Springsteen Inc. reported in a recent annual report“Restricted cash for debt redemption.” What section ofthe balance sheet would report this item?
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Springsteen Inc. reported in a recent annual report
“Restricted cash for debt redemption.” What section of
the
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- Show how the amounts related to Accounts Receivable and Bad Debt Expense would be reported on the income statement and balance sheet for the current year.PA10-1 (Algo) Determining Financial Effects of Transactions Affecting Current Liabilities with Evaluation of Effects on the Debt-to-Assets Ratio [LO 10-2, LO 10-5] Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. April 30 Received $660,000 from Commerce Bank after signing a 12-month, 8.50 percent, promissory note. June 6 Purchased merchandise on account at a cost of $80,000. (Assume a perpetual inventory system.) July 15 Paid for the June 6 purchase. August 31 Signed a contract to provide security service to a small apartment complex starting in September, and collected six months' fees in advance, amounting to $26,500. December 31 Determined salary and wages of $45,000 were earned but not yet paid as of December 31 (ignore payroll taxes). December 31 Adjusted the accounts at year-end, relating to interest. December 31 Adjusted the accounts at year-end, relating to security service. Required: 1. For each listed transaction and…Which of the following accounting entries is correct? a) Record of issuance of bills receivable B) Cancellation of the rediscount transaction reserved for bills receivable at the beginning of the period NS) Posting of interest on notes receivable D) Register of notes receivable becoming worthless TO) Recording of the rediscount transaction for notes receivable at the end of the period
- Use the information below for Harding Company to answer the question that follow. Harding Company Accounts payable $37,895 Accounts receivable 69,212 Accrued liabilities 6,543 Cash 17,127 Intangible assets 36,451 Inventory 78,770 Long-term investments 99,442 Long-term liabilities 72,027 Marketable securities 39,229 Notes payable (short-term) 24,334 Property, plant, and equipment 693,814 Prepaid expenses 1,182 Based on the data for Harding Company, what is the quick ratio, rounded to one decimal point? a.3 b.15.1 c.0.8 d.1.8A recent report for UPS contained the following data: (in thousands) Accounts receivable Less: Allowance for bad debts Net accounts receivable Bad debt expense Current year $1,034,608 36,800 $ 997,808 $55,147 Previous year $ 805,495 38,225 S 767,270 $31,388 Required: 1. Prepare the journal entry for the amount of accounts receivable that were actually written off during the current year. 2. Prepare the journal entry to record the bad debt expense for the current year 3. What is the purpose of the account "Allowance for doubtful accounts"? Although the normal balance of this account is a credit balance, it sometimes has a debit balance. Briefly explain how this can happen.1. Estimated liabilities are disclosed in financial statements by: footnote to the financial statements. showing the amount among the liabilities but not extending to the liability total. an appropriation of retained earnings. appropriately classifying them as regular liabilities in the balance sheet. 2. Cali Company had a P4,000,000 note payable due on March 1, 2001. On January 31, 2001, before the issuance of its 2000 financial statements, Cali issued long-term bonds payable in the amount of P5,000,000. Proceeds from the bonds were used to repay the note when it came due. How should Cali classify the note in its December 31, 2000 financial statements? current liability with separate disclosure of the note refinancing current liability with no disclosure required noncurrent liability with separate disclosure of the note refinancing noncurrent liability with no separate disclosure required 3. Of the following items, the one which should be classified as a current liability is:…
- 08:24 C uie Instructions. On 28 February 2019, the debtors control account in the General Ledger of Lesego Fashions showed a debit balance of R8 735, while the debtors list in the Debtors ledger showed a total of R5 584. The errors and omissions described below were found on 28 February 2019. Required: Indicate in the table provided below, how the errors and omissions should be corrected in order to reconcile the control account balance with debtor's list total. No. General Ledger Debtors ledger Debtors list Debtors control Dr (+) Cr (-) Dr (+) Cr (-) 3. The balance on the account of a debtor, R150, was brought down incorrectly as R15. 4. The amount on an invoice issued to A Shokane was miscalculated. The account should be R62 and not R72. 5. Payments to creditors as per the Cash Payment Journal were debited to debtors control account, R3 960. 6. The debtors' journal was undercast and posted accordingly. The total should have been R4 710, and not R4 170. 7. A credit note for R51 was…Events that occur after the December 31, 2026 balance sheet date, but before the balance sheet is issued in 2027, and provide additional evidence about conditions that existed at the balance sheet date and affect the realizability of accounts receivable should be used to record an adjustment to Bad Debt Expense for the year ending December 31, 2026. discussed only in the MD&A (Management's Discussion and Analysis) section of the annual report. disclosed only in the Notes to the Financial Statements. used to record an adjustment directly to the Retained Earnings account.Current Ratio, Quick Ratio, and Times-Interest-Earned Ratio The following data is from the current accounting records of Florence Company: Cash $336 Accounts receivable (net of allowance of $112) 560 Inventory 420 224 305 476 Other current assets Accounts payable Other current liabilities The president of the company is concerned that the company is in violation of a debt covenant that requires the company to maintain a minimum current ratio of 2.0. He believes the best way to rectify this is to reverse a bad debt write-off in the amount of $28 that the company just recorded. He argues that the write-off was done too early and that the collections department should be given more time to collect the outstanding receivables. The CFO argues that this will have no effect on the current ratio, so a better idea is to use $28 of cash to pay accounts payable early. Florence Company uses the allowance method to account for bad debts. a. Calculate the current ratio under the following scenarios:…
- Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expenseis established as a percentage of credit sales. For 2018, net credit sales totaled $4,500,000, and the estimated baddebt percentage is 1.5%. The allowance for uncollectible accounts had a credit balance of $42,000 at the beginningof 2018 and $40,000, after adjusting entries, at the end of 2018.Required:1. What is bad debt expense for 2018 as a percent of net credit sales?2. Assume Johnson makes no other adjustment of bad debt expense during 2018. Determine the amount ofaccounts receivable written off during 2018.3. If the company uses the direct write-off method, what would bad debt expense be for 2018?Using the percentage-of-receivables method for recording bad debt expense, estimated uncollectible accounts are $65000. If the balance of the Allowance for Doubtful Accounts is an $13000 debit before adjustment, what is the balance after adjustment?Required Information [The following Information applies to the questions displayed below.] On January 1, 2021, the general ledger of ACME Fireworks Includes the following account balances: Accounts Cash Debit. Credit Accounts Receivable Allowance for Uncollectible Accounts $ 27,100 50,200 $ 6,200 Inventory 22,000 Land 66,000 Equipment 25,000 Accumulated Depreciation 3,500 Accounts Payable 30,500 Notes Payable (6%, due April 1, 2022) 70,000 Common Stock 55,000 Retained Earnings 25,100 Totals $190,300 $190,300 During January 2021, the following transactions occur: January 2 Sold gift cards totaling $12,000. The cards are redeemable for merchandise within one year of the purchase date. January 6 Purchase additional inventory on account, $167,000. January 15 Firework sales for the first half of the month total $155,000. All of these sales are on account. The cost of the units sold is $83,800. January 23 Receive $127,400 from customers on accounts receivable. January 25 Pay $110,000 to…
