MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting
12th Edition
ISBN: 9780134727677
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Chapter 2, Problem 2.13S
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Mosaic’s Company balance sheet at December 31, 2018, reported thefollowing:Accounts receivable...........................................$2,500,000Allowance for uncollectible accounts...................$66,600The following are the transactions to be taken into consideration for 2019:a. Total credit sales for 2019 were $3,600,000.b. 2% of sales were estimated to be uncollectible.c. The company received cash payments on account during 2019 for $1,000,000d. Accounts receivable identified to be uncollectible totaled $94,000.e. December 31, 2019, aging of receivables indicates that $75,000 of the receivablesis uncollectible.Requirements:1. Prepare a Balance Sheet extract clearly showing the net realizable value of thereceivables as at December 31, 2018?2. Prepare the journal entries for the company’s 2019 transactions.3. Prepare the Accounts receivable and the Allowance for uncollectible Accounts T-accounts based on the information presented above. (Note: The opening balancesand the…
The following accounts are taken from the adjusted trial balance on December 31, 2020
of Romo Company. (all accounts with normal balances)Cash .......................................... ........... 32,000Accounts Receivable............................... 25,000Merchandise Inventory .............................. 35,000Building......................................... .......... 150,000Accumulated Depreciation—Building ......... 20,000Accounts Payable ...................................... 12,000Share Capital-Ordinary............................... 100,000Retained Earnings...................................... 49,000Dividends.................................................... 30,000Sales ......................................................... 325,000Sales Discounts......................................... 6,000Sales Returns & Allowances ...................... 8,000Cost of Goods Sold ................................... 183,000Operating Expenses…
(Learning Objectives 5, 7: Apply GAAP for uncollectible receivables; evaluateliquidity through ratios) Wronkovich & Sells, an accounting firm, advises Off the BoatSeafood that its financial statements must be changed to conform to GAAP. At December 31,2018, Off the Boat’s accounts include the following:Cash..................................................................................... $83,000Accounts receivable.............................................................. 40,000Inventory.............................................................................. 57,000Prepaid expenses.................................................................. 18,000Total current assets.......................................................... $198,000Accounts payable ................................................................. $62,000Other current liabilities........................................................ 42,000Total current…
Chapter 2 Solutions
MyLab Accounting with Pearson eText -- Access Card -- for Financial Accounting
Ch. 2 - All of the following events at a sandwich shop are...Ch. 2 - Identify the asset from the following list of...Ch. 2 - Amounts owed to a company by its customers would...Ch. 2 - Thorpe Corporation purchases a new delivery truck...Ch. 2 - Adam Corporation issues stock to Cara Riley in...Ch. 2 - Blake Company completed a consulting job and...Ch. 2 - Prob. 7QCCh. 2 - Accounts Payable had a normal beginning balance of...Ch. 2 - Which of the following debit and credit rules is...Ch. 2 - A companys beginning Cash balance was 8,000. At...
Ch. 2 - Prob. 11QCCh. 2 - Prob. 12QCCh. 2 - Prob. 13QCCh. 2 - In a double-entry accounting system, a. a debit...Ch. 2 - Prob. 15QCCh. 2 - Prob. 16QCCh. 2 - Prob. 2.1ECCh. 2 - LO 1 (Learning Objective 1: Identify transactions)...Ch. 2 - (Learning Objective 1: Differentiate between...Ch. 2 - (Learning Objective 1: Differentiate between...Ch. 2 - (Learning Objective 2: Show the impact of...Ch. 2 - (Learning Objective 2: Show the impact of...Ch. 2 - LO 3 (Learning Objective 3: Analyze the impact of...Ch. 2 - (Learning Objective 3: Analyze the impact of...Ch. 2 - (Learning Objective 3: Analyze the impact of...Ch. 2 - (Learning Objective 4: Journalize transactions)...Ch. 2 - (Learning Objective 4: Journalize and post...Ch. 2 - (Learning Objective 4: Journalize and post...Ch. 2 - (Learning Objective 4: Journalize transactions)...Ch. 2 - Prob. 2.13SCh. 2 - (Learning Objective 5: Use a trial balance)...Ch. 2 - Prob. 2.15SCh. 2 - (Learning Objectives 1, 2, 3, 4, 5: Define...Ch. 2 - Group A LO 1, 2, 4 (Learning Objectives 1, 2, 4:...Ch. 2 - LO 3 (Learning Objective 3: Analyze the impact of...Ch. 2 - (Learning Objective 3: Analyze the impact of...Ch. 2 - (Learning Objective 2: Show the impact of business...Ch. 2 - (Learning Objective 4: Journalize transactions in...Ch. 2 - (Learning Objectives 4, 5: Post journal entries...Ch. 2 - Prob. 2.23AECh. 2 - (Learning Objective 5: Construct and use a trial...Ch. 2 - (Learning Objective 5: Construct and use a trial...Ch. 2 - (Learning Objective 5: Solve for cash and...Ch. 2 - (Learning Objectives 1, 2, 4: Identify...Ch. 2 - (Learning Objective 3: Analyze the impact of...Ch. 2 - (Learning Objective 3: Analyze the impact of...Ch. 2 - (Learning Objective 2: Show the impact of business...Ch. 2 - LO 4 (Learning Objective 4: Journalize...Ch. 2 - Prob. 2.32BECh. 2 - (Learning Objective 4: Journalize entries and...Ch. 2 - (Learning Objective 5: Construct and use a trial...Ch. 2 - Prob. 2.35BECh. 2 - LO 5 (Learning Objective 5: Solve for cash and...Ch. 2 - (Learning Objectives 4, 5; Journalize and poet...Ch. 2 - Which of the following is an asset? a. Common...Ch. 2 - Prob. 2.39QCh. 2 - The journal entry to record the acquisition of...Ch. 2 - The journal entry to record the purchase of...Ch. 2 - If the credit to record the purchase of supplies...Ch. 2 - The journal entry to record a payment on account...Ch. 2 - If the credit to record the payment of an account...Ch. 2 - Which statement is false? a. A trial balance lists...Ch. 2 - If a corporation purchases a delivery van for...Ch. 2 - Prob. 2.47QCh. 2 - Prob. 2.48QCh. 2 - Prob. 2.49QCh. 2 - Prob. 2.50QCh. 2 - Receiving cash from a customer on account will a....Ch. 2 - Prob. 2.52QCh. 2 - Purchasing a building for 115,000 by paying cash...Ch. 2 - Prob. 2.54QCh. 2 - Prob. 2.55QCh. 2 - Prob. 2.56QCh. 2 - Prob. 2.57QCh. 2 - (Learning Objective 5: Construct and use a trial...Ch. 2 - LO 2,3 (Learning Objectives 2, 3: Analyze the...Ch. 2 - (Learning Objective 4: Journalize transactions and...Ch. 2 - LO 4,5 (Learning Objectives 4, 5: Journalize and...Ch. 2 - Prob. 2.62APCh. 2 - Prob. 2.63BPCh. 2 - Prob. 2.64BPCh. 2 - Prob. 2.65BPCh. 2 - (Learning Objectives 4, 5: Journalize and post...Ch. 2 - (Learning Objectives 3, 5: Analyze the impact of...Ch. 2 - (Learning Objective 5: Analyzing accounts) The...Ch. 2 - Prob. 2.69CEPCh. 2 - Prob. 2.70CEPCh. 2 - (Learning Objectives 2, 3, 4: Analyze the impact...Ch. 2 - Prob. 2.72SCCh. 2 - Prob. 2.73DCCh. 2 - Prob. 2.74DCCh. 2 - Prob. 2.75EICCh. 2 - Prob. 2.76EICCh. 2 - Prob. 1FFCh. 2 - Prob. 1FA
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- The following account balances were found for Jetson Corp. at the beginning of its fiscal year, January 1, 2020: Accounts Receivable (debit balance)................................................. $1,240,250 Allowance for Doubtful Accounts (credit balance)....................................... 19,220 The following transactions are for the year 2020: Sales for the year were $8,100,000, of which 60% was on credit, and sales returns, all on credit, were $146,000. Cash collections, excluding recoveries, were $5,416,000. Jetson wrote off $62,500 in receivables, of which half was later recovered and collected. The company’s credit and collection manager has estimated that 6% of outstanding accounts receivable are uncollectible. Required: Calculate the bad debt expense for the year and record the appropriate journal entry.arrow_forwardThe ledger of X Limited contained the following account balances at December 31, 2019, the end of company's fiscal year. Accounts …… …… …… …… …… …… …… …… Balances ($)Cash …… …… …… …… …… …… …… …… …… 7130Accounts Receivable …… …… …… …… …… 23000Inventory …… …… …… …… …… …… …… …… 37000Supplies …… …… …… …… …… …… …… …… 1010Prepaid Rent …… …… …… …… …… …… …… 9410Machinery …… …… …… …… …… …… …… … 23900Accumulated Depreciation-Machinery …… 9980Equipment …… …… …… …… …… …… …… … 62700Accumulated Depreciation-Equipment …… 7530Land …… …… …… …… …… …… …… …… …… 73000Accounts Payable …… …… …… …… …… …… 976015% Debenture …… …… …… …… …… …… … 31000Common Stock ($ 2.5 par value) …… …… … 40000Additional Paid in Capital-Common Stock … 42000Retained Earnings …… …… …… …… …… …… 59400Sales …… …… …… …… …… …… …… …… …… 547200Sales Returns and Allowances …… …… …… 8000Sales Discount …… …… …… …… …… …… …… 3600Salaries Expense …… …… …… …… …… …… … 75500Cost of Goods Sold …… …… …… …… …… …… 385400Loss from employee strike …… ………arrow_forwardThe accounting records of Nettle Distribution show the following assets and liabilities as of December 31,2018 and 2019.December 31 2018 2019Cash . . . . . . . . . . . . . . . . . . . . . . . . $ 64,300 $ 15,640Accounts receivable . . . . . . . . . . . 26,240 19,100Office supplies . . . . . . . . . . . . . . . . 3,160 1,960Office equipment . . . . . . . . . . . . . . 44,000 44,000Trucks . . . . . . . . . . . . . . . . . . . . . . . 148,000 157,000December 31 2018 2019Building . . . . . . . . . . . . . . . . . . . . . $ 0 $80,000Land . . . . . . . . . . . . . . . . . . . . . . . . 0 60,000Accounts payable . . . . . . . . . . . . . 3,500 33,500Note payable . . . . . . . . . . . . . . . . . 0 40,000Required1. Prepare balance sheets for the business as of December 31, 2018 and 2019. Hint: Report only total equityon the balance sheet and remember that total equity equals the difference between assets and liabilities.2. Compute net income for 2019 by comparing total equity amounts for these…arrow_forward
- Use the following items taken from the financial statements of the Postal Service for the year ending December 31, 2018 to answer questions: Accounts payable ..............................................................$10,000 Accounts receivable ............................................................11,000 Accumulated depreciation – equipment ..........................28,000 Advertising expense ............................................................21,000 Cash ......................................................................................14,000 Owner’s capital (1/1/18) ...................................................105,000 Owner’s drawings ...............................................................14,000 Depreciation expense ........................................................12,000 Insurance expense ...............................................................3,000 Note payable, due 6/30/19…arrow_forwardprovided the following information on December 31, 2021: Accounts payable, net of creditors’ debit balance of P 200,000…P 2,000,000 Accrued expenses……………………………………………………... 800,000 Bonds payable due December 31, 2023……………………………. 4,500,000 Premium on bonds payable………………………………………….. 500,000 Deferred tax liability………………………………………………….. 500,000 Income tax payable…………………………………………………… 1,100,000 Cash dividend payable………………………………………………. 600,000 Share dividend distributable………………………………………… 400,000 Notes payable-6% due March 1, 2022…………………………….. 1,500,000 Notes payable-8% due October 1, 2022………………………….. 1,000,000 The financial statements for 2021 were issued on March 1, 2022. On December 31, 2021, the 6% note payable was refinanced on a long-term basis. Under the loan agreement, the entity has the right on December 31, 2021 to roll over the 8% note payable for at least 12 months after December 31,2021. At what amount…arrow_forwardMosaic’s Company balance sheet at December 31, 2019, reported the following: Accounts receivable...........................................$2,500,000 Allowance for uncollectible accounts...................$66,600 The following are the transactions to be taken into consideration for 2019:a. Total credit sales for 2019 were $3,600,000.b. 2% of sales were estimated to be uncollectible. c. The company received cash payments on account during 2019 for $1,000,000d. Accounts receivable identified to be uncollectible totaled $94,000. e. December 31, 2019, aging of receivables indicates that $75,000 of the receivables is uncollectible. Requirements: 1. What was the net realizable value of the receivables as at December 31, 2019? 2. Prepare the journal entries for the company’s 2019 transactions. 3. Prepare the Accounts receivable and the Allowance for uncollectible Accounts Taccounts based on the information presented above. (Note: The opening balances and the transactions from the journal…arrow_forward
- Find out the amount of bills matured during the year on the basis ofinformation given below ;Bills payable dishonoured........................ 37,000Closing balance of Bills payable................ 85,000Opening balance of Bills payable................. 70,000Bills payable accepted....... 90,000Cheque dishonoured........ 23,000arrow_forwardPrepare the suitable accounts and find out the missing figure if any.Opening balance of debtors ..14,00,000Opening balance of bills receivable.................. 7,00,000Closing balance of bills receivable............... 3,50,000Cheque dishonoured....... 27,000Cash received from debtors............................ 10,75,000Cheque received and deposited in the bank............ 8,25,000Discount allowed............. 37,500Irrecoverable amount......... 17,500Returns inwards....... 28,000Bills receivable received from customers........ 1,05,000Bills receivable matured....... 2,80,000Bills discounted.......... 65,000Bills endorsed to creditors...... 70,000arrow_forwardOn October1, 2020 Sue's Carpet Service borrows $ 125.000from the Bank on a 3-month, $ 125.000, 8% note. What entry must Sue's Carpet Service make on December 31 before financial statements are prepared? A) Interest Expense................................................................. 2.500 Notes Payables.......................................................... 2.500 B) Interest Expense................................................................10.000 Interest Payable ..................................................... 10.000 C) Interest Expense..............................................................2.500 Interest Payable..................................................... 2.500 ID) Interest Payable.............................................................. 2.500 Interest Expense................................................... 2.500arrow_forward
- The June 30, 2019, balance sheet of Ram Technologies reports the following: Accounts Receivable…………………………………. $265,000 Allowance for Uncollectible Accounts (Cr)…………. 7,100 At the end of each quarter, RAM estimates uncollectible-account expense to be 2% of credit sales. 4 At the end of the year, RAM ages its accounts receivable. RAM then adjusts the balance in the Allowance for Uncollectible Accounts to correspond to the aging schedule. During the second half of 20X9, RAM completed the following transactions: July 14 Made a compound entry to write off uncollectible accounts: T.J. Dooley, $700; Design Works, $2,400; and S. DeWitt, $100. Sept. 30 Recorded uncollectible-account expense equal to 2% of credit sales of $140,000 Nov. 22 Wrote off accounts receivable as uncollectible: Transnet, $1,300; Webvan, $2,100; and Alpha Group, $700. Dec. 31 Recorded uncollectible-account expense based on the aging of receivables Age of Accounts…arrow_forwardAt January 1, 2025, XYZ Company had an allowance for doubtfulaccounts with a $39,300 credit balance. XYZ Company reportedthe following information for 2025:Sales revenue .................................. $392,800Cash collections from customers ................ $307,500Write-offs of uncollectible accounts ........... ?Recoveries of previously written-off accounts .. $ 14,600Bad debt expense ............................... $ 31,090In order to estimate the bad debt expense, XYZ Company preparedthe following aging schedule at December 31, 2025:Accounts Receivable % Uncollectiblenot past due $181,000 3%1-30 days past due $ 36,000 7%31-60 days past due $ 42,000 11%61-90 days past due $ 21,000 24%over 90 days past due $ 13,000 46%total accounts receivable $293,000Calculate XYZ Company's accounts receivable balance atJanuary 1, 2025. Please don't provide answer in image format thank youarrow_forwardAt January 1, 2025, XYZ Company had an allowance for doubtfulaccounts with a $39,300 credit balance. XYZ Company reported the following information for 2025:Sales revenue .................................. $392,800Cash collections from customers ................ $307,500Write-offs of uncollectible accounts ........... ?Recoveries of previously written-off accounts .. $ 14,600Bad debt expense ............................... $ 31,090In order to estimate the bad debt expense, XYZ Company preparedthe following aging schedule at December 31, 2025:Accounts Receivable % Uncollectiblenot past due $181,000 3%1-30 days past due $ 36,000 7%31-60 days past due $ 42,000 11%61-90 days past due $ 21,000 24%over 90 days past due $ 13,000 46%total accounts receivable $293,000Calculate XYZ Company's accounts receivable balance atJanuary 1, 2025.arrow_forward
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