What is the company's gross income....?? Cianci Accounting Services had $100,000 in gross receipts forthe year. It cost the company $35,000 to lease and operate itsoffices for the year. The company's landlord gave the companya $100 monthly discount in return for accounting services. Oneclient gave the company a computer with a retail price of $2,500and a fair market value of $2,000 in exchange for accountingservices. Based on these facts, what is the company's grossincome for the year?

Step 1: Definition of Gross IncomeGross income refers to the total revenue earned by a company from…

Answered: Cianci Accounting Services had $100,000…

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 43P

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At the beginning of the year, ABC's Accounts Receivable balance was $82,300. During the year ABC sold $5,963,000 to its customers on credit. At the end of the year the firm's Accounts Receivable balance was $179,300. How much did ABC receive in payments from its customers over the course of the year?
Ankaran Enterprises currently has $800 in cash, and total assets of $20,400. The company owes $1,400 to suppliers for merchandise and $5, 100 to the bank for a long-term loan. Customers owe Ankaran's $1,100. The inventory has a book value of $4, 400 and an estimated market value of $5,500. If Ankaran's compiled a financial statement today, how much would it show as the value of the current assets?
anhoe Corporation made credit sales of $18,600 which are subject to 7% sales tax. The corporation also made cash sales which taled $24,503 including the 7% sales tax. ) Prepare the entry to record Ivanhoe's credit sales. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before Credit entries.) Account Titles and Explanation Accounts Receivable Debit 18600 Credit
Jervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% factoring fee. What entry should Jervis make to record the transaction?
The Chair Company provides a 120-day parts-and-labor warranty on all merchandise it sells. The Chair Company estimates the warranty expense for the current period to be $1,270. During this period, a customer returned a product that cost $953 to repair. a. Show the effects of these transactions on the financial statements using a horizontal statements model. Use "+" for increase, "-" for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity, investing activity, or financing activity. b. Prepapre the journal entries to record the warranty expense for the period and payment for the actual repair costs.
The business was started when the company received $48,500 from the issue of common stock. Purchased equipment inventory of $177,000 on account. Sold equipment for $196,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $121,500. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 3 percent of sales. Paid the sales tax to the state agency on $146,500 of the sales. On September 1, 2018, borrowed $21,500 from the local bank. The note had a 5 percent interest rate and matured on March 1, 2019. Paid $6,000 for warranty repairs during the year. Paid operating expenses of $54,500 for the year. Paid $125,400 of accounts payable. Recorded accrued interest on the note issued in transaction no. 6. Prepare the income statement, balance sheet, and statement of cash flows for 2018.
During the current year, Khan’s Camera Shop had sales revenue of $220,000, of which $100,800 was on credit. At the start of the current year, Accounts Receivable showed a $22,400 debit balance and the Allowance for Doubtful Accounts showed a $1,210 credit balance. Collections of accounts receivable during the current year amounted to $84,000. The Company uses the percentage of receivables method to account for its estimated uncollectible accounts. Data during the current year follow: a. On December 31, an Accounts Receivable from a deadbeat customer (Melania Trump, Wedding Photographer) of $2,800 from a prior year was determined to be uncollectible; therefore it was written off immediately as a bad debt. b. On December 31, on the basis of experience, a decision was made to continue the accounting policy of basing estimated uncollectible accounts on 3 percent of the end balance of accounts receivable. What is the Company’s bad debt expense for the year?
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Ned's Sheds purchases building materials from Timbertown Lumber for $3,700 with terms of 4/15, n/30. The invoice is dated October 17. Ned's decides to send in a $2,000 partial payment. a) By what date must the partial payment be sent to take advantage of the cash discount? b) What is the net date? c) If partial payment was sent by the discount date, what is the balance still due on the order?
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of $15,000 and a maturity value (principal plus interest) of $15,400. The discount is calculated to be $385, and the accrued interest income is $100. The recourse liability is estimated to be $1,000. Required: Prepare the journal entry of Phillips to record the sale of the note receivable.
Maxwell Corporation factored, with recourse, $200,000 of accounts receivable with Huskie Financing. The finance charge is 3%, and 5% was retained to cover sales discounts, sales returns, and sales allowances. Maxwell estimates the recourse obligation at $4,800. What amount should Maxwell report as a loss on sale of receivables?
Presented below is information for Flint Company: Beginning of the year accounts receivable balance was $23,600. Net sales (all on account) for the year were $103,100. Flint Company does not offer cash discounts. Collections on accounts receivable during the year were $90,300. Flint Company is planning to factor some accounts receivable at the end of the year. Accounts totaling $14,100 will be transferred to Credit Factors Inc. with recourse. Credit Factors will retain 7% of the balances for probable adjustments and assess a finance charge of 6%. The fair value of the recourse obligation is $1,021. Prepare the journal entry to record the sale of the receivables Compute Flint’s accounts receivable turnover for the year, assuming the receivables are sold.

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