Inter Company began operations on December 1, 2020. Presented below is selected information related to Inter Company at December 31, 2020: Service Revenue $120,000 Cash 108,000 Advertising Expense 8,000 Accounts Payable 20,000 Notes Payable 12,000 Supplies 7,000 Salaries Expense 11,000 Rent Expense 30,000 Required: Compute the net income for the month of December. (show your computation).

Inter Company began operations on December 1, 2020. Presented below is selected information related to Inter Company at December 31, 2020: Service Revenue $120,000 Cash 108,000 Advertising Expense 8,000 Accounts Payable 20,000 Notes Payable 12,000 Supplies 7,000 Salaries Expense 11,000 Rent Expense 30,000 Required: Compute the net income for the month of December. (show your computation).

Name: Inter Company began operations on December 1, 2020. Presented below i
Uploaded: 2024-03-05T11:47:04.000Z
Channel: Bartleby
Description: Inter Company began operations on December 1, 2020. Presented below isselected information related to Inter Company at December 31, 2020:Service Revenue$120,000Cash108,000AdvertisingExpense8,000Accounts Payable 20,000Notes Payable12,000Supplies7,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

My business has a net sales of $3,492,690, of which 40% was cash ($1,397,076), 50% was on account ($1,746,345), 10% was prepaid sales ($349,269). How do I make one compound journal entry to recore the net sales for the end of the year? Date Accounts Debit Credit
Yeah Corporation has accounts receivable of $96,000 at March 31, 2018. An analysis of the accounts shows these amounts. Balance, March 31 Month of Sale 2018 2017 March (current) $65,900 $76,200 February (1 – 30 days past due) 12,900 7,900 December and January (31 – 90 days past due) 10,100 2,100 (over 90 days past due) 7,100 1,200 $96,000 $87,400 Credit terms are 2/10, n/30. At March 31, 2018, there is an unadjusted $2,300 credit balance in Allowance for Doubtful Accounts. The company uses the percentage of receivables by age category for estimating uncollectible accounts Yeah's estimates of bad debts are as shown below. Age of Accounts Estimated PercentageUncollectible Current 3% 1–30 days past due 6% 31–90 days past due 30% Over 90 days past due 50% Prepare an aging schedule to determine the total estimated uncollectibles at March 31, 2018. Accounts Receivable…
The accounting records of Uniontown Industries, Inc., provided the data below for the year endedDecember 31, 2020:Sales $1,000,000Cost of goods sold 500,000Depreciation expense 15,000Insurance expense 6,000Selling, general and administrative expenses 140,000Interest expense 20,000Income tax expense 125,000Net income 194,000Decrease in inventory 2,000Increase in accounts receivable 1,400Amortization of bond discount 5,000Decrease in prepaid insurance 300Cash dividends paid 20,000Required: In good form, prepare the operating activities section of the statement of cash flows for 2020using the direct method. Show all work for partial credit.
Presented below is information related to Opra Company for 2019. Please show all calculation step by step. Answer must be correct. Answer follow image
Space Tech Inc. total annual sales in 2020 were $ 40,000,000 The year ending 12/31/20 account balance for Accounts Receivable (prior to any adjustments) is $ 9,500,000 The year ending 12/31/20 account balance for Allowance for Doubtful Accounts (prior to any adjustme nts) is $ 350,000 The C.F.O. (Chief Finandal Officer) has informe d the accounting departme nt that the year ending 12/31/20 All owance for Doubtful Accounts balance should be 2.5% of annual sales. Required: 1Prepare the necessary year-end adjusting journalentry necessary to reflect the balance expected by the C.F.O. 2 Calculate the Net Accounts Receivable balance (after adjustment).
The following selected account balances were taken from ABC Company's genera 1 ledgers for 2019: January 1, 2019 December 31, 2019 Inventory Accounts payable Salaries payable 74,000 56,000 50,000 28,000 9,000 4,000 Investments 68,000 75,000 Accounts receivable 69,000 35,000 Land 58,000 88,000 Notes payable 195,000 120,000 Unearned revenue 17,000 25,000 Common stock 100, 000 190,000 Retained earnings 23,000 63,000 The following information was taken from ABC Company's 2019 income statemen t: Sales revenue $420,000 Cost of goods sold 300,000 Salaries expense 68,000 Net income $ 52,000 Calculate ABc Company's net cash flow from financing activities for 2019. If your answer is negative, place a minus sign in front of your answer with no spaces in between (e.g., -1234).
Task 2: Evaluate the company's efficiency in collecting its accounts receivable during the fiscal year ended 31 December 2021. Use the company's information from its annual reports: Receivables as of 31 December 2020 $4,468,392 $4,972,722 $45,349,943 Receivables as of 31 December 2021 Sales revenue for year ended 31 December 2021 1. Calculate the company's number of days of sales outstanding (DSO) for the fiscal year ended 31 December 2021. (Use the average receivables to calculate the ratio). Not Accounting receivable Average Day's sales in receivable = 154; 2. Interpret the calculated ratio. 3. Assume that the industry average DSO ratio is 60 days. Based on this information and the subject company's DSO ratio, critically evaluate the company's credit policy and its implications.
The following selected accounts were taken from the financial records of Los Olivos Distributors at December 31, 2019. All accounts have normal balances. Cash $ 24,940 Accounts receivable 46,300 Note receivable, due 2020 8,100 Merchandise inventory 34,300 Prepaid insurance 2,210 Supplies 1,270 Equipment 42,100 Accumulated depreciation, equipment 22,100 Note payable to bank, due 2020 21,000 Accounts payable 27,590 Interest payable 210 Sales 523,000 Sales discounts 1,800 Cost of goods sold 384,300 Accounts Receivable at December 31, 2018, was $56,050. Merchandise inventory at December 31, 2018, was $57,200. Based on the account balances above, calculate the following: c. The current ratio Current Ratio Choose Numerator Choose Denominator Current Ratio ÷ =
From the Trial Balance, Prepare the statement of comprehensive income for the year ended 31 December 2020.
The data depicted in the table below were extracted from the annual financial reports of WBE enterprises for the 2021 and 2022 financial years. If all purchases are on credit, calculate the creditors payment period of WBE enterprises for the 2022 financial year. Sales (80% credit sales) Cost of sales Inventories Accounts receivable Accounts payable Cash and cash equivalents Other current liabilities OA. 214 days OB. 163 days OC. 66 days OD. 168 days 2022 R 480 000 264 000 270 000 204 000 177 000 45 750 82 500 2021 R 375 000 192 000 243 000 183 000 165 000 27 300 58 500
Granite, Incorporated is the largest uniform supplier in North America. Selected information from its annual report follows. For the 2019 fiscal year, the company reported sales revenue of $6.1 billion and Cost of Goods Sold of $4.3 billion. Fiscal Year Balance Sheet (amounts in millions) Cash and Cash Equivalents Accounts Receivable, Net Inventory Prepaid Rent and Other Current Assets Accounts Payable Salaries and Wages Payable Notes Payable (short-term) Other Current Liabilities 2019 Current Ratio Inventory Turnover Ratio Accounts Receivable Turnover Ratio $ 540 860 330 795 210 520 116 28 2018 $430 810 340 660 190 520 28 320 Required: Assuming that all sales are on credit, compute the following ratios for 2019. Note: Do not round intermediate calculations. Round your final answers to 2 decimal places.
Task 2: Evaluate the company's efficiency in collecting its accounts receivable during the fiscal year ended 31 December 2021. Use the company's information from its annual reports: Receivables as of 31 December 2020 Receivables as of 31 December 2021 $4,468,392 $4,972,722 $45,349,943 Sales revenue for year ended 31 December 2021 1. Calculate the company's number of days of sales outstanding (DSO) for the fiscal year ended 31 December 2021. (Use the average receivables to calculate the ratio). Net = 2.37 = Accounting receivable: Average Day's sales in receivable = 154. 2. Interpret the calculated ratio. 3. Assume that the industry average DSO ratio is 60 days. Based on this information and the subject company's DSO ratio, critically evaluate the company's credit policy and its implications.