The unadjusted trial balance as of December 31, 2021, for the Bagley Consulting Company appears below. December 31 is thecompany's reporting year-end.Account TitleDebits CreditsCash12,500Accounts receivable9,750Prepaid insurance3,900Land250,000Buildings77,50031,000Accumulated depreciation-buildingsOffice equipment114,000Accumulated depreciation-office equipment45,600Accounts payable31,300Salaries payable0Deferred rent revenueCommon stock290,000Retained earnings50, 100Service revenue92,500Interest revenue5,600Rent revenue7,20040,000Salaries expenseDepreciation expense0Insurance expense0Utilities expense24,700Maintenance expense20,950Totals553,300553,300Information necessary to prepare the year-end adjusting entries appears below.a. The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciationmethod.b. The office equipment is depreciated at 10 percent of original cost per year.c. Prepaid insurance expired during the year, $1,950.d. Accrued salaries at year-end, $1,650.e. Deferred rent revenue at year-end should be $1,150.

1. Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…

The unadjusted trial balance as of December 31, 2021, for the Bagley Consulting Company appears below. December 31 is the company's reporting year-end. Account Title Debits Credits Cash 12,500 Accounts receivable 9,750 Prepaid insurance 3,900 Land 250,000 Buildings 77,500 Accumulated depreciation-buildings 31,000 Office equipment 114,000 Accumulated depreciation-office equipment 45,600 Accounts payable 31,300 Salaries payable 0 Deferred rent revenue 0 Common stock 290,000 Retained earnings 50, 100 Service revenue 92,500 Interest revenue 5,600 7,200 Rent revenue Salaries expense Depreciation expense 40,000 0 Insurance expense 0 Utilities expense Maintenance expense 24,700 20,950 Totals 553,300 553,300 Information necessary to prepare the year-end adjusting entries appears below. a. The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciatio method. b. The office equipment is depreciated at 10 percent of original cost per year. c. Prepaid insurance expired during the year, $1,950. d. Accrued salaries at year-end, $1,650. e. Deferred rent revenue at year-end should be $1,150.

The unadjusted trial balance as of December 31, 2021, for the Bagley Consulting Company appears below. December 31 is the company's reporting year-end. Account Title Debits Credits Cash 12,500 Accounts receivable 9,750 Prepaid insurance 3,900 Land 250,000 Buildings 77,500 Accumulated depreciation-buildings 31,000 Office equipment 114,000 Accumulated depreciation-office equipment 45,600 Accounts payable 31,300 Salaries payable 0 Deferred rent revenue 0 Common stock 290,000 Retained earnings 50, 100 Service revenue 92,500 Interest revenue 5,600 7,200 Rent revenue Salaries expense Depreciation expense 40,000 0 Insurance expense 0 Utilities expense Maintenance expense 24,700 20,950 Totals 553,300 553,300 Information necessary to prepare the year-end adjusting entries appears below. a. The buildings have an estimated useful life of 50 years with no salvage value. The company uses the straight-line depreciatio method. b. The office equipment is depreciated at 10 percent of original cost per year. c. Prepaid insurance expired during the year, $1,950. d. Accrued salaries at year-end, $1,650. e. Deferred rent revenue at year-end should be $1,150.

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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During July 2022, Midtown Catering recorded the following: - Catering services of $86,400 were provided ($64,500 on account, $21,900 for cash) - Collections on account, $58,950 - Write-offs of uncollectible receivables, $2,560 - Recovery of receivable previously written off, $1,000 Journalize Midtown's transactions during July, assuming Midtown uses the allowance method. Omit explanations. Prepare the journal entry for the write off of the accounts receivable.
Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company's fiscal year-end. The 2023 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $36,000 $ 462,000 During 2024, credit sales were $1,780,000, cash collections from customers $1,860,000, and $41,000 in accounts receivable were written off. In addition, $3,600 was collected from a customer whose account was written off in 2023. An aging of accounts receivable at December 31, 2024, reveals the following: Age Group 0-60 days 61-90 days 91-120 days Percentage of Year- End Receivables in Group Percent Uncollectible 70% 20 5% 15 5 20 5 40 Over 120 days Required: 1. Prepare summary journal entries to account for the 2024 write-offs and the collection of the receivable previously written off. 2. Prepare the year-end adjusting entry for bad debts according to each of the…
On Dec. 31, 2021, Boss Company had a credit balance of $50,000 in its records pertaining to allowance for uncollectible accounts. Analysis of its accounts receivable on the same date revealed the following: Age Amount ％ collectible 0-30 days $5,000,000 95 31-60 days 600,000 85 61-90 days 450,000 70 Over 90 days 100,000 50 Total $6,150,000 The company has written off $20, 000 of accounts receivable during 2021. How much is the allowance for uncollectible accounts to be reported on Dec. 31, 2021?
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Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly wages. Speedy's overhead costs include various items, such as the shop manager's salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. The company applies all of its overhead costs to jobs based on direct labor-hours. At the beginning of the year, it made the following estimates: Direct labor-hours required to support estimated output Fixed overhead cost Variable overhead cost per direct labor-hour Required: 1. Compute the predetermined overhead rate. 2. During the year, Mr. Wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. The following information was available with respect to his job: Direct materials Direct labor cost Direct labor-hours used $ 626 $ 292 4 12,000 $ 114,000 $ 1.00 Compute Mr.…
Required: (a) Prepare journal entries to record the impairment loss of receivable in 2021 under Statement of Financial Position approach. (b) Prepare partial Statement of Financial Positions to show the accounts receivables at 31 December 2021.
Charles Whyte commenced business on May 1 2019, making up his accounts to September 30 annually. The statement of the Profit or Loss Account for the first 17 months ended September 30,2020 is as follows: Gross Profit Less: Repairs and maintenance. Local transport and travelling Salaries and wages Provision for bad debts Preliminary expenses Depreciation Bank interest and charges Legal and professional charges General expenses (Allowable) Clearing expense on motor vehicle Bad debt Amounts written off Loan to absconded employee (ii) (iii) (iv) (1) You are also given the following additional information. Bad debt £ (v) £'000 30/10/2018 1/1/2019 1/5/2019 1,500 2,450 6,500 1,350 960 1,630 1,520 1,380 1,870 685 2,800 Building Motor Vehicle Furniture and fittings Legal and professional charges were: Salaries and wages: The following qualifying capital expenditures were acquired on: Fines for contravention of the law Legal expenses for tax appeal Audit and accountancy charges £'000 19,300…