How to find the current ratio? !Required informationP2-3 (Algo) Recording Transactions in T-Accounts, Preparing the Balance Sheet from a Trial Balance, andEvaluating the Current Ratio LO2-2, 2-4, 2-5[The following information applies to the questions displayed below.]Jaguar Plastics Company has been operating for three years. At December 31 of last year, the accounting recordsreflected the following:Cash$20,000 Accounts payable$19,000Investments (short-term)2,600Accounts receivable6,0003,300 Accrued liabilities payable3,600 Notes payable (current)25,000 Notes payable (noncurrent)1,500 Common stockInventory49,00010, 200Notes receivable (long-term)Equipment45,000 Additional paid-in capital97,000 Retained earnings4,80091,80021,600Factory buildingIntangiblesDuring the current year, the company had the following summarized activities:a. Purchased short-term investments for $8,800 cash.b. Lent $6,100 to a supplier who signed a two-year note.c. Purchased equipment that cost $22,000; paid $5,000 cash and signed a one-year note for the balance.d. Hired a new president at the end of the year. The contract was for $79,000 per year plus options to purchasecompany stock at a set price based on company performance. The new president begins her position on January 1of next year.e. Issued an additional 1,300 shares of $0.50 par value common stock for $12,000 cash.f. Borrowed $19,000 cash from a local bank, payable in three months.g. Purchased a patent (an intangible asset) for $1,700 cash.h. Built an addition to the factory for $27,000; paid $8,800 in cash and signed a three-year note for the balance.i. Returned defective equipment to the manufacturer, receiving a cash refund of $3,900.P2-3 Part 66. Compute the current ratio for the current year. (Round your answer to 2 decimal places.)Current ratio

The ability of a business to pay its short-term financial commitments that are due within a year is…

ecoral ansactio Ints, Preparing the ance She lai Balan ng the Current Ratio LO2-2, 2-4, 2-5 wing information applies to the questions displayed below.] astics Company has been operating for three years. At December 31 of last year, the accounting records the following: $20,000 Accounts payable $19,000 ents (short-term) receivable 2,600 6,000 3,300 Accrued liabilities payable 3,600 Notes payable (current) 25,000 Notes payable (noncurrent) 1,500 Common stock y 49,000 eceivable (long-term) 10, 200 nt 91,800 building ples 45,000 Additional paid-in capital 97,000 Retained earnings 4,800 21,600 e current year the company had the following summarized activities:

ecoral ansactio Ints, Preparing the ance She lai Balan ng the Current Ratio LO2-2, 2-4, 2-5 wing information applies to the questions displayed below.] astics Company has been operating for three years. At December 31 of last year, the accounting records the following: $20,000 Accounts payable $19,000 ents (short-term) receivable 2,600 6,000 3,300 Accrued liabilities payable 3,600 Notes payable (current) 25,000 Notes payable (noncurrent) 1,500 Common stock y 49,000 eceivable (long-term) 10, 200 nt 91,800 building ples 45,000 Additional paid-in capital 97,000 Retained earnings 4,800 21,600 e current year the company had the following summarized activities:

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 6AP

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The details of the accounts receivable of AA Corporation as December 31, 2022 shows the following: Beginning balance P3,450,000 Sales on account made to customers 2,800,000 Collection of accounts receivable during the year 4,200,000 Accounts written off as uncollectible 90,000 The following transactions were included in the recorded transactions during the year: 1. Invoice dated December 28, 2022 for P350,000 was shipped and received by the buyer on December 31, 2022, this invoice was recorded in the book at P35,000. 2. Invoice dated and recorded on November 30, 2022 was erroneously priced at P32 per unit. There were 11,000 units of goods delivered which were received on December 10, 2022. The agreed price should be at P22 per unit only. AA's policy is to provide 5% of the outstanding balance of accounts receivable as uncollectible and there is beginning balance of allowance for bad debts of P40,000. Statement 1: The amount of bad debt expense in 2022 is P158,250. Statement 2: The…
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When examining the accounts of Palma Company, you ascertain that balance relating to bothreceivables and payables are included in a single controlling account (called receivables),which has a P23,050 debit balance. An analysis of the details of this account revealed thefollowing: Items Debit Credit Accounts Receivable - customers P 40,000 Accounts receivable - officers (Current collection expected) 2,500 Debit balances - creditors 450 Expense advances to salespersons 1,000 Share capital subscriptions receivable 4,600 Accounts payable for merchandise P 19,250 Unpaid salaries 3,300 Credit balance in customer accounts 2,000 Cash received in advance from customers for goods not yet shipped 450 Expected bad debts, cumulative 500 Required:1. Give the journal entry to eliminate the above account and to set up the appropriateaccounts to replace it.
When examining the accounts of Palma Company, you ascertain that balance relating to bothreceivables and payables are included in a single controlling account (called receivables),which has a P23,050 debit balance. An analysis of the details of this account revealed thefollowing: Items Debit Credit Accounts Receivable - customers P 40,000 Accounts receivable - officers (Current collection expected) 2,500 Debit balances - creditors 450 Expense advances to salespersons 1,000 Share capital subscriptions receivable 4,600 Accounts payable for merchandise P 19,250 Unpaid salaries 3,300 Credit balance in customer accounts 2,000 Cash received in advance from customers for goods not yet shipped 450 Expected bad debts, cumulative 500 Required:1. How should each item be reported on Palma Company’s statement of financial position?
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The following data are taken from the financial statements of Basinger Inc. Terms of all sales are 2/10, n/45. 20Y3 20Υ2 20Υ1 Accounts receivable, end of year $212,000 $226,000 $241,200 Sales on account 1,270,200 1,214,720 a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. 20Y3 20Υ2 1. Accounts receivable turnover 2. Number of days' sales in receivables days days b. The collection of accounts receivable has . This can be seen in both the in accounts receivable turnover and the in the collection period.
Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
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A company has the following account balances at the end of the year:• Credit Sales = $400,000• Accounts receivable = $80,000• Allowance for Uncollectible Accounts = $400 credit The company estimates 1% of credit sales will be uncollectible. At what amount would Allowance for Uncollectible Accounts be reported in the current year’s balance sheet? a. $4,000.b. $4,400. c. $3,600. d. $800.
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