FINANCIAL ACCOUNTINGLL W/CONNECT >IC<
4th Edition
ISBN: 9781259934773
Author: SPICELAND
Publisher: MCG
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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.
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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
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(a)
5/Oct Supplies
700
Accounts Payable Account No. 201
Date Desc. F Debit Credit Balance
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(b)
6/Oct Accounts Payable
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(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 ACCOUNTINGLL W/CONNECT >IC<
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 - Match each account type with its description....Ch. 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 - At the beginning of 2018, Artichoke Academy...Ch. 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 - Cornhusker Company provides the following...Ch. 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 - Tar Heel Corporation provides the following...Ch. 1 - Prob. 1.6BPCh. 1 - Prob. 1.7BPCh. 1 - Great Adventures (The Great Adventures problem...Ch. 1 - Financial Analysis American Eagle Outfitters, Inc....Ch. 1 - The Buckle, Inc. Financial Analysis Financial...Ch. 1 - Prob. 1.4APCACh. 1 - Prob. 1.5APECh. 1 - Prob. 1.7APWC
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