At the beginning of the year, ABC's Accounts Payable balance was $75,000. During the year ABC paid its suppliers $9,710,000 and at the end of the year the firm's Accounts Payable balance owed was $165,000. How much did ABC purchase on credit over the course of the year?

At the beginning of the year, ABC's Accounts Payable balance was $75,000. During the year ABC paid its suppliers $9,710,000 and at the end of the year the firm's Accounts Payable balance owed was $165,000. How much did ABC purchase on credit over the course of the year?

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

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

See similar textbooks

Related questions

Q: During the month of March, Harley's Computer Services made purchases on account totaling $46,100.…

A: >Accounts Payable is the accumulated balance that the company or organisation owes to suppliers…

Q: Sherriane Baby Products’ salaries expense was $17 million. What is the amount of cash Sherriane paid…

A: The amount of cash Sherriane paid to employees during the reporting period: Given information:…

Q: Beattie Inc. paid $3,600 for one year insurance effective January 1. The general ledger account…

A: Introduction: Journals: Each and every business transactions are to be recorded in Journals.…

Q: On the last day of the current month, a company paid $12,000 to its suppliers, of which $2,000 was…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: Suppose a company paid $15,000 for supplies during the year and you determine that there were $2,000…

A: Calculation: Supplies expense = Beginning of the year supplies + Supplies during the year - Ending…

Q: During the month, Warwick Co. recived $515,000 in cash and paid out $375,000 in cash. b. if the…

A: Closing balance of cash = Beginning balance of cash + Cash received - Cash paid

Q: On January 1, 2022, the ledger of Ivanhoe Company contained these liability accounts. Accounts…

A: Adjusting entries are journal entries passed at the end of the accounting period to reflect income,…

Q: Prepare an adjusted trial balance. PHAROAH DISTRIBUTING COMPANY

A: Journal entry: Journal entry is the book of original entry where first transactions are recorded in…

Q: Enter the December 1 balances in the ledger T-accounts and post the December transactions.

A: T-Accounts are said to be ledger accounts that are prepared by using recordings from journal book.…

Q: In each case, identify whether the transaction is an example of financing, investing, or operating…

A: There are three types of cash flow activities. They are : 1. Cash flows from operating activities 2.…

Q: Suppose your company sells goods for $450, of which $275 is received in cash and $175 is on account.…

A: Journal entry: The record of business transactions in a chronological order in the journal using…

Q: During its first month of operations, Huxley Corporation provided $11,44O of services to it…

A: Revenue indicates the income earned by the corporation in consideration of the product sold or…

Q: Hundred reported the following transactions in the first two quarters of 2021: · Dividends of…

A: Income statement is one of the significant financial statements prepared to determine the financial…

Q: On January 1, 2022, the ledger of Sunland Company contained these liability accounts. Accounts…

A: When a liability has to be settled within one operating cycle or 1 year it is called current…

Q: On May 1, Faux Furs, Inc., collected $33,000 from its customers. One quarter of the $33,000 was…

A: Methods of Accounting: There are two types of accounting Cash accounting and Accrual accounting.…

Q: The ending balance of a business' accounts payable is $100,000 and the total debits and credits to…

A: The beginning balance of account can be calculated from the double entry book keeping system method

Q: On its second year of operations, BBQ Co. thought of expanding its business. In order to generate…

A: Factoring of accounts receivables: Factoring of accounts receivable is done in order to get…

Q: n December 1, 2022, Pharoah Distributing Company had the following account balances. Debit…

A: In a perpetual inventory system, the inventory records are maintained updated and the inventory…

Q: Credit sales P6,000,000 Cash sales 1,000,000 Collection from customers 5,600,000 Cash purchases…

A: Purchases under the cash basis is purchases that have been paid for during the year It includes cash…

Q: A company's reported earnings are $2,000 and cash flows are $1,600. Based on economic conditions…

A: A measure of how closely earnings correspond to earnings reported without management bias.…

Q: On January 1, 2022, the ledger of Sunland Company contained these liability accounts. Accounts…

A: Journal entry:-Way of recording any transaction of a company with debit and credit side. It works on…

Q: Huxley Company sells services for $998 cash and $804 on account this month. Emma Company also pays…

A: Solution Amount that would be included in net cash flow from operating activities = Cash received…

Q: Rebel Technology maintains its records using cash-basis accounting. During the year, the company…

A: In accounting, there are lots of methods of accounting, but the most common method is: Cash Basis…

Q: Saddleback Company paid off $39,000 of its accounts payable in cash. What would be the effects of…

A: Accounting Equation is:

Q: Determine the net income the six-month period ending June 30, 2021

A: The calculation of net income for the six - month period ending June 30,2021 is presented hereunder…

Q: On January 1, 2010, the capital of Delta Company was P1,700,000 and on December 31, 2010, the…

A: Statements of changes in equity is the summary showing beginning and ending balances of share…

Q: On December 1, 2022, Pharoah Distributing Company had the following account balances. Debit…

A: Journal entries:

Q: Total Lawn Services earned $110,000 of service revenue during 2018, Of the $110,000 eamed, the…

A: Under cash basis accounting, the revenue and expenses are recognised when cash transactions are…

Q: Maxwell Furniture Center had accounts receivable of $20,000 at the beginning of the year and $54,000…

A: Accounts receivable is increased by ($54,000-$20,000) $34,000 during the year.

Q: Limerick Company maintained the accounting records using the cash basis of accounting. During the…

A: As per the cash basis of accounting, we should record the transaction only when corresponding cash…

Q: An entity had the following transactions during the quarter ended March 31: Advertising costs of P2…

A: Fire insurance premium for quarter ended March 31, 2018 = fire insurance premium for calendar year…

Q: For a recent year, Microsoft Corporation reported short-term unearned revenue of $23,223 million.…

A: Unearned fees is the amount of fees received in advance towards services which are yet to be…

Q: On December 1, 2020, Sheridan Distributing Company had the following account balances. Debit…

A: Journal entry is a record of financial transaction in the books of accounts maintained by an…

Q: On December 1, 2022, Sheridan Distributing Company had the following account balances. Debit…

A: A financial statement is one prepared by the companies in a structured manner to depict the…

Q: An entity had the following transactions during the quarter ended March 31: Advertising costs of P2…

A: Solution: total amount to be recognized in the entity’s profit or loss = Advertising costs + typhoon…

Q: FDN Trading had an initial cash balance of P150,000 at the start of the month representing the…

A: Received P700,000 in service revenue for the month. Increase in cash P700,000 Increase in revenue…

Q: On December 1, 2022, Sheridan Distributing Company had the following account balances.…

A: 1. Journal Entries - Journal Entries are the recording of transactions of the organization. It is…

Q: In a recent year Ley Corporation had net income of $150,000, interest expense of $30,000, and a…

A: Net income: The net income of the business is determined by subtracting the total expenses from the…

Q: Create journal entries for each of the following transactions The company issues capital stock…

A: Accounting is the process of recording, classifying and summarising financial transactions in the…

Q: An entity had the following transactions during the quarter ended March 31: Advertising costs of P2…

A: Fire insurance premium for quarter ended March 31, 2018 = fire insurance premium for calendar year…

Q: The Sanchez Company provided the following balances at the end of its first year: $ 2,500 Cash…

A: The income statement is a financial report that evaluates a business's financial performance over a…

Q: the business is a trading business. for the period, it purchased goods for sale valued at 120,000.…

A: Sales: It refers to an activity in which goods or services are sold to the customers.

Q: For each of the transactions, if an expense is to be recognized in January, indicate the amount.…

A: Accrual basis implies that the expenses and revenues are recognized as and when it's due…

Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Cash and cash equivalents

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

Homeland Plus specializes in home goods and accessories. In order for the company to expand its business, the company takes out a long-term loan in the amount of $650,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 8.5%. Each year on December 31, the company pays down the principal balance by $80,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
Mohammed LLC is a growing consulting firm. The following transactions take place during the current year. A. On June 10, Mohammed borrows $270,000 from a bank to cover the initial cost of expansion. Terms of the loan are payment due in four months from June 10, and annual interest rate of 5%. B. On July 9, Mohammed borrows an additional $100,000 with payment due in four months from July 9, and an annual interest rate of 12%. C. Mohammed pays their accounts in full on October 10 for the June 10 loan, and on November 9 for the July 9 loan. Record the journal entries to recognize the initial borrowings, and the two payments for Mohammed.
If a customer owed your company $100 on the first day of the month, then purchased $200 of goods on credit on the fifth and paid you $50 on fifteenth, the customers ending balance for the month would show a (debit or credit) of how much?
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.
McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they take out a long-term loan in the amount of $800,000. Assume that any loans are created on January 1. The terms of the loan include a periodic payment plan, where interest payments are accumulated each year but are only computed against the outstanding principal balance during that current period. The annual interest rate is 9%. Each year on December 31, the company pays down the principal balance by $50,000. This payment is considered part of the outstanding principal balance when computing the interest accumulation that also occurs on December 31 of that year. A. Determine the outstanding principal balance on December 31 of the first year that is computed for interest. B. Compute the interest accrued on December 31 of the first year. C. Make a journal entry to record interest accumulated during the first year, but not paid as of December 31 of that first year.
On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.
During its first year of operations, Yellow Bell Co. provided services to customers for the value of $76,000. At the end of the year, $16,000 of the $76,000 remained in Accounts Receivable. Yellow Bell Co. also incurred expenses of $47,000, of which, $7,000 is remained in Accounts Payable at year end. How much was Yellow Bell's net income assuming they used the accrual method of accounting?
During its first year of operations, Yellow Bell Co. provided services to customers for the value of $76,000. At the end of the year, $16,000 of the $76,000 remained in Accounts Receivable. Yellow Bell Co. also incurred expenses of $47,000, of which, $7,000 is remained in Accounts Payable at year end. How much was Yellow Bell’s revenue assuming they used the accrual method of accounting?
During its first year of operations, Cooper Company bills credit customers $19,800 for services rendered. During the year, Cooper receives $16,500 from all customers, $3,700 of which is received from cash customers. Required: What amount of revenue should be shown on the income statement for the year?
In its first year of operations, Maria Corp.earned 48,100 in service revenue.Of that amount, 8,200 was on account and the remainder, 39, 900, was collected in cash from customers. The company incurred various expenses totalling 32,300, of which 28,800 was paid in cash. At the year end, 3,500 was still owing on account. In addition, Maria prepaid 2,000 for insurance coverage that covered the last half of the first year and the first half of the second year. maria expects to owe 3000 of income tax when it files its corporate income tax return after year end.