28 Glebe Company accepted a credit card account receivable in exchange for $1300 of services provided to a customer. The credit card company charges a 5% fee for handling the transaction. What effect will the collection of cash from the credit card company have on the elements of the financial statements? 914335 Multiple Choice Increase assets by $1,045 Decrease assets and stockholders' equity by $55 Inovase assets by $1,100 None of these answer choices are conect

28 Glebe Company accepted a credit card account receivable in exchange for $1300 of services provided to a customer. The credit card company charges a 5% fee for handling the transaction. What effect will the collection of cash from the credit card company have on the elements of the financial statements? 914335 Multiple Choice Increase assets by $1,045 Decrease assets and stockholders' equity by $55 Inovase assets by $1,100 None of these answer choices are conect

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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Am. 396.
b) The Balance Sheet as at 31" March 201 Оuestion two The cash book column of Wekesa showed a credit balance of Sh.1,040,350 while the bank statement balance showed an overdraft of Sh.1,398,000 on 31 July 2019. A detailed comparison of entries revealed the following, Cheques paid to the following creditors were not presented for payment at the bank Mumbi Sh.195,400, Yash Sh.32,500, Sidhm Sh 164 300 On 31s July 2019, the sales made were Sh.1,053,700 and were deposited in the i) evening. However, the sales were not recorded by the bank until the following day. ii) The bank paid an insurance premium of Sh.75,300 because of a standing order arranged by Wekesa The bank deducted Sh.45,550 bank charges which were not yet recorded in the iv) cash book Interest received on a fixed deposit Sh.160,000 had not yet been recorded by the business. v) vi) The bank had received on behalf of Wekesa, a credit transfers of Sh.246,700 from Obiri vii) A cheque for Sh.135,500 which was paid by the bank was…
Subject: acounting
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Dapitan Company had the following account balances at December 31, 2023: Cash in bank Cash on hand Cash legally restricted for addition to plant and expected to be disbursed in 2024 P2,500,000 10,000 1,500,000 Cash in bank includes P200,000 compensating balances against short-term borrowing arrangements. The compensating balances are not legally restricted as to withdrawal by Dapitan Company. In the current assets section of Dapitan Co.'s December 31, 2023 statement of financial position, how should be reported as cash?
Deposit of P100,000 incorrectly recorded by bank as 10,000Check of Rid Company charged by bank against Red Companyaccount 150,000 how to analyze this
PROBLEM SOLVING: 2-1 Accounts Receivables Presented below are unaudited balances of selected accounts of YELLOW Company as of December 31, 2020: Unaudited Bal, 12/31/20 Debit Selected Accounts Credit Cash 500,000 Accounts receivable 1,300,000 Allowance for bad debts 8,000 Net sales 6,750,000 Additional information are as follows: Goods amounting to P50,000 were invoiced for the accounts of UNO Store, recorded on January 2, 2021 with terms n/60, FOB shipping point. The goods were shipped to UNO on December 30, 2020. The bank returned on December 29, 2020, a customer's check for P15,000 marked "NSF", but no entry was made. Goods amounting to P38,000, invoiced for the account of DOS Trading, recorded on December 27, 2020, FOB Destination. The goods were received by DOS on January 3, 2021 After a careful study of YELLOW's past due accounts, it was necessary to write off uncollectible accounts amounting to P25,000. No entry was made yet for this. YELLOW estimates that allowance for bad…
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HURON COMPANY-3 The uncollectible accounts receivable rate in the sector where the business operates is high. As of December 31, 2019, the balance of the "Accounts Receivable" of the business is $1,250,000. Of these receivables, $850,000 are not yet due. However, receivables worth $400,000 have past due. The aging of these past due receivables has been done, and according to this aging, the collectibility probabilities anticipated by the business are presented in the table below. Days Past Due - Amount $ - Collectibility Probability 1-15 days 180,000 0.98 16-30 days 84,000 0.95 31-60 days 47,000 0.80 61-90 days 35,000 0.70 91-120 days 15,000 0.40 121-240 days 20,000 0.30 More than 241 days 19,000 0.01 Total 400,000 Requirements: 1)The company will implement a policy for allowance for doubtful accounts for the first time at the end of this year. What is the amount of doubtful accounts allowance that needs to be set aside? How will the receivables and allowances be reported in the…
QC 34.
18 Owen Company's unadjusted book balance at June 30 is $13,680. The company's bank statement reveals bank service charges of $110. Two credit memos are included in the bank statement: one for $1,410, which represents a collection that the bank made for Owen, and one for $180, which represents the amount of interest that Owen had earned on its interest-bearing account in June. What is the true cash balance? 200441 Multiple Choice O O $15,160 $14,910 $15,380 $13,680
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