Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,000 account of a customer, Green. On March 9, it receives a $500 payment from Green. 1. Prepare the journal entry for January 31 2. Prepare the journal entries for March 9; assume no additional money is expected from Green. View transaction list Journal entry worksheet < 1 2 Record the write-off of Green's $1,000 account Date Jan 31 3 Note: Enter debits before credits. Record entry General Journal Clear entry Debit Credit View general journal >
Q: A computer-based information system is expected to have general IT controls in place. Discuss the…
A: General IT controls are policies and procedures that relate to many applications and support the…
Q: Wan Tan Corp. made the following four inventory purchases in June: June 1 150 units $5.20 June 10…
A: Inventory valuation method includes: FIFO Method LIFO Method Weighted average cost method FIFO…
Q: TB MC Qu. 12-119 (Algo) A profitable company pays... A profitable company pays $98,000 wages and has…
A: Introduction: Depreciation expenditure is the amount depreciated for a single month, whereas…
Q: ! Required information E8-6 (Algo) Recording Depreciation and Repairs (Straight-Line Depreciation)…
A: Depreciation is the reduction or decrease in value over the period of time. Under straight line…
Q: MYbank launched the Flourishing Farmer Loan Program, which is an effort to extend financial services…
A: 1) Planning and leadership plays important role in extending financial services in rural china.…
Q: Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows…
A: >Petty Cash fund is created out of cash account to pay off certain small and petty amounts of…
Q: In the absence of any improvement in working capital efficiency or cycle, when the sales double, how…
A: Working capital is a financial mirror of any organisation, firm or entity which represents available…
Q: The auditor has always received cooperation from a particularclient and has no reason to question…
A: Introduction: An auditor verifies the authenticity of commercial transactions that have been…
Q: E8-2 (Algo) Computing and Interpreting the Fixed Asset Turnover Ratio from a Financial Analyst's…
A: Fixed asset turnover ratio=Net salesAverage net fixed assets
Q: how much is the net remeasurement gain/loss at the end of the year?
A: Net re-measurement is the measurement which has been calculated by the company when all the losses…
Q: Himalayan Engineering Works currently takes four days to convert the raw material and components to…
A: The operating cycle shows how much time passes between a cash outflow and a cash inflow.…
Q: Less: Retiree benefits End of 2021 Less: Retiree benefits (40) $653 End of 2021 (40) $ 498 Required:…
A: Defined Benefit Obligation Defined benefit obligation which is considered to be one of the oldest…
Q: Depreciation represents a __________ in the value of fixed assets.
A: Fixed assets are those type of assets which are being held by the business for longer period of…
Q: Marx Supply uses a sales journal, purchases journal, cash receipts journal, cash payments journal,…
A: Cash Payment journal records all cash payments transactions done by business. In the given case,…
Q: please provide narrations also along with full work step by step Delta Air Lines owns hundreds of…
A: As per the given information: Aircraft cost - $62,500,000 Accumulated depreciation - $46,800,000…
Q: erates a number of coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand…
A:
Q: Compute the following ratios for 2022. (Round Earnings per share, Current ratio and Asset turnover…
A:
Q: Flexible Budget with Different Levels of ProductionBalboa Company budgeted the following…
A: Flexible budget: Flexible budget is a budgted which is prepared at the different level of…
Q: Situation E: Controls Satisfying management assertions: Sales and Shipping ticket satisfy…
A:
Q: Which of the following statements is false regardingsubstantiveanalytical procedures?a. Substantive…
A: Audit is the process of checking and authenticating books of accounts and financial statements. It…
Q: Business at your design engineering firm has been brisk. To keep up with the increasing workload,…
A: 1. In year 0, the net cash outflow associated with the drawing activities if the CAD/CAM system is…
Q: UE- GRADE 12. Show the solutions. Find the value. Owner's Equity Changes in year: Additional…
A: The Basic Accounting equation is Assets = Equity + Liabilities Ending Equity = Begnning Equity +…
Q: Wright Company's cash account shows a $27,700 debit balance and its bank statement shows $26,000 on…
A: A bank reconciliation statement is prepared to match the cash book balance with the bank balance at…
Q: (c) During the most recent year, Papasab Company had the following data: Table 7: Production Costs…
A: Variable Costing - Variable costing formula = Sales - Variable Costs - Fixed Cost = Operating Income…
Q: The trial balance of The White Ribbon failed to agree, and the difference was posted to a…
A: In the context of the given question, we are required to prepare the rectification entries, the…
Q: ke me to the text rago Company has a fiscal year end on December 31. The company has only one…
A: Date Purchase Sale Balance Quantity Cost Quantity Cost Quantity Value Jan 15 100…
Q: applies to the questions displayed below.] The following events apply to Gulf Seafood for the Year 1…
A: Depreciation is charged each year to show the amount of wear or tear or the amount for which the…
Q: What is the cost of right of use of asset?
A: Given in the question: Sales Price 20,000,000 Fair Value 18,000,000 Carrying Amount…
Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…
A: Inventory is one of the important current asset of the business. There are several methods used for…
Q: Debt Investments Classification Cost or Amortized Cost Fair Value at end if 2017 Interest Income in…
A: The income statement represents the net income or net loss that is calculated by the deducted…
Q: Does differential analysis require journal entries? Why or why not?
A: When choosing between multiple possible actions, differential analysis implies that we take into…
Q: S1: Employee-sponsored retirement plans can be categorized into two: current service cost and…
A: Employee Sponsored Retirement Plan :— It is a type of retirement benefits provided by companies to…
Q: Discuss how professional skepticism relates to conducting a proper audit and meeting ethical…
A: Introduction: An audit is defined as a "independent examination of financial information of any…
Q: Required information [The following information applies to the questions displayed below.] On…
A: Bad debts expense: Bad debts expense is recognized in the books of the company when a debtor is…
Q: Problem: Module 6 Textbook Problem 2 Learning Objective: 6-1 Identify the characteristics relevant…
A: Opportunity costs are the feasible gains that a person, investor, or company forgoes while deciding…
Q: Jamieson Ltd is preparing to set up business on 1/7/2022 and has made the following forecast for the…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: Exercise 2 Cash Accounts Receivable Notes Receivable Merchandise Inventory Prepaid Insurance Office…
A: Adjusting entries are those which are reported at the end of the period to adjust the accruals and…
Q: 4 Activity Cost Pool 5 Material Handling 6 Machine Set-Ups 7 Engineering Support 8 Power and Space 9…
A: Activity Rate=Overhead CostActivity Cost Driver
Q: How does the adoption of a JIT approach to manufacturing affect process costing?
A: Introduction: JIT (JUST IN TIME); In a just-in-time (JIT) inventory control system, products are…
Q: Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: e investment manager for Draxler Co. pays $988,472 to purchase a $1,000,000 face-value bond maturing…
A: Bond is that debt instrument which is used by the organization to finance its long term fund needs,…
Q: Waupaca Company establishes a $300 petty cash fund on September 9. On September 30, the fund shows…
A: A Journal entry is a primary entry that records the financial transactions initially. The…
Q: A credit term of 3/10 net 60 means Discount of 0.3% if paid immediately else payment is effected…
A: Introduction:- Credit terms is an agreement between the buyer and seller pertaining to the timings…
Q: (b) What is the product margin under the traditional costing system when the number of orders…
A: The traditional costing system refers to the method of accounting that is useful for determining…
Q: Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers…
A: Solution:- 1)Calculation of the total revenue that Worley would receive from University and Memorial…
Q: July 1,2020, Joshua leased an quipment to Gerald under 3 year operating ase. Gerald will pay 100,000…
A: Lease Rent / Royalty : It is the amount of rent on the assets which is given for use to the person…
Q: Renue Spa had the following balances at December 31, Year 2: Cash of $12,000, Accounts Receivable of…
A: The accounts receivable means the amount that is not received. The amount of the accounts receivable…
Q: On June 15, 2020, Brainiac Company purchased 8 shares of Lovely Company for $6 per share. The…
A: Introduction: If investments in equity shares are less than 20%, then such investment is carried at…
Q: (a) Rayya Sdn. Bhd. produces two types of cakes: butter cake and chocolate cake. Of the two,…
A: Income statement is the statement deals in income and expenses of the company. it is also known as…
Q: Victoria Company produces a single product. Last year’s income statement is as follows: Required:1.…
A: The break even sales are the sales point where no profit or loss is earned by business during the…
Step by step
Solved in 2 steps
- On March 24, MS Companys Accounts Receivable consisted of the following customer balances: S. Burton 310 A. Tangier 240 J. Holmes 504 F. Fullman 110 P. Molty 90 During the following week, MS made a sale of 104 to Molty and collected cash on account of 207 from Burton and 360 from Holmes. Prepare a schedule of accounts receivable for MS at March 31, 20--.Your company paid rent of $1,000 for the month with check number 1245. Which journal would the company use to record this? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journalReview the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet Co. purchases 350 aprons (Supplies) at $25 per apron from a supplier, on credit. Terms of the purchase are 3/10, n/30 from the invoice date of January 5. B. On February 18, Melon Construction receives advance cash payment from a client for construction services in the amount of $20,000. Melon had yet to provide construction services as of February 18. C. On March 21, Noonan Smoothies sells 875 smoothies for $4 cash per smoothie. The sales tax rate is 6.5%. D. On June 7, Organic Methods paid a portion of their noncurrent note in the amount of $9,340 cash.
- Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.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?Post the following July transactions to T-accounts for Accounts Receivable, Sales Revenue, and Cash, indicating the ending balance. Assume no beginning balances in these accounts. A. on first day of the month, sold products to customers for cash, $13,660 B. on fifth day of month, sold products to customers on account, $22,100 C. on tenth day of month, collected cash from customer accounts, $18,500
- Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?
- Window World extended credit to customer Nile Jenkins in the amount of $130,900 for his purchase of window treatments on April 2. Terms of the sale are 2/60, n/150. The cost of the purchase to Window World is $56,200. On September 4, Window World determined that Nile Jenkinss account was uncollectible and wrote off the debt. On December 3, Mr. Jenkins unexpectedly paid in full on his account. Record each Window World transaction with Nile Jenkins. In order to demonstrate the write-off and then subsequent collection of an account receivable, assume in this example that Window World rarely extends credit directly, so this transaction is permitted to use the direct write-off method. Remember, however, that in most cases the direct write-off method is not allowed.Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for 8,500. Prepare the journal entry for McKinncy to record the collection of the account previously written off.Review the following transactions, and prepare any necessary journal entries. A. On July 16, Arrow Corp. purchases 200 computers (Equipment) at $500 per computer from a supplier, on credit. Terms of the purchase are 4/10, n/50 from the invoice date of July 16. B. On August 10, Hondo Inc. receives advance cash payment from a client for legal services in the amount of $9,000. Hondo had yet to provide legal services as of August 10. C. On September 22, Jack Pies sells thirty pies for $25 cash per pie. The sales tax rate is 8%. D. On November 8, More Supplies paid a portion of their noncurrent note in the amount of $3,250 cash.