Nahtan Company recorded the following transactions: (A). Purchase of building worth P700,000 by issuing notes payable was recorded as an expense. (B). Collection of accounts receivable worth P12,400 was not recorded at all. (C). Withdrawal of cash worth P25,000 was debited to expense and credited to cash. (D). Supplies used valued at P8,600 were not included. (E). Payment of insurance worth P12,000 that would take effect next period was recorded as an expense. By how much was the total assets under or overstated? Use negative sign to denote if understated. Type your answer...

Nahtan Company recorded the following transactions: (A). Purchase of building worth P700,000 by issuing notes payable was recorded as an expense. (B). Collection of accounts receivable worth P12,400 was not recorded at all. (C). Withdrawal of cash worth P25,000 was debited to expense and credited to cash. (D). Supplies used valued at P8,600 were not included. (E). Payment of insurance worth P12,000 that would take effect next period was recorded as an expense. By how much was the total assets under or overstated? Use negative sign to denote if understated. Type your answer...

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 18EB: Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received...

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Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
On December 1, 2020, Bonita Company had the following account balances. Debit Credit Cash $17,300 Accumulated Depreciation—Equipment $3,000 Notes Receivable 2,500 Accounts Payable 6,200 Accounts Receivable 7,700 Owner’s Capital 64,700 Inventory 15,900 $73,900 Prepaid Insurance 1,500 Equipment 29,000 $73,900 During December, the company completed the following transactions. Dec. 7 Received $3,600 cash from customers in payment of account (no discount allowed). 12 Purchased merchandise on account from Vance Co. $11,000, terms 1/10, n/30. 17 Sold merchandise on account $16,300, terms 2/10, n/30. The cost of the merchandise sold was $9,200. 19 Paid salaries $2,200. 22 Paid Vance Co. in full, less discount. 26 Received collections in full, less discounts, from customers billed on December 17. 31 Received $2,800 cash from customers in payment of account (no discount…
The accounts in the ledger of Hickory Furniture Company as of December 31, 20Y6, are listed in alphabetical order below. All accounts have normal balances. The balance of the cash account has been intentionally omitted. Accounts Payable $42,770 Accounts Receivable 116,900 Cash ? Elaine Wells, Capital 75,000 Elaine Wells, Drawing 24,000 Fees Earned 745,230 Insurance Expense 3,600 Land 50,000 Miscellaneous Expense 9,500 Notes Payable 50,000 Prepaid Insurance 21,600 Rent Expense 48,000 Supplies 4,275 Supplies Expense 6,255 Unearned Rent 12,000 Utilities Expense 26,850 Wages Expense 580,700 Prepare an unadjusted trial balance, listing the accounts in their normal order and inserting the missing figure for cash. If an amount box does not require an entry, leave it blank. Hickory Furniture CompanyUnadjusted Trial BalanceDecember 31, 20Y6 DebitBalances CreditBalances - Select - - Select - - Select - - Select - - Select - -…
The following would cause the trial balance not to balance. Payment of a cash withdrawal of $19,000 was journalized and posted as a debit of $1,900 to Salary Expense and a credit of $19,000 to Cash. True or False?
Viscount Catering collected RM42,000 cash on its accounts receivable. The effects of this transaction as reflected in the accounting equation are:
Indicate what basic accounting principle was applied. 1 Cash amounting to P30,000 was received by a shop from a customer for services rendered in the next accounting period. This amount was not recorded as income of the shop for the current year. 2.The company accounts for the small trash bins it used by recording them as expense payment.
Prepare journals to correct following transactions: 1.additional cash injected into the business amounting to K3,000,000 was only recorded in the bank account. 2.sales returning amounting to K60,000 has been credited to sales account instead of customer's account. 3.purchases were undercast by K42,000 4.accrued rentals amounting K70,000 were completely omitted from the financial statements. 5.a disposal of a motor vehicle costing K600,000 (accumulated depreciation K320,000) for K400,000 cash has not been recorded in the books. 6. Payment to M Banda of K50,000 has been debited to both M Banda and bank account. 7.interest receivable of K48,000 has been accounted as interest payable by debiting interest and crediting accruals.
The following trial balance of Marigold Corporation does not balance. MARIGOLD CORPORATIONTRIAL BALANCEJUNE 30, 2020 Debit Credit Cash $7,271 Accounts Receivable 7,200 Supplies 3,745 Equipment 7,400 Accounts Payable $8,484 Common Stock 13,500 Retained Earnings 3,000 Service Revenue 3,182 Office Expense 4,460 $30,076 $28,166 An examination of the ledger shows these errors. 1. Cash received from a customer on account was recorded (both debit and credit) as $1,270 instead of $1,720. 2. The purchase on account of a computer costing $3,100 was recorded as a debit to Office Expense and a credit to Accounts Payable. 3. Services were performed on account for a client, $1,900, for which Accounts Receivable was debited $1,900 and Service Revenue was credited $190. 4. A payment of $90 for…
The following trial balance of Cheyenne Corporation does not balance. CHEYENNE CORPORATIONTRIAL BALANCEJUNE 30, 2020 Debit Credit Cash $7,249 Accounts Receivable 7,530 Supplies 3,721 Equipment 7,600 Accounts Payable $8,880 Common Stock 14,000 Retained Earnings 3,900 Service Revenue 1,550 Office Expense 4,120 $30,220 $28,330 An examination of the ledger shows these errors. 1. Cash received from a customer on account was recorded (both debit and credit) as $1,470 instead of $1,740. 2. The purchase on account of a computer costing $3,000 was recorded as a debit to Office Expense and a credit to Accounts Payable. 3. Services were performed on account for a client, $1,900, for which Accounts Receivable was debited $1,900 and Service Revenue was credited $190. 4. A payment of $60 for…
Brian Sipe began operations of his business, Sipe Sons Incorporated, on January 1, Year One. During the year, the company performed services on credit of $192,000. Of that amount, $115,750 was collected in cash during the year. Brian estimates, of the remaining amount due, $5,100 may not be collected. Prepare the entries for the events during year one What is the balance in the accounts receivable account? What is the amount of receivables reported on the balance sheet? Why would Brian have a separate allowance account and not reduce the receivable balance for the amount estimated to e uncollectible? What type of account is Allowance for Doubtful Accounts
Brian Sipe began operations of his business, Sipe Sons Incorporated, on January 1, Year One. During the year, the company performed services on credit of $192,000. Of that amount, $115,750 was collected in cash during the year. Brian estimates, of the remaining amount due, $5,100 may not be collected. Prepare the entries for the events during Year One. What is the balance in the accounts receivable account? What is the amount of receivables reported on the balance sheet? Why would Brian have a separate allowance account and not reduce the receivable balance for the amount estimated to be uncollectible? What type of account is Allowance for Doubtful Accounts? Continuing problem 2, Sipe Sons Incorporated continued to have successful operations in Year Two. Sales on credit amounted to $205,000 and cash collections were $183,250. At the end of Year Two, he estimates of the remaining amount due, $8,600 may not be collected. What is the balance in the accounts…