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- Clean Enterprise Limited 2021 January S'000 5,000 12,000 18,000 5,000 2020 2021 2021 March S'000 10,000 26,000 10,000 7,000 400 1,000 100 December February S'000 6,000 10,000 000.S Cash sales 12,000 30,000 40,000 5,000 500 1,000 Credit sales Credit purchases Salaries 40,000 5,000 300 1,000 Utilities 300 Depreciation Property taxes Insurance 1,000 3,000 Advertising Statutory deductions Other expenses 500 100 300 1,500 1,800 1,500 100 2,100 200 300 100 Additional information: 1. Collection from credit customers are normally 60% in the month of sale, 30% in the month following sale and the balance of 10% in the second month following sale. 2. The credit sale for November 2020 was $14,000,000. 3. Including in the November 2020 credit sales is a credit sale to Hard Luck Limited. The company (Hard Luck Limited) purchased $100,000 goods on November 1, 2020. A notice in the newspaper on November 6, 2020 indicated that a loan creditor of the company had placed the company into receivership. 4.…On the first day of the fiscal year, a company issues $60,000, 7%, five-year installment notes that have annual payments of $14,633. The first note payment consists of $4,200 of interest and $10,433 of principal repayment. Required: Journalize the following transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 20Y1 Jan. 1 Installment notes are issued 20Y2 Jan. 1 First annual note payment is madeWhich of the items are normally classified as current liabilities for a company that has a oneyearoperating cycle? Accounts payable due in 11 months.
- On December 1, Concord Company introduces a new product that includes a one-year warranty on parts. In December, 1,300 units are sold. Management believes that 6% of the units will be defective and that the average warranty costs will be $90 per unit. Prepare the adjusting entry at December 31 to accrue the estimated warranty cost, assuming no warranty claims have been honored to date. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31Interim reports are issued for periods of less than a year, typically as quarterly financial statements. Should these interim periods be viewed as separate periods or integral parts of the annual period?Pinnacle Co., prepares quarterly interim financial reports. The entity sells electric fans and normally 5% of their customers claim on their warranty. The provision in the first quarter was calculated at 5% of sales to date which amounted to 20,000,000. However, in the second quarter, a design fault was found and warranty claims were expected to be 10% for the whole year. Sales for the second quarter amounted to P30,000,000. What amount of provision should be charged in the interim income statement for the first quarter? A. 2,500,000B. 3,750,000C. 1,500,000D. 1,000,000
- On January 1, a company borrowed $35,148 for 6 months at an interest rate of 8%. The principal and interest are due at the maturity date of the note. How much interest should be accrued at the end of January? Round your answer to the nearest whole dollar (i.e., no decimal places).Jamison Company has the following obligations at December 31:For each obligation, indicate whether it should be classified as a current liability. (Assume an operating cycle of less than one year.) 1. (a) A note payable for $100,000 due in 2 years. Not a current liabilityCurrent liability (b) A 10-year mortgage payable of $300,000 payable in ten $30,000 annual payments. Not a current liabilityCurrent liability (c) Interest payable of $15,000 on the mortgage. Current liabilityNot a current liability (d) Accounts payable of $60,000.A noninterest-bearing note is issued on February 12 of a non-leap year in the amount of $14,250. It has a term of 10 months. It is sold on September 22 with a negotiated interest rate of 2%. Determine the proceeds of the sale. Add 3 days grace period. Select one: a. $14184.71 b. $12193.87 c. none d. $13189.29 Check
- On January 1, Marshall Co. Issued a $360000, three-year, 6% installment note payable with payments of $134,680 principal and interest due on January 1 for each of the next 3 years. Prepare the adjusting journal entry to accrue interest at December 31, Year 2. Round Answers to the nearest Decimal show the accounts and amounts and where they will appear on a classified balance sheet prepared on december 31 year 2. Round Answers to the nearest decimal.Errors in Financial Statements At the end of the current year, Jodi Corporation's controller discovers the following items of information: Salaries are paid every Friday for a 5-day work week. The normal weekly payroll is $40,000. The year-end falls on a Tuesday this year. The company has a $20,000, 9-month, 12% (annual rate) note payable outstanding at the end of the year. The note was issued on October 1; the interest is due when the note is paid. Examining the Rent Expense account, the controller finds that it includes a $4,800 advance payment for 3 months' rent. The payment was made on November 1. The storeroom contains $500 of office supplies. At the beginning of the year, there were no office supplies. During a year, the company purchased $3,500 of office supplies which were debited to the Office Supplies account. The company received a large order in May with a $13,000 advance payment. The advance payment was credited to Unearned Revenue. In November, the order was delivered to…On July 1, Orcas Lab issued a $200,000, 7%, 8-month note. Interest is payable at maturity. What is the amount of interest expense that should be recorded in a year-end adjusting entry if the fiscal year-end is (a) December 31? (b) September 30?