Required Information [The following information applies to the questions displayed below.] Use the following transactions. a. Wages of $902 for the last three days of the fiscal perlod have not been accrued. b. Interest of $150 on a bank loan has not been accrued. c. Interest on bonds payable has not been accrued for the current month. The company has outstanding $540,000 of 8.5% bonds. d. The discount related to the bonds in part c has not been amortized for the current month. The current month amortization is $60. e. Product warranties were honored during the month; parts Inventory Items valued at $825 were sent to customers making claims, and cash refunds of $455 were also made. f. During the fiscal period, advance payments from customers totaling $2,000 were received and recorded as sales revenues. The items will not be delivered to the customers until the next fiscal period. Record the appropriate adjustment. Required: a-1. Show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on the income statement by selecting the amount and Indicating whether it is an addition (-) or a subtraction (-). Transaction/ Current Adjustment Assets a. b. C. d. f. Current Liabilities Long-Term Debt Net Income
Required Information [The following information applies to the questions displayed below.] Use the following transactions. a. Wages of $902 for the last three days of the fiscal perlod have not been accrued. b. Interest of $150 on a bank loan has not been accrued. c. Interest on bonds payable has not been accrued for the current month. The company has outstanding $540,000 of 8.5% bonds. d. The discount related to the bonds in part c has not been amortized for the current month. The current month amortization is $60. e. Product warranties were honored during the month; parts Inventory Items valued at $825 were sent to customers making claims, and cash refunds of $455 were also made. f. During the fiscal period, advance payments from customers totaling $2,000 were received and recorded as sales revenues. The items will not be delivered to the customers until the next fiscal period. Record the appropriate adjustment. Required: a-1. Show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on the income statement by selecting the amount and Indicating whether it is an addition (-) or a subtraction (-). Transaction/ Current Adjustment Assets a. b. C. d. f. Current Liabilities Long-Term Debt Net Income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
![Required Information
[The following information applies to the questions displayed below.]
Use the following transactions.
a. Wages of $902 for the last three days of the fiscal perlod have not been accrued.
b. Interest of $150 on a bank loan has not been accrued.
c. Interest on bonds payable has not been accrued for the current month. The company has outstanding $540,000 of
8.5% bonds.
d. The discount related to the bonds in part c has not been amortized for the current month. The current month
amortization is $60.
e. Product warranties were honored during the month; parts Inventory Items valued at $825 were sent to customers
making claims, and cash refunds of $455 were also made.
f. During the fiscal period, advance payments from customers totaling $2,000 were received and recorded as sales
revenues. The items will not be delivered to the customers until the next fiscal period. Record the appropriate
adjustment.
Required:
a-1. Show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on the income
statement by selecting the amount and Indicating whether it is an addition (-) or a subtraction (-).
Transaction/ Current
Adjustment Assets
a.
b.
C.
d.
e.
f.
Current
Liabilities
Long-Term
Debt
Net Income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6db4719a-9a82-4a68-9040-c81531e716f9%2Fd1e15264-6839-4ad1-9710-72b4059a3fcf%2Frntec8o_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
Use the following transactions.
a. Wages of $902 for the last three days of the fiscal perlod have not been accrued.
b. Interest of $150 on a bank loan has not been accrued.
c. Interest on bonds payable has not been accrued for the current month. The company has outstanding $540,000 of
8.5% bonds.
d. The discount related to the bonds in part c has not been amortized for the current month. The current month
amortization is $60.
e. Product warranties were honored during the month; parts Inventory Items valued at $825 were sent to customers
making claims, and cash refunds of $455 were also made.
f. During the fiscal period, advance payments from customers totaling $2,000 were received and recorded as sales
revenues. The items will not be delivered to the customers until the next fiscal period. Record the appropriate
adjustment.
Required:
a-1. Show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category or on the income
statement by selecting the amount and Indicating whether it is an addition (-) or a subtraction (-).
Transaction/ Current
Adjustment Assets
a.
b.
C.
d.
e.
f.
Current
Liabilities
Long-Term
Debt
Net Income
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