Paxton Designs, Incorporated incorrectly recorded a $440,000 note issued by Beeler Bank, NA in 2020 by debiting cash but crediting accounts payable. The note is due in 5 years with no principalpayments due until maturity. Interest accruals were recorded correctly. Paxton Designs' auditors discovered the error in 2022. Provide the correcting journal entry. (Record debits first, then credits.Exclude explanations from any journal entries.)Account2022 Correcting Entry

In this scenario, Paxton Designs, Incorporated, incorrectly recorded a $440,000 note payable in…

Answered: Paxton Designs, Incorporated…

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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Harmon, Inc. uses the aging of receivables method to account for the allowance of doubtful accounts and the recording of bad debt expense. Below is the aging of the accounts receivable along with the associated estimation of uncollectibility. a. Calculate the amount estimated to be uncollectible at the end of 2021. b. Record the year-end entry to record the bad debt expense if there was a credit balance of $12,000 in the Allowance for Doubtful Accounts at the end of 2021 before the year-end entry. c. Record the year-end entry to record the bad debt expense if there was a debit balance of $3,500 in the Allowance for Doubtful Accounts at the end of 2021 before the year-end entry. Harmon, Inc - Accounts Receivable Aging Balances - December 31, 2021 Total 1-30 Days 31-60 Days 61-90 Days 91-120 Days…
T. Howard's Cash Book at 2020 September 30 showed debit balance at the bank of $1 024 but the Bank Statement at same date had a credit balance of $262.After comparing the Cash Book with the Bank Statement, the following differences were noted: i. An amount of $142 paid into the bank had not yet appeared on the Statement.ii. Bank interest of $60 in respect of an earlier overdraft had been charged by the bank. iii. Cheques issued for $560 had not been presented for payment.iv. A cheque received for $800 and debited in the Cash Book was returned unpaid by the bank because of lack of funds. v. Funds of $1 120 paid into the bank had been entered in the Cash Book as $1 000.vi. The bank had made a standing order payment for insurance of $480 which had not been recorded in the Cash Book.vii. The bank had received by direct credit transfer a payment of $40 due to Howard from G. Keith. Prepare the following:A. Updated Cash Book of T. Howard.B. Bank Reconciliation Statement as at 2021 September…
On March 31, 2021 the bank column of the cashbook of showed a credit balance of P118,100 (Overdraft). On examining of the cash book and the bank statement, it was found that: a) Cheques received and recorded in the cashbook but not sent to the bank of collection P12,400. b) Payment received from a customer directly by the bank P27,300 but no entry was made in the cashbook. c) Cheques issued for P175,200 not presented for payment. d) Interest of P8,800 charged by the bank was not entered in the cashbook. Prepare bank reconciliation statement.
The following information is related to December 31, 2021 balances. • Accounts receivable $3490000 • Allowance for doubtful accounts (credit) ( 254000) • Cash realizable value $3236000 During 2022 sales on account were $ 885000 and collections on account were $ 500000. Also during 2022 the company wrote off $49000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $ 323000. The change in the cash realizable value from the balance at 12/31/21 to 12/31/22 was a $ 322000 increase. $ 267000 increase. $ 370000 increase. $ 316000 increase.
Yardworx reconciled its book balance of Cash with its bank statement balance on April 30 and showed two cheques outstanding at the time, #1771 for $15463 and # 1780 for $955.65. The following information is available for May 31, 2020 reconciliation: From May 31, 2020 bank statement: Cheque #1788 was correctly written for $985.65 to pay for May utilities however, the bookkeeper misread the amount and entered it in the accounting records with a debt to Utilities expenses and credit to Cash as though it were for $895.65. the bank paid ad deducted the correct amount. The NSF cheque was originally received from a customer, Gertie Mayer, in payment of her account. Its return was unrecorded. The credit memo resulted from $5300 electronic fund transfer for the collection of a customer payment. The bank had deducted a $100 bank service charge fee. The collection has not been recorded in the company books. Required: Prepare reconciliation for yardworxs Prepare the general journal entries…
XYZ company is closing its books and must prepare a bank reconciliation for the following items. a. Bank statement contains an ending balance of P300,000 on February 28, 2018, whereas the company's ledger shows an ending balance of P260,900 b. Bank statement contains a P100 service charge for operating the account. c. Bank statement contains interest income of P20 XYZ issued checks of P50,000 that have not yet been cleared by the bank XYZ deposited P20,000 but this did not appear on the bank statement. d. A check for the amount of P470 issued to the office supplier was misreported in the cash payment journal as P370. e. A note receivable of P9,800 was collected by the bank. f. A check of P520 deposited by the company has been charged back as NSF.
he following information is related to December 31, 2021 balances. • Accounts receivable $3340000 • Allowance for doubtful accounts (credit) (275000) • Cash realizable value $3065000 During 2022 sales on account were $877000 and collections on account were $506000. The company wrote off $48500 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $371000. Bad debt expense for 2022 is $371000. $96000. $144500. $47500.
At December 31 2019, according to the records of Graser Company, the balance of Cash account was $21,783. The October 31 bank statement showed a balance of $26,394. You are to prepare the bank reconciliation of Graser Company at December 31, using the following supplementary information: (iii) Service charge of $150 was charged wrongly to Graser's account by the bank. (iv) A note receivable for $15,000 left by Graser Company with bank for collection that had been collected and credited to company's account. Along with the note collection, interest of $150 was also collected. Interest was accrued and recorded in the month-end adjusting entries by Graser Company previously. (v) A check for $420 drawn by a customer, Stuart Sands, but deducted from Graser's account (i) The December 31 bank statement showed the following checks and deposits. Bank Statement by the bank and returned with the notation "NSF." (vi) Graser's account had a check issued in payment of Building, correctly written in…
On April 30, 2020, Dream Traders’ books show a cash book balance of OMR 3,335. As per the bank statement the balance on April 30, 2020 was 2,125. An investigation on the difference between two sums established the following details:a) Cheque No. 315 for OMR xx is outstanding.b) While comparing the issued checks with accounting records, it is found that a cheque drawn for OMR 500 in payment of building insurance is wrongly recorded as OMR 400.c) A deposit of OMR xx made after banking hours on April 30 is not seen in the bank records.d) It is revealed that a cheque written by Drums Traders for OMR xx is incorrectly drawn against Dreams Traders.e) ETF (Electronic Fund Transfer) payment for audit services OMR xx is not recorded in the company records.f) A cheque issued to a supplier for OMR 565, cleared by the bank, is incorrectly recorded by the company as OMR 556.Required:Prepare a bank reconciliation statement for Dream Traders for the month of April 2020. Note: Before you begin, fill…
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Co receives May 2017 bank statement showing $7000 on deposit. The Co's books show the account to have a cash balance of $6590. The reconciliation process May 31st revealed the following: of $3000 deposited over the month, the bank had not yet received the last deposit of $500 made on May 30th. The bank also collected $100 on a $90 Note Receivable plus $10 interest. Three checks had written for a total of $1000 had not yet cleared the bank. Furthermore, one of the checks written for $100 was incorrectly recorded by Co as having been $10. A deposit Co made for $50 was returned by the bank for Non-Sufficient Funds. Finally, the bank charged a $50 fee for the checking account. A) Reconcile the cash balance per the bank with the cash balance per the Co for May. B) Journalize the adjustments Co recorded on its books from the reconciliation.

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