M8-13 (Algo) Reporting Accounts and Notes Receivable in a Classified Balance Sheet [LO 8-2, LO 8-3]Reddy Corporation reported the following accounts and amounts (in millions) in its financial statements for the year ended November30, 2018.Accounts PayableAccounts ReceivableAccumulated AmortizationAccumulated Depreciation$ 9101,0205701,200Allowance for Doubtful Accounts20Cash and Cash Equivalents1,100Common Stock540Deferred Revenue2,140Equipment8,230Income Taxes Payable20Notes Payable (long-term)3,370Notes Receivable (long-term)320Prepaid Rent340Retained Earnings7,870Service Revenue560Short-Term Investments4,650980SoftwareRequired:Prepare a classified balance sheet. The Allowance for Doubtful Accounts relates entirely to Accounts Receivable. (One of the accountsdoes not belong on the balance sheet.) (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)Current AssetsREDDY CORPORATIONBalance SheetAs of November 30, 2018(in millions of dollars)AssetsAccounts Receivable, net of AllowanceTotal Current AssetsNon-current AssetsEquipment, net of Accumulated Depreciation0$0LiabilitiesSoftware, net of Accumulated AmortizationTotal AssetsCurrent LiabilitiesTotal Current LiabilitiesNon-current liabilities00Total LiabilitiesStockholders' EquityTotal Stockholders' Equity0Total Liabilities and Stockholders' Equity$0

Balance sheet stands for the statement and information that shows the assets and liabilities of the…

Reddy Corporation reported the following accounts and amounts (in millions) in its financial statements for the year ended November 30, 2018. Accounts Payable Accounts Receivable Accumulated Amortization $ 910 1,020 570 1,200 Allowance for Doubtful Accounts 20 Accumulated Depreciation

Reddy Corporation reported the following accounts and amounts (in millions) in its financial statements for the year ended November 30, 2018. Accounts Payable Accounts Receivable Accumulated Amortization $ 910 1,020 570 1,200 Allowance for Doubtful Accounts 20 Accumulated Depreciation

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 balance sheet at the end of 2018 reported Accounts Receivable of $785,500 and Allowance for Doubtful Accounts of $11,783 (credit balance). The company’s total sales during 2019 were $8,350,200. Of these, $1,252,530 were cash sales the rest were credit sales. By the end of the year, the company had collected $6,291,700 of accounts receivable. It also wrote off an account for $10,380. Question 1 of 8 What follows is a fill in the blank question with 16 blanks. Prepare the journal entry for sales. Account Names DR CR Blank 1. Fill in the blank, read surrounding text. Blank 2. Fill in the blank, read surrounding text. Blank 3. Fill in the blank, read surrounding text. Blank 4. Fill in the blank, read surrounding text. Blank 5. Fill in the blank, read surrounding text. Blank 6. Fill in the blank, read surrounding text. Blank 7. Fill in the blank, read surrounding text. Blank 8. Fill in the blank, read surrounding text. Blank 9. Fill in the blank, read…
Consider the following financial data for Smith Corp.: Balance Sheet as of December 31, 2019 Cash $ 195,000 Accounts payable $ 94,000 Receivables 185,500 Short-term bank note 119,500 Inventories 214,500 Accruals 71,000 Total current assets $ 595,000 Total current liabilities $ 284,500 Long-term debt 462,500 Net plant & equip. 621,500 Common equity 469,500 Total assets $ 1,216,500 Total liab. & equity $ 1,216,500 Profit & Loss Statement for 2019 Industry Average Ratios Net sales $ 1,265,000 Current ratio 1.9× Cost of sales 986,500 Quick ratio 1.2× Gross profit $ 278,500 Days sales outstanding 64 days Operating expenses 166,500 Inventory turnover 3.3× EBIT $ 112,000 Total asset turnover 0.7× Interest expense 32,000 Net profit margin 9.1% Pre-tax income $ 80,000…
The balance sheet at the end of 2018 reported Accounts Receivable of $785,500 and Allowance for Doubtful Accounts of $11,783 (credit balance). The company’s total sales during 2019 were $8,350,200. Of these, $1,252,530 were cash sales the rest were credit sales. By the end of the year, the company had collected $6,291,700 of accounts receivable. It also wrote off an account for $10,380. Prepare the journal entry for collections. Account Names DR CR Blank 1. Fill in the blank, read surrounding text. Blank 2. Fill in the blank, read surrounding text. Blank 3. Fill in the blank, read surrounding text. Blank 4. Fill in the blank, read surrounding text. Blank 5. Fill in the blank, read surrounding text. Blank 6. Fill in the blank, read surrounding text. Blank 7. Fill in the blank, read surrounding text. Blank 8. Fill in the blank, read surrounding text. Blank 9. Fill in the blank, read surrounding text. Blank 10. Fill in the blank, read surrounding text. Blank 11.…
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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Blackmon Corporation’s December 31, 2018, balance sheet disclosed the following information relating to its receivables: BLACKMON COMPANY Partial Balance Sheet December 31, 2018 1 Accounts Receivable $245,000.00 2 Less: Allowance for doubtful accounts (15,000.00) 3 $230,000.00 4 Notes Receivable* 50,000.00 5 Total receivables $280,000.00 *The company has a recourse liability of $700 related to a note receivable sold to a bank. During 2019, credit sales (terms, n/EOM) totaled $2,200,000, and collections on accounts receivable (unassigned) amounted to $1,900,000. Uncollectible accounts totaling $18,000 from several customers were written off, and a $1,350 accounts receivable previously written off was collected. Additionally, the following transactions relating to Blackmon’s receivables occurred during the year: March 6 Received payment of $12,460 on a note from Renko Company. The…