BalancesCash + Receivable +18,5005. Wages owed employees but not paid, $1,450.6. Services provided but not billed to patients, $2,500.Adjustment data for SLO Health Care Inc. for January are as follows:1. Insurance expired, $450.2. Supplies on hand on January 31, $600.3. Depreciation on building, $1,150.4. Unearned rent revenue earned, $1,500.Total32,250AdjustmentsJan. 31 Insurance expired31 Supplies expense31 Depreciation expense31 Rent revenue31 Wages expense31 Fees earnedMetric Effects$Insurance + SuppliesLiquidity Quick Assets Profitability.$-450 x S-900 X-1,150 X1,500 X3,350-1,450 X2,500 ✓1,550 X$2,500XXXndicate the effects of each adjustment on the liquidity metric Quick Assets and profitability metric Net Income - Accrual Basis. Enter account decreases and cash outflows as negative amounts. If an amount box does meave it blank.X1,5002,500 x+Building75,000Depreciation + Land-5,60060,000=Payable +2,250Revenue13,500+Payable + Payable015,000

Adjustment entries are those journal entries which are passed at the end of accounting period. Main…

Balances Lash 18,500 Receivable + 32,250 5. Wages owed employees but not paid, $1,450. 6. Services provided but not billed to patients, $2,500. Adjustment data for SLO Health Care Inc. for January are as follows: 1. Insurance expired, $450. 2. Supplies on hand on January 31, $600. 3. Depreciation on building, $1,150. 4. Unearned rent revenue earned, $1,500. Adjustments Dan. 31 Insurance expired 31 Supplies expense 31 Depreciation expense 31 Rent revenue 31 Wages expense 31 Fees earned Total Metric Effects Insurance + 3,350 -450 X S -900 X Liquidity Quick Assets Profitability $ -1,150 X 1,500 X -1,450 X 2,500 ✓ 1,550 X X X x Xx X Supplies + 2,500 2,500 X 1,500 Building 75,000 Depreciation + Land -5,600 ndicate the effects of each adjustment on the liquidity metric Quick Assets and profitability metric Net Income - Accrual Basis. Enter account decreases and cash outflows as negative amounts. If an amount box cave it blank. 60,000 Payable + 2,250 Revenue 13,500 + Payable + Pay 0 15,

Balances Lash 18,500 Receivable + 32,250 5. Wages owed employees but not paid, $1,450. 6. Services provided but not billed to patients, $2,500. Adjustment data for SLO Health Care Inc. for January are as follows: 1. Insurance expired, $450. 2. Supplies on hand on January 31, $600. 3. Depreciation on building, $1,150. 4. Unearned rent revenue earned, $1,500. Adjustments Dan. 31 Insurance expired 31 Supplies expense 31 Depreciation expense 31 Rent revenue 31 Wages expense 31 Fees earned Total Metric Effects Insurance + 3,350 -450 X S -900 X Liquidity Quick Assets Profitability $ -1,150 X 1,500 X -1,450 X 2,500 ✓ 1,550 X X X x Xx X Supplies + 2,500 2,500 X 1,500 Building 75,000 Depreciation + Land -5,600 ndicate the effects of each adjustment on the liquidity metric Quick Assets and profitability metric Net Income - Accrual Basis. Enter account decreases and cash outflows as negative amounts. If an amount box cave it blank. 60,000 Payable + 2,250 Revenue 13,500 + Payable + Pay 0 15,

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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Seaforth International wrote off the following accounts receivable as uncollectible for the year ending December 31: Customer Amount Kim Abel $ 24,300 Lee Drake 31,195 Jenny Green 29,715 Mike Lamb 17,890 Total $103,100 The company prepared the following aging schedule for its accounts receivable on December 31: Aging Class (Number of Days Past Due) Receivables Balance on December 31 Estimated Percent of Uncollectible Accounts 0–30 days $ 735,000 1% 31–60 days 290,000 2 61–90 days 111,000 15 91–120 days 70,000 30 More than 120 days 94,000 60 Total receivables $1,300,000 A. Journalize the write-offs under the direct write-off method. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles. B. Journalize the write-offs and the year-end adjusting entry under the allowance method, assuming that the…
Aging of Receivables; Estimating Allowance for Doubtful Accounts Wig Creations Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The accounts receivable clerk for Wig Creations prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 20Y7: Not Days Past Due Past Customer Balance Due 1-30 31-60 61-90 91-120 Over 120 АВС Веauty 19,000 19,000 Angel Wigs 7,100 7,100 Zodiac Beauty 3,500 3,500 Subtotals 1,316,900 752,700 299,000 128,300 39,800 16,400 80,700 The following accounts were unintentionally omitted from the aging schedule. Assume all due dates are for the current year except for Visions Hair & Nail, which is due in the next year. Customer Due Date Balance Arcade Beauty Aug. 17 $5,300 Creative Images Oct. 30 4,700 Excel Hair Products July 3 8,500 First Class Hair Care Sept. 8 6,700 Golden Images Nov. 23 3,300 Ob That Eair Nov 2O
Estimating Bad Debts Expense and Reporting Receivables At December 31, Barber Company had a balance of $630,000 in its accounts receivable and an unused balance of $3,900 in its allowance for uncollectible accounts. The company then aged its accounts as follows. Current $519,000 1-60 days past due 72,000 61-180 days past due 25,500 Over 180 days past due 13,500 Total accounts receivable $630,000 The company has experienced losses as follows: 1% of current balances, 5% of balances 1-60 days past due, 15% of balances 61-180 days past due, and 40% of balances over 180 days past due. The company continues to base its allowance for uncollectible accounts on this aging analysis and percentages. a. What amount of bad debts expense does Barber report on its income statement for the year? $ 14,115 b. Show how Barber's December 31 balance sheet will report the accounts receivable and the allowance for uncollectible accounts. Note: Round your answers to the nearest whole dollar. Note: Do not use…
Estimating Uncollectible Accounts and Reporting Accounts ReceivableCollins Company analyzes its accounts receivable at December 31, and arrives at the aged categories below along with the percentages that are estimated as uncollectible. Age Group Accounts Receivable Estimated Loss % 0-30 days past due $110,000 1% 31-60 days past due 40,000 2 61-120 days past due 27,000 5 121-180 days past due 14,000 10 Over 180 days past due 9,000 25 Total accounts receivable $200,000 The balance of the allowance for uncollectible accounts is $1,100 on December 31, before any adjustments. (a) What amount of bad debts expense will Collins report in its income statement for the year?$Answer? (b) Use the financial statement effects template to record Collin's bad debts expense for the year. Use negative signs with your answers, when appropriate. Balance Sheet Transaction Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital…
At the end of the first year of operations, mayberry advertising had accounts receivable of $21100. Management of the company estimates that 8% of the accounts will not be collected What adjutment would mayberry advertising record to established allowance for uncollectible accounts Do the journal entry worksheet
Entry for Uncollectible Accounts Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are given below. Age Interval Balance Estimated UncollectibleAccounts Percent Estimated UncollectibleAccounts Amount Not past due $902,000 3/4 % $6,765 1-30 days past due 99,200 2 1,984 31-60 days past due 45,100 6 2,706 61-90 days past due 32,500 18 5,850 91-180 days past due 23,500 42 9,870 Over 180 days past due 17,100 65 11,115 Total $1,119,400 $38,290 Assume that the allowance for doubtful accounts for Outlaw Bike Co. had a debit balance of $6,890 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31. Dec. 31 - Select - - Select -
Entry for Uncollectible Accounts Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the company's accounts receivable on December 31 and a historical analysis of the percentage of uncollectible accounts in each age category are given below. Age Interval Balance Estimated UncollectibleAccounts Percent Estimated UncollectibleAccounts Amount Not past due $878,000 3/4 % $6,585 1-30 days past due 96,600 2 1,932 31-60 days past due 43,900 8 3,512 61-90 days past due 31,600 14 4,424 91-180 days past due 22,800 38 8,664 Over 180 days past due 16,700 75 12,525 Total $1,089,600 $37,642 Assume that the allowance for doubtful accounts for Outlaw Bike Co. had a debit balance of $6,775 as of December 31. Journalize the adjusting entry for uncollectible accounts as of December 31. If an amount box does not require an entry, leave it blank. Dec. 31 - Select - - Select - - Select - - Select -
Required information Use the following information for the Exercises 13-14 below. (Algo) [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Days Past Due Total 0 1 to 30 31 to 60 61 to 90 Accounts receivable $ 635,000 $ 409,000 $ 103,000 $ 49,000 $ 31,000 Percent uncollectible 2% 3% 6% 8% Over 90 $ 43,000 11% Exercise 7-14 (Algo) Percent of receivables method LO P3 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $13,300 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful…
Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation. Events Affecting Year 1 Provided $33,520 of cleaning services on account. Collected $26,816 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Events Affecting Year 2 Wrote off a $251 account receivable that was determined to be uncollectible. Provided $39,118 of cleaning services on account. Collected $34,619 cash from accounts receivable. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account. Required Record the events for Year 1 and Year 2 (including closing entries for Year 1) in T-accounts. Determine the following amounts: (1) Net income for Year 1. (2) Net cash flow from operating activities for Year 1. (3) Balance of accounts…
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Journal adjusting entry for Office supplies on hand at 30 Sept is $6,050 incl. GST.