Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 4, Problem 1MCQ
G. Venda, owner of Venda Services, withdrew $25,000 from the business during the current year. The entry to close the withdrawals account at the end of the year is:
Expert Solution & Answer
To determine
The entry to close the withdrawals account at the end of the year.
Answer to Problem 1MCQ
Option (e) is the correct answer.
Explanation of Solution
Person G is the owner of Company V, who has withdrawn $25,000 from the business during the present year. As it is given that the amount is withdrawn, it must be credited and the capital amount should be debited. Hence, the following entry shows that correct answer.
Therefore, Option e is the correct answer.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Judy Smith owed the Flower Company $3,200 on account by February 25. After several attempts to the collect the money that was owed, Flower Company wrote off Judy's account as uncollectible on August 31. On December 15 Flower Company received a check from Judy Smith for the full $3,200 that she had owed the company. The company's fiscal year ended on December 31. Which of the following journal entries is recorded to reinstate the account when using the direct write-off method?
a.Debit Accounts Receivable $3,200 and credit Uncollectible Accounts Recovered $3,200
b.Debit Bad Debt Expense $3,200 and credit Accounts Receivable $3,200
c.Debit Accounts Receivable $3,200 and credit Bad Debt Expense $3,200
d.Debit Allowance for Doubtful Accounts $3,200 and credit Bad Debt Expense $3,200
Byrde Industries had the following transactions occur:
Nov. 1: Accepted a $81,000, 75 day, 5% note from Ruth Langmore in granting a time
extension on her past-due account receivable.
Dec. 31: Adjusted the year-end accounts for the accrued interest earned on the note.
Next year: Ruth Langmore honored the note on its due date.
Use this information to answer the following questions. Assume 360 days in a calendar year.
Round all answers to the nearest dollar.
1. Provide the journal entry Byrde records on November 1. If no entry is required type No
Entry.
2. Provide the journal entry Byrde records on December 31. If no entry is required type No
Entry.
3. Provide the date and the journal entry Byrde records on the date the note is honored. If
no entry is required type No Entry.
Dina Kader withdrew a total of $35,000 from her business during the current year. The entry needed to close the withdrawals account is:
Group of answer choices
Debit Dina Kader, Capital and credit Dina Kader, Withdrawals for $35,000.
Debit Dina Kader, Withdrawals and credit Cash for $35,000.
Debit Income Summary and credit Dina Kader, Withdrawals for $35,000.
Debit Income Summary and credit Cash for $35,000.
Chapter 4 Solutions
Principles of Financial Accounting.
Ch. 4 - G. Venda, owner of Venda Services, withdrew 25,000...Ch. 4 - The following information is available for the R....Ch. 4 - Which of the following errors would cause the...Ch. 4 - The temporary account used only in the closing...Ch. 4 - Prob. 5MCQCh. 4 - Prob. 1DQCh. 4 - What accounts are affected by closing entries?...Ch. 4 - What two purposes are accomplished by recording...Ch. 4 - Prob. 4DQCh. 4 - Prob. 5DQ
Ch. 4 - Prob. 6DQCh. 4 - Prob. 7DQCh. 4 - Prob. 8DQCh. 4 - Prob. 9DQCh. 4 - Prob. 10DQCh. 4 - What are the characteristics of plant assets?Ch. 4 - Prob. 12DQCh. 4 - Prob. 13DQCh. 4 - Prob. 14DQCh. 4 - Prob. 15DQCh. 4 - Prob. 16DQCh. 4 - Prob. 17DQCh. 4 - Prob. 1QSCh. 4 - Prob. 2QSCh. 4 - Prob. 3QSCh. 4 - The ledger of Claudell Company includes the...Ch. 4 - Choose from the following list of terms/phrases to...Ch. 4 - The ledger of Mai Company includes the following...Ch. 4 - Prob. 7QSCh. 4 - Prob. 8QSCh. 4 - Classifying balance sheet items C3 The following...Ch. 4 - Prob. 10QSCh. 4 - Prob. 11QSCh. 4 - Prob. 12QSCh. 4 - Prob. 13QSCh. 4 - These 16 accounts are from the Adjusted Trial...Ch. 4 - The Adjusted Trial Balance columns of a 10-column...Ch. 4 - Use the following information from the Adjustments...Ch. 4 - The following data are taken from the unadjusted...Ch. 4 - Capri Company began the current period with a...Ch. 4 - Prob. 6ECh. 4 - Prob. 7ECh. 4 - Use the May 31 fiscal year-end information from...Ch. 4 - Prob. 9ECh. 4 - The adjusted trial balance for Salon Marketing Co....Ch. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Use the following adjusted year-end trial balance...Ch. 4 - Following are Nintendos revenue and expense...Ch. 4 - Prob. 15ECh. 4 - Hawk Company records prepaid assets and unearned...Ch. 4 - The following two events occurred for Trey Co. on...Ch. 4 - On April 1, Jiro Nozomi created a new travel...Ch. 4 - The following unadjusted trial balance is for Ace...Ch. 4 - Prob. 3APCh. 4 - The adjusted trial balance for Tybalt Construction...Ch. 4 - The adjusted trial balance of Karise Repairs on...Ch. 4 - The following six-column table for Hawkeye Ranges...Ch. 4 - On July 1, Lula Plume created a new self-storage...Ch. 4 - Prob. 2BPCh. 4 - Prob. 3BPCh. 4 - The adjusted trial balance for Anara Co. as of...Ch. 4 - Santo Companys adjusted trial balance on December...Ch. 4 - The following six-column table for Solutions Co....Ch. 4 - This serial problem began in Chapter 1 and...Ch. 4 - Accounting Analysis Refer to Apples financial...Ch. 4 - Prob. 2AACh. 4 - Prob. 3AACh. 4 - Prob. 1BTNCh. 4 - One of your classmates states that a companys...Ch. 4 - Review this chapters opening feature involving...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 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 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 Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible Wrote off as uncollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible Received $741 from M. Fuller in full payment of his account which had been written off earlier as uncollectible Estimated uncollectible accounts expense for the year to be 1.5% of net credit sales of $521,000 April 2d July 31 August 15 September 26 October 16 December 31 The accounts receivable account had a balance of $114,630 and the beginning…arrow_forwardOn January 1, Cooper Company accepted a one-year note for $5,000 at 4% from one of its customers. When the note matured on December 31, the customer was unable to pay, and the company treated it as a dishonored note. Prepare the journal entry that Cooper will make to record the dishonored note. Omit explanation.arrow_forwardAt year-end (December 31), Chan Company estimates its bad debts as 0.50% of its annual credit sales of $854,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $427 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions.arrow_forward
- Subject :- Accounting . K. Canopy, the proprietor of Canopy Services, withdrew $5,000 from the business during the current year. The entry to close the withdrawals account at the end of the year is:arrow_forwardFollowing are transactions for Vitalo Company. November 1 Accepted a $11,000, 180-day, 7 % note from Kelly White in granting a time extension on her past-due account receivable. December 31 Adjusted the year-end accounts for the accrued interest earned on the White note. April 30 White honored her note when presented for payment. Complete the table to calculate the interest amounts at December 31st and April 30th and use those calculated values to prepare your journal entries. (Do not round intermediate calculations. Use 360 days a year.) Complete this question by entering your answers in the tabs below. General Journal Complete the table to calculate the interest amounts at December 31st and April 30th November 1 Through December 31 Interest Amounts Principal Rate (%) Time Total interest Total Through Maturity January 1 Through April 30arrow_forwardFollowing are transactions for Vitalo Company. November 1 Accepted a $10,000, 180-day, 7% note from Kelly White in granting a time extension on her past-due account receivable. December 31 Adjusted the year-end accounts for the accrued interest earned on the White note. April 30 White honored her note when presented for payment. Complete the table to calculate the interest amounts at December 31st and April 30th and use those calculated values to prepare your journal entries. (Do not round intermediate calculations. Use 360 days a year.) Complete this question by entering your answers in the tabs below. General Journal Interest Amounts Complete the table to calculate the interest amounts at December 31st and April 30th Total Through Maturity November 1 Through December 31 January 1 Through April 30 Principal Rate (%) Time Total interest Amounts General Journal > ere to search 68°F 40 4. ort se deletearrow_forwardAt year-end (December 31), Chan Company estimates its bad debts as 0.80% of its annual credit sales of $945,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $473 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions. Prev Question 4 of 5 Total Please use the numbers indicated in my question and place solutions on journals indicated per assignment instructions.arrow_forwardBelow are four independent cases (a to d) affecting Wong Auto Repair Inc. (WARI) in 2019.a. Each Friday, WARI pays employees for the current week’s work. The amount of the payroll is$6,000 for a five-day week. The current accounting period ends on Monday.b. WARI has received notes receivable from some clients for services. During the current year, WARIhas earned accrued interest revenue of $3,250, which will be received next year.c. The beginning balance of supplies was $15,500. During the year, then entity purchased suppliescosting $55,400, and at December 31 the inventory of supplies on hand is $12,650.d. WARI is conducting test of new hinges to be used in the rebuilding of a dump truck, and the clientpaid WARI $15,000 at the start of the project. WARI recorded this amount as Unearned ServiceRevenue. The tests will take several months to complete. WARI executives estimate that thecompany has earned two-thirds of the total fee during the current year.RequiredJournalize the adjusting…arrow_forwardFollowing are transactions for Vitalo Company. November 1 Accepted a $5,000, 180-day, 7% note from Kelly White in granting a time extension on her past-due account. receivable. December 31 Adjusted the year-end accounts for the accrued interest earned on the White note. April 30 White honored her note when presented for payment. Complete the table to calculate the interest amounts at December 31st and April 30th and use those calculated values to prepare your journal entries. (Do not round intermediate calculations. Use 360 days a year.) Complete this question by entering your answers in the tabs below. Interest Amounts General Journal Complete the table to calculate the interest amounts at December 31st and April 30th. November 1 Through December 31 January 1 Through April 30 Principal Rate (%) Time Total interest Total Through Maturityarrow_forwardFollowing are transactions for Vitalo Company. November 1 Accepted a $7,000, 180-day, 7% note from Kelly White in granting a time extension on her past-due account receivable. December 31 Adjusted the year-end accounts for the accrued interest earned on the White note. April 30 White honored her note when presented for payment. Complete the table to calculate the interest amounts at December 31st and April 30th and use those calculated values to prepare your journal entries. (Do not round intermediate calculations. Use 365 days a year.) Complete this question by entering your answers in the tabs below. Interest Amounts General Journal Complete the table to calculate the interest amounts at December 31st and April 30th.arrow_forwardAt year-end (December 31), Chan Company estimates its bad debts as 0.90% of its annual credit sales of $639,000. Chan records its Bad Debts Expense for that estimate. On the following February 1, Chan decides that the $320 account of P. Park is uncollectible and writes it off as a bad debt. On June 5, Park unexpectedly pays the amount previously written off. Prepare Chan's journal entries for the transactions. View transaction list Journal entry worksheet 1 2 3 Record the estimated bad debts expense. Note: Enter debits before credits. Date Dec 31 4 Record entry General Journal Clear entry Debit Credit View general journalarrow_forwardOn January 2, 2018 Mr. B contracted a 1-year P100,000 loan from Metrobank for the purchase of computers. The equipment which had a depreciable life of eight (8) years were acquired on April 1, 2018. The interest expense for one (1) year amounted P15,000. In the same year, his bank deposit with PNB earned an interest income of P2,000. During the year, he incurred an interest expense on unpaid business tax of P600. The deductible interest expense of Mr. B in 2018 is - a. P14,240 c. P14,760 b. P13,600 d. P14,940arrow_forwardarrow_back_iosSEE MORE QUESTIONSarrow_forward_ios
Recommended textbooks for you
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY