INTERM.ACCT.:REPORTING...-CENGAGENOWV2
3rd Edition
ISBN: 9781337909358
Author: WAHLEN
Publisher: CENGAGE L
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Chapter 21, Problem 21E
(Appendix 21.1) Visual Inspection The following changes in account balances were taken from Walson Company’s adjusted
In addition, the following information was obtained from the company’s records:
- Land was sold, at cost, for $1,900.
- Dividends of $4,000 were declared and paid.
- Equipment was purchased for $10,400.
- Common stock was issued for $9,000.
- Beginning cash balance was $17,000.
Required:
Using visual inspection and the direct method, prepare Walson’s 2019 statement of
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The following is a portion of the current assets section of the balance sheets of Avanti's, Inc., at December 31, 2020 and 2019:
12/31/20
12/31/19
Accounts receivable, less allowance for baddebts of $9,750 and $15,336, respectively
$179,866
$225,851
Required:a. If $11,849 of accounts receivable were written off during 2020, what was the amount of bad debts expense recognized for the year? (Hint: Use a T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.)
b. The December 31, 2020, Allowance account balance includes $3,034 for a past due account that is not likely to be collected. This account has not been written off.(1) If it had been written off, will there be any effect of the write-off on the working capital at December 31, 2020?
Yes
No
(2) If it had been written off, will there be any effect of the write-off on net income and ROI for the year ended December 31, 2020?
Yes
No
c. The…
The following is a portion of the current assets section of the balance sheets of Avanti's, Inc., at December 31, 2020 and 2019:
12/31/20 12/31/19
$173,630
$221,317
Accounts receivable, less allowance for bad
debts of $9,344 and $16,814, respectively
Required:
a. If $11,033 of accounts receivable were written off during 2020, what was the amount of bad debts expense recognized for the year?
Hint. Use a T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.)
Bad debt expense
b. The December 31, 2020, Allowance account balance includes $3,045 for a past due account that is not likely to be collected. This
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(1) If it had been written off, will there be any effect of the write-off on the working capital at December 31, 2020?
O Yes
O No
(2) If It had been written off, will there be any effect of the write-off on net Income and ROI for the year ended December 31, 2020?
O Yes
O No
c. The level of Avanti's…
You have been engaged in your second annual examination of the financial
statements of S Co. The following data were provided to you by the company
accountant:
Cash Receipts:
Collection on sale on account
Cash sales
740,000
100,000
Proceeds of a note payable dated October 1, 2019
and due October 1, 2021, discounted at 18%
30,000
Cash Disbursements:
400,000
Purchase of land and building on April 1, 2019
Full payment of furniture and fixtures purchased
on July 1, 2019
On accounts payable and administrative expenses
Selling expenses
To 518,000
200,000
Of the sales on account, P10,000 was returned because of poor quality and
there was a purchase return of P8,000.
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December 31, 2018
Accounts Receivable
Merchandise inventory
Accounts payable
Accrued rent expenses
December 31, 2019
200,000
220,000
180,000
40,000
150,000
190,000
230,000
40,000
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Chapter 21 Solutions
INTERM.ACCT.:REPORTING...-CENGAGENOWV2
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Ch. 21 - Prob. 11GICh. 21 - Prob. 12GICh. 21 - Prob. 13GICh. 21 - Dunn Company recognized a 5,000 unrealized holding...Ch. 21 - Jordan Company recognized a 5,000 unrealized...Ch. 21 - Indicate how a company computes the amount of...Ch. 21 - Prob. 17GICh. 21 - Prob. 18GICh. 21 - Prob. 19GICh. 21 - Which of the following would be considered a cash...Ch. 21 - In a statement of cash flows (indirect method),...Ch. 21 - The net cash provided by operating activities in...Ch. 21 - The retirement of long-term debt by the issuance...Ch. 21 - Prob. 5MCCh. 21 - Selected information from Brook Corporations...Ch. 21 - Prob. 7MCCh. 21 - Prob. 8MCCh. 21 - Which of the following need not be disclosed in a...Ch. 21 - The following information was taken from Oregon...Ch. 21 - Prob. 1RECh. 21 - Prob. 2RECh. 21 - Given the following information, convert Cardinal...Ch. 21 - Given the following information, convert Robin...Ch. 21 - In the current year, Harrisburg Corporation had...Ch. 21 - Tifton Co. had the following cash transactions...Ch. 21 - Tifton Co. had the following cash transactions...Ch. 21 - Trenton Corporation has the following items....Ch. 21 - Prob. 9RECh. 21 - In the current year, Harrisburg Corporation...Ch. 21 - Providence Company sold equipment for 25,000 cash....Ch. 21 - Annapolis Corporation paid 270,000 to retire bonds...Ch. 21 - Given the following information, compute Lemon...Ch. 21 - Prob. 14RECh. 21 - Prob. 1ECh. 21 - Prob. 2ECh. 21 - Visual Inspection Noble Companys accounting...Ch. 21 - Prob. 4ECh. 21 - Prob. 5ECh. 21 - Prob. 6ECh. 21 - Prob. 7ECh. 21 - Prob. 8ECh. 21 - Partially Completed Spreadsheet Hanks Company has...Ch. 21 - Spreadsheet The following 2019 information is...Ch. 21 - Spreadsheet and Statement The following 2019...Ch. 21 - Fixed Asset Transactions The following is an...Ch. 21 - Retirement of Debt Moore Company is preparing its...Ch. 21 - Interest and Income Taxes Staggs Company has...Ch. 21 - Investments On October 4, 2019, Collins Company...Ch. 21 - Statement of Cash Flows The following is a list of...Ch. 21 - Investing Activities and Depreciable Assets...Ch. 21 - Spreadsheet and Statement The following 2019...Ch. 21 - (Appendix 21.1) Operating Cash Flows The following...Ch. 21 - (Appendix 21.1) Statement of Cash Flows The...Ch. 21 - (Appendix 21.1) Visual Inspection The following...Ch. 21 - Prob. 22ECh. 21 - Classification of Cash Flows A company's statement...Ch. 21 - Prob. 2PCh. 21 - Statement of Cash Flows The following is a list of...Ch. 21 - Statement of Cash Flows The following is a list of...Ch. 21 - Partially Completed Spreadsheet The following...Ch. 21 - Spreadsheet and Statement of Cash Flows The...Ch. 21 - Prob. 7PCh. 21 - Spreadsheet from Trial Balance Heinz Companys post...Ch. 21 - Prepare Ending Balance Sheet On December 31, 2019,...Ch. 21 - Infrequent Transactions The following transactions...Ch. 21 - Prob. 11PCh. 21 - Comprehensive Angel Company has prepared its...Ch. 21 - Comprehensive The following are Farrell...Ch. 21 - (Appendix 21.1) Operating Cash Flows Refer to the...Ch. 21 - (Appendix 21.1) Statement of Cash Flows The...Ch. 21 - Comprehensive The following are Farrell...Ch. 21 - (Appendix 21.1) Comprehensive The following are...Ch. 21 - Prob. 18PCh. 21 - Financial Statement Interrelationships Prepare an...Ch. 21 - Statement of Cash Flows A friend of yours is...Ch. 21 - Prob. 3CCh. 21 - Operating, Investing, and Financing Activities The...Ch. 21 - Prob. 5CCh. 21 - Spreadsheet Method The spreadsheet method is...Ch. 21 - Prob. 7CCh. 21 - Inflows and Outflows Alfred Engineering Company is...Ch. 21 - Ethics and Cash Flows You are the accountant for...
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