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Spark Service Company experienced the following transactions for Year 1, its first year of operations: 1. Provided $84,000 of services on account. 2. Collected $50,400 cash from accounts receivable. 3. Paid $28,000 of salaries expense for the year. 4. Adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Current e to 30 31 to 60 61 to 90 Over 90 days Amount $24,864 1,680 2,352 2,016 2,688 Percent Likely to Be Allowance Uncollectible Balance 0.01 0.05 0.10 0.30 0.50 Required a. Record the given transactions in general journal form and post to T-account b. Prepare the income statement for Spark Service Company for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 17

Spark Service Company experienced the following transactions for Year 1, its first year of operations: 1. Provided $84,000 of services on account. 2. Collected $50,400 cash from accounts receivable. 3. Paid $28,000 of salaries expense for the year. 4. Adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Current e to 30 31 to 60 61 to 90 Over 90 days Amount $24,864 1,680 2,352 2,016 2,688 Percent Likely to Be Allowance Uncollectible Balance 0.01 0.05 0.10 0.30 0.50 Required a. Record the given transactions in general journal form and post to T-account b. Prepare the income statement for Spark Service Company for Year 1. c. What is the net realizable value of the accounts receivable at December 31, Year 17

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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Spark Service Company experienced the following transactions for Year 1, its first year of operations: 1. Provided $84,000 of services on account. 2. Collected $50,400 cash from accounts receivable. 3. Paid $28,000 of salaries expense for the year. 4. Adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Current e to 30 31 to 60 61 to 98 Over 90 days Required a. Record the given transactions in general journal form and post to T-accounts b. Prepare the income statement for Spark Service Company for Year 1 c. What is the net realizable value of the accounts receivable at December 31, Year 1?. Complete this question by entering your answers in the tabs below. Beginning Balance Required A General Journal Post the entries to the T-accounts. (Round your intermediate calculations and final answers to nearest whole dollar) Service Revenue Ending Balance Required A T Accounts Beginning Balance Ending Balance Beginning Balance Ending Balance Amount $24,864 1,688 2,352 2,016 2,688 Required A T Accounts Beginning Balance Required A General Journal Complete this question by entering your answers in 20 Required A General Journal Required B Required C Post the entries to the T-accounts. (Round your intermediate calculations and final answers to nearest whole dollar). Required B Cash Percent Likely to Be Allowance Uncollectible Balance 0.01 Operating expenses Cash Total operating expenses 0.05 0.10 0.30 0.50 Accounts Receivable Allowance for Doubtful Accounts Required A T Accounts 0 Required C Beginning Balance Required B Required C Beginning Balance Complete this question by entering your answers in the tabs below. Ending Balance $ Beginning Balance < Required AT Accounts Ending Balance < Required A General Journal Beginning Balance Ending Balance Next Prepare the income statement for Vulcan Service Company for Year 1. (Round your intermediate calculations and final answers to nearest whole dollar) VULCAN SERVICE COMPANY Income Statement For the Year Ended December 31, Year 1 0 0 Service Revenue Salaries Expense Uncollectible Accounts Expense Required B > Required C >
Transcribed Image Text:Spark Service Company experienced the following transactions for Year 1, its first year of operations: 1. Provided $84,000 of services on account. 2. Collected $50,400 cash from accounts receivable. 3. Paid $28,000 of salaries expense for the year. 4. Adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Current e to 30 31 to 60 61 to 98 Over 90 days Required a. Record the given transactions in general journal form and post to T-accounts b. Prepare the income statement for Spark Service Company for Year 1 c. What is the net realizable value of the accounts receivable at December 31, Year 1?. Complete this question by entering your answers in the tabs below. Beginning Balance Required A General Journal Post the entries to the T-accounts. (Round your intermediate calculations and final answers to nearest whole dollar) Service Revenue Ending Balance Required A T Accounts Beginning Balance Ending Balance Beginning Balance Ending Balance Amount $24,864 1,688 2,352 2,016 2,688 Required A T Accounts Beginning Balance Required A General Journal Complete this question by entering your answers in 20 Required A General Journal Required B Required C Post the entries to the T-accounts. (Round your intermediate calculations and final answers to nearest whole dollar). Required B Cash Percent Likely to Be Allowance Uncollectible Balance 0.01 Operating expenses Cash Total operating expenses 0.05 0.10 0.30 0.50 Accounts Receivable Allowance for Doubtful Accounts Required A T Accounts 0 Required C Beginning Balance Required B Required C Beginning Balance Complete this question by entering your answers in the tabs below. Ending Balance $ Beginning Balance < Required AT Accounts Ending Balance < Required A General Journal Beginning Balance Ending Balance Next Prepare the income statement for Vulcan Service Company for Year 1. (Round your intermediate calculations and final answers to nearest whole dollar) VULCAN SERVICE COMPANY Income Statement For the Year Ended December 31, Year 1 0 0 Service Revenue Salaries Expense Uncollectible Accounts Expense Required B > Required C >
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