Balance Sheet June 1, 20Y3 $38,800 Cash $72,900 Accounts receivable 4,300 68,600 Less: Allowance for doubtful accounts 175,000 Land Equipment $68,000 Less: Accumulated depreciation-equipment 41,900 26,100 Total assets $308,500 Accounts payable $21,700 Notes payable 63,300 Hannah Freeman, capital 223,500 Total liabilities and owner's equity $308,500 Freeman obtained appraised values for the land and equipment as follows: Land $243,000 Equipment 20,400 An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $6,300. Journalize the partnership's entry for Freeman's investment. If an amount box does not require an entry, leave it blank.

Balance Sheet June 1, 20Y3 $38,800 Cash $72,900 Accounts receivable 4,300 68,600 Less: Allowance for doubtful accounts 175,000 Land Equipment $68,000 Less: Accumulated depreciation-equipment 41,900 26,100 Total assets $308,500 Accounts payable $21,700 Notes payable 63,300 Hannah Freeman, capital 223,500 Total liabilities and owner's equity $308,500 Freeman obtained appraised values for the land and equipment as follows: Land $243,000 Equipment 20,400 An analysis of the accounts receivable indicated that the allowance for doubtful accounts should be increased to $6,300. Journalize the partnership's entry for Freeman's investment. If an amount box does not require an entry, leave it blank.

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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Reporting Land Transactions on Statement of Cash Flows On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows: ACCOUNT Land ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jan. Balance 868,000 Mar. 12 Purchased for cash 104,300 972,300 Oct. 4 Sold for $95,550 63,840 908,460 Section of Statement of Item Added or Deducted Amount Cash Flows Mar. 12: Purchase of fixed asset Oct. 4: Sale of fixed asset Gain on sale of fixed asset (assume the indirect method) %24 %24 %24
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is: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $70,720 $47,940 Accounts receivable (net) 207,230 188,190 Inventories 298,520 289,850 Investments 0 102,000 Land 295,800 0 Equipment 438,600 358,020 Accumulated depreciation—equipment (99,110) (84,320) Total assets $1,211,760 $901,680 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $205,700 $194,140 Accrued expenses payable (operating expenses) 30,600 26,860 Dividends payable 25,500 20,400 Common stock, $1 par 202,000 102,000 Paid-in capital: Excess of issue price over par—common stock 354,000 204,000 Retained earnings 393,960 354,280 Total liabilities and stockholders' equity $1,211,760 $901,680 The income statement for the year ended December 31, 20Y9, is as follows: Sales $2,023,898 Cost of goods sold 1,245,476 Gross profit $778,422 Operating…
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