show how the accounts related to the preceding sale and collection activities shoukd be reported on the current year income statement
show how the accounts related to the preceding sale and collection activities shoukd be reported on the current year income statement
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter6: Cash And Internal Control
Section: Chapter Questions
Problem 6.4E
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Question
show how the accounts related to the preceding sale and collection activities shoukd be reported on the current year income statement
PLEASE DO NOT ANSWER IMAGE FORMET
![ook
Int
Tint
erences
Required:
1. Complete the following bank reconciliation.
2. Prepare the journal entries that should be made as the result of the bank reconciliation.
3. What should the balance in the Cash account be after the reconciliation entries?
4. What total amount of cash should the company report on the September 30 balance sheet?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Required 4
Prepare the journal entries that should be made as the result of the bank reconciliation. (If no entry is required
select "No journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
2
3
Record the entry for deposits during September.
Note: Enter debits before credits.
www
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Transcribed Image Text:ook
Int
Tint
erences
Required:
1. Complete the following bank reconciliation.
2. Prepare the journal entries that should be made as the result of the bank reconciliation.
3. What should the balance in the Cash account be after the reconciliation entries?
4. What total amount of cash should the company report on the September 30 balance sheet?
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Required 3
Required 4
Prepare the journal entries that should be made as the result of the bank reconciliation. (If no entry is required
select "No journal entry required" in the first account field.)
View transaction list
Journal entry worksheet
2
3
Record the entry for deposits during September.
Note: Enter debits before credits.
www
3 of 5
Next >
![In the following order, except for cash sales, the company sold merchandise and made collections on credit terms 4/10,
n/30 (assume a unit sales price of $700 in all transactions).
Transactions during current year:
a. Sold merchandise for cash, $238,000.
b. Sold merchandise to R. Smith; invoice price, $11,500.
c. Sold merchandise to K. Miller, invoice price. $32,000.
d. Two days after purchase date, R. Smith returned one of the units purchased in (b) and received account credit.
e. Sold merchandise to B. Sears; invoice price, $29,000.
f. R. Smith paid his account in full within the discount period.
g. Collected $94.000 cash from customer sales on credit in prior year, all within the discount periods.
h. K. Miller paid the involce in (c) within the discount period.
1. Sold merchandise to R. Roy: invoice price. $21,500.
J. Three days after paying the account in full, K. Miller returned seven defective units and received a cash refund.
k. After the discount period, collected $5,000 cash on an account receivable on sales in a prior year.
1. Wrote off a prior year account of $4,000 after deciding that the amount would never be collected.
m. The estimated bad debt rate used by the company was 1.0 percent of credit sales net of returns.
2. Show how the accounts related to the preceding sale and collection activities should be reported on the current year income
statement.
Note: Round your answers to the nearest whole dollar amount.
SYKES COMPANY
Income Statement (partial)
For the Year Ended December 31, Current Year
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Transcribed Image Text:In the following order, except for cash sales, the company sold merchandise and made collections on credit terms 4/10,
n/30 (assume a unit sales price of $700 in all transactions).
Transactions during current year:
a. Sold merchandise for cash, $238,000.
b. Sold merchandise to R. Smith; invoice price, $11,500.
c. Sold merchandise to K. Miller, invoice price. $32,000.
d. Two days after purchase date, R. Smith returned one of the units purchased in (b) and received account credit.
e. Sold merchandise to B. Sears; invoice price, $29,000.
f. R. Smith paid his account in full within the discount period.
g. Collected $94.000 cash from customer sales on credit in prior year, all within the discount periods.
h. K. Miller paid the involce in (c) within the discount period.
1. Sold merchandise to R. Roy: invoice price. $21,500.
J. Three days after paying the account in full, K. Miller returned seven defective units and received a cash refund.
k. After the discount period, collected $5,000 cash on an account receivable on sales in a prior year.
1. Wrote off a prior year account of $4,000 after deciding that the amount would never be collected.
m. The estimated bad debt rate used by the company was 1.0 percent of credit sales net of returns.
2. Show how the accounts related to the preceding sale and collection activities should be reported on the current year income
statement.
Note: Round your answers to the nearest whole dollar amount.
SYKES COMPANY
Income Statement (partial)
For the Year Ended December 31, Current Year
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