A manufacturer of calculators prepares its financial statements in accordance with International Accounting Standards every year. On 31 December 2017, the taxation liability account in its books showed a credit balance of GH¢11,500 after paying the 2016 liability. The estimated liability for 2017 is GH¢34,000 and no entry has yet been made to record this. Required: Explain the appropriate accounting treatment of the above transaction for the year end 31 December 2017.

A manufacturer of calculators prepares its financial statements in accordance with International Accounting Standards every year. On 31 December 2017, the taxation liability account in its books showed a credit balance of GH¢11,500 after paying the 2016 liability. The estimated liability for 2017 is GH¢34,000 and no entry has yet been made to record this. Required: Explain the appropriate accounting treatment of the above transaction for the year end 31 December 2017.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A company's accounts payable dated December 31, 2021, totaled P1.000,000 before any necessary year end adjustments relating to the following transactions and information: • On December 27, 2021. the company wrote and issued checks to creditors totaling P350.000. The issuance of the checks was recorded on January 3, 2022. • On December 28. 2021, the company purchased and received goods for P150.000, terms 2/10. n/30. The company records purchases and accounts payable at net amounts. The invoice was recorded and paid on January 3. 2022 • Goods shipped FOB Destination on December 20, 2021. from a vendor to the company were received on January 2. 2022. The invoice cost was P65,000. The purchase was recorded on January 2, 2022. • Goods costing P120.000 were purchased from supplier with terms FOB shipping point on December 28, 2021. The company received the goods and the invoice on January 4, 2022. • The P1.000,000 ledger balance of accounts payable is net of P80.000 debit balance in one…
From inception of operations to December 31, 2025, Swifty Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Swifty's usual credit terms are net 30 days. The balance in Allowance for Doubtful Accounts was $144,200 (Cr.) at January 1, 2025. During 2025, credit sales totaled $9,170,300. the provision for doubtful accounts was determined to be $183,406, $91,703 of bad debts were written off, and recoveries of accounts previously written off amounted to $19,570. Swifty installed a computer system in November 2025, and an aging of accounts receivable was prepared for the first time as of December 31, 2025. A summary of the aging is as follows.…
Determine the following as a result of your audit:a. The proposed adjusting journal entries for the year ended December 31, 2022 includes a net debit (credit) to retained earnings of? b. The proposed adjusting journal entries for the year ended December 31, 2022 includes a net debit (credit) to accumulated depreciation of?
Spring Garden Flowers had the following balances at December 31, 2024, before the year-end adjustments: E (Click the icon to view the balances.) The aging of accounts receivable yields the following data: E (Click the icon to view the accounts receivable aging schedule.) Requirements Journalize Spring's entry to record bad debts expense for 2024 using the aging-of-receivables method. 1. 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Requirement 1. Journalize Spring's entry to record bad debts expense for 2024 using the aging-of-receivables method. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts Debit Credit Dec. 31 Data Table Accounts Receivable Allowance for Bad Debts 66,000 1,615 Requirement 2. Prepare a T-account to compute the ending balance of Allowance for Bad Debts. Allowance for Bad Debts Print Done Data Table Age of Accounts Receivable 0-60 Days Over 60 Days Total…
Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2023 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $36,000 $ 462,000 During 2024, credit sales were $1,780,000, cash collections from customers $1,860,000, and $41,000 in accounts receivable were written off. In addition, $3,600 was collected from a customer whose account was written off in 2023. An aging of accounts receivable at December 31, 2024, reveals the following: Age Group 0-60 days 61-90 days 91-120 days Percentage of Year- End Receivables in Group Percent Uncollectible 70% 20 5% 15 5 20 5 40 Over 120 days Required: 1. Prepare summary journal entries to account for the 2024 write-offs and the collection of the receivable previously written off. 2. Prepare the year-end adjusting entry for bad debts according to each of the…
Aguinaldo enterprises reported an allowance for doubtful accounts of P8,000(credit) at December 31, 2019, before any adjustment. At the end of the year, the company reports accounts receivable of P500,000, 3% of which is estimated to be uncollectible. The adjusting entry required at December 31, 2019 would be: debit to Doubtful Accounts Expense and credit Allowance for Doubtful Accounts amounting to P8,000 P15,000 P23,000 P7,000
The balance in Iwig Company’s accounts payable account at December 31, 2021 was P400,000 before any necessary year-end adjustments relating to the following: A. Goods were in transit to Iwig from a vendor on December 31, 2021. The invoice cost was P50,000. The goods were shipped FOB shipping point on December 29, 2021 and were received on January 4, 2022. B. Goods shipped FOB destination on December 21, 2021 from a vendor to Iwig were received on January 6, 2022. The invoice cost was P25,000. C. On December 27, 2021, Iwig wrote and recorded checks to creditors totaling P30,000 that were mailed on January 10, 2022. 2. In Iwig’s December 31, 2021 statement of financial position, the accounts payable should be
1. Journalize the year-end adjusting entry for bad debts on the basis of the aging schedule. Show the T-account for the Allowance for Bad Debts at December 31, 2018. 2. Show how Solar Energy Manufacturing will report its net accounts receivable on its December 31, 2018, balance sheet.
A company reports net accounts receivable of $100,000 on December 31, 2019. The Allowance for Bad Debts has a credit balance of $26,000 on December 1, 2019. An additional debit entry to Bad Debts Expense and credit to Allowance for Bad Debts for $5,600 was made on December 31, 2019. What is the balance of Accounts Receivable on December 31, 2019?
Cassowary Corporation’s balance sheet at December 31, 2016 included a $20,400 account receivable from Quail Corporation of Australia. The account receivable is denominated as 30,000 Australian dollars (A$). Assuming no entries have been made since 12/31/2016, what single entry should Cassowary make on January 16, 2017 when the account receivable is collected and the exchange rate for A$ is $.67? Select one: a. Cash (fc) 20,100 Accounts Receivable (fc) 20,100 b. Cash (fc) 20,100 Exchange Loss 300 Accounts Receivable (fc) 20,400 c. Cash (fc) 20,400 Accounts Receivable (fc) 20,400 d. Cash (fc) 20,700 Accounts Receivable (fc) 20,400 Exchange Gain 300
Sagar
The accounts payable balance of Durian Inc. at December 31, 2021 was before the year-end adjustments relating to the following information: Upon receipt of the invoice on December 28, 2021 for goods costing P 30,000, the accounting staff of Durian Inc. recorded the purchase in the accounts. It was determined that the goods were shipped FOB Destination Point on December 27, 2021 and were received by Durian Inc. on January 5, 2022. • Goods with an invoice cost of P 25,000 which were shipped FOB Shipping Point on December 23, 2021 from a vendor to Durian Inc. were lost in transit. On January 5, 2022, Durian Inc. filed a P 25,000 claim against the transport company. • Goods costing P 9,000 were shipped FOB Shipping Point from a vendor to Durian Inc. Because the vendor's invoice and the goods were received on January 3, 2022, the accounting staff did not include the goods in its December 31, 2021 590,000 inventory nor was the purchase recorded in the accounts in 2021. What amount should…