Connect 1 Semester Access Card for Fundamentals of Financial Accounting
5th Edition
ISBN: 9781259128547
Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 4, Problem 4.17ME
Reporting an Income Statement
The Sky Blue Corporation has the following adjusted
| Debit | Credit | |
| Cash | $ 1,230 | |
| 2,000 | ||
| Prepaid Insurance | 2,300 | |
| Notes Receivable (long-term) | 3,000 | |
| Equipment | 12,000 | |
| $ 2,600 | ||
| Accounts Payable | 5,420 | |
| Salaries and Wages Payable | 1,000 | |
| Income Taxes Payable | 2,900 | |
| Unearned Revenue | 600 | |
| Common Stock | 2,400 | |
| 1,000 | ||
| Dividends | 300 | |
| Sales Revenue | 42,030 | |
| Rent Revenue | 300 | |
| Salaries and Wages Expense | 21,600 | |
| Depreciation Expense | 1,300 | |
| Utilities Expense | 4,220 | |
| Insurance Expense | 1,400 | |
| Rent Expense | 6,000 | |
| Income Tax Expense | 2,900 | |
| Total | $58,250 | $58,250 |
Prepare an income statement for the year ended December 31. How much net income did the Sky Blue Corporation generate during the year?
M4-17 Recording Closing
Refer to the adjusted trial balance in M4-14. Prepare closing journal entries on December 31.
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On January 1, 2021, the general ledger of Big Blst Fireworks includes the following account balances:
Debit
$ 23, 300
Accounts
Credit
Cash
Accounts Receivable
Allowance for Uncollectible Accounts
Inventory
Land
Accounts Payable
Notes Payable (6%, due in 3 years)
48, e00
$ 4, 580
37,e00
72,100
28,900
37,8ee
63,0ne
39,eee
Common Stack
Retained Earnings
Totals
$172, 488 $172,480
The $37,000 beginning balance of inventory consists of 370 units, esch costing $100. During Janusry 2021, Big Blest
Fireworks had the following inventory transactions:
January 3 Purchase 1,688 units for $168,888 on account ($18s each).
January 8 Purchase 1,78e units for $187, 800 on account ($118 cach).
January 12 Purchase 1,88e units for $287, e00 on account ($115 cach).
January 15 Return 135 of the units purchased on January 12 because of defects.
January 19 Sell 5,2ee units on account for $788,eee. The cost of the units sold is deternined using a FIFO perpetual
inventory systen.
January 22 Receive $753, eee…
The details of the accounts receivable of AA Corporation as December 31, 2022
shows the following:
Beginning balance
P3,450,000
Sales on account made to customers
2,800,000
Collection of accounts receivable during the year
4,200,000
Accounts written off as uncollectible
90,000
The following transactions were included in the recorded transactions during the
year:
1. Invoice dated December 28, 2022 for P350,000 was shipped and received by
the buyer on December 31, 2022, this invoice was recorded in the book at
P35,000.
2. Invoice dated and recorded on November 30, 2022 was erroneously priced at
P32 per unit. There were 11,000 units of goods delivered which were received
on December 10, 2022. The agreed price should be at P22 per unit only.
AA's policy is to provide 5% of the outstanding balance of accounts receivable as
uncollectible and there is beginning balance of allowance for bad debts of P40,000.
Statement 1: The amount of bad debt expense in 2022 is P158,250.
Statement 2: The…
On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances:
Accounts
Debit
Credit
Cash
$ 59,000
Accounts Receivable
25,600
Allowance for Uncollectible Accounts
$ 2,500
Inventory
Notes Receivable (5%, due in 2 years)
36,600
15,600
Land
158,000
Accounts Payable
15,100
223,000
Common Stock
Retained Earnings
54,200
Totals
$294,800
$294,800
During January 2021, the following transactions occur:
January 1 Purchase equipment for $19,800. The company estimates a residual value of $1,800 and a six-year service life.
January 4 Pay cash on accounts payable, $9,800.
January 8 Purchase additional inventory on account, $85,900.
January 15 Receive cash on accounts receivable, $22,30O.
January 19 Pay cash for salaries, $30,100.
January 28 Pay cash for January utilities, $16,800.
January 30 Sales for January total $223,000. All of these sales are on account. The cost of the units sold is $116,500.
Information for adjusting entries:
a. Depreciation on the equipment…
Chapter 4 Solutions
Connect 1 Semester Access Card for Fundamentals of Financial Accounting
Ch. 4 - Prob. 1QCh. 4 - Explain the relationships between adjustments and...Ch. 4 - Prob. 3QCh. 4 - Prob. 4QCh. 4 - What is a contra-asset? Give an example of one.Ch. 4 - Explain the differences between depreciation...Ch. 4 - What is an adjusted trial balance? What is its...Ch. 4 - On December 31, a company makes a 59,000 payment...Ch. 4 - Using the information in question 8, determine the...Ch. 4 - Using the information in question 8, prepare the...
Ch. 4 - What is the equation for each of the following...Ch. 4 - Prob. 12QCh. 4 - What is the purpose of closing journal entries?Ch. 4 - Prob. 14QCh. 4 - Prob. 15QCh. 4 - What is a post-closing trial balance? Is it a...Ch. 4 - The owner of a local business complains that the...Ch. 4 - Which of the following accounts would not appear...Ch. 4 - Which account is least likely to appear in an...Ch. 4 - When a concert promotions company collects cash...Ch. 4 - On December 31, an adjustments made to reduce...Ch. 4 - An adjusting journal entry to recognize accrued...Ch. 4 - Prob. 6MCCh. 4 - Company A has owned a building for several years....Ch. 4 - Which of the following trial balances is used as a...Ch. 4 - Assume the balance in Prepaid Insurance is 2,500...Ch. 4 - Assume a company receives a bill for 10,000 for...Ch. 4 - Understanding Concepts Related to Adjustments...Ch. 4 - Understanding Concepts Related to Adjustments...Ch. 4 - Matching Transactions with Type of Adjustment...Ch. 4 - Recording Adjusting Journal Entries Using the...Ch. 4 - Determine Accounting Equation Effects of Deferral...Ch. 4 - Prob. 4.6MECh. 4 - Determining Accounting Equation Effects of Accrual...Ch. 4 - Recording Adjusting Journal Entries Using be...Ch. 4 - Preparing Journal Entries for Deferral...Ch. 4 - Preparing Journal Entries for Deferral...Ch. 4 - Preparing Journal Entries for Deferral and Accrual...Ch. 4 - Reporting Adjusted Account Balances Indicate...Ch. 4 - Preparing an Adjusted Trial Balance Macro Company...Ch. 4 - Reporting an Income Statement The Sky Blue...Ch. 4 - Reporting an Income Statement The Sky Blue...Ch. 4 - Reporting a Balance Sheet Refer to M4-14. Prepare...Ch. 4 - Reporting an Income Statement The Sky Blue...Ch. 4 - Preparing and Posting Adjusting Journal Entries At...Ch. 4 - Preparing and Posting Adjusting Journal Entries At...Ch. 4 - Prob. 4.20MECh. 4 - Prob. 4.21MECh. 4 - Prob. 4.22MECh. 4 - Prob. 4.23MECh. 4 - Prob. 4.24MECh. 4 - Prob. 4.25MECh. 4 - Prob. 4.26MECh. 4 - Posting AJEs and Preparing an Adjusted Trial...Ch. 4 - Identifying Adjustments and Preparing Financial...Ch. 4 - Prob. 4.3ECh. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Determining Adjustments and Accounting Equation...Ch. 4 - Prob. 4.6ECh. 4 - Prob. 4.7ECh. 4 - Prob. 4.8ECh. 4 - Prob. 4.9ECh. 4 - Inferring Transactions from Accrual and Deferral...Ch. 4 - Reporting Depreciation The adjusted trial balance...Ch. 4 - Recording Transactions Including Adjusting and...Ch. 4 - Prob. 4.13ECh. 4 - Prob. 4.14ECh. 4 - Recording Adjusting Entries and Preparing an...Ch. 4 - Recording Four Adjusting Journal Entries and...Ch. 4 - Recording Four Adjusting Journal Entries and...Ch. 4 - Prob. 4.18ECh. 4 - Prob. 4.19ECh. 4 - Prob. 4.1CPCh. 4 - Prob. 4.2CPCh. 4 - Prob. 4.3CPCh. 4 - identifying and Preparing Adjusting Journal...Ch. 4 - Preparing a Trial Balance, Closing Journal Entry,...Ch. 4 - Prob. 4.2PACh. 4 - Determining Accounting Equation Effects of...Ch. 4 - Prob. 4.4PACh. 4 - Preparing a Trial Balance, Closing Journal Entry,...Ch. 4 - Recording Adjusting Journal Entries Cactus...Ch. 4 - Determining Accounting Equation Effects of...Ch. 4 - Prob. 4.4PBCh. 4 - From Recording Transactions to Preparing Accrual...Ch. 4 - Prob. 4.2COPCh. 4 - Prob. 4.3COPCh. 4 - Prob. 4.4COPCh. 4 - From Recording Transactions to Preparing Accrual...Ch. 4 - Prob. 4.6COPCh. 4 - Finding Financial Information Refer to the...Ch. 4 - Prob. 4.2SDCCh. 4 - Ethical Decision Making: A Mini-Case Assume you...Ch. 4 - Adjusting the Accounting Records Assume it is now...
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