Identifying transactions Napa Tours Co. is a travel agency. The nine transactions recorded by Napa Tours during April 2018, its first month of operations, are indicated in the following T accounts: Indicate for each debit and each credit: (A) whether an asset, liability, stockholders’ equity, dividend, revenue, or expense account was affected and (B) whether the account was increased (+) or decreased (−). Present your answers in the following form, with transaction (1) given as an example: Account Debited Account Credited Transaction Type Effect Type Effect (1) asset + Stockholders’ equity +
Identifying transactions Napa Tours Co. is a travel agency. The nine transactions recorded by Napa Tours during April 2018, its first month of operations, are indicated in the following T accounts: Indicate for each debit and each credit: (A) whether an asset, liability, stockholders’ equity, dividend, revenue, or expense account was affected and (B) whether the account was increased (+) or decreased (−). Present your answers in the following form, with transaction (1) given as an example: Account Debited Account Credited Transaction Type Effect Type Effect (1) asset + Stockholders’ equity +
Solution Summary: The author explains that an account is referred to as a T-account because the alignment of the components resembles the capital letter ‘T’.
Napa Tours Co. is a travel agency. The nine transactions recorded by Napa Tours during April 2018, its first month of operations, are indicated in the following T accounts:
Indicate for each debit and each credit: (A) whether an asset, liability, stockholders’ equity, dividend, revenue, or expense account was affected and (B) whether the account was increased (+) or decreased (−). Present your answers in the following form, with transaction (1) given as an example:
Kindly give a step by step details explaination of each answers especially question 5 and 6. Please, don't just give answers without explaining how we arrived at the answer. Thanks!
The following are the questions:
1. What is the general journal entries the transactions described for Hogan Company. All sales are on account. Use the date of December 31 to make the entry to summarize sales for the year in the old territory and new territory.
2. Make the journal entries to record the write-off of accounts in the new territory.
3. Make the journal entry to record the write-off of accounts in the old territory.
4. Make the entry on December 31 to record uncollectible accounts expense for 20X1 for both territories. Make the calculation using the percentages developed by Hogan.
5. Let’s say the Allowance for Doubtful Accounts had a credit balance of $24,800 on September 30 before any of the above entries were made. Calculate the balance in the allowance account after…
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