Exercise 2-17A (Static) Missing information related to accounts receivable LO 2-6Harbert, Incorporated had a beginning balance of $12,000 in its Accounts Receivable account. The ending balance of AccountsReceivable was $10,500. During the period, Harbert collects $72,000 of its accounts receivable. Harbert incurred $63,000 of cashexpenses during the accounting period.Required:a. Based on the information provided, determine the amount of revenue recognized during the accounting period.b. Based on the information provided, determine the amount of net income earned during the accounting period.c. Based on the information provided, determine the amount of cash flow from operating activities.a. Revenue recognizedb. Net income earnedc. Net cash flow

Operating activities are the activities that are directly related to the core business and in…

Answered: Exercise 2-17A (Static) Missing…

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 5.7EX: Posting a revenue journal The revenue journal for Sapling Consulting Inc. follows. The accounts...

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Entries related to uncollectible accounts The following transactions were completed by The Irvine Company during the current fiscal year ended December 31: Feb. 8. Received 40% of the 18,000 balance owed by DeCoy Co., a bankrupt business, and wrote off the remainder as uncollectible. May 27. Reinstated the account of Seth Nelsen, which had been written off in the preceding year as uncollectible. Journalized the receipt of 7,350 cash in full payment of Seths account. Aug. 13. Wrote off the 6,400 balance owed by Kat Tracks Co., which has no assets. Oct. 31. Reinstated the account of Crawford Co., which had been written off in the preceding year as uncollectible. Journalized the receipt of 3,880 cash in full payment of the account. Dec. 31. Wrote off the following accounts as uncollectible (compound entry): Newbauer Co., 7,190; Bonneville Co., 5,500; Crow Distributors, 9,400; Fiber Optics, 1,110. 31. Based on an analysis of the 1,785,000 of accounts receivable, it was estimated that 35,700 will be uncollectible. Journalized the adjusting entry. Instructions 1. Record the January 1 credit balance of 26,000 in a T account for Allowance for Doubtful Accounts. 2. Journalize the transactions. Post each entry that affects the following selected T accounts and determine the new balances: Allowance for Doubtful Accounts Bad Debt Expense 3. Determine the expected net realizable value of the accounts receivable as of December 31. 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 had been based on an estimated expense of of 1% of the sales of 18,200,000 for the year, determine the following: a. Bad debt expense for the year. b. Balance in the allowance account after the adjustment of December 31. c. Expected net realizable value of the accounts receivable as of December 31.
Multiple step income statement and balance sheet The following selected accounts anti their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019: Cash 92,000 Accounts Receivable 450,000 Merchandise Inventory 370,000 Estimated Returns Inventory 5,000 Office Supplies 10,000 Prepaid Insurance 12,000 Office Equipment 220,000 Accumulated DepreciationOffice Equipment 58,000 Store Equipment 650,000 Accumulated DepreciationStore Equipment 87,500 Accounts Payable 38,500 Customer Refunds Payable 10,000 Salaries Payable 4,000 Note Payable (final payment due 2032) 140,000 Gerri Faber. Capital 431,000 Gerri Faber, Drawing 300,000 Sales 8,925,00 Cost of Merchandise Sold 5,620,00 Sales Salaries Expense 850,000 Advertising Expense 420,000 Depreciation Expense Store Equipment 33,000 Miscellaneous Selling Expense 18,000 Office Salaries Expense 540,000 Rent Expense 48,000 Insurance Expense 24,000 Depredation ExpenseOffice Equipment 10,000 Office Supplies Expense 4,000 Miscellaneous Administrative Exp. 6,000 Interest Expense 12,000 Instructions 1.Prepare a multiple-step income statement. 2.Prepare a statement of owners equity. 3.Prepare a balance sheet, assuming that the current portion of the note payable is 7,000. 4.Briefly explain how multiple-step and single-step income statements differ.
Posting a revenue journal The revenue journal for Sapling Consulting Inc. follows. The accounts receivable controlling account has a July 1, 20Y2, balance of 625 consisting of an amount due from Aladdin Co. There were no collections during July. a.Prepare a T account for the accounts receivable customer accounts. b.Post the transactions from the revenue journal to the customer accounts and determine their ending balances. c.Prepare T accounts for the accounts receivable and fees earned accounts. Post control totals to the two accounts and determine the ending balances. d.Prepare a schedule of the customer account balances to verify the equality of the sum of the customer account balances and the accounts receivable controlling account balance. e.How might a computerized system differ from a revenue journal in recording revenue transactions?

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