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Required: Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Assume this is a year in which February has 28 days.

Required: Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Assume this is a year in which February has 28 days.

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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The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer sells and installs home and business security systems.
 
Required: Journalize the entries to record the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Assume this is a year in which February has 28 days.
Instructions Chart of Accounts X The following transactions were completed by Irvine Company during the current fiscal year ended December 31: CHART OF ACCOUNTS Feb. 8 Received 45% of the $18,700 balance owed by DeCoy Co., a bankrupt business, and wrote off the Irvine Company remainder as uncollectible. General Ledger May 27 Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,270 cash in full payment of Seth's account. ASSETS REVENUE Aug. 13 Wrote off the $6,360 balance owed by Kat Tracks Co., which has no assets. 110 Cash 410 Sales Oct. 31 Reinstated the account of Crawford Co., which had been written off in the preceding year as 111 Petty Cash 610 Interest Revenue uncollectible. Journalized the receipt of $3,975 cash in full payment of the account. 121 Accounts Receivable-DeCoy Co. Dec. 31 Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,265; Bonneville 122 Accounts Receivable-Seth Nelsen EXPENSES Co., $5,595; Crow Distributors, $9,305; Fiber Optics, $1,150. 123 Accounts Receivable-Kat Tracks Co. 510 Cost of Goods Sold Dec. 31 Based on an analysis of the $1,759,500 of accounts receivable, it was estimated that $35,190 will be 124 Accounts Receivable-Crawford Co. 520 Sales Salaries Expense uncollectible. Journalized the adjusting entry. 125 Accounts Receivable-Newbauer Co. 521 Advertising Expense 1. Record the January 1 credit balance of $25,685 in a T-account for Allowance for Doubtful Accounts. 126 Accounts Receivable-Bonneville Co. 522 Depreciation Expense-Store Equipment 127 Accounts Receivable-Crow Distributors 523 Delivery Expense 2. A. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. B. Post each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts and Bad 128 Accounts Receivable-Fiber Optics 524 Repairs Expense Debt Expense. 129 Allowance for Doubtful Accounts 529 Selling Expenses 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting 131 Interest Receivable 530 Office Salaries Expense 132 Notes Receivable 531 Rent Expense entry) 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 had 141 Merchandise Inventory 532 Depreciation Expense-Office Equipment been based on an estimated expense of 4 of 1% of the net sales of $17,710,000 for the year, determine the following: 145 Office Supplies 533 Insurance Expense A. Bad debt expense for the year. 146 Store Supplies 534 Office Supplies Expense B. Balance in the allowance account after the adjustment of December 31. 151 Prepaid Insurance 535 Store Supplies Expense C. Expected net realizable value of the accounts receivable as of December 31. 181 Land 536 Credit Card Expense Final Questions Shaded cells have feedback. X 191 Store Equipment 537 Cash Short and Over 192 Accumulated Depreciation-Store Equipment 538 Bad Debt Expense 193 Office Equipment 539 Miscellaneous Expense 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting 194 Accumulated Depreciation-Office Equipment 710 Interest Expense entry). $ LIABILITIES 210 Accounts Payable K Points: 0/1 211 Salaries Payable 213 Sales Tax Payable Feedback 214 Interest Payable v Check My Work 215 Notes Payable 3. Remember that net realizable value is the amount that is expected to be collected or realized. EQUITY 310 Common Stock 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 311 Retained Eamings had been based on an estimated expense of 4 of 1% of the net sales of $17,710,000 for the year, determine the following: 312 Dividends A. Bad debt expense for the year. $ K Points: 0/1 B. Balance in the allowance account after the adjustment of December 31. $ K Points: 0/1 C. Expected net realizable value of the accounts receivable as of December 31. S K Points: 0/1 Feedback Check My Work
Transcribed Image Text:Instructions Chart of Accounts X The following transactions were completed by Irvine Company during the current fiscal year ended December 31: CHART OF ACCOUNTS Feb. 8 Received 45% of the $18,700 balance owed by DeCoy Co., a bankrupt business, and wrote off the Irvine Company remainder as uncollectible. General Ledger May 27 Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of $7,270 cash in full payment of Seth's account. ASSETS REVENUE Aug. 13 Wrote off the $6,360 balance owed by Kat Tracks Co., which has no assets. 110 Cash 410 Sales Oct. 31 Reinstated the account of Crawford Co., which had been written off in the preceding year as 111 Petty Cash 610 Interest Revenue uncollectible. Journalized the receipt of $3,975 cash in full payment of the account. 121 Accounts Receivable-DeCoy Co. Dec. 31 Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., $7,265; Bonneville 122 Accounts Receivable-Seth Nelsen EXPENSES Co., $5,595; Crow Distributors, $9,305; Fiber Optics, $1,150. 123 Accounts Receivable-Kat Tracks Co. 510 Cost of Goods Sold Dec. 31 Based on an analysis of the $1,759,500 of accounts receivable, it was estimated that $35,190 will be 124 Accounts Receivable-Crawford Co. 520 Sales Salaries Expense uncollectible. Journalized the adjusting entry. 125 Accounts Receivable-Newbauer Co. 521 Advertising Expense 1. Record the January 1 credit balance of $25,685 in a T-account for Allowance for Doubtful Accounts. 126 Accounts Receivable-Bonneville Co. 522 Depreciation Expense-Store Equipment 127 Accounts Receivable-Crow Distributors 523 Delivery Expense 2. A. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. B. Post each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts and Bad 128 Accounts Receivable-Fiber Optics 524 Repairs Expense Debt Expense. 129 Allowance for Doubtful Accounts 529 Selling Expenses 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting 131 Interest Receivable 530 Office Salaries Expense 132 Notes Receivable 531 Rent Expense entry) 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 had 141 Merchandise Inventory 532 Depreciation Expense-Office Equipment been based on an estimated expense of 4 of 1% of the net sales of $17,710,000 for the year, determine the following: 145 Office Supplies 533 Insurance Expense A. Bad debt expense for the year. 146 Store Supplies 534 Office Supplies Expense B. Balance in the allowance account after the adjustment of December 31. 151 Prepaid Insurance 535 Store Supplies Expense C. Expected net realizable value of the accounts receivable as of December 31. 181 Land 536 Credit Card Expense Final Questions Shaded cells have feedback. X 191 Store Equipment 537 Cash Short and Over 192 Accumulated Depreciation-Store Equipment 538 Bad Debt Expense 193 Office Equipment 539 Miscellaneous Expense 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting 194 Accumulated Depreciation-Office Equipment 710 Interest Expense entry). $ LIABILITIES 210 Accounts Payable K Points: 0/1 211 Salaries Payable 213 Sales Tax Payable Feedback 214 Interest Payable v Check My Work 215 Notes Payable 3. Remember that net realizable value is the amount that is expected to be collected or realized. EQUITY 310 Common Stock 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 311 Retained Eamings had been based on an estimated expense of 4 of 1% of the net sales of $17,710,000 for the year, determine the following: 312 Dividends A. Bad debt expense for the year. $ K Points: 0/1 B. Balance in the allowance account after the adjustment of December 31. $ K Points: 0/1 C. Expected net realizable value of the accounts receivable as of December 31. S K Points: 0/1 Feedback Check My Work
Journal Shaded cells have feedback. T-Accounts Shaded cells have feedback. X 2. A. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. 1. Record the January 1 credit balance of $25.685 in a T-account for Allowance for Doubtful Accounts. 2. B. Post each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense. All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. PAGE 10 JOURNAL Score: 19/249 ACCOUNTING EQUATION Allowance for Doubtful Accounts DATE DESCRIPTION POST, REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Jan. 1 Balance 1 Dec. 10 36,600.00 2 600.00 36,000.00 Dec. 31 Adj. Balance 5 Dec. 31 328.00 6 328.00 Bad Debt Expense 7 8 K Points: 0/ 18 10 Feedback 11 ▼ Check My Work 12 13 1. and 2.B. Set up T-accounts. 14 15 16 17 18 19 20 K Points: I 3.66 / 48
Transcribed Image Text:Journal Shaded cells have feedback. T-Accounts Shaded cells have feedback. X 2. A. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. 1. Record the January 1 credit balance of $25.685 in a T-account for Allowance for Doubtful Accounts. 2. B. Post each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense. All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback. PAGE 10 JOURNAL Score: 19/249 ACCOUNTING EQUATION Allowance for Doubtful Accounts DATE DESCRIPTION POST, REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Jan. 1 Balance 1 Dec. 10 36,600.00 2 600.00 36,000.00 Dec. 31 Adj. Balance 5 Dec. 31 328.00 6 328.00 Bad Debt Expense 7 8 K Points: 0/ 18 10 Feedback 11 ▼ Check My Work 12 13 1. and 2.B. Set up T-accounts. 14 15 16 17 18 19 20 K Points: I 3.66 / 48
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