Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations: 1. Provided $91,000 of services on account. 2. Collected $72,000 cash from accounts receivable. 3. Paid $36,000 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 Percent Likely to Be Uncollectible 0.01 0.05 0.10 0.20 Allowance Amount Balance Current 0-30 31-60 61-90 Over 90 days $7,800 4,500 2,000 2,200 2,500 0.50 Required a. Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding Retained Earnings input needed.) VULCAN SERVICE CO. Accounting Equation for the Year 1 Assets Equity Retained Earnings Accounting Titles for Retained Earnings Event Accounts Common Cash Allowance Receivable stock 1. 2. + + 3. 4. Bal. + + + + +
Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations: 1. Provided $91,000 of services on account. 2. Collected $72,000 cash from accounts receivable. 3. Paid $36,000 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 Percent Likely to Be Uncollectible 0.01 0.05 0.10 0.20 Allowance Amount Balance Current 0-30 31-60 61-90 Over 90 days $7,800 4,500 2,000 2,200 2,500 0.50 Required a. Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no corresponding Retained Earnings input needed.) VULCAN SERVICE CO. Accounting Equation for the Year 1 Assets Equity Retained Earnings Accounting Titles for Retained Earnings Event Accounts Common Cash Allowance Receivable stock 1. 2. + + 3. 4. Bal. + + + + +
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Answer full question please.
Transcribed Image Text:Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations:
1. Provided $91,000 of services on account.
2. Collected $72,000 cash from accounts receivable.
3. Paid $36,000 of salaries expense for the year.
4. Adjusted the accounts using the following information from an accounts receivable aging schedule:
10
points
Number of Days
Percent Likely to
Be Uncollectible
Allowance
eBook
Past Due
Amount
Balance
Current
0-30
31-60
61-90
Over 90 days
$7,800
4,500
2,000
2,200
2,500
0.01
0.05
0.10
0.20
Hint
0.50
Print
Required
a. Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a minus
sign. Not all cells in the "Accounts Titles for Retained Earnings" column may require an input - leave cells blank if there is no
corresponding Retained Earnings input needed.)
References
VULCAN SERVICE CO.
Accounting Equation for the Year 1
Assets
Equity
Accounting Titles for Retained
Earnings
Event
Common
Retained
Accounts
Receivable
Cash
Allowance
stock
Earnings
1.
+
2.
%3D
3.
+
%3D
+
4.
+
Bal.
Transcribed Image Text:b. Prepare the income statement for Vulcan Service Co. for Year 1.
10
points
VULCAN SERVICE CO.
Income Statement
For the Year Ended December 31, Year 1
eBook
Operating expenses
Hint
Total operating expenses
Print
References
c. What is the net realizable value of the accounts receivable at December 31, Year 1?
Net realizable value
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