4. Stone Works is a paving stone installation business that operates from about April to October each year. The company has an outstanding reputation for the quality of its work and as a result pre-books customers a full year in advance. Customers must pay 40% at the time of booking and the balance on the completion date of the job. Stone Works records the 40% cash advance received from customers in the Unearned Revenues account. The December 31, 2020, balance sheet shows Unearned Revenues totalling $129,000. During 2021, $284,000 of cash was collected in total from customers: $205,000 regarding work completed during the year for customers who paid 40% down in 2020, and the balance representing the 40% prepayments for work to be done in 2022.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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11:38 AM
... a 4G E 26%
E Assignment 2.docx
Required:
Prepare the current liability section of Jasper Company's 2020 balance sheet.
4. Stone Works is a paving stone installation business that operates from
about April to October each year. The company has an outstanding reputation
for the quality of its work and as a result pre-books customers a full year in
advance. Customers must pay 40% at the time of booking and the balance on
the completion date of the job. Stone Works records the 40% cash advance
received from customers in the Unearned Revenues account. The December
31, 2020, balance sheet shows Unearned Revenues totalling $129,000. During
2021, $284,000 of cash was collected in total from customers: $205,000
regarding work completed during the year for customers who paid 40% down
in 2020, and the balance representing the 40% prepayments for work to be
done in 2022.
Required:
1. Prepare the entry to record the collection of cash in 2021.
5. Zing Cell Phone Company entered into the following transactions
involving current liabilities during 2020 and 2021.
M
1 Purchased merchandise on credit from Ferris Inc.
4 for $138,000. The terms
were 1/10, n/30 (assume a perpetual inventory
system).
1 Zing paid $24,000 cash and replaced the
4 $114,000 remaining balance of the account
payable to Feris Inc. with a 5%, 60-day note
payable.
2 Borrowed $124,000 from Scotiabank by signing a
1 4.5%, 90-day note.
ar.
A
pr.
M
ay
? Paid the note to Ferris Inc. at maturity.
Paid the note to Scotiabank at maturity.
D
1 Borrowed $99,000 and signed a 5.25%, 120-day
ес
note with National Bank.
D
3 Recorded an adjusting entry for the accrual of
1 interest on the note to National Bank.
ес
3/4
Transcribed Image Text:11:38 AM ... a 4G E 26% E Assignment 2.docx Required: Prepare the current liability section of Jasper Company's 2020 balance sheet. 4. Stone Works is a paving stone installation business that operates from about April to October each year. The company has an outstanding reputation for the quality of its work and as a result pre-books customers a full year in advance. Customers must pay 40% at the time of booking and the balance on the completion date of the job. Stone Works records the 40% cash advance received from customers in the Unearned Revenues account. The December 31, 2020, balance sheet shows Unearned Revenues totalling $129,000. During 2021, $284,000 of cash was collected in total from customers: $205,000 regarding work completed during the year for customers who paid 40% down in 2020, and the balance representing the 40% prepayments for work to be done in 2022. Required: 1. Prepare the entry to record the collection of cash in 2021. 5. Zing Cell Phone Company entered into the following transactions involving current liabilities during 2020 and 2021. M 1 Purchased merchandise on credit from Ferris Inc. 4 for $138,000. The terms were 1/10, n/30 (assume a perpetual inventory system). 1 Zing paid $24,000 cash and replaced the 4 $114,000 remaining balance of the account payable to Feris Inc. with a 5%, 60-day note payable. 2 Borrowed $124,000 from Scotiabank by signing a 1 4.5%, 90-day note. ar. A pr. M ay ? Paid the note to Ferris Inc. at maturity. Paid the note to Scotiabank at maturity. D 1 Borrowed $99,000 and signed a 5.25%, 120-day ес note with National Bank. D 3 Recorded an adjusting entry for the accrual of 1 interest on the note to National Bank. ес 3/4
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