**Closing Journal Entries**To effectively close the books at year-end, it's important to make the following journal entries based on the given account balances. The accounts and their balances are listed below:1. **Accounts with Debit Balances:** - **Accounts receivable:** $45,000 - **Prepaid insurance:** $4,500 - **Land:** $50,000 - **Dividends:** $2,000 - **Selling expenses:** $34,500 - **Administrative expenses:** $12,750 - **Miscellaneous expense:** $1,2502. **Accounts with Credit Balances:** - **Accounts payable:** $39,000 - **Notes payable:** $55,000 - **Retained earnings:** $12,000 - **Fees earned revenue:** $65,000**Procedure:**- **Identify Temporary Accounts:** Dividends, selling expenses, administrative expenses, miscellaneous expense, and fees earned revenue are temporary accounts. - **Close Revenues to Income Summary:** - **Debit** Fees Earned Revenue: $65,000 - **Credit** Income Summary: $65,000- **Close Expenses to Income Summary:** - **Debit** Income Summary: (Total of all expenses) - **Credit** Selling Expenses, Administrative Expenses, Miscellaneous Expense- **Close Income Summary to Retained Earnings:** - Calculate the net income/loss (Fees earned revenue - Total expenses). - (Debit or credit depending on net income or loss)- **Close Dividends to Retained Earnings:** - **Debit** Retained Earnings: $2,000 - **Credit** Dividends: $2,000This process ensures that temporary accounts are reset for the new accounting period and that profit or loss is reflected in retained earnings.

Closing entries are used to transfer the balance from a temporary account to a permanent account. We…

PA2. LO 5.1 The following selected accounts and normal balances existed at year-end. Make the four journal entries required to close the books: Accounts receivable Prepaid insurance Land Accounts payable Notes payable Retained earnings Dividends Fees earned revenue Selling expenses Administrative expenses Miscellaneous expense $45,000 4,500 50,000 39,000 55,000 12,000 2,000 65,000 34,500 12,750 1,250

PA2. LO 5.1 The following selected accounts and normal balances existed at year-end. Make the four journal entries required to close the books: Accounts receivable Prepaid insurance Land Accounts payable Notes payable Retained earnings Dividends Fees earned revenue Selling expenses Administrative expenses Miscellaneous expense $45,000 4,500 50,000 39,000 55,000 12,000 2,000 65,000 34,500 12,750 1,250

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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d) Golden Music Company uses the allowance method to estimate uncollectible accounts receivable. An aging of the accounts receivable revealed the following: Estimated Percentage Uncollectible Current Accounts $17,000 $1,500 $1,200 $500 $900 $21,100 1% 1-30 days past due 31–60 days past due 61–90 days past due Over 90 days past due Total Accounts Receivable 3% 6% 12% 25% On 31 December 2021, the company has found out that a customer went bankrupt and management agreed that the accounts receivable of $900 included above which is past due for over 90 days can be written off. i) Compute the total estimated uncollectible accounts receivable as at 31 December 2021. ii) Prepare the journal entry year-end to write off the accounts receivable of $900 and the adjusting journal entry to record the bad debts for the year ended 31 December 2021.
At what amount will accounts receivable for Anderson Company be reported on the balance sheet if the gross receivable balance is $52,000 and the allowance for doubtful accounts is estimated at 4% of gross receivables? Select one: A. $28,200 B. $49,920 C. $52,960 D. $47,000
QUESTION 3 Presented below are selected accounts for San Marcos Corporation for December 31 of the current year. Debit Credit Accounts Recelvable trade $720 Building and Equipment Cash in bank-operating 1000 Interest Recelvable Installment Receivabies Merchandise Inventory 35 25 Notes Receivable-long term Petty Cash Prepaid Expenses- current 32 Supplies 19 Patent Accounts Payable-rade Accumulated Depreciation 225 Additional Pald-in Capltal Allowance for 600 Uncollectible Accounts Cash Diridends Payable Common Seock-4i par value Income Tax Payable
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Problem 6 Tantrum Company provided the following information in relation to accounts receivable at year-end: Days Outstanding % Uncollectible Estimated Amount 1,200,000 0-60 1% 2% 61-120 900,000 Over 120 1,000,000 6% During the current year, the entity wrote off P70,000 in accounts receivable and recovered P20,000 that had been written off in prior years. At the beginning of current year, the allowance for uncollectible accounts was P60,000. Under the aging method, what amount of uncollectible accounts expense should be reported for the current year?
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8. Use the following information for the next two questions: Pampi's Co. has the following information. Days Outstanding Receivable Balances % collectible 0-60 480,000 1% 61-120 360,000 2% Over 120 400,000 6% During the year, Pampi wrote off P14,000 receivables and recovered 8,000 that had been written-off in prior years. The allowance for doubtful accounts has a beginning balance of P4,000. How much is the net realizable value of accounts receivable at year-end? How much is the doubtful accounts expense?
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Use the following to answer questions 8 – 11 The following information pertains to RC, Inc. for the month of December: $900,000 38,500 Credit sales Accounts payable 55,400 400 credit Accounts receivable Allowance for Uncollectible accounts Cash sales 300,000 RC uses the percent of receivables method and estimates it will not collect 5% of accounts receivable. Chapter 5 Page 5-1 8. $ Determine the ending balance for the Allowance for Uncollectible Accounts 9. $ Determine the appropriate amount to record for Bad Debt expense 10. $ amount to record for Bad Debt expense Assuming the Allowance for Uncollectible accounts had a $700 debit balance, determine the