show how the accounts related to the preceding sale and collection activities shoukd be reported on the current year income statementPLEASE DO NOT ANSWER IMAGE FORMET ookIntTinterencesRequired: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 1Required 2Required 3Required 4Prepare the journal entries that should be made as the result of the bank reconciliation. (If no entry is requiredselect "No journal entry required" in the first account field.)View transaction listJournal entry worksheet23Record the entry for deposits during September.Note: Enter debits before credits.www3 of 5Next > 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 incomestatement.Note: Round your answers to the nearest whole dollar amount.SYKES COMPANYIncome Statement (partial)For the Year Ended December 31, Current Year<< Proy35of 5NextE

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Description: show how the accounts related to the preceding sale and collection activities shoukd be reported on the current year income statementPLEASE DO NOT ANSWER IMAGE FORMET ookIntTinterencesRequired:1. Complete the following bank reconciliation.2. Prepare

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show how the accounts related to the preceding sale and collection activities shoukd be reported on the current year income statement

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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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

Topic Video

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
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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2 In the current year, Company A made the following cash purchases: 1. The exclusive right to manufacture and sell equipment from Company B for $210,000. Company B created the unique design for the equipment. Company A also paid an additional $15,000 in legal and filing fees to attorneys to complete the transaction. 2. An initial fee of $295,000 for a three-year agreement with Company C to use its name for a new facility in the local area. Company C has locations throughout the country. Company A is required to pay an additional fee of $6,000 for each month it operates under the Company C name, with payments beginning in March of the current year. Company A also purchased $410,000 of equipment to be placed in the new facility. 3. The exclusive right to sell a book, for $29,000. Required: Prepare a summary journal entry to record expenditures related to initial acquisitions. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account…
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