The time period assumption assumes that a company prepares its financial statements every month. True False
Q: McKensie Company’s Accounts Receivable balance at December 31 was $100,000, and there was a negative…
A: Adjusted balance of allowance for uncollectibles accounts = $100,000*3% Adjusted balance of…
Q: Show how the preceding information would be reported on Furman’s year-end balance sheet (assume the…
A: Notes payable may be issued as interest bearing or non-interest bearing. The non-interest-bearing…
Q: Is it true or false? Each accounting month, permanent accounts begin with a zero balance.
A: There are two types of accounts Permanent account - These are the accounts which carry their…
Q: What is the order of calculation on Quarter-hour method & Hundreth-hour method? For example: IN…
A: For Payroll Accounting : There are 2 types of calculating. (1) Quarter-hour Method : (a) In this…
Q: Wohoo Publishers uses the allowance method to estimate uncollectible accounts receivables. The…
A: Introduction: Allowance for doubtful debt is the estimated bad debt expense that is required to be…
Q: ABC Company has the following account balances at year-end: Accounts receivable P80,000 Allowance…
A: The net account receivables is calculated as difference between gross account receivables and…
Q: Which of the following statements best describes the last trading day for a particular financial…
A: Future contracts and derivatives normally settled through delivery or by cash, The last trading day…
Q: The payroll register for Schmidt Company for the week ended April 29 indicated the following:…
A: Note:- Dear student Accounting equations are not done because we didn't find any instructions in…
Q: .Bogart presents a sight draft to Commerce Bank for payment. A bank employee writes accepted across…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Moon glow, a Broadway Publicity firm, uses the balance sheet approach to estimate uncollectible…
A: Uncollectible Accounts-: Uncollectible Accounts are simply the receivables, loans, or additional…
Q: o settle the outstanding amounts. a. Faithful Representation; completeness; Enhancing b. Faithful…
A: The information is useful when it is of high quality and it provide information that is needed to…
Q: here the operating cycle extends beyond one year because of normal credit terms as in the case of…
A: The operating cycle refers to the estimated time frame needed by a business in order to create a…
Q: Accounts Payable is a liability account and should be credited when: When the accountant must…
A: Accounts Payable is a liability account that represents the amount that a company owes to its…
Q: One Trick Pony (OTP) incorporated and began operations near the end of the year, resulting in the…
A: Definition: In a perpetual inventory system, all adjustments like purchases, purchase returns,…
Q: The following are excerpts from the financial statements of 2018 and 2019 of Mandela Corporation.…
A: Accounts receivable turnover states how many times the company is the company receiving its credit…
Q: 16. What is performed in the company by the State Revenue Service that lasts for not more than 30…
A: The state revenue service or the state revenue service is the government department responsible for…
Q: A company’s Accounts Receivable balance at its December 31 year-end is $200,000 and its Allowance…
A: Bad Debt Expense = Closing Balance of Allowance Account - Opening Balance of Allowance Account
Q: Current Assets do not include: Prepaid expenses Inventory Cash Bills receivable due after 12 months
A: Current assets are the assets that are expected to be converted into cash within one year or are due…
Q: 1.How do you consider post-dated check in the statement of financial position? A.cash and cash…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: At the end of the month, after all posting is completed, the total of the schedule of accounts…
A: Accounts receivable ledgers are subsidiary ledgers where all credit sales with respective accounts…
Q: What financial ratios are most affected by the controller holding checks written in December, until…
A: Ratio Analysis The purpose of calculating the ratio analysis of the entity to know the strength and…
Q: Suppose that at the end of the year there is an outstanding note receivable. The adjusting entry to…
A: 1. Accounting Equation - The accounting Equation is calculated using the following equation - Assets…
Q: Hunter, Inc. analyzed its accounts receivable balances at December 31, and arrived at the aged…
A: Age Group Balance % Considered Uncollectible Amount Uncollectible 0-30 days $ 90,000 1% $…
Q: Using the allowance method, the effect on the current year’s financial statements of writing off an…
A: Under the allowance method, uncollectible account receivables are to be estimated for future period…
Q: ''liabilities, current'' and ''account payable'
A: Liabilities, current: Current liabilities represent the obligation of the company that is required…
Q: Required: Using the following categories, Indicate the effects of the following transactions.…
A: The net account receivables are calculated as gross account receivables less allowance for…
Q: 4. Assume a business sold a total of $839,500 during the current year and its accounts receivable…
A: Number of days' sales in receivables is the number of days it take to collect the accounts…
Q: According to the Institute of Internal Auditors (IIA), Internal Auditors should play a key role in…
A: The IIA in their paper specified internal audit’s role in relation with ERM. Roles to be performed…
Q: Required information [The following information applies to the questions displayed below.] On…
A: Allowance for doubtful accounts - Allowance for doubtful accounts is the provision made by the…
Q: Credit Losses Based on Accounts Receivable Hunter, Inc., analyzed its accounts receivable balances…
A: Allowance Method - Under allowance method company make provision of uncollectible accounts at the…
Q: Which of the following accounts will get affected when cash is received from sale made on account in…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: The following information relates to a company's accounts receivable: gross accounts receivable…
A: Bad debt expense is the estimated amount a company sets aside to account for debts that are unlikely…
Q: When an employer does not have a sophisticated time-keeping system, it is valid to accrue a…
A: Payroll: A payroll is a total amount of money paid by employer to employees for time period the…
Q: Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for…
A: The aging-of-receivables method is employed in the entities to ascertain the amount that an entity…
Q: How to calculate the total outstanding receivables?
A: To calculate the total outstanding receivables, you can follow the following steps: Determine the…
Q: Lawrence Company maintains its accounts on the basis of a fiscal year ending October 31. Assume that…
A: Solution- The following are the steps taken by auditors on these comments 1) a) Examine sales…
Q: The following information is available for Market, Incorporated and Supply, Incorporated at December…
A: The account receivables turnover ratio is calculated to assess the efficiency of the collections…
Q: The “age” of an account receivable is the length of time that it has been outstanding. At the end of…
A: Accounts receivable aging is the process of distinguishing open accounts receivable based on the…
Q: Maxwell Inc., analyzed its accounts receivable balances at December 31, and arrived at the aged…
A: Adjustment amount = Estimated Uncollectible Accounts - Credit Balance in Allowance
Q: The company estimates future uncollectible accounts. The company determines $16,000 of accounts…
A: Adjsutments are those journal entries which are made at the end of the accounting period in order to…
Q: IDENTIFY THE EFFECT OF THE FOLLOWING TRANSACTION TO THE RISK OF MATERIAL MISSTATEMENT TO FINANCIAL…
A: Material misstatements are errors or frauds that are being made in the financial statements to show…
Q: Payroll taxes levied against employees become liabilities O a. at the end of an accounting period O…
A: There are various taxes which are deducted from employee's salaries. These taxes are payable to the…
Q: Which of the following accounts will get affected when cash is received from sale made on account in…
A: DATE ACCOUNTS DEBIT CREDIT Accounts Receivable xxxx Service Revenue xxxx (To…
Q: According to a summary of the payroll of Mountain Streaming Co., $770,000 was subject to the 6.0%…
A: Journal Entry is the primary step to record the transaction in the books of accounts. The increase…
The time period assumption assumes that a company prepares its financial statements every month.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Which of the following statements is TRUE? a. a customer's postdated check (dated December 28) was received by the company on November shall be recorded as cash item as of the month ended November 30 b. when a customer's postdated check (dated December 28) was received by the company on November, no adjusting entry shall be necessary when reporting for the month then ended November 30 c. a customer's postdated check (dated December 28) was received by the company on November can be included as a cash item as of the year ended December 31 d. a customer's postdated check (dated December 28 was received by the company on November shall not recorded included as cash item for the year ended December 31Do not give answer in imageEe.19.
- The estimated loss from uncollectible accounts can be based on the net credit sales for the year or the ____________________ balance at the end of the year.Scenario The accounting manual contains instructions for recording sales transactions in the relevant accounting period, and CAIN Corp has excellent control rules and activities connected to authorisation of transactions for accounting entry. Every Friday at 5 p.m., the corporation shuts the accounting process in order to generate weekly management reports. The year-end date (cut-off date) is December 31, which fell on a Monday this year. The accounting, on the other hand, was completed as normal until Friday, and the accounts were closed for the year on Jan 4.a trail of paper All of the entries, including sales invoices, cash receipts, and shipping papers, were properly dated after December 31. The trial balance used to construct the financial statements, however, was dated December 31. Because the Friday shutdown was usual, no one noticed the lapse of a few days. Amount Over the January 1-4 period, CAIN recorded sales of P672,000 and a gross profit of P268,800. A total of P800,000 in…Gregg company uses the allowance method for recording its expected credit losses. It estimates credit losses at 3% of credit sales, which were $900,000 during the year. On December 31 the accounts receivable balance was 150,000, and the allowance for doubtful accounts had a credit balance of 12,200 before adjustment. A. Prepare the adjusting entry to record the credit losses for the year. B. Show how accounts receivable and the allowance for doubtful accounts would appear in the December 31 balance sheet. The top 2 shaded blanks have the options of Bad debts expense, allowance for doubtful accounts. The bottom 2 shaded blanks have the options of accounts receivable, less: allowance for doubtful accounts.
- 2.Which of the following statements is valid? a. Net accounts receivable is not affected by a recovery of an account previously written off. b. A three year, non-interest bearing promissory note is initially recorded in the accounts at its face value. c. When individual customers' accounts have credit balances of material amounts, these amounts must be deducted from the debit balance in other customers' accounts in the statement of financial position. d. When the rate stated on a note is greater than the prevailing market rate of interest for similar obligations, the present value of the note at initial recognition is greater than its face value.please help4. You are preparing the monthly bank reconciliation of Core Company for the month ending December 31, 2020. You discovered an erroneous credit to Core's account, representing proceeds of loan granted to another company amounting to P300,000. Prepare the adjusting journal entry.
- Zaman Zoom Ltd have 500 employees with an average salary of $3,000 per month. Their average age are 30. The company is planning to start an Endowment scheme as the company pension scheme for all the company’s employees. The period of investment is expected to be for 30 years before the first batch of employees will go for retirment. The company is going to set aside a salary deduction system to deduct 50% of the required installment for the endowment scheme. The installment payment will be invested in the endowment scheme with a target to achieve a capital endowment sufficient to generate income to take care of the pension payment at 50% of the last drawn salaries expected to averaged at RM10,000 in 40 years time. A fund management with a good reputation had assured that the endowment fund will generate an average return at 6% per annum. a. Estimate the monthly installment required by the company to the endowment fund.b. How much will each employee will have to…As ABC Corporation's fiscal year end date of December 31 approaches, management is worried that reported earnings will fall short of investors' expectations. Which of the following actions would increase ABC's earnings for the current year? O a. Convince customers to pay outstanding accounts receivable by offering a discount for payments received by December 31. O b. Postpone scheduled year-end maintenance on Acme's machinery until next year. O c. Collect more cash from customers for services that Acme will provide next year. O d. Delay until next year the payment of bonuses that employees have earned this year. 12:00 PM pe here to search 5/5/2021 DELL F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 F11 F12 PrtScr Insert Delete @ # 2$ % & + Backspac 1 3 4 7 8 E R T. Y P. 一 A D F GPAGE 11 ACCOUNTING FOUATION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Widmer Company had gross wages of $200,000 during the week ended June 17. The amount of wages subject to social security tax was $200,000, while the amount of wages subject to federal and state unemployment taxes was $30,000. Tax rates are as follows: General Journal a. Journalize the entry to record the payroll for the week of June 17. b. Journalize the entry to record the payroll tax expense incurred for the week of June 17. Social security 6.0% Medicare 1.5% State unemployment 5.4% Federal unemployment 0.8% The total amount withheld from employee wages for federal taxes was $40,500. General Journal Instructions Required: a. Journalize the entry to record the payroll for the week of June 17. b. Journalize the entry to record the payroll tax expense incurred for the week of June 17 1 2 4 DATE DESCRIPTION 5 9 7 B 9 10 JOURNAL
