Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
6th Edition
ISBN: 9780134486857
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Chapter C, Problem 32AP
American Rare Coins (ARC) was formed on January 1, 2018. Additional data for the year follow:
- a. On January 1, 2018, ARC issued no par common stock for 5450,000.
- b. Early in January, ARC made the following cash payments:
- 1. For store fixtures, $53,000
- 2. For merchandise inventory, $340,000
- 3. For rent expense on a store building, $20,000
- c. Later in the year, ARC purchased merchandise inventory on account for $239,000. Before year-end, ARC paid $139,000 of this accounts payable.
- d. During 2018, ARC sold 2,400 units of merchandise inventory for $275 each. Before year-end, the company collected 85% of this amount. Cost of goods sold for the year was $250,000, and ending merchandise inventory totaled $329,000.
- e. The store employs three people. The combined annual payroll is $96,000, of which ARC still owes $3,000 at year-end.
- f. At the end of the year, ARC paid income tax of $17,000. There are no income taxes payable.
- g. Late in 2018, ARC paid cash dividends of $44,000.
- h. For store fixtures, ARC uses the
straight-line depreciation method , over five years, with zero residual value.
Requirements
- 1. What is the purpose of the statement of
cash flows ? - 2. Prepare ARC’S income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses listed together.
- 3. Prepare ARC’S
balance sheet at December 31, 2018. - 4. Prepare ARC’s statement of cash flows using the indirect method for the year ended December 31, 2018.
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Students have asked these similar questions
During May 2020, Kaili Company recorded the following:
a. Sales totaled $60,300 of which sales on account totaled $53,600 with cash sales totaling
$6,700. Ignore Cost of Goods Sold.
b. Collections on account totaled, $34,700.
c. Write-offs of uncollectible receivables, $1,760.
d. Recovery of receivable previously written of totaled, $470.
Journalize transactions for Kaili Company for May 2020 assuming Kaili Company uses the
direct write-off method.
Date
TO
C
Description
Debit
Credit
I
Journalize transactions for Kaili Company for May 2020 assuming Kaili Company uses the
allowance method.
On January 1, 2018, Carly Company had accounts receivable $109,000 and allowance for doubtful accounts $10,000. Carly Company prepares financial statements annually. During the year the following selected transactions occurred.
Jan. 5
Sold $12,000 of merchandise to Sam Company, terms n/30.
Feb. 2
Accepted a $12,000, 4-month, 10% promissory note from Sam Company for the balance due.
12
Sold $15,000 of merchandise to Neville Company and accepted Neville's $15,000, 2-month, 10% note for the balance due.
Apr. 12
Collected Neville Company note in full.
June 2
Collected Sam Company note in full.
July 15
Sold $11,000 of merchandise to Hutchinson Co. and accepted Hutchinson's $11,000, 3-month, 12% note for the amount due.
Oct. 15
Hutchinson Co.'s note was dishonored. Hutchinson Co. is bankrupt, and there is no hope of future settlement.
Instructions
Journalize the transactions.
During August 2024, Yond Company recorded the following:
• Sales of $51,100 ($44,000 on account; $7,100 for cash). Ignore Cost of Goods Sold.
• Collections on account, $33,800.
• Write-offs of uncollectible receivables, $1,900.
• Recovery of receivable previously written off, $200.
Date
Aug.
Accounts and Explanation
Debit
Credit
Requirements
Journalize Yond's transactions during August 2024, assuming Yond uses the direct
write-off method.
1.
2.
Journalize Yond's transactions during August 2024, assuming Yond uses the allowance
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Chapter C Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Identify each item as operating (O), investing...Ch. C - Prob. 6TICh. C - Prob. 7TICh. C - Prob. 8TICh. C - Muench Inc.s accountant has partially completed...Ch. C - Prob. 1QC
Ch. C - Prob. 2QCCh. C - Prob. 3QCCh. C - Prob. 4QCCh. C - Prob. 5QCCh. C - Prob. 6QCCh. C - Prob. 7QCCh. C - Prob. 8QCCh. C - Prob. 9QCCh. C - Prob. 10QCCh. C - Prob. 1RQCh. C - Prob. 2RQCh. C - Prob. 3RQCh. C - Prob. 4RQCh. C - Prob. 5RQCh. C - Prob. 6RQCh. C - Prob. 7RQCh. C - If a company experienced a loss on disposal of...Ch. C - Prob. 9RQCh. C - Prob. 10RQCh. C - Prob. 11RQCh. C - Prob. 12RQCh. C - Prob. 13RQCh. C - Prob. 14RQCh. C - How does the direct method differ from the...Ch. C - Prob. 16RQCh. C - Prob. 1SECh. C - Prob. 2SECh. C - Prob. 3SECh. C - DVR Equipment, Inc. reported the following data...Ch. C - Prob. 5SECh. C - Prob. 6SECh. C - Prob. 7SECh. C - Prob. 8SECh. C - Prob. 9SECh. C - Julie Lopez Company expects the following for...Ch. C - Prob. 11SECh. C - Prob. 12SECh. C - Prob. 13SECh. C - Prob. 14SECh. C - Prob. 15SECh. C - Prob. 16ECh. C - Prob. 17ECh. C - Prob. 18ECh. C - Prob. 19ECh. C - Prob. 20ECh. C - The income statement of Boost Plus, Inc. follows:...Ch. C - Prob. 22ECh. C - Rouse Exercise Equipment, Inc. reported the...Ch. C - Use the Rouse Exercise Equipment data in Exercise...Ch. C - Prob. 25ECh. C - Prob. 26ECh. C - Prob. 27ECh. C - Prob. 28ECh. C - Prob. 29ECh. C - Prob. 30ECh. C - Prob. 31ECh. C - American Rare Coins (ARC) was formed on January 1,...Ch. C - Prob. 33APCh. C - Prob. 34APCh. C - Prob. 35APCh. C - Boundary Rare Coins (BRC) was formed on January 1,...Ch. C - Use the Rolling Hills, Inc. data from Problem...Ch. C - Prob. 38APCh. C - Classic Rare Coins (CRC) was formed on January 1,...Ch. C - Accountants for Benson, Inc. have assembled the...Ch. C - Prob. 41BPCh. C - Prob. 42BPCh. C - Prob. 43BPCh. C - Use the Sweet Valley data from Problem P14-41B....Ch. C - Prob. 45BPCh. C - Prob. 47PCh. C - Before you begin this assignment, review the Tying...Ch. C - Prob. 1DCCh. C - Prob. 1EICh. C - Details about a companys cash flows appear in a...
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