Show Attempt HistoryCurrent Attempt in ProgressIn January 2022, the management of Wildhorse Company concludes that it has sufficient cash to purchase some short-terminvestments in debt and stock securities. During the year, the following transactions occurred.Jan.Purchased 76 $1.,000, 7% TRC bonds for $76.000. Interest is payable annually on December 31.1.Feb.Purchased 1,090 shares of LAF common stock for $46,870.1.Mar.Purchased 490 shares of NCL common stock for $17.150.Julya cash dividend of $0.80 per share on the LAF common stock.Aug.Sold 199 shares of LAF common stock at $42 per share.Sept.Received $2 per share cash dividend on the NCL common stock.Dec.31Received the annual interest on the TRC bonds.31Sold the TRC bonds for $77,598.At December 31. the fair values of the LAF and NCL common stocks were $39 and $28 per share, respectively. These stockinvestments by Wildhorse Company provide less than a 20% ownership interest. Your answer is partially correct.Prepare the adjusting entry at December 31, 2022, to report the investments at fair value. (Credit account titles are automaticallyindented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O forthe amounts)Date Account Titles and ExplanationDebitCreditDec. 31Unrealized Gain or Loss-Income7790Fair Value Adjustment-Stock7790eTextbook and MediaList of AccountsSave for LaterAttempts:1of 3ced

Bonds- A bond is a fixed-income tool that represents a loan made by a shareholder to a borrower…

In January 2022, the management of Wildhorse Company concludes that it has sufficient cash to purchase some short-term investments in debt and stock securities. During the year, the following transactions occurred. Purchased 76 $1,000, 7% TRC bonds for $76.000. Interest is payable annually on December 31. Purchased 1,090 shares of LAF common stock for $46,870, Jan. Feb. 1. Mar. Purchased 490 shares of NCL common stock for $17.150. July Received a cash dividend of $0.80 per share on the LAF common stock. Aug 1. Sold 199 shares of LAF common stock at $42 per share. Sent Receivedd $2 per share cash dividend on the NCL

In January 2022, the management of Wildhorse Company concludes that it has sufficient cash to purchase some short-term investments in debt and stock securities. During the year, the following transactions occurred. Purchased 76 $1,000, 7% TRC bonds for $76.000. Interest is payable annually on December 31. Purchased 1,090 shares of LAF common stock for $46,870, Jan. Feb. 1. Mar. Purchased 490 shares of NCL common stock for $17.150. July Received a cash dividend of $0.80 per share on the LAF common stock. Aug 1. Sold 199 shares of LAF common stock at $42 per share. Sent Receivedd $2 per share cash dividend on the NCL

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 11EA: Mirror Mart uses the balance sheet aging method to account for uncollectible debt on receivables....

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Subsequent Events can be classified as adjusting events and non-adjusting events. For the list of eventsbelow indicate whether the event is adjusting or non-adjusting?i. Insolvency of a receivable after year endii. Destruction of significant asset after year endiii. Sale of inventories after year end… evidence of Net Realisable Valueiv. Issue of shares/debt after year endv. Discovery of errors/fraud revealing Financial Statement incorrect after year endvi. Take-over of another business after year endvii. Purchases/sales of significant non-current assets after year endviii. Agreement of tax liability after year end
Mirror Mart uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more efficiently, Mirror Mart decided to change past-due categories as follows. Complete the following. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Explain how the new total uncollectible amount affects net income and accounts receivable.
Elegant Universal uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Elegant Universal considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between totals uncollectible. C. Describe the categories change effect on net income and accounts receivable.
Elegant Linens uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Elegant Linens considers changing the past-due categories as follows. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Complete the following 2019 comparative income statements for 2019, showing net income changes as a result of the changes to the balance sheet aging method categories. D. Describe the categories change effect on net income and accounts receivable.
Outpost Designs uses the balance sheet aging method to account for uncollectible debt on receivables. The following is the past-due category information for outstanding receivable debt for 2019. To manage earnings more favorably, Outpost Designs decided to change past-due categories as follows. Complete the following. A. Complete each table by filling in the blanks. B. Determine the difference between total uncollectible. C. Explain how the new total uncollectible amount affects net income and accounts receivable.
For each of the following situations, indicate the effect on assets, net income, andretained earnings at December 31, 2020 and 2021 as follows:• O if the financial statement element is overstated.• U if the financial statement element is understated.• NE if there is no effect on the financial statements.Provide a brief explanation for your choice eg NI U – expenses too highNote: please present in a table form a) Depreciation expense on machinery is too high for 2020 and the 2021depreciation expense is correct. b) A 3-year rental agreement was signed on Jan. 1 2020 and recorded as aprepaid asset. No rent expense has been recognized. c) 2019 ending inventory was overstated by $10,000; 2020 inventoryunderstated by $8,000; 2021 inventory was correct.
During 2022, its first year of operations as a delivery service, Shamrock Corp. entered into the following transactions. 1. 2. 3. 4. 5. 6. 7. 8. 9. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses in the right-hand margin. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) (1) Issued shares of common stock to investors in exchange for $90,000 in cash. Borrowed $40,500 by issuing a note. Purchased delivery trucks for $54,000 cash. Performed services for customers for $14,400 cash. Purchased supplies for $4,230 on account. Paid rent of $4,680. Performed services on account for $9,000. Paid salaries of $25,200. Paid a dividend of $9,900 to shareholders. (2) $ Cash $ Accounts Receivable Assets + $ Supplies $…
The case below relates to IAS 10. Indicate whether they are adjusting and non-adjusting events and how they should be treated according to the standard. Facey Company Ltd has an investment worth $1,000,000 in its financial statements at 31 December 2019. Due to the continuing recession, the investment reduced in value to $900,000 by 15 January 2020.
On January 1, Valuation Allowance for Available-for-Sale Investments had a zero balance. On December 31, the cost of the available-for-sale securities was $78,400, and the fair value was $72,330. Prepare the adjusting entry to record the unrealized gain or loss on available-for-sale investments on December 31. Refer to the Chart of Accounts for exact wording of account titles.
Accrued rent income of P 25,000 was overlooked at the end of 2021. What would be the adjusting entry if the error was discovered at December 31, 2022? Group of answer choices A. Debit - Retained Earnings, P 25,000; Credit - Rent Income, P 25,000. B. No adjusting entry is necessary C. Debit - Rent Income, P 25,000; Credit - Retained Earnings, P 25,000. D. Debit - Rent Receivable, P 25,000; Credit - Retained Earnings, P 25,000.
For each of the following situations, indicate the effect on assets, net income, and retained earnings at December 31, 2020 and 2021 as follows: • O if the financial statement element is overstated. • U if the financial statement element is understated. • NE if there is no effect on the financial statements. Provide a brief explanation for your choice eg NI U – expenses too high Note: please present in a table form a) Depreciation expense on machinery is too high for 2020 and the 2021 depreciation expense is correct. b) A 3-year rental agreement was signed on Jan. 1 2020 and recorded as a prepaid asset. No rent expense has been recognized. c) 2019 ending inventory was overstated by $10,000; 2020 inventory understated by $8,000; 2021 inventory was correct. d) A machine with a 15-year useful life was expensed when purchased in 2020. e) Did not accrue interest expense on a note payable at Dec 31 2020. Interest expensed when paid in 2021.
1. Prepare the entry to record the write-off ofuncollectible accounts during 2019. 2. Prepare the entries to record the recovery ofthe uncollectible account during 2019 3. Prepare the entry to record bad debt expense(BDE) at the end of 2019. Ending balance ofAFDA was Rp18,200 (Cr.) 4. Determine the ending balance of AccountsReceivable as of December 31, 2019. 5. What is the net realizable value of thereceivables at the end of 2019? 6. The company has a notes receivable ofRp24,000 at January 15, 2019 for 3 months at10% interest rate. Prepare journal entry as ofApril 15, 2019, on its due date.