QUESTION 3 AA Sdn Bhd provides for doubtful debts at 3% of outstanding debtors at his year end of 31 December. The following balances of debtors are: Debtors RM December 31, 2018 December 31, 2019 December 31, 2020 18,700 21,400 19,600 The following bad debts had been written off: Date written off RM December 31, 2018 December 31, 2019 December 31, 2020 169 143 66 Required: (a) Prepare for each of the years ended 31 December 2018, 31 December 2019 and 31 December 2020 the: (i) Bad Debts Account (ii) Allowance for Doubtful Debts Account (b) Prepare the statement of financial position extracts for each of the years at 31 December 2018, 2019 and 2020.

QUESTION 3 AA Sdn Bhd provides for doubtful debts at 3% of outstanding debtors at his year end of 31 December. The following balances of debtors are: Debtors RM December 31, 2018 December 31, 2019 December 31, 2020 18,700 21,400 19,600 The following bad debts had been written off: Date written off RM December 31, 2018 December 31, 2019 December 31, 2020 169 143 66 Required: (a) Prepare for each of the years ended 31 December 2018, 31 December 2019 and 31 December 2020 the: (i) Bad Debts Account (ii) Allowance for Doubtful Debts Account (b) Prepare the statement of financial position extracts for each of the years at 31 December 2018, 2019 and 2020.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 49P

See similar textbooks

Similar questions

Problem Reporting Long-Term Debt Fridley Manufacturings accounting records reveal the following account balances after adjusting entries are made on December 31, 2020. Required: Prepare the current liabilities and long-term debt portions of Fridleys balance sheet at December 31, 2020. Provide a separate line item for each issue (do not combine separate bonds or notes payable), but some items may need to be split into more than one item. Accounts payable $ 62,500 Bonds payable (9.4%, due in 2027) 800,000 Lease liability* 41,500 Bonds payable (8.7%, due in 2023) 50,000 Deferred tax liability* 133.400 Discount on bonds payable (94%, due in 2027) 12,600 Income taxes payable 26,900 * Long term liability Interest payable $ 38,700 Installment note payable (8%, equal installments due 2021 to 2024) 120,000 Notes payable (7.8%, due in 2025) 400,000 Premium on notes payable (7.8%, due in 2025) 6, [00 Note payable, 4% $50,000 face amount. due in 2026 (net of discount) 31,900
Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%. Required: 1. Prepare a bond interest expense and discount amortization schedule using the straight-line method. 2. Prepare a bond interest expense and discount amortization schedule using the effective interest method. 3. Prepare adjusting entries for the end of the fiscal year December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. If income before interest and income taxes of 30% in 2020 is 500,000, compute net income under each alternative. 5. Assume the company retired the bonds on June 30, 2020, at 98 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight line method of amortization b. effective interest method of amortization 6. Compute the companys times interest earned (pretax operating income divided by interest expense) for 2020 under each alternative.
Marmol Corporation uses the allowance method for bad debts. During 2019, Marmol charged 50,000 to bad debt expense and wrote off 45,200 of uncollectible accounts receivable. These transactions resulted in a decrease in working capital of: a. 0 b. 4,800 c. 45,200 d. 50,000
AA Sdn Bhd provides for doubtful debts at 3% of outstanding debtors at his year end of 31December. The following balances of debtors are:Debtors RMDecember 31, 2018 18,700December 31, 2019 21,400December 31, 2020 19,600 The following bad debts had been written off: Date written off RMDecember 31, 2018 169December 31, 2019 143December 31, 2020 66 Required:(a) Prepare for each of the years ended 31 December 2018, 31 December 2019 and 31December 2020 the:(i) Bad Debts Account (ii) Allowance for Doubtful Debts Account (b) Prepare the statement of financial position extracts for each of the years at 31December 2018, 2019 and 2020.
At 30th June 2018 a company’s provision for doubtful debts was £78,000. At 30th June 2019 debtors (receivables) totalled £1,034,000. It was decided to write off debts totalling £74,000 and to adjust the provision to the equivalent of 5% of remaining debtors (receivables). What figure should appear in the income statement for bad and doubtful debts expense for the year ended 30 June 2019? £74,000 £44,000 £47,700 £104,000
5. Oriental Company follows the procedure of debiting bad debt expense for 2% of all new sales. Sales for three consecutive years and year-end allowance account balances were as follows: Sales Allowance for Bad Debts 2018 3,000,000 40,000 2019 2,800,000 60,000 2020 3,500,000 80,000 What is the amount of accounts written off in 2020?
4. A company borrowed $200,000 on January 1, 2019 to pay them on January 1, 2022. On January 1, 2019, the company received an amount equal to $200,000, less interest discounted at an annual rate of 11.5%, which is the market rate. The company closes its books every December 31.a. Prepare the journal entry for the debtor on January 1, 2019.b. Prepare the journal entry on December 31, 2020 related to this debt. 5. Suppose that the company from the previous exercise number 4 received the full sum of $200,000 on January 1, 2019 and agreed to repay the loan by making three annual payments (January 1, 2020, 2021 and 2022) equal to the base at an interest rate of 11.5%.Prepare the journal entry to record the second of the three annual payments.
Match (by letter) the correct reporting method for each of the items listed below. Reporting Method C = Current liability L = Long-term liability D = Disclosure note only N = Not reported Item _________1. Accounts payable. _________2. Current portion of long-term debt. _________3. Sales tax collected from customers. _________4. Notes payable due next year. _________5. Notes payable due in two years. _________6. Advance payments from customers. _________7. Commercial paper. _________8. Unused line of credit. _________9. A contingent liability with a probable likelihood of occurring within the next year and can be estimated. _________10. A contingent liability with a reasonably possible likelihood of occurring within the next year and can be estimated.
1. Which of the following modification of terms will not qualify for derecognition of financial liability? * a. A P1,000,000 bonds payable was due for payment on September 01, 2019. The maturity date has been extended up to September 01, 2020 with the face amount still the same. b. The market rate of interest associated with 2,500 bonds was 10% when these bonds were sold. Present value of the bonds was computed based on this percentage. Months later, prices in the market significantly changed making a shift from 10% to 11.5% effective rate. c. P375,000 of interest that accrued from the last date of interest payment up to the present time has been condoned or forgiven. The face amount though of P5,000,000 is unchanged and would be paid at the original date stated on the bond indentures. d. A previous P2,000,000 bonds was replaced by another bond payable of the same amount but with a different nominal rate of 9% instead of the old 11% rate.
Problem 3:Intercom Company is planning to refinance certain short-term obligations on a long term basis. The entity has a December 31 year-end and the 201 9 financial statements will be published on March 15, 2020.0n December 31, 2019, before reclassification of short-term debt, the liabilities are:Current liabilities:Accounts Payable 7,000,000Note payable-bank 12,000,000Accrued expenses 4,000,000Noncurrent liabilities:Mortgage payable 4,000,000Note payable-due in 2021 3,000,000The entity intends to refinance ₱9,000,000 of the₱ 12,000,000 bank note payable on a long term basisAlthough the entire ₱12,000,000 is due on June 30, 2020, the bank has informally agreed to extend the maturity date for₱ 6,000,000 to June 30, 2021, if necessary.On January 31, 2020, the entity issued share capital for₱ 4,000,000, net issue costs and underwriting fees of ₱500,000.On February 15, 2020, the entity entered into a financing agreement with a financially capable commercial bank, permitting the entity to…
37-a At the end of the operating period, a rediscount of 7.500 TL has been calculated for the debt securities. Accordingly, which of the following accounts is correct to use in the posting to be made at the end of the period ? a) 321 Debt Securities Hs. Credited 7.500 TL B) 647 Rediscount Interest Income Hs. Creditor 7.500 TL NS) 657 Rediscount Interest Expenses Hs. Borrower 7.500 TL D) 647 Rediscount Interest Income Hs. Borrower 7.500 TL TO) 321 Debt Securities Hs. Borrower 7.500 TL
Problem 9-95AReporting Long-Term Debt Fridley Manufacturing's accounting records reveal the following account balances after adjusting entries are made on December 31, 2018: Accounts payable $ 62,500 Bonds payable (9.4%, due in 2025) 800,000 Lease liability* 41,500 Bonds payable (8.7%, due in 2021) 50,000 Deferred tax liability* 133,400 Discount on bonds payable (9.4%, due in 2025) 12,600 Income tax payable 26,900 Interest payable 38,700 Installment note payable (8% equal installments due 2019 to 2022) 120,000 Notes payable (7.8%, due in 2023) 400,000 Premium on notes payable (7.8%, due in 2023) 6,100 Zero coupon note payable, $50,000 face amount, due in 2024 (net of discount) 31,900 * Long-term liability Required: Prepare the current liabilities and long-term debt portions of Fridley's statement of financial position at December 31, 2018. Provide a separate line item for each issue (do not combine separate bonds or notes…