Financial accounting
3rd Edition
ISBN: 9780077506902
Author: David J Spieceland Wayne Thomas Don Herrmann
Publisher: Mcgraw-Hill
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1, Problem 1.2E
Falcon Incorporated has the following transactions with Wildcat Corporation.
Identify account classifications and business activities (LO1–2)
Flip Side of E1–3
| Transactions | Falcon’s Related Account |
| 1. Falcon purchases common stock of Wildcat. 2. Falcon borrows from Wildcat by signing a note. 3. Wildcat pays dividends to Falcon. 4. Falcon provides services to Wildcat 5. Falcon pays interest to Wildcat on borrowing. |
Investment Notes payable Dividend revenue Service revenue Interest expense |
Required:
1. For each transaction, indicate whether Falcon would classify each account in the
2. Classify the type of activity as financing, investing, or operating.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Plz solve!!
When posting transactions to the general ledger, use the transaction letters a, b, c, d, or e as the description for each entry. Also, the dates must be entered in the format dd/mmm (ie, 15/Ja
General Jourmal
Account/Explanation
Page GJ9
Credit
Cash Account No. 101
Date
Debit
Date Desc. F Debit Credit Balance
F
2/Oct Supplies
35,000
GJ9
Share Capital
35,000
(a)
5/Oct Supplies
700
Accounts Payable Account No. 201
Date Desc. F Debit Credit Balance
Accounts Payable
700
(b)
6/Oct Accounts Payable
Supplies
(c)
10/Oct Cash
399
399
1,100
Supplies
Share Capital Account No. 301
Date Desc. F Debit Credit Balance
1,100
(d)
13/Oct Cash
500
Consulting Revenue Earned
500
Supplies Account No. 126
(e)
Date Desc. F Debit Credit Balance
Consulting Revenue Earned Account No. 403
Date Desc. F Debit Credit Balance
Office Salaries Expense Account No. 620
Date Desc.
F Debit Credit Balance
Official Time: 1:24:52
SUBMIT AND MARK
Lincraft Corp. reports a current ratio of 3-to-1 in its 20X2 financial statements. The statement of financial position shows current assets
of $3,140,500 and current liabilities of $1,064,100. Lincraft has accounts receivable of $1,299,300. The company transfers $1,002,000
of these accounts receivable to a financial institution. There are $35,200 of bad debts associated with these accounts receivable, an
amount that is already in the allowance for doubtful accounts. Proceeds of $898,250 are received from the transfer. The transfer is on
a non-notification basis, which means that the customers pay Lincraft and Lincraft then remit the cash to the financial institution. The
customers pay $946,000 to Lincraft on schedule, $35,200 is written off to the allowance at the appropriate time, and the cash
remittance is forwarded to the financial institution.
Required:
1. Record all journal entries for the sequence of events assuming:
a. The transfer is recorded as a sale/derecognition. (If no…
Chapter 1 Solutions
Financial accounting
Ch. 1 - Explain what it means to say that an accounting...Ch. 1 - Identify some of the people interested in making...Ch. 1 - What is the basic difference between financial...Ch. 1 - What are the two primary functions of financial...Ch. 1 - What are line three basic business activities that...Ch. 1 - Prob. 6RQCh. 1 - What are a few of the typical investing activities...Ch. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - Provide the basic definition for each of the...
Ch. 1 - Prob. 11RQCh. 1 - What are the four primary financial statements?...Ch. 1 - What does it mean to say that the income...Ch. 1 - Prob. 14RQCh. 1 - What is the accounting equation? Which financial...Ch. 1 - Prob. 16RQCh. 1 - The retained earnings account is a link between...Ch. 1 - Prob. 18RQCh. 1 - Prob. 19RQCh. 1 - Prob. 20RQCh. 1 - Prob. 21RQCh. 1 - Prob. 22RQCh. 1 - Prob. 23RQCh. 1 - Prob. 24RQCh. 1 - Prob. 25RQCh. 1 - What are the three primary objectives of financial...Ch. 1 - Prob. 27RQCh. 1 - Prob. 28RQCh. 1 - Prob. 29RQCh. 1 - What is meant by the term cost effectiveness in...Ch. 1 - Prob. 31RQCh. 1 - Prob. 1.1BECh. 1 - Match each business activity with its description....Ch. 1 - Prob. 1.3BECh. 1 - Prob. 1.4BECh. 1 - For each transaction, indicate whether each...Ch. 1 - For each transaction, indicate whether each...Ch. 1 - Describe each financial statement (LO13) Match...Ch. 1 - Determine the location of items in financial...Ch. 1 - Prob. 1.9BECh. 1 - Indicate which of the following are objectives of...Ch. 1 - Prob. 1.11BECh. 1 - Prob. 1.12BECh. 1 - Prob. 1.13BECh. 1 - The following provides a list of transactions and...Ch. 1 - Falcon Incorporated has the following transactions...Ch. 1 - Prob. 1.3ECh. 1 - Eagle Corp. operates magnetic resonance imaging...Ch. 1 - Prob. 1.5ECh. 1 - Below are the account balances for Cowboy Law Firm...Ch. 1 - At the beginning of the year (January 1), Buffalo...Ch. 1 - Wolfpack Construction has the following account...Ch. 1 - Tiger Trade has the following cash transactions...Ch. 1 - Prob. 1.10ECh. 1 - Prob. 1.11ECh. 1 - Squirrel Tree Services reports the following...Ch. 1 - Prob. 1.13ECh. 1 - During its first five years of operations, Red...Ch. 1 - Below are approximate amounts related to retained...Ch. 1 - Below are approximate amounts related to balance...Ch. 1 - Below are approximate amounts related to cash flow...Ch. 1 - Prob. 1.18ECh. 1 - Prob. 1.19ECh. 1 - Prob. 1.20ECh. 1 - A Below are typical transactions for...Ch. 1 - Account classifications include assets,...Ch. 1 - Longhorn Corporation provides low-cost food...Ch. 1 - Below are-incomplete financial statements for...Ch. 1 - Prob. 1.5APCh. 1 - Prob. 1.6APCh. 1 - Listed below are nine terms and definitions...Ch. 1 - Below are typical transactions for Caterpillar...Ch. 1 - Prob. 1.2BPCh. 1 - Prob. 1.3BPCh. 1 - Prob. 1.4BPCh. 1 - Prob. 1.5BPCh. 1 - Prob. 1.6BPCh. 1 - Prob. 1.7BPCh. 1 - Prob. 1.1APCPCh. 1 - Prob. 1.2APFACh. 1 - Prob. 1.3APFACh. 1 - Prob. 1.4APCACh. 1 - Prob. 1.5APECh. 1 - Prob. 1.7APWC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Courses =HCS380 Week 1 Terminology Matching Accounts Receivable Terminology Matching Note Payable Bonds Payable Common Stock Income Statement Balance Sheet Retained Earnings Statement Statement of Cash Flow Basic Accounting Equation multimedia.phoenix.edu Annual Report View Assessment HCS/380: Week 1 - Terminology Matching - Academic Resources Owed to a bank for the money borrowed Bill customer/patient for services HCS Debt securities sold to investors that must be repaid at a particular date in the future A AOL PASSV REQUIRED Enter your password for "kaylakı Accounts. Prepared by corporate management to present financial information, management discussion, notes, and auditor's report Used by creditors to determine if they will be paid Assets Liabilities+Stockholder's Equity Used by creditors and investors to analyze the organization's cash position Used by investors to evaluate the organization's history of paying high dividends The total amount paid in by stockholders for the share…arrow_forwardplease click on image to see more cleararrow_forwardQUESTION 1 The following debtor control account and debtors list were prepared by the owner of Siyadula Traders. The owner is unsure if he has correctly prepared it. REQUIRED: Jse the following information to prepare the correct account and list: Debtors control account for January 2021 Debtors list at 31 January 2021. General Ledger DEBTORS CONTROL ACCOUNT Jan 01 Balance b/d 54 300 Jan 31 Bank and discount CRJ5 36 200 Sales Returns SRJ 6 200 Sales SJ 62 110 Balance c/d 37 810 98 310 98 310 Feb 01 Balance b/d 37 810 Debtors List as at 31 January 2021 Debit Credit B. Afleck 12 525 M. Damon 19 085 J. Peter 18 100 A. Paul 9 200 D. Carter 17 900 76 810arrow_forward
- Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21…arrow_forwardBank Cheque Account Deposits by Customers Cheque Book Stock Retained Earnings Capital Stock Cash Bank IT System Salaries Expense Fixtures & Fittings Rent Expense Bank Commission Income Land Sale of Stamps Accounting & Auditing Fees Provision for Tax Payments Advertising Expense Building ? Celebrity Bank 32.500 Supplies Expense 3.623.410 Utilities Expense 2.400 Accounts Payable Accounts Receivable Service Revenue 2.200.000 5.300.000 Supplies 70.400 Stamp Stock 45.000 Locker Rent Income 265.000 Reserves at Central Bank 37.600 Loan to Customers 510.000 Sale of Cheque Books 390.000 Stationary Expense 1.760 Bank Overdraft in Other Banks 55.600 Comuputer Consultancy Expense 11.000 Interest Payable on Bank Overdraft 12.400 Interest Expense 765.000 Cheques on Clearing Required: a) Prepare the income statement of Celebrity Bank for the year ended December 31, 2012. b) Prepare the company's balance sheet at December 31, 2012. 1.240 880 280.400 43.300 1.560.000 1.990 2.700 3.100 530.000 1.810.500…arrow_forwardWhat is a transaction that has not been processed yet by a financial institutionarrow_forward
- The summarized trial balance of XYZ Corporation includes the following accounts on December 31,2022: Debit Credit Cash P 239,738 9,800 31,386 Accounts receivable Dividend receivable Interest receivable Investments at FVPL 956 136,910 Investments at FVOCI 3,760,944 1,310 Deferred tax asset Accounts payable P 20,506 Interest payable 560 Other payables 166 Income tax payable 484 Provision for employee benefits 1,504 Deferred tax liability 112,828 Share capital 2,736,048 Share premium 752,180 Retained Earnings 556,768 P4,181,044 P4,181,044 The provision for employee benefits includes P1,050 payable in the subsequent year. Required: 1. Prepare Statement of Financial Positionarrow_forwardThe bookkeeper for Geronimo Company has prepared the following balance sheet at 31/12/2007 Balance sheet for (Geronimo Company) at 31/12/2007 liabilities and owner equity Assets ID ID Current assets: Short-term liabilities: Bills payable 40625 Account payable (A/P) 28000 Long-Term Liabilities: bonds payable 82350 Long-term notes payable. Owners' Equity: Cash 22000 22000 Account receivable(A/R) Ending inventory Fixed assets: 35000 Machinery and equipment Intangible assets: Patents 40000 54900 Capital 155500 Total Total 274500 If you know Current assets 50% from total assets, fixed assets 30% from total assets, Intangible assets 20% from total assets, Cash 50% from Current assets R/ Complete the balance sheetarrow_forwardMatching answersarrow_forward
- what is type of this account? General reserve Outstanding Salaries Provision for Taxation office expenses Loan from HSBC Bank classify on this basisarrow_forwardActivities: Prepare an Accounts Receivable Subsidiary Ledger of the following transactions. Write your answer on a separate sheet of paper. Activity 1 Prepare the Accounts Receivable Subsidiary Ledger for XYZ Company for the year ended on December 31, 2020. IV. December 1: The opening balance for Mr. James and Mr. John is P 250,000 andP 450,000. Sold goods to Mr. James on credit for P 300,000. Received payments from Mr. James, P250,000 Received payments Mr. John, P450,000 December 4: December 12: December 16: Activity 2 Prepare the Accounts Receivable Subsidiary Ledger for ABC Company for the year ended on August 31, 2019. Aug. 1: Aug. 3: Aug. 13: Aug. 20: The opening balance for Ms. Santos and Ms. Cruz is P 200,000 and P 400,000. Sold goods to M Williams on credit for P 350,000. Received payments from M Williams, P200,000 Received payments T George, 400,000 Activity 3 Prepare the Accounts Receivable Subsidiary Ledger for XXX Company for the year ended on July 31, 2020. July. 1: July…arrow_forwardExercises Exercise 1 When examining the accounts of Tripoli Company, you ascertain that balances relating to both receivables and payables are included in a single controlling account (called receivables), which has a P23,050 debit balance. An analysis of the details of this account revealed the following: Items customers Accounts receivable Accounts receivable - officers (current collection expected) Debit balances-creditors Expense advances to salespersons Share capital subscriptions receivable Accounts payable for merchandise Unpaid salaries Credit balance in customer accounts Cash received in advance from customers for goods not yet shipped Expected bad debts, cumulative Debit P40,000 2,500 450 1,000 4,600 Credit P 19,250 3,300 2,000 450 500 Required: 1. Give the journal entry to eliminate the above account and to set up the appropriate accounts to replace it. 2. How should the items be reported on Tripoli Company's statement of financial position?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License