Determine the audited balance of Net income under the accrual basis. An analysis of incomplete records of Angel Corporation produced the following information applicablein 2019:ACCOUNT INCREASES:CashAccounts receivableAccounts payablePrepaid insuranceP4,200,0001,400,000400,000200,000ACCOUNT DECREASES:InventoryEquipmentNotes receivableAccrued salaries payable1,000,000100,000600,000300,000Summary of cash transactions were as follows:RECEIPΤS:Cash salesP3,000,00030,000,0002,400,000200,000500,000Collections of accounts receivableCollections of notes receivableInterest on notes receivablePurchase returns and allowancesDISBURSEMENTS:Cash purchasesPayments of accounts payableSales returns and allowances1,000,00016,500,000400,000700,00010,000,000800,0001,500,0001,000,000InsuranceSalariesEquipmentOther expensesDividendsAdditional information:a. Total purchase returns and allowances amounted to P800,000.b. Total sales returns and allowances amounted to P1,200,000.

Under the accrual basis, all the incomes are recorded whether cash is received or not, and all the…

An analysis of incomplete records of Angel Corporation produced the following information applicable in 2019: ACCOUNT INCREASES: P4,200,000 1,400,000 400,000 200,000 Cash Accounts receivable Accounts payable Prepaid insurance ACCOUNT DECREASES: Inventory Equipment Notes receivable 1,000,000 100,000 600,000 300,000 Accrued salaries payable Summary of cash transactions were as follows: RECEIPTS: P3,000,000 30,000,000 2,400,000 200,000 500,000 Cash sales Collections of accounts receivable Collections of notes receivable Interest on notes receivable Purchase returns and allowances DISBURSEMENTS: Cash purchases Payments of accounts payable Sales returns and allowances 1,000,000 16,500,000 400,000 700,000 10,000,000 800,000 1,500,000 1,000,000 Insurance Salaries Equipment Other expenses Dividends Additional information: a. Total purchase returns and allowances amounted to P800,000. b. Total sales returns and allowances amounted to P1,200,000.

An analysis of incomplete records of Angel Corporation produced the following information applicable in 2019: ACCOUNT INCREASES: P4,200,000 1,400,000 400,000 200,000 Cash Accounts receivable Accounts payable Prepaid insurance ACCOUNT DECREASES: Inventory Equipment Notes receivable 1,000,000 100,000 600,000 300,000 Accrued salaries payable Summary of cash transactions were as follows: RECEIPTS: P3,000,000 30,000,000 2,400,000 200,000 500,000 Cash sales Collections of accounts receivable Collections of notes receivable Interest on notes receivable Purchase returns and allowances DISBURSEMENTS: Cash purchases Payments of accounts payable Sales returns and allowances 1,000,000 16,500,000 400,000 700,000 10,000,000 800,000 1,500,000 1,000,000 Insurance Salaries Equipment Other expenses Dividends Additional information: a. Total purchase returns and allowances amounted to P800,000. b. Total sales returns and allowances amounted to P1,200,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 16P

See similar textbooks

Similar questions

Determining Cash Flows from Financing Activities Solomon Construction Company reported the following amount on its balance sheet at the end of 2019 and 2018 for notes payable: Required: 1. If Solomon did not repay any notes payable during 2019, determine how much cash Solomon received from the issuance of notes payable. 2. If Solomon repaid $40,000 of notes payable during 2019, determine what amounts Solomon would report in the financing activities section of the statement of cash flows.
Selected information from Brook Corporations accounting records and financial statements for 2019 follows: On the statement of cash flows for the year ended December 31, 2019, Brook should disclose a net increase in cash in the amount of: a. 1,700,000 b. 2,400,000 c. 3,700,000 d. 4,200,000
Cash Receipts from Customers Singleton Inc. had accounts receivable of $22,150 at January 1, 2019, and $26,850 at December 31, 2019. Net income for 2019 was $125,300 and sales revenue was $1,240,000. Required: Compute the amount of cash collected from customers using the direct method.
Preparing a Statement of Cash Flows Volusia Company reported the following comparative balance sheets for 2019: Required: Prepare a statement of cash flows for Volusia using the indirect method to compute net cash flow from operating activities.
Elegant Universal uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Elegant Universal considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between totals uncollectible. C. Describe the categories change effect on net income and accounts receivable.
Mirror Mart uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more efficiently, Mirror Mart decided to change past-due categories as follows. Complete the following. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Explain how the new total uncollectible amount affects net income and accounts receivable.
Goods for Less uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Goods for Less considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between totals uncollectible. C. Describe the categories change effect on net income and accounts receivable.
Outpost Designs uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Outpost Designs decided to change past-due categories as follows. Complete the following. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Explain how the new total uncollectible amount affects net income and accounts receivable.
Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
Noren Company uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Noren Company considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between totals uncollectible. C. Complete the following 2019 comparative income statements for 2019, showing net income changes as a result of the changes to the balance sheet aging method categories. D. Describe the categories change effect on net income and accounts receivable.