Lexmark Technologies, a printer manufacturer founded in 1991 as a spinoff from IBM, reported total assets of $4.2 million and total liabilities of $2.8 million at the beginning of 2023. During the year, the company acquired new manufacturing equipment worth $800,000, took out a loan of $500,000, paid off existing debt of $300,000, and earned net income of $650,000. The company also issued new shares worth $200,000 and paid dividends of $150,000 to its shareholders. The company sold outdated inventory having a book value of $400,000 for $320,000 during this period. Calculate Lexmark Technologies' total stockholders' equity at the end of 2023, showing your step-by-step calculation. Ricoh Corporation, a Japanese multinational imaging and electronics company, started 2023 with accounts receivable of $2.8 million, and throughout the year, they recorded credit sales of $9.6 million and collected $8.9 million from customers. During the same period, they wrote off bad debts of $180,000 and had a beginning allowance for doubtful accounts of $320,000. Their policy is to maintain the allowance for doubtful accounts at 5% of the ending accounts receivable balance. Calculate the required bad debt expense for 2023 and prepare the journal entry to record it.
Lexmark Technologies, a printer manufacturer founded in 1991 as a spinoff from IBM, reported total assets of $4.2 million and total liabilities of $2.8 million at the beginning of 2023. During the year, the company acquired new manufacturing equipment worth $800,000, took out a loan of $500,000, paid off existing debt of $300,000, and earned net income of $650,000. The company also issued new shares worth $200,000 and paid dividends of $150,000 to its shareholders. The company sold outdated inventory having a book value of $400,000 for $320,000 during this period. Calculate Lexmark Technologies' total stockholders' equity at the end of 2023, showing your step-by-step calculation. Ricoh Corporation, a Japanese multinational imaging and electronics company, started 2023 with accounts receivable of $2.8 million, and throughout the year, they recorded credit sales of $9.6 million and collected $8.9 million from customers. During the same period, they wrote off bad debts of $180,000 and had a beginning allowance for doubtful accounts of $320,000. Their policy is to maintain the allowance for doubtful accounts at 5% of the ending accounts receivable balance. Calculate the required bad debt expense for 2023 and prepare the journal entry to record it.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lexmark Technologies, a printer manufacturer founded in
1991 as a spinoff from IBM, reported total assets of $4.2
million and total liabilities of $2.8 million at the beginning of
2023. During the year, the company acquired new
manufacturing equipment worth $800,000, took out a loan of
$500,000, paid off existing debt of $300,000, and earned net
income of $650,000. The company also issued new shares
worth $200,000 and paid dividends of $150,000 to its
shareholders. The company sold outdated inventory having a
book value of $400,000 for $320,000 during this period.
Calculate Lexmark Technologies' total stockholders' equity at
the end of 2023, showing your step-by-step calculation. Ricoh
Corporation, a Japanese multinational imaging and electronics
company, started 2023 with accounts receivable of $2.8
million, and throughout the year, they recorded credit sales of
$9.6 million and collected $8.9 million from customers. During
the same period, they wrote off bad debts of $180,000 and
had a beginning allowance for doubtful accounts of $320,000.
Their policy is to maintain the allowance for doubtful accounts
at 5% of the ending accounts receivable balance. Calculate the
required bad debt expense for 2023 and prepare the journal
entry to record it.
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