Roth Service Co. experienced the following transactions for Year 1, its first year of operations: 1. Provided $110,000 of services on account 2 Collected $89,000 cash from accounts recelvable. 3. Pald $41,000 of salarles expense for the year. 4. Roth adjusted the accounts using the following Information from an accounts recelvable aging schedule: Percent Likely to Be Allowance Number oE Days Past Due Amount Uncollectible Balance Current $9,500 0.01 0-30 4,000 0.05 31-60 2,500 2,000 0.10 61-90 0.30 Over 90 days 3,000 0.50 Requlred a. Organlze the transaction data In accounts under an accounting equation. b. Prepare an Income statement for Roth Service Co. for Year 1. c. What Is the net realizable value of the accounts recelvable at December 31, Year 1?
Roth Service Co. experienced the following transactions for Year 1, its first year of operations: 1. Provided $110,000 of services on account 2 Collected $89,000 cash from accounts recelvable. 3. Pald $41,000 of salarles expense for the year. 4. Roth adjusted the accounts using the following Information from an accounts recelvable aging schedule: Percent Likely to Be Allowance Number oE Days Past Due Amount Uncollectible Balance Current $9,500 0.01 0-30 4,000 0.05 31-60 2,500 2,000 0.10 61-90 0.30 Over 90 days 3,000 0.50 Requlred a. Organlze the transaction data In accounts under an accounting equation. b. Prepare an Income statement for Roth Service Co. for Year 1. c. What Is the net realizable value of the accounts recelvable at December 31, Year 1?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Roth Service Co. experienced the following transactions for Year 1, Its first year of operations:
1. Provided $110,000 of services on account
2 Collected $89,000 cash from accounts recelvable.
3. Pald $41,000 of salarles expense for the year.
4. Roth adjusted the accounts using the following Information from an accounts recelvable aging schedule:
Percent Likely to Be
Allowance
Number oE Days Past Due
Amount
Uncollectible
Balance
Current
$9,500
0.01
0-30
4,000
0.05
31-60
2,500
0.10
61-90
2,000
0.30
Over 90 days
3,000
0.50
Requlred
a. Organize the transaction data In accounts under an accounting equation.
b. Prepare an Income statement for Roth Service Co. for Year 1.
c. What Is the net reallizable value of the accounts recelvable at December 31, Year 1?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a
minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the cell blank, Not all cells will require
entry.)
ROTH SERVICE CO.
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Transcribed Image Text:a Organlze the transaction data In accounts under an accounting equation.
b. Prepare an Income statement for Roth Service Co. for Year 1.
c. What Is the net realizable value of the accounts recelvable at December 31, Year 1?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a
minus sign. If there is no effect on the Accounts Titles for Retained Earnings, leave the celI blank. Not all cells will require
entry.)
ROTH SERVICE CO.
Horizontal Statements Model
Assets
Equity
Event
Accounts Titles for Retained Earnings
NRV Accounts
Liabilities
Retained
Cash
Receivable
Earnings
1.
!!
2.
3.
4.
Bal.
Required B >
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