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Question 2 At December 31, 2023, Credit Ltd. had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2024, Credit wrote off accounts totaling $14,100. One of those accounts ($1,800) was later collected. At December 31, 2024, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $17,800. Instructions Prepare journal entries to record the 2024 transactions and the adjusting entry for bad debt on 31 December 2024. Question 3 The equity accounts of Medium Ltd. on January 1, 2023, were as follows. Share Capital Preference (9%, $50 par, cumulative, 10,000 shares authorized, 8,000 shares issued) Share Capital Ordinary ($1 par value, 2,000,000 shares authorized, 1,000,000 shares issued) Share Premium-Preference Share Premium-Ordinary Retained Earnings Treasury Shares-Ordinary (20,000 shares) $ 400,000 1,000,000 100,000 1,450,000 1,816,000 50,000 During 2023, the corporation had the following transactions and events pertaining to its equity. Feb. 1 Issued 37,000 ordinary shares for $152,000. Apr. 14 Sold 9,000 treasury shares-ordinary for $42,000. Nov. 10 Dec. 31 Dec. 31 Purchased 1,200 ordinary shares for the treasury at a cost of $8,000. Determined that net income for the year was $452,000. Close the income summary account. Declared a dividend of $0.5 per ordinary share, to be payable in April 2024. There is no dividend in arrear for the preference shares. Instructions (a.) Journalize the transactions and the closing entry for net income and dividend. (b.) Prepare the equity section of the statement of financial position at December 31, 2023.

Question 2 At December 31, 2023, Credit Ltd. had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2024, Credit wrote off accounts totaling $14,100. One of those accounts ($1,800) was later collected. At December 31, 2024, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $17,800. Instructions Prepare journal entries to record the 2024 transactions and the adjusting entry for bad debt on 31 December 2024. Question 3 The equity accounts of Medium Ltd. on January 1, 2023, were as follows. Share Capital Preference (9%, $50 par, cumulative, 10,000 shares authorized, 8,000 shares issued) Share Capital Ordinary ($1 par value, 2,000,000 shares authorized, 1,000,000 shares issued) Share Premium-Preference Share Premium-Ordinary Retained Earnings Treasury Shares-Ordinary (20,000 shares) $ 400,000 1,000,000 100,000 1,450,000 1,816,000 50,000 During 2023, the corporation had the following transactions and events pertaining to its equity. Feb. 1 Issued 37,000 ordinary shares for $152,000. Apr. 14 Sold 9,000 treasury shares-ordinary for $42,000. Nov. 10 Dec. 31 Dec. 31 Purchased 1,200 ordinary shares for the treasury at a cost of $8,000. Determined that net income for the year was $452,000. Close the income summary account. Declared a dividend of $0.5 per ordinary share, to be payable in April 2024. There is no dividend in arrear for the preference shares. Instructions (a.) Journalize the transactions and the closing entry for net income and dividend. (b.) Prepare the equity section of the statement of financial position at December 31, 2023.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 12E: Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120...
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Question 2 At December 31, 2023, Credit Ltd. had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2024, Credit wrote off accounts totaling $14,100. One of those accounts ($1,800) was later collected. At December 31, 2024, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $17,800. Instructions Prepare journal entries to record the 2024 transactions and the adjusting entry for bad debt on 31 December 2024. Question 3 The equity accounts of Medium Ltd. on January 1, 2023, were as follows. Share Capital Preference (9%, $50 par, cumulative, 10,000 shares authorized, 8,000 shares issued) Share Capital Ordinary ($1 par value, 2,000,000 shares authorized, 1,000,000 shares issued) Share Premium-Preference Share Premium-Ordinary Retained Earnings Treasury Shares-Ordinary (20,000 shares) $ 400,000 1,000,000 100,000 1,450,000 1,816,000 50,000 During 2023, the corporation had the following transactions and events pertaining to its equity. Feb. 1 Issued 37,000 ordinary shares for $152,000. Apr. 14 Sold 9,000 treasury shares-ordinary for $42,000. Nov. 10 Dec. 31 Dec. 31 Purchased 1,200 ordinary shares for the treasury at a cost of $8,000. Determined that net income for the year was $452,000. Close the income summary account. Declared a dividend of $0.5 per ordinary share, to be payable in April 2024. There is no dividend in arrear for the preference shares. Instructions (a.) Journalize the transactions and the closing entry for net income and dividend. (b.) Prepare the equity section of the statement of financial position at December 31, 2023.
Transcribed Image Text:Question 2 At December 31, 2023, Credit Ltd. had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2024, Credit wrote off accounts totaling $14,100. One of those accounts ($1,800) was later collected. At December 31, 2024, an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $17,800. Instructions Prepare journal entries to record the 2024 transactions and the adjusting entry for bad debt on 31 December 2024. Question 3 The equity accounts of Medium Ltd. on January 1, 2023, were as follows. Share Capital Preference (9%, $50 par, cumulative, 10,000 shares authorized, 8,000 shares issued) Share Capital Ordinary ($1 par value, 2,000,000 shares authorized, 1,000,000 shares issued) Share Premium-Preference Share Premium-Ordinary Retained Earnings Treasury Shares-Ordinary (20,000 shares) $ 400,000 1,000,000 100,000 1,450,000 1,816,000 50,000 During 2023, the corporation had the following transactions and events pertaining to its equity. Feb. 1 Issued 37,000 ordinary shares for $152,000. Apr. 14 Sold 9,000 treasury shares-ordinary for $42,000. Nov. 10 Dec. 31 Dec. 31 Purchased 1,200 ordinary shares for the treasury at a cost of $8,000. Determined that net income for the year was $452,000. Close the income summary account. Declared a dividend of $0.5 per ordinary share, to be payable in April 2024. There is no dividend in arrear for the preference shares. Instructions (a.) Journalize the transactions and the closing entry for net income and dividend. (b.) Prepare the equity section of the statement of financial position at December 31, 2023.
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