note receivable collected by the bank. Calculate the correct balance of cash: $ 2 At December 31, the company had account balances in Accounts Receivable of $50,000 and in Allowance for Uncollectible Accounts (AUA) of $300 (credit) before any adjustments. An analysis of the company's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. After the adjusting entry, what is the balance in the AUA account?

1 The company's bank statement shows a cash balance of $12,000. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of $7,000, deposits outstanding of $7,500, NSF check of $200, and service fee of $25 and a $1,200 note receivable collected by the bank. Calculate the correct balance of cash: $ 2 At December 31, the company had account balances in Accounts Receivable of $50,000 and in Allowance for Uncollectible Accounts (AUA) of $300 (credit) before any adjustments. An analysis of the company's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 5% of accounts receivable. After the adjusting entry, what is the balance in the AUA account?

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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