Rivers Company had $2,400 of supplies on hand on January 1. During the year, the company purchased $3,900 of supplies, and on December 31, determined that only $800 of supplies were still on hand. The adjusting entry for Rivers Company on December 31 will Include a. Debit Supplies $3,900 b. Credit Supplies Expense $5,500 c. Debit Supplies Expense $5,500 d. Debit Supplies Expense $2,300

Rivers Company had $2,400 of supplies on hand on January 1. During the year, the company purchased $3,900 of supplies, and on December 31, determined that only $800 of supplies were still on hand. The adjusting entry for Rivers Company on December 31 will Include a. Debit Supplies $3,900 b. Credit Supplies Expense $5,500 c. Debit Supplies Expense $5,500 d. Debit Supplies Expense $2,300

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter9: Receivables

Section: Chapter Questions

Problem 17E: Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of...

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Casebolt Company wrote off the following accounts receivable as uncollectible for the first year of its operations ending December 31: a. Journalize the write-offs under the direct write-off method. b. Journalize the write-offs under the allowance method. Also, journalize the adjusting entry for uncollectible accounts. The company recorded 5,250,000 of credit sales during the year. Based on past history and industry averages, % of credit sales are expected to be uncollectible. c. How much higher (lower) would Casebolt Companys net income have been under the direct write-off method than under the allowance method?
The following accounts appear in the ledger of Celso and Company as of June 30, the end of this fiscal year. The data needed for the adjustments on June 30 are as follows: ab.Merchandise inventory, June 30, 54,600. c.Insurance expired for the year, 475. d.Depreciation for the year, 4,380. e.Accrued wages on June 30, 1,492. f.Supplies on hand at the end of the year, 100. Required 1. Prepare a work sheet for the fiscal year ended June 30. Ignore this step if using CLGL. 2. Prepare an income statement. 3. Prepare a statement of owners equity. No additional investments were made during the year. 4. Prepare a balance sheet. 5. Journalize the adjusting entries. 6. Journalize the closing entries. 7. Journalize the reversing entry as of July 1, for the wages that were accrued in the June adjusting entry. Check Figure Net income, 14,066
please note every entry should have narration , explanation , calculation answer in text form show full working for each entry and parts
On January 1, 2022, Sunland Company had Accounts Receivable of $54,800 and Allowance for Doubtful Accounts of $3,800. Sunland Company prepares financial statements annually. During the year, the following selected transactions occurred: Jan. 5 Sold $4,700 of merchandise to Rian Company, terms n/30. Feb. 2 Accepted a $4,700, 4-month, 9% promissory note from Rian Company for balance due. 12 Sold $10,140 of merchandise to Cato Company and accepted Cato’s $10,140, 2-month, 10% note for the balance due. 26 Sold $5,300 of merchandise to Malcolm Co., terms n/10. Apr. 5 Accepted a $5,300, 3-month, 8% note from Malcolm Co. for balance due. 12 Collected Cato Company note in full. June 2 Collected Rian Company note in full. 15 Sold $1,800 of merchandise to Gerri Inc. and accepted a $1,800, 6-month, 11% note for the amount due. Journalize the transactions. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is…
Vigeland Company completed the following transactions during Year 1. Vigeland’s fiscal year ends on December 31. January 15 Purchased and paid for merchandise. The invoice amount was $15,200; assume a perpetual inventory system. April 1 Borrowed $774,000 from Summit Bank for general use; signed a 10-month, 9% annual interest-bearing note for the money. June 14 Received a $24,000 customer deposit for services to be performed in the future. July 15 Performed $3,450 of the services paid for on June 14. December 12 Received electric bill for $26,160. Vigeland plans to pay the bill in early January. December 31 Determined wages of $15,000 were earned but not yet paid on December 31 (disregard payroll taxes). Required: Prepare journal entries for each of these transactions. Prepare the adjusting entries required on December 31.
Vigeland Company completed the following transactions during Year 1. Vigeland’s fiscal year ends on December 31. January 15 Purchased and paid for merchandise. The invoice amount was $15,400; assume a perpetual inventory system. April 1 Borrowed $660,000 from Summit Bank for general use; signed a 10-month, 13% annual interest-bearing note for the money. June 14 Received a $34,000 customer deposit for services to be performed in the future. July 15 Performed $3,950 of the services paid for on June 14. December 12 Received electric bill for $26,260. Vigeland plans to pay the bill in early January. December 31 Determined wages of $18,000 were earned but not yet paid on December 31 (disregard payroll taxes).
Ruiz Company's Accounts Receivable balance at December 31 was $150,000 and there was a balance of $700 in the Allowance for Uncollectible Accounts. Sales for the year were $900,000. The firm estimates credit losses for the year at 1.5% of sales. After the appropriate adjusting entry is made for credit losses, what is the net amount of accounts receivable included in the current assets at year-end? Select one: a. $150,000 b. $135,800 c. $162,700 d. $138,700 e. None of the above
Wiset Company completes these transactions during April of the current year (the terms of all Its credit sales are 2/10, n/30). Apr. 2 Purchased $14, 200 of nerchandise on credit from Noth Company, terms 2/10, n/68. 3 (a) Sold nerchandise on credit to Page Alistair, Invoice No. 768, for $4,200 (cost is $3,700). 3 (b) Purchased $1,410 of office supplies on credit from Custer, Inc. terms n/30. Issued Check No. 587 to World View for advertising expense of $915. Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $10,000 (cost is $7,2e8). Returned $70 of office supplies purchased on April 3 to Custer, Inc. Wiset reduces accounts payable by that anount. Purchased $10,510 of store equipment on credit from Hal's Supply, terms n/30. Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $13,600 (cost is $7,1e8). Issued Check No. 588 to Noth Company in paynent of its April 2 purchase less the discount of $284. 4 5 6 11 12 13 (a) Received payment from Page Alistair for the…
Roger Company completed the following transactions during Year 1. Roger's fiscal year ends on December 31. January 8 Purchased merchandise for resale on account. The invoice amount was $14,840; assume a perpetual inventory system. Paid January 8 invoice. Borrowed $60,000 from National Bank for general use; signed a 12-month, 13% annual interest-bearing note for the money. Purchased merchandise for resale on account. The invoice amount was $17,320. Paid June 3 invoice. Rented office space in one of Roger's buildings to another company and collected six months' rent in advance amounting to $21,000. December 20 Received a $240 deposit from a customer as a guarantee to return a trailer borrowed for 30 days. December 31 Determined wages of $10,400 were earned but not yet paid on December 31 (disregard payroll taxes). Required: January 17 April 1 June 3 July 5 August 1 1. Prepare journal entries for each of these transactions. 2. Prepare the adjusting entries required on December 31. 3. Show…
At the end of the prior year, Durney's Outdoor Outfitters reported the following information. Accounts Receivable, December 31, prior year Accounts Receivable (Gross) (A) $ 48,283 Allowance for Doubtful Accounts (XA) 8,474 Accounts Receivable (Net) (A) $ 39,809 During the current year, sales on account were $306,673, collections on account were $290,750, write-offs of bad debts were $7,059, and the bad debt expense adjustment was $4,775. Required: 1-a. Complete the Accounts Receivable and Allowance for Doubtful Accounts T-accounts to determine the balance sheet values. 1-b. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the income statement for the current year. 1-c. Complete the amounts related to Accounts Receivable and Bad Debt Expense that would be reported on the balance sheet for the current year.
The January 1, Year 1 trial balance for the Wright Company is found on the trial balance tab. The beginning balances are assumed. Wright Company entered into the following transactions involving short-term liabilities. Note: Use 360 days a year. Year 1 April 20 Purchased $49,250 of merchandise on credit from Walsh, terms n/30. May 19 Replaced the April 20 account payable to Walsh with a 90-day, 14%, $37,000 note payable along with paying $12,250 in cash. July 8 Borrowed $99,000 cash from NJR Bank by signing a 120-day, 9%, $99,000 note payable. August 17 Paid the amount due on the note to Walsh at the maturity date. November 5 Paid the amount due on the note to NJR Bank at the maturity date. November 28 Borrowed $57,000 cash from Fargo Bank by signing a 60-day, 8%, $57,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 January 27 Paid the amount due on the note to Fargo Bank at the maturity date. General General Trial…
The following items were selected from among the transactions completed by Pioneer Co. during the current year: Mar. 1. Purchased merchandise on account from Galston Co., $360,000, terms n/30. Mar. 31. Issued a 30-day, 5% note for $360,000 to Galston Co., on account. Apr. 30. Paid Galston Co. the amount owed on the note of March 31. June 1. Borrowed $180,000 from Pilati Bank, issuing a 45-day, 4% note. July 1. Purchased tools by issuing a $210,000, 60-day note to Zegna Co., which discounted the note at the rate of 7%. July 16. Paid Pilati Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $180,000. (Journalize both the debit and credit to the notes payable account.) Aug. 15. Paid Pilati Bank the amount due on the note of July 16. Aug. 30. Paid Zegna Co. the amount due on the note of July 1. Dec. 1. Purchased office equipment from Taylor Co. for $500,000, paying $120,000 and issuing a series of ten 6% notes for $38,000 each, coming…