CHBased on the preceding information, answer the following questions for Waddell Company. All questions pertain to the Year 2 financial statements. (Hìnt:accounts under the accounting equation before answering the questions.) (Do not round intermediate calculations. Enter any decreases to account balancrequire entry.)Stockholders' EquityLiabilitiesAssetsCommonRetainedUnearnedRevenueAccountsSalariesStockEarningsDateCashAccountsPrepaid RentSuppliesLandPayablePayableReceivable%3DBal.++%3DJan. 1+Feb. 1Mar. 1%3DApril 1+%3DMay 1July 1Sept. 1es+Oct. 1+Dec. 31%3D+Dec. 31Dec. 31Dec. 31Dec. 31+Dec. 31%3D+Dec. 31Dec. 31Bal.0 +< Accounting EquationReq A to L>< Prev1 of 1Next> Waddell Company had the following balances in its accounting records as of December 31, Year 1.Liabilities and EquityAssetsCashAccounts ReceivableLand$ 53,000 Accounts Payable45,000 Common Stock29,000 Retained Earnings$ 127,000 Total$ 21,00090,00016,000$ 127,000TotalThe following accounting events apply to Waddell Company's Year 2 fiscal year:January 1February 1 Paid $5,100 cash in advance for a one-year lease for office space.March 1April 1May 1July 1September 1 Sold land for $20,000 cash that had originally cost $20,000.October 1December 31 Earned $56,000 of service revenue on account during the year.December 31 Received cash collections from accounts receivable amounting to $57,000.December 31 Incurred other operating expenses on account during the year that amounted to $12,000.December 31 Recognized accrued salaries expense of $4,400.December 31 Had $150 of supplies on hand at the end of the period.December 31 The land purchased on April 1 had a market value of $40,000.Acquired $38,000 cash from the issue of common stock.Paid a $2,600 cash dividend to the stockholders.Purchased additional land that cost $29,000 cash.Made a cash payment on accounts payable of $12,000.Received $8,800 cash in advance as a retainer for services to be performed mònthly over the coming year.Purchased $1,040 of supplies on account.

All transactions affect two accounts from among assets, liabilities, incomes, or expenses. All…

Answered: January 1 February 1 March 1 April 1…

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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Davos Company performed services on account for $160,000 in Year 1. Davos collected $120,000 cash from accounts receivable during Year 1, and the remaining $40,000 was collected in cash during Year 2. Required a. e. & f. Record the Year 1 transactions in T-accounts and close the Year 1 Service Revenue account to the Retained Earnings account. Record the Year 2 cash collection in the appropriate T-accounts.
York Company engaged in the following transactions for Year 1. The beginning cash balance was $86,000 and the ending cash balance was $59,100. 1. Sales on account were $548,000. The beginning receivables balance was $128,000 and the ending balance was $90,000. 2. Salaries expense for the period was $232,000. The beginning salaries payable balance was $16,000 and the ending balance was $8,000. 3. Other operating expenses for the period were $236,000. The beginning other operating expenses payable balance was $16,000 and the ending balance was $10,000. 4. Recorded $30,000 of depreciation expense. The beginning and ending balances in the Accumulated Depreciation account were $12,000 and $42,000, respectively. 5. The Equipment account had beginning and ending balances of $44,000 and $56,000, respectively. There were no sales of equipment during the period. 6. The beginning and ending balances in the Notes Payable account were $36,000 and $44,000, respectively. There were no payoffs of…
The accounts payable balance at the beginning of the year was $98,000. The company purchased $445,000 worth of goods on account, and the ending balance of the payables account was $135,000. What were the total payments on account? Multiple Choice $548,000 $463,000 $408.000 $478.000
Prepare the journal entries
Please explain also.
000 Debit Cash $250; credit Accounts Payable $250. Havermill Co. establishes a $250 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $73 for Office Supplies, $137 for merchandise inventory, and $22 for miscellaneous expenses. The fund has a balance of $18. On October 1, the accountant determines that the fund should be increased by $50. The journal entry to record the establishment of the fund on September 1 is: Debit Petty Cash $250; credit Cash $250. Debit Petty Cash $250; credit Accounts Payable $250. Debit Cash $250; credit Petty Cash $250. Debit Miscellaneous Expense $250; credit Cash $250.
Listed below are selected transactions of Schultz Department Store for the current year ending December 31. 1. On December 5, the store received $500 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. 2. During December, cash sales totaled $798,000, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. 3. 4. On December 10, the store purchased for cash three delivery trucks for $120,000. The trucks were purchased in a state that applies a 5% sales tax. The store sold 25 gift cards for $100 per card. At year-end, 20 of the gift cards are redeemed. Schultz expects three of the cards to expire unused. Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry.…
Vulcan Service Company experienced the following transactions for Year 1, its first year of operations: 1. Provided $80,000 of services on account. 2. Collected $48,000 cash from accounts receivable. 3. Paid $32,000 of salaries expense for the year. 4. Adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Current 0 to 30 31 to 60 61 to 90 Over 90 days Amount $23,680 1,600 2,240 1,920 2,560 Percent Likely to Be Uncollectible 0.01 0.05 0.10 0.30 0.50 Allowance Balance Required a. Record the given transactions in general journal form and post to T-accounts. b. Prepare the income statement for Vulcan Service Company for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 1?

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