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Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Date December 31 Account Title Debit Credit

Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any. Note: Enter debits before credits. Date December 31 Account Title Debit Credit

FINANCIAL ACCOUNTING
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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Requirement General Journal View transaction list 1 Using the income statement, the comparative balance sheet, and the additional information given above, re the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree 31, current year balances. Journal entry worksheet 2 Date December 31 General Ledger Note: Enter debits before credits. Trial Balance Direct Method Record entry 3 4 5 6 Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any. Account Title 7 Clear entry 8 Indirect Method Debit 14 Credit View general journal
Transcribed Image Text:Requirement General Journal View transaction list 1 Using the income statement, the comparative balance sheet, and the additional information given above, re the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree 31, current year balances. Journal entry worksheet 2 Date December 31 General Ledger Note: Enter debits before credits. Trial Balance Direct Method Record entry 3 4 5 6 Reconstruct the journal entry for cash receipts from customers, incorporating the change in the related balance sheet account(s), if any. Account Title 7 Clear entry 8 Indirect Method Debit 14 Credit View general journal
Pelcher Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets PELCHER COMPANY Comparative Balance Sheets December 31 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities. Long-term notes payable Total liabilities Equity Common stock, $5 value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity PELCHER COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses). Loss on sale of equipment Income before taxes. Income taxes expense Net income $ 25,000 197,000 Additional Information on Current Year Transactions Current Year $ 76,000 77,000 279,000 3,100 435, 100 245,000 (60,000) $ 620,100 $ 865,000 345,000 520,000 222,000 (7,100) 290,900 51,000 $ 239,900 55,100 18,000 73,100 79,000 152,100 192,500 67,500 208,000 620,100 Prior Year $80,100 59,000 255,000 3,900 398,000 168,000 (72,000) $ 494,000 119,000 11,000 130,000 59,000 189,000 170,000 135,000 494,000 0 a. The loss on the cash sale of equipment was $7,100 (details in b). 00, for $19,9 cash. Sold equipment costing $64,000, with accumulated depreciation of c. Purchased equipment costing $141,000 by paying $34,000 cash and signing a long-term note payable for the balance. d. Borrowed $7,000 cash by signing a short-term note payable. e. Paid $87,000 cash to reduce the long-term notes payable. f. Issued 4,500 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $166,900.
Transcribed Image Text:Pelcher Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. Assets Cash Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets PELCHER COMPANY Comparative Balance Sheets December 31 Liabilities and Equity Accounts payable Short-term notes payable Total current liabilities. Long-term notes payable Total liabilities Equity Common stock, $5 value Paid-in capital in excess of par, common stock Retained earnings Total liabilities and equity PELCHER COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Other gains (losses). Loss on sale of equipment Income before taxes. Income taxes expense Net income $ 25,000 197,000 Additional Information on Current Year Transactions Current Year $ 76,000 77,000 279,000 3,100 435, 100 245,000 (60,000) $ 620,100 $ 865,000 345,000 520,000 222,000 (7,100) 290,900 51,000 $ 239,900 55,100 18,000 73,100 79,000 152,100 192,500 67,500 208,000 620,100 Prior Year $80,100 59,000 255,000 3,900 398,000 168,000 (72,000) $ 494,000 119,000 11,000 130,000 59,000 189,000 170,000 135,000 494,000 0 a. The loss on the cash sale of equipment was $7,100 (details in b). 00, for $19,9 cash. Sold equipment costing $64,000, with accumulated depreciation of c. Purchased equipment costing $141,000 by paying $34,000 cash and signing a long-term note payable for the balance. d. Borrowed $7,000 cash by signing a short-term note payable. e. Paid $87,000 cash to reduce the long-term notes payable. f. Issued 4,500 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $166,900.
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