SURVEY OF ACCOUNTING(LL)>CUSTOM PKG.<
5th Edition
ISBN: 9781264010653
Author: Edmonds
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 2, Problem 8E
a)
To determine
Show the effects of the events on the financial statements using horizontal statement model. Use OA to indicate operating activity, IA for investing activity, FA for financing activity, and NC for net change in cash. Use NA to indicate accounts not affected by the event.
b)
To determine
Explain the difference between the amount of net income and amount of net
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PROBLEM NO. 10
A portion of the SPARK COMPANY's statement of financial position appears as follows:
December 31, 2017
December 31, 2016
Assets:
Cash
Notes receivable
Inventory
Liabilities:
Accounts payable
75,000
Spark Company pays for all operating expenses with cash and purchases all inventory on cred
During 2017, cash totaling P471,700 was paid on accounts payable. Operating expenses for 20
totaled P220,000. All sales are cash sales. The inventory was restocked by purchasing 1,5
units per month and valued by using periodic FIFO. The unit cost of inventory was P32.60 dur
January 2017 and increased P0.10 per month during the year. Spark selis only one product.
sales are made for P50 per unit. The ending invertory for 2016 was valued at P32.50 per uni
3
Based on the preceding information, compute the following:
46. Number of units sold during 2017
A. 7,066
B. 18,400
47. Accounts payable balance at December 31, 2017
A. P190,100
B. P50,000
48. Inventory quantity on December 31, 2017
A.…
Question 1
The following are financial statements of Crane Company.
Crane CompanyIncome StatementFor the Year Ended December 31, 2022
Net sales
$2,192,500
Cost of goods sold
1,010,500
Selling and administrative expenses
900,500
Interest expense
78,000
Income tax expense
62,500
Net income
$ 141,000
Crane CompanyBalance SheetDecember 31, 2022
Assets
Current assets
Cash
$ 55,100
Debt investments
89,000
Accounts receivable (net)
168,400
Inventory
236,500
Total current assets
549,000
Plant assets (net)
572,500
Total assets
$ 1,121,500
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
$ 152,000
Income taxes payable
31,000
Total current liabilities
183,000
Bonds payable
220,740
Total liabilities
403,740
Stockholders’ equity
Common stock
345,000
Retained earnings
372,760…
Week 7 Discussion question
Accounting for Assets: Receivables
Johnson company’s financial year ended on December 31, 2010. All the transactions related to the company’s uncollectible accounts are can be found below:
January 15
Wrote of $440 account of Miller Company as uncollectible
April 2nd
Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier
July 31
Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible
August 15
Wrote off as uncollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200
September 26
Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible
October 16
Received $741 from M. Fuller in full payment of his account which had been written off earlier as uncollectible
December 31
Estimated uncollectible…
Chapter 2 Solutions
SURVEY OF ACCOUNTING(LL)>CUSTOM PKG.<
Ch. 2 - 1. What does accrual accounting attempt to...Ch. 2 - 2. Define recognition. How is it independent of...Ch. 2 - 3. What does the term deferral mean?Ch. 2 - 4. If cash is collected in advance of performing...Ch. 2 - Prob. 5QCh. 2 - 6. What effect does the issue of common stock have...Ch. 2 - 7. How does the recognition of revenue on account...Ch. 2 - 8. Give an example of an asset source transaction....Ch. 2 - 9. When is revenue recognized under accrual...Ch. 2 - 10. Give an example of an asset exchange...
Ch. 2 - 11. What is the effect on the right side of the...Ch. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14QCh. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - 17. Why may net cash flow from operating...Ch. 2 - Prob. 18QCh. 2 - Prob. 19QCh. 2 - 20. What is the difference between a cost and an...Ch. 2 - Prob. 21QCh. 2 - Prob. 22QCh. 2 - 23. What does the term expense mean?Ch. 2 - Prob. 24QCh. 2 - 25. What is the purpose of the statement of...Ch. 2 - Prob. 26QCh. 2 - 27. Why is the balance sheet dated as of a...Ch. 2 - 28. In what order are assets listed on the balance...Ch. 2 - Prob. 29QCh. 2 - Prob. 30QCh. 2 - 31. What types of accounts are closed at the end...Ch. 2 - 32. Give several examples of period costs.Ch. 2 - 33. Give an example of a cost that can be directly...Ch. 2 - Prob. 34QCh. 2 - Prob. 1ECh. 2 - Exercise 2-2 Effect of accrued expenses on the...Ch. 2 - Prob. 3ECh. 2 - Prob. 4ECh. 2 - Prob. 5ECh. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Prob. 8ECh. 2 - Exercise 2-9 Supplies on financial statements Yard...Ch. 2 - Prob. 10ECh. 2 - Exercise 2-11 Prepaid items on financial...Ch. 2 - Exercise 2-12 Effect of an error on financial...Ch. 2 - Exercise 2-13 Unearned items on financial...Ch. 2 - Prob. 14ECh. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Prob. 20ECh. 2 - Exercise 2-21 Adjusting the accounts Norell Inc....Ch. 2 - Prob. 22ECh. 2 - Prob. 23ECh. 2 - Prob. 24ECh. 2 - Prob. 25ECh. 2 - Prob. 26ECh. 2 - Exercise 2-27 Identifying transaction type and...Ch. 2 - Exercise 2-27A Effect of accounting events on the...Ch. 2 - Prob. 29ECh. 2 - Exercise 2-29A Identifying source, use, and...Ch. 2 - Prob. 31ECh. 2 - Problem 2-32 Recording events in a horizontal...Ch. 2 - Problem 2-37A Effect of adjusting entries on the...Ch. 2 - Prob. 34PCh. 2 - Prob. 35PCh. 2 - Problem 2-36 Identifying and arranging elements on...Ch. 2 - Problem 2-37 Missing information in financial...Ch. 2 - Problem 2-38 Events for two complete accounting...Ch. 2 - Prob. 1ATCCh. 2 - ATC 2-3 Research Assignment Identifying accruals...Ch. 2 - ATC 2-4 Writing Assignment Revenue Recognition and...
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