Can you help prepare the 2 attached journal entries for this example The management of Banciu Corporation provides you with comparative balance sheets at December 31, 20X1, and December 31, 20X0, appearing below. December 31, 20X120X0Assets Cash$174,000 $223,200 Accounts receivable 306,000 327,600 Allowance for uncollectible accounts (19,200) (20,400)Inventories 579,600 645,600 Machinery and equipment 1,112,400 776,400 Accumulated depreciation on machinery and equipment (499,200) (446,400)Leasehold improvements 104,400 104,400 Accumulated amortization on leasehold improvements (69,600) (58,800)Securities held for plant expansion 180,000 0 Patents 33,360 36,000 Totals$1,901,760 $1,587,600 Liabilities and stockholders’ equity Accounts payable$279,360 $126,000 Dividend payable 48,000 0 Current portion of 6% serial bonds payable 60,000 60,000 6% serial bonds payable—noncurrent portion 300,000 360,000 Preferred stock 108,000 120,000 Common stock 600,000 600,000 Retained earnings 506,400 321,600 Totals$1,901,760 $1,587,600 Supplemental Information:a. The following table presents a comparative analysis of retained earnings as of December 31, 20X1, and December 31, 20X0. December 31, 20X1 20X0Beginning balance$321,600 $157,200 Net income 234,000 206,400 555,600 363,600 Dividends declared (48,000) (42,000)Premium on repurchased preferred Stock (1,200) -0- Ending balance$506,400 $321,600 b. On December 10, 20X1, the board of directors declared a cash dividend of $0.24 per share, payable to holders of common stock on January 10, 20X2.c Purchased new machinery for $463,000. In addition, Banciu sold certain machinery it was no longer using for $57,600. The machinery cost $127,000 and had accumulated depreciation of $53,800 at the date of the sale. Banciu made no other entries in Machinery and equipment or related accounts other than for depreciation.d. Purchased 120 preferred shares, par value $100, at $110 and subsequently canceled the shares. Banciu debited the premium paid to Retained earnings.e. Paid $2,400 of legal costs in successful defense of a new patent, which it correctly debited to the Patents account. It recorded patent amortization amounting to $5,040 during the year ended December 31, 20X1.f. During 20X1, Banciu wrote off accounts receivable totaling $3,600 as uncollectible.g. During 20X1, Banciu purchased $180,000 of securities that are being held for future plant expansion. ### Accounting for Uncollectibles#### Task:**Prepare the entry for allowance for uncollectibles.**#### Instructions:- **Note:** Enter debits before credits.#### Journal Entry Template:Below is a journal entry template to assist you in preparing the entries.| Transaction | General Journal | Debit | Credit ||-------------|------------------|-------|--------|| (f1) | | | || | | | || | | | || | | | || | | | || | | | |### Explanation:1. **Transaction:** This column is for transaction identification or reference number.2. **General Journal:** This column is used for the description of the transaction, typically an account name or an explanation.3. **Debit:** The column where the amount debited is recorded.4. **Credit:** The column where the amount credited is recorded.When preparing the entry for allowance for uncollectibles, ensure to record the entry correctly by identifying the appropriate debit and credit accounts, along with the amounts. The common accounts involved in such an entry are "Bad Debt Expense" (Debit) and "Allowance for Doubtful Accounts" (Credit). **Accounts Receivable Adjustment - Educational Guide****Objective:**Prepare the entry for accounts receivable adjustment to cash from operations.**Instructions:***Note: Enter debits before credits.***Table Template:**| Transaction | General Journal | Debit | Credit ||-----------------|-------------------------------|-------|--------|| (f2) | | | || | | | || | | | || | | | || | | | |This table is designed to help students make accounting entries. Each row represents a separate transaction component for recording accounts receivable adjustments. The primary aim is to convert accounts receivable figures into cash received from operations.### Instructions for Use:1. **Transaction Column**: This first column designates the transaction code or reference. You may need to input a specific identifier for the transaction that matches your accounting records.2. **General Journal Column**: Record the description of the transaction. This could include the specific account affected, explanations, or particular notes on the adjustment.3. **Debit Column**: Enter the amount to be debited. Debits are recorded here as they represent increases in assets or decreases in liabilities/equity.4. **Credit Column**: Enter the amount to be credited. Credits are recorded here as they represent decreases in assets or increases in liabilities/equity.### Example:If an accounts receivable payment was received, you might see entries such as:| Transaction | General Journal | Debit | Credit ||-------------|---------------------------|---------|----------|| Payment | Cash | $1000 | || Payment | Accounts Receivable | | $1000 |In this example, cash is increased by $1000 (debit) and accounts receivable is decreased by $1000 (credit) signifying the receipt of a payment.By following this template and detailed explanations, students can effectively understand and practice how to make adjustments for accounts receivable to reflect cash from operations.

An uncollectible amount is the amount of receivable that will not be realized in the future due to…

Answered: Prepare the entry for accounts…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

Can you help prepare the 2 attached journal entries for this example

The management of Banciu Corporation provides you with comparative balance sheets at December 31, 20X1, and December 31, 20X0, appearing below.

	December 31,
	20X1	20X0
Assets
Cash	$	174,000		$	223,200
Accounts receivable		306,000			327,600
Allowance for uncollectible accounts		(19,200	)		(20,400	)
Inventories		579,600			645,600
Machinery and equipment		1,112,400			776,400
Accumulated depreciation on machinery and equipment		(499,200	)		(446,400	)
Leasehold improvements		104,400			104,400
Accumulated amortization on leasehold improvements		(69,600	)		(58,800	)
Securities held for plant expansion		180,000			0
Patents		33,360			36,000
Totals	$	1,901,760		$	1,587,600
Liabilities and stockholders’ equity
Accounts payable	$	279,360		$	126,000
Dividend payable		48,000			0
Current portion of 6% serial bonds payable		60,000			60,000
6% serial bonds payable—noncurrent portion		300,000			360,000
Preferred stock		108,000			120,000
Common stock		600,000			600,000
Retained earnings		506,400			321,600
Totals	$	1,901,760		$	1,587,600

Supplemental Information:

a. The following table presents a comparative analysis of retained earnings as of December 31, 20X1, and December 31, 20X0.

	December 31,
	20X1		20X0
Beginning balance	$	321,600		$	157,200
Net income		234,000			206,400
		555,600			363,600
Dividends declared		(48,000	)		(42,000	)
Premium on repurchased preferred Stock		(1,200	)		-0-
Ending balance	$	506,400		$	321,600

b. On December 10, 20X1, the board of directors declared a cash dividend of $0.24 per share, payable to holders of common stock on January 10, 20X2.

c Purchased new machinery for $463,000. In addition, Banciu sold certain machinery it was no longer using for $57,600. The machinery cost $127,000 and had accumulated depreciation of $53,800 at the date of the sale. Banciu made no other entries in Machinery and equipment or related accounts other than for depreciation.

d. Purchased 120 preferred shares, par value $100, at $110 and subsequently canceled the shares. Banciu debited the premium paid to Retained earnings.

e. Paid $2,400 of legal costs in successful defense of a new patent, which it correctly debited to the Patents account. It recorded patent amortization amounting to $5,040 during the year ended December 31, 20X1.

f. During 20X1, Banciu wrote off accounts receivable totaling $3,600 as uncollectible.

g. During 20X1, Banciu purchased $180,000 of securities that are being held for future plant expansion.

### Accounting for Uncollectibles

#### Task:
**Prepare the entry for allowance for uncollectibles.**

#### Instructions:
- **Note:** Enter debits before credits.

#### Journal Entry Template:
Below is a journal entry template to assist you in preparing the entries.

| Transaction | General Journal | Debit | Credit |
|-------------|------------------|-------|--------|
| (f1) | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |

### Explanation:
1. **Transaction:** This column is for transaction identification or reference number.
2. **General Journal:** This column is used for the description of the transaction, typically an account name or an explanation.
3. **Debit:** The column where the amount debited is recorded.
4. **Credit:** The column where the amount credited is recorded.

When preparing the entry for allowance for uncollectibles, ensure to record the entry correctly by identifying the appropriate debit and credit accounts, along with the amounts. The common accounts involved in such an entry are "Bad Debt Expense" (Debit) and "Allowance for Doubtful Accounts" (Credit).

**Accounts Receivable Adjustment - Educational Guide**

**Objective:**
Prepare the entry for accounts receivable adjustment to cash from operations.

**Instructions:**
*Note: Enter debits before credits.*

**Table Template:**

| Transaction | General Journal | Debit | Credit |
|-----------------|-------------------------------|-------|--------|
| (f2) | | | |
| | | | |
| | | | |
| | | | |
| | | | |

This table is designed to help students make accounting entries. Each row represents a separate transaction component for recording accounts receivable adjustments. The primary aim is to convert accounts receivable figures into cash received from operations.

### Instructions for Use:
1. **Transaction Column**: This first column designates the transaction code or reference. You may need to input a specific identifier for the transaction that matches your accounting records.

2. **General Journal Column**: Record the description of the transaction. This could include the specific account affected, explanations, or particular notes on the adjustment.

3. **Debit Column**: Enter the amount to be debited. Debits are recorded here as they represent increases in assets or decreases in liabilities/equity.

4. **Credit Column**: Enter the amount to be credited. Credits are recorded here as they represent decreases in assets or increases in liabilities/equity.

### Example:
If an accounts receivable payment was received, you might see entries such as:

| Transaction | General Journal | Debit | Credit |
|-------------|---------------------------|---------|----------|
| Payment | Cash | $1000 | |
| Payment | Accounts Receivable | | $1000 |

In this example, cash is increased by $1000 (debit) and accounts receivable is decreased by $1000 (credit) signifying the receipt of a payment.

By following this template and detailed explanations, students can effectively understand and practice how to make adjustments for accounts receivable to reflect cash from operations.

Expert Solution

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Prepare the entry for accounts receivable adjustment to cash from operations. te: Enter debits before credits. Transaction (f2) General Journal Debit Credit