Balance SheetAs of December 31, 2020AssetsCurrent assetsCashAccounts receivable5.Less: Allowance for doubtful accountsShort-term investmentsInventoryRaw materialsWork in process수InvestmentsProperty, plant, and equipmentPlant equipmentOther assetsLiabilities and Stockholders EquityCurrent liabilitiesAccounts payableLong-term liabilitiesStockholders' equityCommon stockPlease answer all parts of the question.O o ooo olo Preparing a Classified Balance SheetThe ledger of Bama Inc. had the following account balances on December 31, 2020.Accounts payable$13.280 Office equipment$3,800Accounts receivableAccrued expenses (credit)3800 Raw materials inventory320 Allowance for bad debts3.840200Bonds payable, nCommon stock (S100 par)CashRetained earningp (to be computed)10.000 Accumulated depreciation3,60028.000 Rent expense paid in advance on a short-term lease 1.2004.000 Sinking fund to retire long term debt7 Land held for future plant site28005,600Plant equipment12,400 Note receivable. 9, due 20222.700Pirished goods inventoryinvestments5240 Work in process inventory205.200*Of the balance in the investments account, $1,600 will be converted to cash in the coming year the remainder is a long-term investment.RequiredPrepare a classified balance sheet for Bama Inc on December 31, 2020.• Do not use negative signs with any of your answers.• List investments in the order of the largest dollar amount to the smallest dollar amount

based on the trial balance we need to prepare the balance sheet as on 31 December 2020 the balancing…

Answered: Preparing a Classified Balance Sheet…

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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The following financial information pertains to SPACE Limited: Accounts receivable at December 31, 2018 $ 900,000 Credit sales for 2019 6,800,000 Cash collection on credit sales during 2019 6,540,000 Allowance for Impairment at December 31, 2018 45,000 Accounts receivable written off on August 31, 2019 60,000 Previously written off accounts receivable was received on September 25, 2019 10,000 An aging analysis estimates uncollectible receivables at December 31, 2019 to be $80,000. Required: (Explanation for each journal entry is NOT required) a. Prepare the journal entry for the accounts receivable written off during 2019. b. Prepare the journal entry for the event occurring on September 25, 2019 c. Prepare the year-end adjusting entry required to record the impairment loss of receivable. Assume the statement of financial position approach is used. d. Explain how the transaction in (c) affects the accounting equation. e. What is the net realizable value of accounts receivable to be…
The Cambridge Company collected the following information for the preparation of its December 31 classified balance sheet: Accounts receivable $11.250 Property, plant, and equipment $150,000 15,000 Inventory Cash 48.750 Other current assets 22,500 Other long term assets 30.000 Accounts payable 15.750 Common stock 7,500 Long-term liabilities 41,250 Retained earnings Other current liabilities 13,500 Prepare a classified balance sheet for Cambridge Company Cambridge Company Balance Sheet December 31 Assets Liabilities & Stockholders' Equity Current Labilities Current Assets Other current liabilities Total Current Liabilities Other current assets Noncurrent Liabilities Total Curren Assets Total Liabilities Noncurrent Assets Stockholders Couity Common stock Other long term assets Total Stockholders Equity Total Nonturent Assets Total Assets Total Liabilities & Stockholders' Equity 3 Check
The following aging information pertains to Jacobsen Company's accounts receivable at December 31, 2024: Days Outstanding Amount Estimated % Uncollectible 0-30 $ 420,000 2% 31-60 140,000 5% 61-120 100,000 10% Over 120 120,000 20% During 2024, Jacobsen wrote off $18,000 in receivables and recovered $6,000 that had been written off in prior years. Jacobsen's December 31, 2023, allowance for uncollectible accounts was $40,000. Using the balance sheet approach, what amount of allowance for uncollectible accounts should Jacobsen report at December 31, 2024?
12/31/2020: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. XYZ’s management has estimated that 1.5% of sales will be uncollectible. For the end of 2020, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts: Bad debt expense: Allowance for doubtful accounts: For the end of 2020, what is the company's net realizable value?
1c. Journalize the entries to record the 203 transactions. Refer to the Chart of Accounts for exact wording of account titles. Round all amounts to the nearest dollar.
Maxwell Inc., analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible: % Considered Age Group Balance Uncollectible 0-30 days past due $300,000 1% 31-60 days past due 54,000 3% 61-120 days past due 60,000 6% 121-180 days past due 21,000 10% Over 180 days past due 6,000 20% $441,000 The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $2,520 on December 31, before any adjustments. a. Determine the amount of the adjustment for estimated credit losses on December 31. b. Determine the financial statement effect of a write off of Porter Company's account on the following May 12, in the amount of $1,440. Use negative signs with answers, when appropriate. If a transaction increases and decreases the same Balance Sheet category, enter the increase amount in the first row and the decrease amount directly below (in…
At December 31 of the current year, a company reported the following: Total sales for the current year: $960,000 includes $610,000 in cash sales Accounts receivable balance at Dec. 31, end of current year: $64,000 Allowance for Doubtful Accounts balance at January 1, beginning of current year: $4,100 credit Bad debts written off during the current year: $6,200. Prepare the necessary adjusting journal entry to record bad debts expense assuming this company's bad debts are estimated to equal 8% of credit sales:
Simons Industries reported net income of $69,000 for the current year. The balances and activity in its accounts receivable accounts follow. In addition, the company recorded $3,400 of bad debt expense and wrote off $2,500 of uncollectible accounts. E (Click the icon to view the balances and activity in accounts receivable accounts.) Prepare the operating section of the cash flow statement under the indirect method. (Use a minus sign or parentheses for any amounts to be subtracted. If an input field is not used in the statement, leave the field empty; do not select a label or enter a zero.) Simons Industries Partial Statement of Cash Flows (Indirect Method) Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Net Cash Provided (Used) by Operating Activities
SCENARIO #2 12/31/2019: At the end of the first year of operations, Yolandi Company had $900,000 in sales and accounts receivable of $350,000. Yolandi's management has estimated that $9,000 in accounts receivable would be uncollectible (use the aging method). For the end of 2019, after the adjusting entry for bad debts was journalized, what is the balance in the following accounts: Bad debt expense Allowance for doubtful accounts For the end of 2019, what is the company's net realizable value? 12/31/2020: During 2020, S10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Company had $1,000,000 in sales and accounts receivable of $400,000. Yolandi's management has estimated that S17,000 in accounts receivable would be uncollectible (use the aging method). Bad debt expense Allowance for doubtful accounts For the end of 2020, what is the company's net realizable value?
None
The following are taken from the financial statements of Curry Company as of December 2021. Assets: Cash 341,600 Account Receivable 200,000 Inventory 308,400 Property, Plant, Equipment 500,000 Liabilities: Notes payable 280,000 Accounts Payable 781,700 Bonds payable 2,000,000 6. What is the company's current ratio? a. 0.80 b. 0.51 c. 0.21 d. 3.03 7. What is the company's quick ratio? a. 0.51 b. 0.80 c. 1.93 d. 0.32
The current assets and current liabilities sections of the balance sheet of Sunland Co. appear as follows. Sunland Co.Balance Sheet (Partial)As of December 31, 2017 Cash $ 17,900 Accounts payable $ 29,500 Accounts receivable $ 39,600 Notes payable 15,400 Less: Allowance for doubtful accounts 3,200 36,400 Unearned revenue 3,800 Inventory 61,100 Total current liabilities $ 48,700 Prepaid expenses 7,400 Total current assets $ 122,800 The following errors in the corporation’s accounting have been discovered: 1. Keane collected $ 5,200 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company’s controller recorded the amount as revenue. 2. The inventory amount reported included $ 2,300 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $ 1,600 had been received on…

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