Calculate: (iv) Average Receivable days/ Debtors collection period (v) Average Payable days/ Creditors collection period
Q: Identify the normal balance (debit [Dr] or credit [Cr]) for each of the following accounts:…
A: Interest Payable: Interest payable is the amount of interest on its debt and capital leases that a…
Q: a. Determine the amount of the adjusting entry for uncollectible accounts. b. Determine the…
A: Allowance for Doubtful has a Credit Balance In Normal Situation Amount of Uncollectible Accounts =…
Q: Show effects of the above transactions on the accounting equation using the following format.…
A: Assets = Liabilities + Equity
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A: Acid-test ratio: The acid-test ratio is also known as the Quick assets ratio. This ratio compares a…
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A: Current ratio is the ratio of Current Assets to Current Liabilities. Current ratio = Current…
Q: Liabilities which are estimated and payable are; Select one: O a. Not reported on the balance sheet…
A: Liabilities represents the obligation of the entity. It is the amount which is to be paid by the…
Q: a. Show the journal entry to record the uncollectible accounts. b. How much will the balance sheet…
A: a) Journal Entry
Q: what are the creditor days
A:
Q: What is the charge to statement of profit or loss for receivables expense for the year?
A: Allowances for receivables can be defined as the amount of receivables which is expected to be…
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A: We will be applying the following accounting formulas: Current Ratio= Current Asset/ Current…
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Q: The presentation of current and non-current liabilities in the statement of financial position…
A: Definition: Liability: Liability refers to the state of responsibility of a firm to pay its dues.…
Q: Which of the following ratios is used to analyze liquidity?a. Earnings per share.b.…
A: Liquidity is the ability of the organisation to pay off its short term obligations.
Q: The debt-to-assets ratio is the: Multiple Choice ratio of current liabilities to current assets.…
A: Debt-to Assets Ratio = Total Debt / Total Assets
Q: Suppose that at the end of the year there is an outstanding note receivable. The adjusting entry to…
A: 1. Accounting Equation - The accounting Equation is calculated using the following equation - Assets…
Q: AFA FINANCIAL ACCOUNTING equivalent to 5% of the receivables at that date. receivables expense?
A: Bad Debts:- These are those debts from whom the company is unable to collect debts. These are…
Q: Define and explain short-term and long-term accounts receivable.
A: Accounts receivable forms a part of assets of the entity and represent the amount due from the…
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A: Here to prepare the statement of affairs to know the details of the values of total assets which are…
Q: When using the allowance method, how are accounts receivable shown on the balance sheet?
A:
Q: Which of the following transactions is affecting the current asset of accounts receivable?
A: a). Journal entry for inventory sold on the account: Accounts receivable A/c Dr.... xxx…
Q: How do you calculate Accounts Receivable (AR) Turnover and the Number of Days' Sales in Receivables?…
A:
Q: Working Capital Requirement 1. Compute Current Debt-to- these ratios: Ratio Cash Ratio Debt Ratio…
A: We know the basic formula of Current Ratio = Current Asset / Current Liability Working Capital =…
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A: As per our guidelines, we are supposed to answer only 3 sub parts. For balance answer, please…
Q: Prepare the long-term liabilities section of the balance sheet. SHERIDAN COMPANY Balance Sheet…
A: Long term liabilities of the business means liabilities which are to be paid in long period of time.…
Q: . The operating cycle is equal to which one of the following? A. Inventory period plus the…
A: Operating cycle is computed as follows: Cash operating cycle is computed as follows: Cash…
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A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…
Q: What are accounts for notes payable and interest expense.
A: Payables indicate the amount owed by the organization from outsiders which requires to be paid…
Q: Accounts and notes receivable are reported in the current assets section of the balance sheet at net…
A: Account receivable means the amount due from customer whom we sold the goods on credit. Allowance…
Q: What amount should be reported as net realizable value of accounts receivable on December 31?
A: Accounts receivables is the amount that is due to the company by their debtors by credit sales or…
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A: The interim financial report contains either a complete or condensed set of statements that cover a…
Q: The debt to equity ratio is calculated as a. Total assets / Total equity. b. Current liabilities /…
A: Debt to equity ratio: The ratio of company’s total debt to the total stockholders’ equity is known…
Q: Which of the following is a long term financial instrument? a. Certificate of deposit. O b.…
A: Funds based on period are: Short term funds Long term funds.
Q: what of the following is the correct calculation for interest cover : a- total debt / interest…
A: Interest coverage ratio is used to find out the ability of a company to pay interest on its debts…
Q: How to calculate the account receivable turnover ratio in a balance Sheet and income statement…
A: The records owed turnover proportion, otherwise referred to as the borrower's turnover proportion,…
Q: Where is the current portion of notes payable reported on the balance sheet?
A: Definition: The long-term note payable: Long-term notes payable refers to the obligation of the…
Q: Short-term Borrowings appear in a Company's Balance Sheet under the head......... Select one: a.…
A: Answer
Q: Bills for collection are shown O a. On Assets side of the balance sheet O b. On liabilities side…
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Q: Which ratio measures the ability to pay current liabilities with current assets?a. Debt ratiob.…
A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…
Q: An “Accounts Receivable Customer Balances” report shows revenues by customer for a specified date…
A: Account receivable arises when we sell goods on credit and account receivable customer balances…
Q: Given the information, give the following ratios; a. acid test ratio b. working capital c.…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: What is the current year's accounts payable balance
A: Accounts payable are those people to whom company owed money. They are recorded as current liability…
Q: The debt ratio is calculated by dividing:a. total assets by total debt.b. total debt by total…
A: Ratio analysis is used to evaluate the balance sheet figure and income statement.
Q: The debt to equity ratio is calculated as Total assets / Total equity. Current liabilities / Total…
A: Debt to equity ratio:The ratio of company’s total debt to the total stockholders’ equity is known as…
Calculate:
(iv) Average Receivable days/ Debtors collection period
(v) Average Payable days/ Creditors collection period
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- Capital Stock Refer to the information for Stahl Company above. Required: What is the amount of Stahls total contributed capital at December 31, 2019?Leverage Cook Corporation issued financial statements at December 31, 2019, that include the following information: Balance sheet at December 31,2019 Assets $8,000,000 Liabilities $1,200,000 Stockholders' equity (300,000 shares) $6,800,000 Income statement for 2019: Income from operations $1,200,000 Less: Interest expense (100,000) Income before taxes $1,100,000 Less: Income taxes expense (0,30) (330,000) Net income $ 770,000 The levels of assets, liabilities, stockholders' equity, and operating income have been stable in recent years; however, Cook Corporation is planning a 51,800,000 expansion program that will increase income from operations by $350,000 to $1,550,000, Cook is planning to sell 8.5% notes at par to finance the expansion. Required: What earnings per share does Cook report before the expansion?Trading Securities Pear Investments began operations in 2020 and invests in securities classified as trading securities. During 2020, it entered into the following trading security transactions: Purchased 20,000 shares of ABC common stock at $38 per share Purchased 32,000 shares of XYZ common stock at $17 per share At December 31, 2020, ABC common stock was trading at $39.50 per share and XYZ common stock was trading at $16.50 per share. Required: 1. Prepare the necessary adjusting entry to value the trading securities at fair market value. 2. CONCEPTUAL CONNECTION What is the income statement effect of this adjusting entry?
- Refer to the information in RE13-11. Assume that on December 31, 2019, the investment in Cornett Company stock has a market value of 10,500. Prepare the year-end journal entry to record the unrealized gain or loss.Investments in Equity Securities Manson Incorporated reported investments in equity securities of 60,495 as a current asset on its December 31, 2018, balance sheet. An analysis of Mansons investments on December 31, 2018, reveals the following: During 2019, the following transactions related to Mansons investments occurred: Required: 1. Assuming Manson prepares quarterly financial statements, prepare journal entries to record the preceding information. 2. Show the items of income or loss from investment transactions that Manson reports for each quarter of 2019. 3. Show how Mansons investments are reported on the balance sheet on March 31, 2019; June 30, 2019; September 30, 2019; and December 31, 2019.Comprehensive The shareholders equity section of Superior Corporations balance sheet as of December 31, 2018, is as follows: The following events occurred during 2019: Required: 1. Prepare journal entries for each of the above transactions. 2. Calculate the number of authorized, issued, and outstanding common shares as of December 31, 2019. 3. Calculate Superior's legal capital at December 31, 2019.
- During 2021, Anthony Company purchased debt securities as a long-term investment and classified them as trading. All securities were purchased at par value. Pertinent data are as follows: The net holding gain or loss included in Anthonys income statement for the year should be: a. 0 b. 3,000 gain c. 9,000 loss d. 12,000 lossNet Income and Comprehensive Income At the beginning of 2019, JR Companys shareholders equity was as follows: During 2019, the following events and transactions occurred: 1. JR recognized sales revenues of 108,000. It incurred cost of goods sold of 62,000 and operating expenses of 12,000, 2. JR issued 1,000 shares of its 5 par common stock for 14 per share. 3. JR invested 30,000 in available-for-sale securities. At the end of the year, the securities had a fair value of 35,000. 4. JR paid dividends of 6,000. The income tax rate on all items of income is 30%. Required: 1. Prepare a 2019 income statement for JR which includes net income and comprehensive income ignore earnings per share). 2. For 2016 prepare a separate (a) income statement (ignore earnings per share) and (b) statement of comprehensive income.Common Dividends Thompson Payroll Service began in 2019 with 1,500,000 authorized and 820,000 issued and outstanding S8 par common shares. During 2019, Thompson entered into the following transactions: Declared a S0.20 per-share cash dividend on March 24. Paid the S0.20 per-share dividend on April 6. Repurchased 13,000 common shares for the treasury at a cost of S12 each on May 9. Sold 2,500 unissued common shares for $15 per share on June 19. Declared a $0.40 per-share cash dividend on August 1. Paid the $0.40 per-share dividend on September 14. Declared and paid a 10% stock dividend on October 25 when the market price of the common stock was $15 per share. Declared a 50.45 per-share cash dividend on November 20. Paid the $0.45 per-share dividend on December 20. Required: Prepare journal entries for each of these transactions. (Note: Round to the nearest dollar.) What is the total dollar amount of dividends (cash and stock) for the year? CONCEPTUAL CONNECTION Determine the effect on total assets and total stockholders equity of these dividend transactions.
- Investments in Equity Securities Noonan Corporation prepares quarterly financial statements and invests its excess funds in marketable securities. At the end of 2018, Noonans portfolio of investments consisted of the following equity securities: Dunne the first half of 2019, Noonan engaged in the following investment transactions: Required: 1. Record Noonans investment transactions for January 6 through June 30, 2019. 2. Show the items of income or loss from investment transactions that Noonan reports for each of the first and second quarters of 2019. 3. Show how the preceding items are reported on the first and second quarter 2019 ending balance sheets, assuming that management expects to dispose of the Keene and Sachs securities within the next year.Income Statement and Retained Earnings Huff Company presents the following items derived from its December 31, 2019, adjusted trial balance: The following information is also available for 2019 and is not reflected in the preceding accounts: 1. The common stock has been outstanding all year. A cash dividend of 1.28 per share was declared and paid. 2. Land was sold at a pretax gain of 6,300. 3. Division X (a major component of the company) was sold at a pretax gain of 4,700. It had incurred a 9,500 pretax operating loss during 2019. 4. A tornado, which is an unusual event in the area, caused a 5,400 pretax loss. 5. The income tax rate on all items of income is 30%. 6. The average shareholders equity is 90,000. Required: 1. Prepare a 2019 multiple-step income statement for Huff. 2. Prepare a 2019 retained earnings statement. 3. Compute the 2019 return on common equity (Net Income 4 Average Shareholders Equity).Income Statement, Lower Portion Cunningham Company reports a retained earnings balance of 365,200 at the beginning of 2019. For the year ended December 31, 2019, the company reports pretax income from continuing operations of 150,500. The following information is also available pertaining to 2019: 1. The company declared and paid a 0.72 cash dividend per share on the 30,000 shares of common stock that were outstanding the entire year. 2. The company incurred a pretax 21,000 loss as a result of an earthquake, which is not unusual for the area. This is included in the 150,500 income from continuing operations. 3. The company sold Division P (a component of the company) in May. From January through May, Division P had incurred a pretax loss from operations of 33,000. A pretax gain of 15,000 was recognized on the sale of Division P. Required: Assuming that all the pretax items are subject to a 30% income tax rate: 1. Complete the lower portion of Cunningham's 2019 income statement beginning with Pretax Income from Continuing Operations. Include any related note to the financial statements. 2. Prepare an accompanying retained earnings statement.