An analysis of Suter Co.’s liabilities disclosed the following: Accounts payable after deducting debit balances in suppliers’ accounts amounting to P4,500 (accounts payable included nontrade liabilities of P6,500 P21,000 Accrued expenses 3,000 Credit balances of customers’ accounts 2,700 Stock dividends payable 14,000 Claims for increase in wages and allowances by employees of the company covered in a pending lawsuit
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An analysis of Suter Co.’s liabilities disclosed the following:
|
Accounts payable after deducting debit balances in suppliers’ accounts amounting to P4,500 (accounts payable included nontrade liabilities of P6,500 |
P21,000 |
|
Accrued expenses |
3,000 |
|
Credit balances of customers’ accounts |
2,700 |
|
Stock dividends payable |
14,000 |
|
Claims for increase in wages and allowances by employees of the company covered in a pending lawsuit |
25,000 |
|
Estimated expenses in redeeming price coupons presented by customers |
12,000 |
How much is the total current liabilities to be presented on the
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- Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts receivable. The uncollectible percentage is 3.1% for the income statement method and 4.5% for the balance sheet method. A. Record the year-end adjusting entry for 2018 bad debt using the income statement method. B. Record the year-end adjusting entry for 2018 bad debt using the balance sheet method. C. Assume there was a previous debit balance in Allowance for Doubtful Accounts of $20,550; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method. D. Assume there was a previous credit balance in Allowance for Doubtful Accounts of $17,430; record the year-end entry for bad debt using the income statement method, and then the entry using the balance sheet method.An analysis of A Co.’s liabilities disclosed the following: Accounts payable after deducting debit balances in suppliers’ accounts amounting to P4,500 (accounts payable included nontrade liabilities of P6,500 P21,000 Accrued expenses 3,000 Credit balances of customers’ accounts 2,700 Stock dividends payable 14,000 Claims for increase in wages and allowances by employees of the company covered in a pending lawsuit 25,000 Estimated expenses in redeeming price coupons presented by customers 12,000 How much is the total current liabilities to be presented on the balance sheet?
- Burma Company disclosed the following information about liabilities at year-end: Accounts payable, after deducting debit balances in suppliers' accounts amounting to P100,000 = 4,000,000; Accrued expenses = 1,500,000; Credit balances of customers' accounts = 500,000; Share dividend payable = 1,000,000; Claims for increase in wages and allowance by employees of the entity, covered in a pending lawsuit = 400,000; Estimated expenses in redeeming prize coupons presented by customers = 600,000. What total amount should be presented as current liabilities at year-end?Industrious Inc. disclosed the following information: Accounts payable, after deducting debit balances in suppliers' accounts amounting to P100,000 P4,000,000 Accrued expenses P1,500,000 Credit balances of customers' accounts P500,000 Share dividend payable P1,000,000 Claims for increase in wages and allowance by employees of the entity, covered in a pending lawsuit P400,000 Estimated expenses in redeeming prize coupons P600,000 What is the adjusted accounts payable? A. 4,600,000B. 4,100,000C. 4,700,000D. 4,000,000Industrious Inc. disclosed the following information: Accounts payable, after deducting debit balances in suppliers' accounts amounting to P100,000 P4,000,000 Accrued expenses P1,500,000 Credit balances of customers' accounts P500,000 Share dividend payable P1,000,000 Claims for increase in wages and allowance by employees of the entity, covered in a pending lawsuit P400,000 Estimated expenses in redeeming prize coupons P600,000 What amount should be reported as total current liabilities?A. 6,500,000B. 6,600,000C. 6,700,000D. 7,700,000
- RM Company disclosed the following information on December 31, 2021: Accrued rent expense 54,000 Share dividends payable 750,000 Accounts receivable, after deducting credit balances of customers’ accounts amounting to ₱42, 500 179,300 Estimated premium liability 65,800 Cash in bank, net of bank overdraft of ₱22,650 481,900 Deferred tax liability 215,500 Accounts payable, net of debit balances in suppliers’ accounts amounting to ₱8,310 95,420 Unearned interest income 225,000 Mortgage payable, issued on March 1, 2012, maturing after 10 years 1,500,000 Notes payable due to bank, 12% interest bearing note payable yearly, issued on August 31, 2021, maturing on August 31, 2022 1,000,000 Cash dividends payable 520,000 SSS payable 57,100 Serial bonds payable in 5 yearly installment of ₱250,000 payable every October 31 1,250,000 Estimated damages because of a supposed unsatisfactory performance on a contract, a possible obligation 75,000 Income tax payable 138,500…RMM Company disclosed the following information on December 31, 2021: Accrued rent expense 54,000 Share dividends payable 750,000 Accounts receivable, after deducting credit balances of customers’ accounts amounting to ₱42, 500 179,300 Estimated premium liability 65,800 Cash in bank, net of bank overdraft of ₱22,650 481,900 Deferred tax liability 215,500 Accounts payable, net of debit balances in suppliers’ accounts amounting to ₱8,310 95,420 Unearned interest income 225,000 Mortgage payable, issued on March 1, 2012, maturing after 10 years 1,500,000 Notes payable due to bank, 12% interest bearing note payable yearly, issued on August 31, 2021, maturing on August 31, 2022 1,000,000 Cash dividends payable 520,000 SSS payable 57,100 Serial bonds payable in 5 yearly installment of ₱250,000 payable every October 31 1,250,000 Estimated damages because of a supposed unsatisfactory performance on a contract, a possible obligation 75,000 Income tax payable…POLKADOT Company y disclosed the following information on December 31, 2021: Accrued rent expense 54,000 Share dividends payable 750,000 Accounts receivable, after deducting credit balances of customers’ accounts amounting to ₱42, 500 179,300 Estimated premium liability 65,800 Cash in bank, net of bank overdraft of ₱22,650 481,900 Deferred tax liability 215,500 Accounts payable, net of debit balances in suppliers’ accounts amounting to ₱8,310 95,420 Unearned interest income 225,000 Mortgage payable, issued on March 1, 2012, maturing after 10 years 1,500,000 Notes payable due to bank, 12% interest bearing note payable yearly, issued on August 31, 2021, maturing on August 31, 2022 1,000,000 Cash dividends payable 520,000 SSS payable 57,100 Serial bonds payable in 5 yearly installment of ₱250,000 payable every October 31 1,250,000 Estimated damages because of a supposed unsatisfactory performance on a contract, a possible obligation 75,000 Income tax payable…
- The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2021, included the following accounts: Account Title Debits CreditsSales revenue $2,300,000Cost of goods sold $1,400,000Selling and administrative expense 420,000Interest expense 40,000Gain on debt securities 80,000 The gain on debt securities is unrealized and classified as other comprehensive income. The trial balance does not include the accrual for income taxes. Lindor’s income tax rate is 25%. There were 1,000,000 shares of common stock outstanding throughout 2021.Required:Prepare a single, continuous multiple-step statement of…An entity disclosed the following information at year-end: Accounts payable, net of debit balances in suppliers’ accounts P100,000 4,000,000 Accrued expenses 1,500,000 Credit balances of customers’ accounts receivable 500,000 Share dividend payable 1,000,000 Claims for increase in wages and allowance by employees of the entity, covered in a pending lawsuit 400,000 Estimated expenses in redeeming prize coupons 600,000 What amount should be reported as total current liabilities? a. 6,700,000 b. 6,600,000 c. 7,100,000 d. 7,700,000The following accounts, in alphabetical order, appear on the trial balance for a company. What is the total for long-term liabilities? Accounts Payable $32,000Deferred Income Taxes $61,000Interest Payable $17,000Current Portion of Long-term Notes $19,000Mortgage $92,000Notes Payable-Short term $11,000Notes Payable-Long term $41,000Salaries Payable $7,000Taxes Payable $23,000Unearned Revenue $15,000 $194,000 $124,000 $213,000 $217,000 $109,000
