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31 Dec 2020 Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Accounts Debit Credit Debit Credit Debit Credit € 120,000 100,000 Cash € 120,000 Accounts Receivable 100,000 Notes Receivable 15,000 15,000 1,500 Interest Receivable € 1,500 Merchandise Inventory 130,000 130,000 Prepaid Insurance 2,000 € 1,000 1,000 Land 70,000 70,000 350,000 Buildings & Equipment Accumulated Depreciation 350,000 € 115,000 45,000 € 160,000 Accounts Payable Notes payable Salaries Payable Interest Payable Dividends Payable Bond payables 180,000 180,000 25,000 25,000 15,000 15,000 1,200 1,200 20,000 100,000 20,000 100,000 Common stock (=Ordinary Share Capital) Additional Paid-in Capital (=Share Premium) 180,000 180,000 30,000 30,000 40,000 600,000 Retained Earnings 40,000 Sales Revenue 600,000 1,500 10,000 Interest Revenue 1,500 Rent Revenue 10,000 Cost of Goods Sold 408,000 408,000 Advertising Expense Salaries Expense 20,000 20,000 80,000 15,000 95,000 Interest Expense 5,000 1,200 6,200 Insurance Expense 1,000 1,000 Depreciation Expense 45,000 45,000 Totals 1,300,000 1,300,000 63,700 63,700 1,362,700 1,362,700 (a) The 2020 journal entries for the Accounts Receivable account include a €80,000 starting balance as of 1 Jan 2020. During 2020, the ABC Puzzle company generated €450,000 additional accounts receivable. Given the ending Trial balance of the Accounts Receivable account shown above, calculate the amount of accounts receivable that were collected by ABC Puzzle company during 2020. Show the ledger account for Accounts Receivable.

31 Dec 2020 Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Accounts Debit Credit Debit Credit Debit Credit € 120,000 100,000 Cash € 120,000 Accounts Receivable 100,000 Notes Receivable 15,000 15,000 1,500 Interest Receivable € 1,500 Merchandise Inventory 130,000 130,000 Prepaid Insurance 2,000 € 1,000 1,000 Land 70,000 70,000 350,000 Buildings & Equipment Accumulated Depreciation 350,000 € 115,000 45,000 € 160,000 Accounts Payable Notes payable Salaries Payable Interest Payable Dividends Payable Bond payables 180,000 180,000 25,000 25,000 15,000 15,000 1,200 1,200 20,000 100,000 20,000 100,000 Common stock (=Ordinary Share Capital) Additional Paid-in Capital (=Share Premium) 180,000 180,000 30,000 30,000 40,000 600,000 Retained Earnings 40,000 Sales Revenue 600,000 1,500 10,000 Interest Revenue 1,500 Rent Revenue 10,000 Cost of Goods Sold 408,000 408,000 Advertising Expense Salaries Expense 20,000 20,000 80,000 15,000 95,000 Interest Expense 5,000 1,200 6,200 Insurance Expense 1,000 1,000 Depreciation Expense 45,000 45,000 Totals 1,300,000 1,300,000 63,700 63,700 1,362,700 1,362,700 (a) The 2020 journal entries for the Accounts Receivable account include a €80,000 starting balance as of 1 Jan 2020. During 2020, the ABC Puzzle company generated €450,000 additional accounts receivable. Given the ending Trial balance of the Accounts Receivable account shown above, calculate the amount of accounts receivable that were collected by ABC Puzzle company during 2020. Show the ledger account for Accounts Receivable.

FINANCIAL ACCOUNTING
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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2 of 4 Question 1 The ABC Puzzle company is a merchandising company that buys and sells puzzles. The company's end of 2020 Unadjusted- and Adjusted Trial Balances are as shown below. You have recently joined the ABC Puzzle's accounting department. Your supervisor asks you to take a closer look at the prepared Trial Balances before they are presented to the CFO. 1 31 Dec 2020 Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Accounts Debit Credit Debit Credit Debit Credit Cash € 120,000 € 120,000 Accounts Receivable 100,000 100,000 Notes Receivable 15,000 15,000 Interest Receivable € 1,500 1,500 Merchandise Inventory 130,000 130,000 Prepaid Insurance 2,000 € 1,000 1,000 Land 70,000 70,000 Buildings & Equipment Accumulated Depreciation 350,000 350,000 € 115,000 45,000 € 160,000 Accounts Payable Notes payable Salaries Payable Interest Payable Dividends Payable Bond payables 180,000 180,000 25,000 25,000 15,000 15,000 1,200 1,200 20,000 20,000 100,000 100,000 Common stock (=Ordinary Share Capital) Additional Paid-in Capital (=Share Premium) Retained Earnings 180,000 180,000 30,000 30,000 40,000 40,000 Sales Revenue 600,000 600,000 Interest Revenue 1,500 1,500 Rent Revenue 10,000 10,000 Cost of Goods Sold 408,000 408,000 Advertising Expense Salaries Expense 20,000 20,000 80,000 15,000 95,000 Interest Expense 5,000 1,200 6,200 Insurance Expense 1,000 1,000 Depreciation Expense 45,000 45,000 Totals 1,300,000 1,300,000 63,700 63,700 1,362,700 1,362,700
Transcribed Image Text:2 of 4 Question 1 The ABC Puzzle company is a merchandising company that buys and sells puzzles. The company's end of 2020 Unadjusted- and Adjusted Trial Balances are as shown below. You have recently joined the ABC Puzzle's accounting department. Your supervisor asks you to take a closer look at the prepared Trial Balances before they are presented to the CFO. 1 31 Dec 2020 Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Accounts Debit Credit Debit Credit Debit Credit Cash € 120,000 € 120,000 Accounts Receivable 100,000 100,000 Notes Receivable 15,000 15,000 Interest Receivable € 1,500 1,500 Merchandise Inventory 130,000 130,000 Prepaid Insurance 2,000 € 1,000 1,000 Land 70,000 70,000 Buildings & Equipment Accumulated Depreciation 350,000 350,000 € 115,000 45,000 € 160,000 Accounts Payable Notes payable Salaries Payable Interest Payable Dividends Payable Bond payables 180,000 180,000 25,000 25,000 15,000 15,000 1,200 1,200 20,000 20,000 100,000 100,000 Common stock (=Ordinary Share Capital) Additional Paid-in Capital (=Share Premium) Retained Earnings 180,000 180,000 30,000 30,000 40,000 40,000 Sales Revenue 600,000 600,000 Interest Revenue 1,500 1,500 Rent Revenue 10,000 10,000 Cost of Goods Sold 408,000 408,000 Advertising Expense Salaries Expense 20,000 20,000 80,000 15,000 95,000 Interest Expense 5,000 1,200 6,200 Insurance Expense 1,000 1,000 Depreciation Expense 45,000 45,000 Totals 1,300,000 1,300,000 63,700 63,700 1,362,700 1,362,700
31 Dec 2020 Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Accounts Debit Credit Debit Credit Debit Credit Cash € 120,000 € 120,000 Accounts Receivable 100,000 100,000 Notes Receivable 15,000 15,000 Interest Receivable € 1,500 1,500 Merchandise Inventory 130,000 130,000 Prepaid Insurance 2,000 € 1,000 1,000 Land 70,000 70,000 Buildings & Equipment Accumulated Depreciation Accounts Payable Notes payable Salaries Payable 350,000 350,000 € 115,000 45,000 € 160,000 180,000 180,000 25,000 25,000 15,000 15,000 Interest Payable Dividends Payable 1,200 1,200 20,000 20,000 Bond payables 100,000 100,000 Common stock (=Ordinary Share Capital) Additional Paid-in Capital (=Share Premium) Retained Earnings 180,000 180,000 30,000 30,000 40,000 40,000 Sales Revenue 600,000 600,000 Interest Revenue 1,500 1,500 Rent Revenue 10,000 10,000 Cost of Goods Sold 408,000 408,000 Advertising Expense Salaries Expense 20,000 20,000 80,000 15,000 95,000 Interest Expense 5,000 1,200 6,200 Insurance Expense Depreciation Expense 1,000 1,000 45,000 45,000 Totals 1,300,000 1,300,000 63,700 63,700 1,362,700 1,362,700 (a) The 2020 journal entries for the Accounts Receivable account include a €80,000 starting balance as of 1 Jan 2020. During 2020, the ABC Puzzle company generated €450,000 additional accounts receivable. Given the ending Trial balance of the Accounts Receivable account shown above, calculate the amount of accounts receivable that were collected by ABC Puzzle company during 2020. Show the ledger account for Accounts Receivable.
Transcribed Image Text:31 Dec 2020 Unadjusted Trial Balance Adjusting Entries Adjusted Trial Balance Accounts Debit Credit Debit Credit Debit Credit Cash € 120,000 € 120,000 Accounts Receivable 100,000 100,000 Notes Receivable 15,000 15,000 Interest Receivable € 1,500 1,500 Merchandise Inventory 130,000 130,000 Prepaid Insurance 2,000 € 1,000 1,000 Land 70,000 70,000 Buildings & Equipment Accumulated Depreciation Accounts Payable Notes payable Salaries Payable 350,000 350,000 € 115,000 45,000 € 160,000 180,000 180,000 25,000 25,000 15,000 15,000 Interest Payable Dividends Payable 1,200 1,200 20,000 20,000 Bond payables 100,000 100,000 Common stock (=Ordinary Share Capital) Additional Paid-in Capital (=Share Premium) Retained Earnings 180,000 180,000 30,000 30,000 40,000 40,000 Sales Revenue 600,000 600,000 Interest Revenue 1,500 1,500 Rent Revenue 10,000 10,000 Cost of Goods Sold 408,000 408,000 Advertising Expense Salaries Expense 20,000 20,000 80,000 15,000 95,000 Interest Expense 5,000 1,200 6,200 Insurance Expense Depreciation Expense 1,000 1,000 45,000 45,000 Totals 1,300,000 1,300,000 63,700 63,700 1,362,700 1,362,700 (a) The 2020 journal entries for the Accounts Receivable account include a €80,000 starting balance as of 1 Jan 2020. During 2020, the ABC Puzzle company generated €450,000 additional accounts receivable. Given the ending Trial balance of the Accounts Receivable account shown above, calculate the amount of accounts receivable that were collected by ABC Puzzle company during 2020. Show the ledger account for Accounts Receivable.
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