College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Textbook Question
Chapter 1, Problem 7E
Describe a transaction that resulted in the following changes in accounts:
- a. Rent Expense is increased by $1,050, and Cash is decreased by $1,050.
- b. Advertising Expense is increased by $835, and Accounts Payable is increased by $835.
- c.
Accounts Receivable is increased by $372, and Service Income is increased by $372. - d. Cash is decreased by $410, and C. Tryon, Drawing, is increased by $410.
- e. Equipment is increased by $1,850, Cash is decreased by $850, and Accounts Payable is increased by $1,000.
- f. Cash is increased by $1,650, and Accounts Receivable is decreased by $1,650.
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Ivanhoe Ltd. reported the following for the fiscal year 2021:
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Gain on sale of land
Profit before income tax
Income tax expense
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IVANHOE LTD.
Income Statement
Year Ended September 30, 2021
Additional information:
1.
2.
$ 100,000
25,000
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329,000
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90,000
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Accounts receivable decreased by $15.400 during the year.
Inventory increased by $6900 duri
Cash is increased by $1,650 and accounts receivable is decreased by $1,650
1. As a result of the changes in collection procedures, average accounts receivable balance will increase or (decrease) by
a. (900,000)
b. 90,000
c. 900,000
d. 32,400,000
2. To make the changes in collection procedures cost beneficial, the minimum savings in collection costs for the coming year should be
a. 8,100
b. 81,000
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d. 900,000
Chapter 1 Solutions
College Accounting (Book Only): A Career Approach
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