Agricultural Farms Products Co. Ltd - Wheat Branch Trial Balance as at June 30, 2022 A/C Name Trial Balance DR CR Cash 2,490,140 Accounts receivable 1,650,000 Allowance for bad debt 100,000 Merchandise Inventory 1,295,500 Store Supplies 15,950 Prepaid Insurance 292,500 Prepaid rent 388,500 Furniture and fixtures 800,000 Accumulated depreciation-Furniture and Fixtures 79,000 Motor Truck 1,200,000 Accumulated depreciation - Motor Truck Accounts payable 64,505 Salary payable Interest payable 78,500 Unearned Sales revenue 605,555 Long-term loan 2,500,000 Capital Withdrawals Sales revenue 3,500,000 125,000 4,868,980 Sales discount 142,500 Sales returns and allowances Cost of goods sold Salaries expense 102,500 1,255,500 905,450 Insurance Expense Utilities Expense 292,500 465,000 444,000 Rent Expense Depreciation Expense - Furniture & Fixtures Depreciation Expense - Motor Truck Store Supplies Expense Gain on Disposal of Old Motor Truck Bad-Debt Expense Interest Expense 68,500 11,865,040 11,865,040 The following additional information is available at June 30, 2022: (i) (ii) (iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022. (iv) Store Supplies on hand at June 30, 2022 amounted to $14,950 Insurance of $292,500 was paid on April 1, 2022, for 9-months to December 2022 The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000. (v) The motor truck was acquired on November 1, 2021, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 (vi) (vii) Salaries earned by employees not yet paid amounted to $250,000 at June 30, 2022. Accrued interest expense as of June 30, 2022, $78,500. (viii) (ix) On June 30, 2022, $505,555 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $165,000. (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,205,500 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $349,900 towards the loan during the fiscal year to June 30,2023

Agricultural Farms Products Co. Ltd - Wheat Branch Trial Balance as at June 30, 2022 A/C Name Trial Balance DR CR Cash 2,490,140 Accounts receivable 1,650,000 Allowance for bad debt 100,000 Merchandise Inventory 1,295,500 Store Supplies 15,950 Prepaid Insurance 292,500 Prepaid rent 388,500 Furniture and fixtures 800,000 Accumulated depreciation-Furniture and Fixtures 79,000 Motor Truck 1,200,000 Accumulated depreciation - Motor Truck Accounts payable 64,505 Salary payable Interest payable 78,500 Unearned Sales revenue 605,555 Long-term loan 2,500,000 Capital Withdrawals Sales revenue 3,500,000 125,000 4,868,980 Sales discount 142,500 Sales returns and allowances Cost of goods sold Salaries expense 102,500 1,255,500 905,450 Insurance Expense Utilities Expense 292,500 465,000 444,000 Rent Expense Depreciation Expense - Furniture & Fixtures Depreciation Expense - Motor Truck Store Supplies Expense Gain on Disposal of Old Motor Truck Bad-Debt Expense Interest Expense 68,500 11,865,040 11,865,040 The following additional information is available at June 30, 2022: (i) (ii) (iii) Rent was prepaid on March 1, 2022, for 7-months to September 2022. (iv) Store Supplies on hand at June 30, 2022 amounted to $14,950 Insurance of $292,500 was paid on April 1, 2022, for 9-months to December 2022 The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000. (v) The motor truck was acquired on November 1, 2021, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 (vi) (vii) Salaries earned by employees not yet paid amounted to $250,000 at June 30, 2022. Accrued interest expense as of June 30, 2022, $78,500. (viii) (ix) On June 30, 2022, $505,555 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $165,000. (x) After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,205,500 worth of inventory on hand at June 30,2022 Other data: (xi) The business is expected to make principal payments totalling $349,900 towards the loan during the fiscal year to June 30,2023

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 7RE: McKinney Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made...

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