Johnson company's financial year ended on December 31, 201o. All the transactions related to the company's uncollectible accounts are can be found below: Wrote of $440 account of Miller Company as uncollectible January 15 Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier Received 40% of the $700 balance owed by William John and wrote off the remainder as April 2nd July 31
Q: On January 1, 2021, the ledger of Crane Company contains the following liability accounts. Accounts…
A: A) Crane Company…
Q: The following transactions were completed by Wild Trout Gallery during the current fiscal year ended…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: During its first year of operations, G Company provides services on account of $250,000. By the end…
A: Since there are multi sub-parts, we will solve first three for you. To get the remaining sub-parts…
Q: The following information was drawn from the accounting records of Chapin Company 1. On January 1,…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: For the month of December, the records of ABC Corporation show the following information: Gross…
A: Gross sales = cash sales + credit sales Credit sales = Gross sales - cash sales = P120,000 -…
Q: Presented below is information related to Rizzo Company for its first month of operations. Credit…
A: Accounts payable refers to the sum of one's short-term obligations which are required to pay to the…
Q: Dorman Company had the following items to report on its balance sheet: Employee advances $ 1,580…
A: What amount should appear in the "Other Receivables" category?
Q: The following transactions were completed by The Wild Trout Gallery during the current fiscal year…
A: 1. Prepare T-account:
Q: The following selected transactions were taken from the records of Shipway Company for the first…
A: Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred from…
Q: Lakeview Company completed the following two transactions. The annual accounting period ends…
A: Please check steps 2 for the solution to questions 1 & 2. Step 3 for the solution of 3.
Q: The following transactions were completed by Wild Trout Gallery during the current fiscal year ended…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: The following transactions were completed by The Irvine Company during the current fiscal year ended…
A: Answer 3: Expected net realizable value of accounts receivable as of December 31:
Q: The following transactions were completed by Irvine Company during the current fiscal year ended…
A: Hey, since there are multiple sub-parts questions posted, we will answer the first three sub-parts…
Q: The following transactions were completed by Irvine Company during the current fiscal year ended…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: On January 1, 2022, the ledger of Sandhill Co. contained these liability accounts. Accounts…
A: Adjusting entries are the one which are prepared at year-end so that financial statements can be…
Q: In January, gross earnings in Sheridan Company totaled $60,000. All earnings are subject to 7.65%…
A: Payroll tax is typically described as the tax that would be withheld, imposed, or imposed on the…
Q: In January, gross earnings in Vaughn Company totaled $68,000. All earnings are subject to 7.65% FICA…
A: Payroll Accounting: The process of payroll accounting includes the computation and payment of…
Q: 1. Record the January 1 credit balance of $26,000 in a T account for Allowance for Doubtful…
A: Solution: Introduction: Since as per BNED requirements, each question is answered to the maximum of…
Q: The following transactions were completed by Daws Company during the current fiscal year ended…
A: Accounts receivableAccounts receivable refers to the amounts to be received within a short period…
Q: The following transactions were completed by Wild Trout Gallery during the current fiscal year ended…
A: Answer
Q: In January, gross earnings in Swifty Company totaled $96,000. All earnings are subject to 7.65% FICA…
A: FICA Taxes payable = Gross earnings x FICA tax rate = 96,000 x 7.65% = $7,344
Q: The following transactions apply to Jova Company for 2018, the first year of operation: Issued…
A: Following are the calculation of balance for doubtful accounts:
Q: Holloway Company earned $9,400 of service revenue on account during Year 1. The company collected…
A: HOLLOWAY COMPANY Effect of Events on the Year 1 Accounting Equation Event Assets = Liabilities +…
Q: Bramble Wholesalers Ltd. has a December 31 year end. The company incurred the following transactions…
A: Adjusting journal entry on 31 December:- Date Account Titles and Explanation Debit Credit Dec…
Q: The details of the accounts receivable of Dolor Corporation as December 31, 2022 shows the…
A: Cash Received from Financing of Receivables: It is the cash or money that the firm will receive from…
Q: The following transactions were completed by Irvine Company during the current fiscal year ended…
A: An allowance for doubtful debt account is prepared to record the amount which have less chances to…
Q: On January 1, Pharoah Corporation purchased a 25% equity in Helbert Corporation for $185,000. At…
A: When one entity holds 20% or more of the shares of other entity then second mentioned entity called…
Q: On January 1, Ivanhoe Corporation purchased a 25% equity in Helbert Corporation for $152,000. At…
A: Calculation of cash dividend: Dividend declared = 44700 for 25 % stake: = 44700 x 25 % = $ 11175…
Q: The following transactions were completed by Irvine Company during the current fiscal year ended…
A: (2) (a)
Q: Horizon Outfitters Company includes in its trial balance for December 31 an item for Accounts…
A: Current assets: The assets which could be converted into cash within one year like accounts…
Q: My business has a Stores and Distribution expense of $1,542,425, 80% was paid in Cash ($1,233,940),…
A: Accrued Liability: An accrued liability is an expense that a business is yet to pay even after it…
Q: The following transactions were completed by Irvine Company during the current fiscal year ended…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: One of the companies decided to check the debtors' balance of 264,000 dinars as it appears in the…
A: Debtors are the customer accounts to whom business has made credit sales on account and due amount…
Q: The following unadjusted sections of the Balance Sheet of the MILO Inc. as at December 31, 1988 were…
A: Current Assets Current assets is an important segment in the balance sheet which control the working…
Q: eb. 8 Received 40% of the $18,000 balance owed by DeCoy Co., a bankrupt business, and wrote off the…
A: Journal entry refers to reporting of the business transactions into the books of entity and it is…
Q: Vulcan Service Co. experienced the following transactions for Year 1, its first year of operations:…
A: Allowance for account receivable is calculated by multiplying the probability that amount will not…
Q: The following accounts and their balances appear in an unadjusted trial balance of Jhet Co. as of…
A: Current liabilities are the liabilities that are to be repaid within a year. Dividends can be…
Q: Harris, Inc. incurred the following transactions during the month of February. Record the…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Lakeview Company completed the following two transactions. The annual accounting period ends…
A: Prepare the journal entries for the given transactions:
Q: Johnson Inc. has the following information available: On November 1, 20X1, Johnson lent $15,000…
A: Promissory note :— It is a written financial document that promises to repay the borrowed money. In…
Q: The following information about Manchester Company is available on December 31, 2021. Income taxes…
A: Current Liabilities - It is the company's obligations or debts that are payable to creditors within…
Q: On November 10, JumpStart provides $2,170 in services to clients. At the time of service, the…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Sandhill Company has a balance in its Accounts Payable control account of $8,180 on January 1, 2020.…
A: Given: Accounts payable = $8,180 Hale Balance = $2,660 Janish Balance = $1,860
Q: Compute the amount of provision recorded in the income statement at year end.
A: Curent year provision to be recorded in the income statement at year end : = Current year Bad debt…
Q: The following transactions were completed by Daws Company during the current fiscal year ended…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: The following selected transactions were taken from the records of Shipway Company for the first…
A: Bad debt expense: Bad debt expense is an expense account. The amounts of loss incurred from…
Q: The following transactions were completed by Daws Company during the current fiscal year ended…
A: Adjusting entries are prepared for the settlement of the accounts.
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Please to do the Journal and the
Step by step
Solved in 4 steps
- Reversing Entries Thomas Company entered into two transactions involving promissory notes and properly recorded each transaction. 1. On November 1, it purchased land at a cost of 8,000. It made a 2,000 down payment and signed a note payable agreeing to pay the 6,000 balance in 6 months plus interest at an annual rate of 10%. 2. On December 1, it accepted a 4,200, 3-month, 12% (annual interest rate) note receivable from a customer for the sale of merchandise. On December 31, Thomas made the following related adjustments: Required: 1. Assuming that Thomas uses reversing entries, prepare journal entries to record: a. the January 1, reversing entries b. the March 1, 4,326 collection of the note receivable c. the May 1, 6,300 payment of the note payable 2. Assuming instead that Thomas does not use reversing entries, prepare journal entries to record the collection of the note receivable and the payment of the note payable.Shannon Corporation began operations on January 1, 2019. Financial statements for the years ended December 31, 2019 and 2020, contained the following errors: In addition, on December 31, 2020, fully depreciated machinery was sold for 10,800 cash, but the sale was not recorded until 2021. There were no other errors during 2019 or 2020, and no corrections have been made for any of the errors. Refer to the information for Shannon Corporation above. Ignoring income taxes, what is the total effect of the errors on the amount of working capital (current assets minus current liabilities) at December 31, 2020? a. working capital overstated by 4,200 b. working capital understated by 5,800 c. working capital understated by 6,000 d. working capital understated by 9,800The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 2019: 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 50,000. 4. Briefly explain how multiple-step and single-step income statements differ.
- Reading 3M Companys Balance Sheet: Accounts Receivable The following current asset appears on the balance sheet in 3M Companys Form 10-K for the year ended December 31, 2013 (amounts in millions of dollars): Required What is the balance in 3M Companys Allowance for Doubtful Accounts at the end of 2013 and 2012? What is the net realizable value of 3M Companys accounts receivable at the end of each of these two years? What caused increases in the allowance account during 2013? What caused decreases? Explain what a net decrease in the account for the year means.Payroll accounts and year-end entries The following accounts, with the balances indicated, appear in the ledger of Garcon Co. on December 1 of the current year: The following transactions relating to payroll, payroll deductions, and payroll taxes Occurred during December: Dec. 2. Issued Check No. 410 for 3,400 to Jay Bank to invest in a retirement savings account for employees. 2. Issued Check No. 411 to Jay Bank for 27,046, in payment of 9,273 of social security tax, 2,318 of Medicare tax, and 15,455 of employees federal income tax due. 13. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: Dec. 13. Issued Check No. 420 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 13. Journalized the entry to record payroll taxes on employees earnings of December13: social security tax, 4,632; Medicare tax, 1,158; state unemployment tax, 350; federal unemployment tax, 125. 16. Issued Check No. 424 to Jay Bank for 27,020, in payment of 9,264 of social security tax, 2,316 of Medicare tax, and 15,440 of employees federal income tax due. 19. Issued Check No. 429 to Sims-Walker Insurance Company for 31,500, in payment of the semiannual premium on the group medical insurance policy. 27. Journalized the entry to record the biweekly payroll. A summary of the payroll record follows: 27. Issued Check No. 541 in payment of the net amount of the biweekly payroll to fund the payroll bank account. 27. Journalized the entry to record payroll taxes on employees earnings of December27: social security tax, 4,668; Medicare tax, 1,167; state unemployment tax, 225; federal unemployment tax, 75. 27. Issued Check No. 543 for 20,884 to State Department of Revenue in payment of employees state income tax due on December 31. 31. Issued Check No. 545 to Jay Bank for 3,400 to invest in a retirement savings account for employees. 31. Paid 45,000 to the employee pension plan. The annual pension cost is 60,000. (Record both the payment and unfunded pension liability.) Instructions 1. Journalize the transactions. 2. Journalize the following adjusting entries on December 31: a. Salaries accrued: operations salaries, 8,560; officers salaries, 5,600; office salaries,1,400. The payroll taxes are immaterial and are not accrued. b. Vacation pay, 15,000.Accrued Interest On May 1, the Garnett Corporation wanted to purchase a $200,000 piece of equipment, but Garnett was only able to furnish $75,000 of its own cash to purchase the equipment. Garnett borrowed the remainder of the $200,000 from the Peoples National Bank on a 3-year, 4% note. Required: If the company keeps its records on a calendar year, what adjusting entry should Garnett make on December 31?
- Here are the accounts in the ledger of Mishas Jewel Box, with the balances as of December 31, the end of its fiscal year. Here are the data for the adjustments. Assume that Mishas Jewel Box uses the perpetual inventory system. a. Merchandise Inventory at December 31, 124,630. b. Insurance expired during the year, 1,294. c. Depreciation of building, 3,300. d. Depreciation of store equipment, 6,470. e. Salaries accrued at December 31, 2,470. f. Store supplies inventory (on hand) at December 31, 1,959. Required 1. Complete the work sheet after entering the account names and balances onto the work sheet. Ignore this step if using CLGL. 2. Journalize the adjusting entries. If using manual working papers, record adjusting entries on journal page 63.Recording the Sale of Notes Receivable Singer Corporation was involved in the following events in the current year: Required: Prepare the journal entries to record the preceding information on Singers accounting records. Assume that the company does not normally sell its notes. (Assume a 360-day year and round all answers to the nearest penny.)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?Accounting for Assets: Receivables Johnson company’s financial year ended on December 31, 2010. All the transactions related to the company’s uncollectible accounts are can be found below: January 15 Wrote of $440 account of Miller Company as uncollectible April 2nd Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier July 31 Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible August 15 Wrote off as uncollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200 September 26 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible October 16 Received $741 from M. Fuller in full payment of his account which had been written off earlier as uncollectible December 31 Estimated uncollectible accounts expense for the year to be 1.5% of net credit sales…