INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
10th Edition
ISBN: 9781264770335
Author: SPICELAND
Publisher: MCG
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Textbook Question
Chapter 14, Problem 14.12Q
How does an installment note differ from a note for which the principal is paid as a single amount at maturity?
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19 A journal entry records an estimate of uncollectible accounts using the allowance method with $100,000 in accounts receivable with 50% of the receivables 60 days overdue and estimated to be 50% uncollectible. The remainder is
under 30 days and estimated to be 10% uncollectible. There is a credit balance of $200 before adjustment.
Which journal entry reflects this scenario?
Debit bad debt expense for $29,800; credit allowance for doubtful accounts for $29,800
Debit bad debt expense for $30,200; credit allowance for doubtful accounts for $30,200
Debit bad debt expense for $30,200; credit accounts receivable for $30,200
Debit bad debt expense for $29,800; credit accounts receivable for $29,800
Please solve these requirements a and b and give correct answer these general accounting question
Sales
$ 79,000
$ 74,000
Cost of goods sold
52,000
48,000
Gross margin
27,000
26,000
Selling and administrative expenses:
Selling expenses
8,500
8,000
Administrative expenses
12,000
11,000
Total selling and administrative expenses
20,500
19,000
Net operating income
6,500
7,000
Interest expense
600
600
Net income before taxes
5,900
6,400
Income taxes
2,360
2,560
Net income
3,540
3,840
Dividends to common stockholders
320
600
Net income added to retained earnings
3,220
3,240
Beginning retained earnings
26,660
23,420
Ending retained earnings
$ 29,880
$ 26,660
Required:
Compute the following financial ratios for this year:
Times interest earned ratio.
Debt-to-equity ratio.
Equity multiplier.
Chapter 14 Solutions
INTER. ACCOUNTING - CONNECT+ALEKS ACCESS
Ch. 14 - How is periodic interest determined for...Ch. 14 - As a general rule, how should long-term...Ch. 14 - How are bonds and notes the same? How do they...Ch. 14 - What information is contained in a bond indenture?...Ch. 14 - How is the price determined for a bond (or bond...Ch. 14 - A zero-coupon bond pays no interest. Explain.Ch. 14 - Prob. 14.8QCh. 14 - Compare the two commonly used methods of...Ch. 14 - Prob. 14.10QCh. 14 - When a notes stated rate of interest is...
Ch. 14 - How does an installment note differ from a note...Ch. 14 - Prob. 14.13QCh. 14 - Prob. 14.14QCh. 14 - Air Supply issued 6 million of 9%, 10-year...Ch. 14 - Both convertible bonds and bonds issued with...Ch. 14 - Prob. 14.17QCh. 14 - Cordova Tools has bonds outstanding during a year...Ch. 14 - If a company prepares its financial statements...Ch. 14 - (Based on Appendix 14A) Why will bonds always sell...Ch. 14 - Prob. 14.21QCh. 14 - Prob. 14.22QCh. 14 - Prob. 14.23QCh. 14 - Bank loan; accrued interest LO132 On October 1,...Ch. 14 - Non-interest-bearing note; accrued interest LO132...Ch. 14 - Determining the price of bonds LO142 A company...Ch. 14 - Determining the price of bonds LO142 A company...Ch. 14 - Effective interest on bonds LO142 On January 1, a...Ch. 14 - Effective interest on bonds LO142 On January 1, a...Ch. 14 - Straight-line interest on bonds LO142 On January...Ch. 14 - Investment in bonds LO142 On January 1, a company...Ch. 14 - Note with unrealistic interest rate LO143 On...Ch. 14 - Installment note LO143 On January 1, a company...Ch. 14 - Prob. 14.12BECh. 14 - Bonds with detachable warrants LO145 Hoffman...Ch. 14 - Convertible bonds LO145 Hoffman Corporation...Ch. 14 - Prob. 14.22ECh. 14 - Prob. 14.36ECh. 14 - Prob. 14.14PCh. 14 - Prob. 14.17PCh. 14 - Prob. 14.21PCh. 14 - Prob. 14.3DMP
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- [The following information applies to the questions displayed below.) On January 1, Mitzu Company pays a lump-sum amount of $2,600,000 for land, Building 1, Building 2, and Land Improvements 1. Building 1 has no value and will be demolished. Building 2 will be an office and is appraised at $810,000, with a useful life of 20 years and a $75,000 salvage value. Land Improvements 1 is valued at $360,000 and is expected to last another 12 years with no salvage value. The land is valued at $1,830,000. The company also incurs the following additional costs. Cost to demolish Building 1 Cost of additional land grading Cost to construct Building 3, having a useful life of 25 years and a $402,000 salvage value Cost of new Land Improvements 2, having a 20-year useful life and no salvage value $ 347,400 187,400 2,282,000 178,000 2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1. View transaction list Journal entry worksheetarrow_forwardWhat was Indiana Corporation's net operating income for the year using variable costing on these general accounting question?arrow_forwardCan you please answer the general accounting question?arrow_forward
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