B Problems 34PABB (Purchases Recorded Gross and Net) Some of the transactions of Duder Company during Marchar listed below. Duder uses the periodic inventory method.11 Returned part of the purchase of March, $2,200, and received credit on account.17 Purchased merchandise on account, $16,000, terms 2/10, n/30.26 Paid invoice of March 17 in full.27 Purchased merchandise on account, $36,000, terms 2/10, r/60.March 8 Purchased merchandise on account, $15,000, terms 1/10, /20.(a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded whentaken:Instructions(1) Prepare general journal entries to record the transactions.(2) Describe how the various items would be shown in the financial statements.(b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as financialexpenses:(1) Prepare general journal entries to enter the transactions.(2) Prepare the adjusting entry necessary on March 31 if financial statements are to be prepared atthat time.(3) Describe how the various items would be shown in the financial statements,(c) Which of the two methods do you prefer and why?25 P8-4B (Compute FIFO, LIFO, and Average-Cost) Pillsbury Company's record of transactions concerningpart WA6 for the month of September was as follows.SalesPurchasesSeptember 417September 1 (balance on hand)300@ $12.00200@ 12.103.12300@ 12.2527300@ 12.30500@ 12.3022300@ 12.40Instructions(a) Compute the inventory at September 30 on each of the following bases. Assume that perpetual in-ventory records are kept in units only. Carry unit costs to the nearest cent.(1) First-in, first-out (FIFO).(2) Last-in, first-out (LIFO).(3) Average cost.(b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each with-drawal, what amount would be shown as ending inventory in (1), (2), and (3) above? Carry averageunit costs to four decimal places.25 P8-5B (Compute FIFO, LIFO, and Average Cost) Some of the information found on a detail inventorycard for Arctic Inc. for the first month of operations is as follows.ReceivedIssued,No. of UnitsBalance,No. of UnitsDateNo. of UnitsUnit CostMarch1.to 0 02,5001,8008.6.051,4000001,400126.200091,8003,300226.252,400316.50 B Problems 3P&-3B (Purchases Recorded Gross and Net) Some of the transactions of Duder Company during March4.ar listed below. Duder uses the periodic inventory method.11 Returned part of the purchase of March, $2,200, and received credit on account.17 Purchased merchandise on account, $16,000, terms 2/10, n/30.March 8 Purchased merchandise on account, $15,000, terms 1/10, n/30.26 Paid invoice of March 17 in full.27 Purchased merchandise on account, $36,000, terms 2/10, n/60.(a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded whentaken:Instructions(1) Prepare general journal entries to record the transactions.(2) Describe how the various items would be shown in the financial statements.(b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as financialexpenses:(1) Prepare general journal entries to enter the transactions.(2) Prepare the adjusting entry necessary on March 31 if financial statements are to be prepared atthat time.(3) Describe how the various items would be shown in the financial statements.(c) Which of the two methods do you prefer and why?25 P8-4B (Compute FIFO, LIFO, and Average-Cost) Pillsbury Company's record of transactions concerningpart WA6 for the month of September was as follows.SalesPurchasesSeptember 1 (balance on hand)3300@ $12.00200@ 12.10September 41712300@ 12.2527300@ 12.3022500@ 12.30300@ 12.40Instructions(a) Compute the inventory at September 30 on each of the following bases. Assume that perpetual in-ventory records are kept in units only. Carry unit costs to the nearest cent.(1) First-in, first-out (FIFO).(2) Last-in, first-out (LIFO).(3) Average cost.(b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each with-drawal, what amount would be shown as ending inventory in (1), (2), and (3) above? Carry averageunit costs to four decimal places.25 P8-5B (Compute FIFO, LIFO, and Average Cost) Some of the information found on a detail inventorycard for Arctic Inc. for the first month of operations is as follows.ReceivedIssued,No. of UnitsBalance,No. of UnitsDateNo. of UnitsUnit CostMarch1.$6.002,0002,5001,800to 009.8.6.05121,4006.201,4000092,4006.2522to w002001,8003,3002,1006.50311,200

Name: B Problems 34PABB (Purchases Recorded Gross and Net) Some of the tran
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Description: B Problems 34PABB (Purchases Recorded Gross and Net) Some of the transactions of Duder Company during Marchar listed below. Duder uses the periodic inventory method.11 Returned part of the purchase of March, $2,200, and received credit on account.17

Journal entries (JE) refers to recording of the transactions into the books of accounts or books of…

Business

Accounting

of the transactions of Duder Company dm aethod. $16,000, terns 2/10, ru30. $36,000, terns 2/10, rv60. mounts and that discounts are to be ree e transactions. hown in the financial statements. ounts and that discounts lost are treate transactions. arch 31 if financial statements are to b nown in the financial statements. hy? bury Company's record of transaction

of the transactions of Duder Company dm aethod. $16,000, terns 2/10, ru30. $36,000, terns 2/10, rv60. mounts and that discounts are to be ree e transactions. hown in the financial statements. ounts and that discounts lost are treate transactions. arch 31 if financial statements are to b nown in the financial statements. hy? bury Company's record of transaction

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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4 Indicate the classification, presentation and disclosure of Problem 8-12 (IAA) Lucid Company showed the following balances on December 31: Accounts receivable-unassigned Accounts receivable-assigned Allowance for doubtful accounts-January 1 Receivable from factor Note payable-bank 1,000,000 300,000 30,000 40,000 240,000 During the current year, the entity found itself in financial distress and decided to resort to receivable financing. On June 30, the entity factored P200,000 of accounts receivable to a finance entity. The finance entity charged a factoring fee of 5% of the accounts factored and withheld 20% of the amount factored. On December 31, the entity assigned P300,000 of accounts receivable to a bank under a nonnotification basis. The bank advanced 80% less a service fee of 5% of the accounts assigned. The entity signed a promissory note for the loan. On December 31, it is estimated that 5% of the outstanding accounts receivable may prove uncollectible. Required: the accounts…
27.The ABC Co disclosed the following data at Dec 31, 20X1:Account known to be worthless, P37,500Advance payment to creditors on purchase orders P50,000Customers accounts (credit balance due to returns), P5,000Advances to employees, P34,000Trade receivable, P169,000Other non trade receivables, P4,000The amount of receivables at Dec 31, 20X1 is: 173,000 252,000 257,000 289,500
Co. provided some information on their financial records on December 31, 2022: Accounts receivable, January 1 – P19,200; Collections of account receivable – P62,400; Bad Debts – P2,000; Inventory, January 1 – P28,800; Inventory, December 31 – P26,400; Accounts payable, January 1 – P10,000; Accounts payable, December 31 – P15,000; Cash sales – P12,000; Purchases – P48,000; Gross profit on sales – P21,600. What is the ending balance of accounts receivable on December 31, 2022?
The following trial balance was extracted from the books of J. Brown as at 31 May 2021. DRCR $$ Purchases and Sales65,730 125,910 Stock at June 1, 202015,480 - Bank overdraft- 13,050 Capital- 21,600 Cash270 - Discounts4,320 2,880 Return inwards2,430 - Return outwards- 1,710 Carriage outwards6,480 - Carriage inwards2,850 - Rent and Rates5,220 - Provision for bad debts- 1,980 Machinery5,100 - Van9,300 - Provision for depreciation on Vans- 3,000 Provision for depreciation on Machinery- 1,500 Accounts Receivable and Payables35,730 18,180 Drawings8,640 - Wages and Salaries26,820 - General office expenses1,440 - 189,810 189,810 Notes:Closing stock $22,000Wages and salaries: accrual $900; Office expenses accrued $500Rent and rates prepaid $800Increase the provision for bad debts to $2,000Provision for depreciation Van 10% of cost, and Machinery 15% on the reducing balance method.(See requirements on next page.) Required:1: Prepare an Income Statement for the year ended May 31, 2021 2: From…
The following information has been extracted from the annual reports of Lilydale Ltd and Monbulk Ltd. Lilydale Ltd Monbulk Ltd $2 950 300 17 100 Sales (net credit) revenue for year Allowance for Doubtful Debts, 1/7/18 Allowance for Doubtful Debts, 30/6/19 Accounts receivable (gross) 1/7/18 Accounts receivable (gross) 30/6/19 $2 204 300 27 100 19780 28 100 722 650 368 000 485 800 384 200 (a) Calculate the receivables turnover ratio and average collection period for both companies. Comment on the difference in their collection experiences. (b) Compare the success or otherwise of their cash collection policies, given that the average receivables turnover for the industry in which the companies operated is 7. Credit terms for both companies are 2/10, n/30.
1. Using EXCEL => Set up "T – Accounts" for each account listed in the Campln Inc. Post-Closing Trial Balance. "T-Account" example for several accounts. Assets Cash Accounts Receivable Inventory Beg $ 750,000 Beg $ 450,000 Beg $ 1,200,000 The following Post-Closing Trial Balance is available in EXCEL. Campln Inc. Post Closing Trial Balance 12/31/2020 Debit Credit Cash 750,000 Accounts Receivable 450,000 Allowance for Doubtful Accounts $ 10,000 Prepaid Insurance 100,000 Inventory 1,200,000 Equipment 4,500,000 Accumulated Depreciation - Equipment 1,350,000 Building 850,000 Accumulated Depreciation - Building $4 250,000 Land 1,100,000 Accounts Payable Salaries Payable 375,000 50,000 1,400,000 2,250,000 6,000 Mortgage Payable $ Long-Term Debt Common Stock - Par $0.01 APIC $ 2,994,000 Retained Earnings $ 265,000 8,950,000 8,950,000 $4
Submit it in excel form P9.2
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Chapter 8 Questions to practice BE8-1 Presented below are three recei\ailes transactions. Indicate whether these recei\. ables are reported as accounts recei\able, notes recei\-able, or other receivables on a state- ment of6nancial position. (a) Sold merchandise on account forW64,000,000 to a customer. (b) Received a promissory note ofW57,000,000 for senicn perfonned. (c) Ad\-anced W8,000,000 to an employee.