Required information[The following information applies to the questions displayed below)The following trial balance was drawn from the records of Havel Company as of October 1, year 2.CashAccounts receivableInventoryStore equipmentAccumulated depreciationAccounts payableLine of credit loanConnon stockRetained earningsTotalsCash Bludget for OctoberavailableCashLess Payments$ 16,00060,00040,000200,000Requiredc. Indicate whether Havel will need to borrow money during October by preparing October's Cash BudgetNote: Negative amounts should be indicated by a minus sign.Total budgeted paymentsCash surplus (shortage)We Havel need to bomow money during October$316,000$ 76,80072,000100,00050,00017,200$316,0000

A type of budget known as a cash budget projects cash inflows and outlays over a given time frame.…

Required information [The following information applies to the questions displayed below) The following trial balance was drawn from the records of Havel Company as of October 1, year 2. Cash Accounts receivable Inventory Store equipment Accumulated depreciation. Accounts payable Line of credit loan Common stock Retained earnings Totals Cash available Lass Payments $ 16,000 60,000 40,000 200,000 Total budgeted payments Cash surplus (shortage) We Havel need to bomow money during October $316,000 Required e. Indicate whether Havel will need to borrow money during October by preparing October's Cash Budget Note: Negative amounts should be indicated by a minus sign. Cash Budget for October 0 $ 76,000 72,000 100,000 50,000 17,200 $316,000 0

Required information [The following information applies to the questions displayed below) The following trial balance was drawn from the records of Havel Company as of October 1, year 2. Cash Accounts receivable Inventory Store equipment Accumulated depreciation. Accounts payable Line of credit loan Common stock Retained earnings Totals Cash available Lass Payments $ 16,000 60,000 40,000 200,000 Total budgeted payments Cash surplus (shortage) We Havel need to bomow money during October $316,000 Required e. Indicate whether Havel will need to borrow money during October by preparing October's Cash Budget Note: Negative amounts should be indicated by a minus sign. Cash Budget for October 0 $ 76,000 72,000 100,000 50,000 17,200 $316,000 0

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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An excerpt from the trial balance of ABC Company shows the following: Accounts Receivable $1,000,000Allowance for Bad debts $10,000Sales $5,000,000Sales discount $3,000Sales returns and allowances $30,000 The company estimates that 10% of Accounts Receivable is doubtful of collection.Cash sales amounted to $2,000,000 Questions: 1) Adjusting entries on December 312) Balance of Bad debts expense as of December 313) Balance of Allowance for Bad debts as of December 314) Should the adjustment was not made, what would be the effect on current assets?
Determine the following (1-3)::: 1. What is the accounts receivable balance, net of uncollectible accounts, at the end of December? 2. What is the accounts payable at the end of December? 3. What is the retained earnings at the end of December?
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The following account balances come from the records of Ourso Company: Beginning Balance $2,800 Ending Balance $3,600 350 Accounts receivable Allowance for doubtful accounts 280 During the accounting period, Ourso recorded $14,000 of sales revenue on account. The company also wrote off a $150 account receivable. Required a. Determine the amount of cash collected from receivables. b. Determine the amount of uncollectible accounts expense recognized during the period. a Collections of accounts receivable b. Uncollectible accounts expense
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Which of the following best defines " stockout costs"? A) They are physical goods used in operations. B) They are costs associated with retrieving inventory items from a workshop C) They are costs associated with interruptions to assembly lines D) They are associated with inventory being unavailable when needed to meet demand. E) None of the above.
Current Assets Dorothy Corporation had the following accounts in its year-end adjusted trial balance: Inventories, $23,800; Accounts Receivable, $7,000; Accounts Payable, $7,200; Prepaid Rent, $2,400; Marketable Securities, $3,000; Allowance for Doubtful Accounts, $1,100; and Cash, $1,200. Prepare the current assets section of Dorothy's year-end balance sheet. Current Assets Cash Marketable securities Accounts receivable Less: Allowance for doubtful accounts Inventories Prepaid rent Total current assets Dorothy Corporation Partial Balance Sheet Feedback 7,000 ✓ 1,100✔ 1,200 3,000 ✓ 5,900 23,800 2,400 ✓
Current Attempt in Progress The ledger of Cullumber Company at the end of the current year shows Accounts Receivable $68,000, Credit Sales $810,000, and Sales Returns and Allowances $38,000. Prepare journal entries for each separate scenario below. If Cullumber Company uses the direct write-off method to account for uncollectible accounts, journalize the adjusting entry at December 31, assuming Cullumber Company determines that Matisse's $500 balance is uncollectible. (a) If Allowance for Doubtful Accounts has a credit balance of $900 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 8% of accounts receivable. (b) If Allowance for Doubtful Accounts has a debit balance of $490 in the trial balance, journalize the adjusting entry at December 31, assuming bad debts are expected to be 7% of accounts receivable. (c) (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles…
Record these transactions in general journal ledger: Dec 1: Purchased equipment costing $15,608 by taking out a 4-month installment note with First Bank. Dec 4: Accepted a sales return from Eastern for an item having an original gross sales price of $6,000. The original sale to Eastern occurred in November with terms 2/15, n/30. Dec 5: Specifically wrote off the receivable balance owed by Baker as uncollectible. Dec 7: Returned defective inventory with a gross cost of $4,000 back to Hunt Corp. Dec 14: Wilson returned an item originally purchased on Dec 12 with a gross sales price of $7,000. Dec 14: Returned inventory with a gross cost of $2,000 back to Nelson Industries. Dec 18: Bought office supplies on account for $9,000 from Staples Inc. (open a new Accounts Payable in the subsidiary ledger--Vendor # 210-30). Invoice # is OM1218. Staples Inc.’s terms are n/30 Dec 19: Received the December utilities bill for the amount of $15,000. The bill will be paid in January of next year.…
The following data were selected from the records of Fluwars Company for the year ended December 31, current year: Balances at January 1, current year: Accounts receivable (various customers) $ 116,000 Allowance for doubtful accounts 12,700 The company sold merchandise for cash and on open account with credit terms 1/10, n/30, without a right of return. The following transactions occurred during the current year: Sold merchandise for cash, $258,000. Sold merchandise to Abbey Corp; invoice amount, $42,000. Sold merchandise to Brown Company; invoice amount, $53,600. Abbey paid the invoice in (b) within the discount period. Sold merchandise to Cavendish Inc.; invoice amount, $56,000. Collected $119,100 cash from customers for credit sales made during the year, all within the discount periods. Brown paid its account in full within the discount period. Sold merchandise to Decca Corporation; invoice amount, $48,400. Cavendish paid its account in full after the…
Dd.1. What are cash payments on account for February? 2. What is the ending balance in accounts payable for March? 3. What is the change in the cash balance for the period January–March?.
can someone help me with journal entry with the following entries? Prepare journal entries for the following: Beginning Balance in Accounts Receivable: 12,000 Beginning Balance in Allowance: credit of 1,000 On March 31, customers were billed $25,000. On June 15, cash collections from transaction (a) totaled $20,000. On 10/31, a customer balance of $1500 from a prior year was written off. On 12/15, a customer paid an old balance of $900 that had been written off in a previous year. On 12/31, bad debts were estimated at 2% of credit sales.