Bob collected $55,000 from customers who previously purchased products on account. Bob learned that one of his customers went bankrupt and can not pay him. He wrote it off for $1,500. Prepare the necessary entries
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Bob collected $55,000 from customers who previously purchased products on account. Bob learned that one of his customers went bankrupt and can not pay him. He wrote it off for $1,500. Prepare the necessary entries
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- Your client is preparing financial statements to show the bank. You know that he has incurred a refrigeration repair expense during the month, but you see no such expense on the books. When you question the client, he tells you that he has not yet paid the 1,255 bill. Your client is on the accrual basis of accounting. He does not want the refrigeration repair expense on the books as of the end of the month because he wants his profits to look good for the bank. Is your client behaving ethically by suggesting that the refrigeration repair expense not be booked until the 1,255 is paid? Are you behaving ethically if you agree to the clients request? What principle is involved here?In the current year, Barlow moved from Chicago to Miami to start a new job, incurring costs of 1,200 to move household goods and 2,500 in temporary living expenses. Barlow was not reimbursed for any of these expenses. What amount should Barlow deduct as an itemized deduction for moving expense? a. 0 b. 1,200 c. 2,500 d. 3,700Kristian purchased a new home for $200,000. He put down $50,000 in cash and took out a mortgage for the rest. At the time of closing, he also paid $1,000 for title insurance, $500 in recording fees, and the bank required that he place $2,500 in an escrow account for property taxes. What is the basis of the home?
- For each of the following scenarios, determine if the event is included or excluded from gross income. In addition, you must also explain the reason for your decision. A father gives his son $10,000 so that he can purchase a car. A family member receives $3,000 from a friend after your house was destroyed by fire. A client gives her attorney an extra $500 because he did an excellent job preparing her will. An employer gave an employee an iPad because he has not been absent from work for three weeks. A spouse died three weeks ago, and her employer gave the spouse’s children $2,000. An uncle died and left his neighbor $40,000 in cash and a car worth $22,000.I am having trouble figuring out how to enter the journal entries for a rebate: So the first transaction is that the company purchased office supplies for $850 on account. The next transaction says the company received a rebate for $40 on the supplies purchased. How do I write the second entry into a general journal.Three friends agreed to start a printing business called BZ printing. The manager is Lorine and the assistant manager are Jarret and Sandra. After one month of the business being established, the manager, Lorine, decided to renovate their office and the cost to be paid using a loan from Bank of Newington is $200k. Question Newington Bank is considering legal action because it has not received any loan repayment. Assist the company in identifying who is liable for the debt.
- Bob owns a collection agency. He purchases uncollected accounts receivable from other businesses at 70% of their face value and then attempts to collect these accounts. During the current year, Bob collected $75,200 on an account with a face value of $90,240. Bob has debt deduction. He has of $fill in the blank 3.Jenny operated a small shop selling hygienic supplies and bought facial masks worth $15,000 from the supplier, Amy. Jenny visited Amy’s office and gave Amy an uncrossed bearer cheque for full payment. When Amy finished her job and rushed to meet her customer by taking the MTR, she lost the cheque somewhere on the way accidentally. William found the cheque left on the floor of the MTR platform and picked it up. William was unemployed for six months and needed $15,000 to pay this month rent. After noticing the characteristic of this cheque, this was a bearer cheque. William took this bearer cheque to Isaac, his landlord, to pay this month’s rent of $15,000.Isaac deposited this cheque to her ABC Bank. The cheque was duly cleared through the Isaac’s bank and paid by Jenny’s CDE Bank. a) Explain how to apply “Holder in Due Course” (HIDC) in this case. b) Who is the true owner of this cheque from three parties of Amy, William and Isaac?c) If the cheque was crossed and the words “not…On July 01, 2020, Maria initially invested P200,000 cash into Maria Merchandising. On the same date, she paid P45,000 for six months rent on the store space, P10,000 for business licenses and permits, and P50,000 for various store furniture. She also bought P60,000 worth of office supplies on account with the intention to sell them at a higher price. However, the next day, the business received a P1,500 credit memo for allowance granted on the purchased merchandise. The supplies were bought from 123 Supplies Store on terms n/60. On July 6, the business bought from 45 Supplies Shop P5,000 worth of supplies to be used in the store on terms 50% downpayment, balance n/30. Francisco, a part time employee, was able to sell on July 12 some of the store's merchandise to Mr. Sam for P16,000 on terms 50% downpayment, balance 2/10, n/30. On July 24, the business sold to Mrs. Aslani merchandise for P12,000 on terms 2/10, n/30. On July 30, Mr. Boom paid the business P42,000 for merchandise bought…
