P10-1A On January 1, 2014, the ledger of Shumway Company contains the followingliability accounts.Accounts PayableSales Taxes PayableUnearned Service RevenueE52,0005,80014,000During January, the following selected transactions occurred.Jan. 5 Sold merchandise for cash totaling E22,470, which includes 7% sales taxes.12 Provided services for customers who had made advance payments of £10,000.(Credit Service Revenue.)14 Paid revenue department for sales taxes collected in December 2013 (ES,800).20 Sold 600 units of a new product on credit at £50 per unit, plus 7% sales tax.21 Borrowed £14,000 from DeKalb Bank on a 3-month, 8%, £14,000 note.25 Sold merchandise for cash totaling £12,947, which includes 7% sales taxesInstructions(a) Journalize the January transactions.(b) Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint:Use one-third of a month for the DeKalb Bank note.)(c) Prepare the current liabilities section of the statement of financial position at January31, 2014. Assume no change in accounts payable.,

Current Liabilities- Current liabilities refer to obligations which the company needs to be settled…

P10-1A On January 1, 2014, the ledger of Shumway Company contains the following liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue E52,000 5,800 14,000 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling E22,470, which includes 7% sales taxes. 12 Provided services for customers who had made advance payments of £10,000. (Credit Service Revenue.) 14 Paid revenue department for sales taxes collected in December 2013 (E5,800). 20 Sold 600 units of a new product on credit at E50 per unit, plus 7% sales tax. 21 Borrowed £14,000 from DeKalb Bank on a 3-month, 8%, £14,000 note. 25 Sold merchandise for cash totaling E12,947, which includes 7% sales taxes. Instructions (a) Journalize the January transactions. (b) Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the DeKalb Bank note.) (c) Prepare the current liabilities section of the statement of financial position at January 31, 2014. Assume no change in accounts payable.,

P10-1A On January 1, 2014, the ledger of Shumway Company contains the following liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue E52,000 5,800 14,000 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling E22,470, which includes 7% sales taxes. 12 Provided services for customers who had made advance payments of £10,000. (Credit Service Revenue.) 14 Paid revenue department for sales taxes collected in December 2013 (E5,800). 20 Sold 600 units of a new product on credit at E50 per unit, plus 7% sales tax. 21 Borrowed £14,000 from DeKalb Bank on a 3-month, 8%, £14,000 note. 25 Sold merchandise for cash totaling E12,947, which includes 7% sales taxes. Instructions (a) Journalize the January transactions. (b) Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the DeKalb Bank note.) (c) Prepare the current liabilities section of the statement of financial position at January 31, 2014. Assume no change in accounts payable.,

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

A8
Mani
Blossom Company has a balance in its Accounts Receivable control account of $11,300 on January 1, 2022. The subsidiary ledger contains three accounts: Bixler Company, balance $4,200: Cuddyer Company, balance $2,200, and Freeze Company. During January the following receivable-related transactions occurred. Bixler Company Cuddyer Company Freeze Company (a) Credit Sales Collections $9,000 $7,900 2.600 8.800 7.100 8.500 Returns $0 3.000 Balance in the Freeze Company subsidiary account S 0 What is the January 1 balance in the Freeze Company subsidiary account?
15. Zeta Company reported sales revenue of P4,600,000 in its income statement for the year ended December 31, 2011. Additional information is given below. Under the cash basis of accounting, what amount should be reported as sales revenue for 2011? 12/31/2010 12/31/2011 Accounts receivable 1,000,000 1,300,000 Allowance for uncollectible accounts 60,000 110,000 Zeta wrote off uncollectible accounts totaling P20,000 during 2011. O a. 4,900,000 O b. 4,350,000 O c. 4,300,000 O d. 4,280,000
The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. 1 Purchased merchandise on account from Kirkwood Co., $225,000, terms n/30. 31 Issued a 30-day, 8% note for $225,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. 1 Borrowed $600,000 from Triple Creek Bank, issuing a 45-day, 6% note. Jul. 1 Purchased tools by issuing a $50,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%. 16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 7% note for $600,000. (Journalize both the debit and credit to the notes payable account.) Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16. 30 Paid Poulin Co. the amount due on the note of July 1. Dec. 1 Purchased equipment from Greenwood Co. for $280,000, paying $80,000 cash and issuing a series of ten 9% notes for…
1. Prepare general journal entries for the following transactions for the current year: April 25 Sold $3,500 of merchandise to Phillip Corporation receiving a 9%, 60-day, $3,500 note receivable (the merchandise cost $2,000) June 24 The note of Phillip Corporation was dishonored. Date Description Post Ref Debit Credit
On December 31, 20X1, the company reported a debit balance of $200,000 in accounts receivable and a credit balance of $5,000 in the allowance for expected credit losses. December 31 is the company’s reporting date. During 20X2, the company had the following transactions: a. The company made a credit sale of $300,000. b. The company collected accounts receivable for 350,000. c. The company wrote off the uncollectible accounts for $12,000. d. The company collected the receivable of $4,000 that had been written off previously. Required Note: Show calculation: (1) Prepare journal entries to record the above four transactions. (2) Assume that 2% of the company’s accounts receivable cannot be collected, prepare the adjusting journal entry at the end of 20X2.
The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. 1 Purchased merchandise on account from Kirkwood Co., $175,000, terms n/30. 31 Issued a 30-day, 6% note for $175,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. 1 Borrowed $400,000 from Triple Creek Bank, issuing a 45-day, 5% note. Jul. 1 Purchased tools by issuing a $45,000, 60-day note to Poulin Co., which discounted the note at the rate of 7%. 16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6% note for $400,000. (Journalize both the debit and credit to the notes payable account.) Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16. 30 Paid Poulin Co. the amount due on the note of July 1. Dec. 1 Purchased equipment from Greenwood Co. for $260,000, paying $40,000 cash and issuing a series of ten 9% notes for…
Haresh
On October 4, 2008, Terry Corporation had credit sales transactions of P2,800 from merchandise having cost P1,900. The entries to record the day's credit transactions include a
1. On September 1, 2021, Lily Company had an initial accounts receivable control account balance of $72,000. The subsidiary ledger contains 3 accounts: Jasmine Company, balance $25,200; Sunflower Company, balance $14,400; and Orchid Company. The following were information regarding Lily Company's accounts receivable during September. Purchases Payments Returns Jasmine Company $57,500 $50,000 $2,000 Sunflower Company $82,000 $32,800 $ - Orchid Company $43,700 $52,000 $ - Instructions: What was the September 1 balance in the Orchid Company subsidiary account? b. What was the September 30 balance in the control account? c. Compute the balance in the subsidiary accounts at the end of the month! d. Which September transaction would not be recorded in the four common types of the special journal?
The following data were selected from the records of Sykes Company for the year ended December 31, current year. Balances January 1, current year Accounts receivable (various customers) Allowance for doubtful accounts $121,000 5,000 In the following order, except for cash sales, the company sold merchandise and made collections on credit terms 5/10, n/30 (assume a unit sales price of $600 in all transactions). Transactions during current year: a. Sold merchandise for cash, $260,000. b. Sold merchandise to R. Smith; invoice price, $8,500. c. Sold merchandise to K. Miller; invoice price, $40,000. d. Two days after purchase date, R. Smith returned one of the units purchased in (b) and received account credit. e. Sold merchandise to B. Sears; invoice price, $22,000. f. R. Smith paid his account in full within the discount period. g. Collected $90,000 cash from customer sales on credit in prior year, all within the discount periods. h. K. Miller paid the invoice in (c) within the discount…