Question No. 2 You have discovered in your first audit of STUVWXYZ Corp., the Account "Other Assets and Charges" was utilized to booktransactions on receivables, payables and othercharges: Other Assets and Charges Credit Sales to customers Installment Sales made by consignee 545,000 Insurance Premium advanced 855,500 Customeraccount written-off 65,200 347,000 27,000 19,900 230,000 Taxes withheld from salaries Unpaid wages Accrued utility bills Raw Materials purchased on account 527,400 47,200 Employees IOUS Notes Received from customers 55,000 Advances paid to contractors Delivery expenses to customers Delivery expenses to customers 92,250 85,000 Payment on credit sales Bank Overdraft accommodation 270,000 176,000 85,000 Interest received from notes 28,000 Required: Prepare adjusting entries to reclassify the items to proper accounts required under the PFRS using the following Chart of Accounts:

Question No. 2 You have discovered in your first audit of STUVWXYZ Corp., the Account "Other Assets and Charges" was utilized to booktransactions on receivables, payables and othercharges: Other Assets and Charges Credit Sales to customers Installment Sales made by consignee 545,000 Insurance Premium advanced 855,500 Customeraccount written-off 65,200 347,000 27,000 19,900 230,000 Taxes withheld from salaries Unpaid wages Accrued utility bills Raw Materials purchased on account 527,400 47,200 Employees IOUS Notes Received from customers 55,000 Advances paid to contractors Delivery expenses to customers Delivery expenses to customers 92,250 85,000 Payment on credit sales Bank Overdraft accommodation 270,000 176,000 85,000 Interest received from notes 28,000 Required: Prepare adjusting entries to reclassify the items to proper accounts required under the PFRS using the following Chart of Accounts:

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter2: The Accounting Information System

Section: Chapter Questions

Problem 47E: OBJECTIVE 9 Exercise 2-47 Debit and Credit Effects of Transactions Lincoln Corporation was involved...

See similar textbooks

Similar questions

Activity # 7 Application of the concepts of Assets, Liabilities, Owner’s Equity, Revenue, and ExpenseThe following table includes SFP and SCI elements. Put a check mark (√) in the column where each accounts belongs to.Account Asset Liability Owner’s Equity Revenue Expenses1. Interest Receivable2. Professional Fees3. Service Income4. Mr. A, Drawing 5. Doubtful Accounts6. Depreciation Expense7. Accrued Interest Income8. Unearned Interest Income9. Prepaid Interest10. Accumulated Depreciation11. Mortgage payable12. Unused Supplies13. Supplies Inventory14. Supplies on hand15. SSS Premium Expense16. Withholding Taxes Payable17. Repairs and Maintenance 18. Petty cash Fund19. Allowance for Bad Debts20. Cash in bank21. Accounts payable22. Prepaid Insurance23. Unexpired Insurance24. Salaries payable25. Utilities Expens
Problem 2 For the 2021 audit of the financial statements, you are tasked to audit EMPLEO Corporation's liabilities. The following information relates to the obligations of EMPLEO Corporation as of December 31, 2021: • Accounts payable for goods and services purchased on open account amounted to P350,000 on December 31, 2021. This amount was gross of a supplier's debit balance of P30,000. On the other hand, the testing of the accounts receivable account revealed that a customer's credit balance of P50,000 was netted against the balance of the accounts receivable. At December 31, 2021, EMPLEO declared a cash dividend at P0.50 per share on its P10 par value ordinary share capital, payable at January 12, 2022, to shareholders as of December 31, 2022. At December 31, 2021, EMPLEO had 1,000,0000 issued ordinary shares and 800,000 oustanding ordinary shares. • The company financed its receivables, dated November 1, 2021, by discounting its 180-day P400,000 accounts receivable to a bank on a…
Problem 19 When examining the accounts of Ayala Corporation, it is ascertained that balance relatingto both receivables and payables are included in a single controlling account called“Receivables control” that has a debit balance of P4,850,000. An analysis of the make-upof this account revealed the following:Debit Accounts receivable – customers 7,800,000Accounts receivable – officers 500,000Debit balances – creditors 300,000Postdated checks from customers 400,000Subscriptions receivable 800,000CreditAccounts payable for merchandise 4,500,000Credit balances in customer’s accounts 200,000Cash received in advance from customers 100,000Expected bad debts 150,000After further analysis of the aged accounts receivable, it is determined that the allowancefor doubtful accounts be P200,000. What is the correct total of current net receivables?__________.
Q4. Analysis of Financial StatementsThere was a bit of concern about one of Big Rock’s newer entities – Big Rock PavingCompany. Management wants you to review the two financial statements below and giveyour analysis of the company’s performance.Big Rock Paving CompanyAssets LiabilitiesCurrent Assets: Current Liabilities:Cash 200,000 Accounts Payable 700,000Accounts Receivable 300,000 Notes Payable 600,000Inventory 800,000Total Current Assets 1,300,000 Total Current Liabilities 1,300,000Fixed Assets: Owners’ Equity:Property, Plant & Equipment 2,200,000 Common Stock ($1 Par) 600,000Less: Accumulated Depreciation 600,000 Capital Surplus 100,000Net Fixed Assets 1,600,000 Retained Earnings 100,000Total Assets 2,900,000 Total Owners’ Equity 800,000Total Liabilities and Owners’Equity2,900,000Big Rock Paving CompanyIncome Statement for Year Ending December 31, 2021Sales 3,400,000Less: Cost of Goods Sold 2,700,000Less: Administrative Expenses 700,000Less Depreciation 682,000Earnings Before…
Question 3 (a) You are the Accounts Assistant of Excellent Sdn Bhd. You have been asked to help in the preparation of financial statements by agreeing the figure for the total receivables. The following figures relating to the current financial year ended 30 November are obtained from the books of original entry. RM Purchases for the year 361,947 Sales 472,185 Returns inwards 41,226 Returns outwards 16,979 Bad debts written off 1,914 Discount allowed 2,672 Discount received 1,864 Cheques paid to payables 342,791 Cheques received from receivables 429,811 Customer’s cheque dishonoured 626 You discovered that the closing balance of the total receivables for the previous financial year ended 30 November amounted to RM50,241. Required: Prepare the Trade Receivables Control Account of Excellent Sdn Bhd for the current financial year ended 30 November.
True or False. 37. Horizontal analysis is the financial analysis technique that compares the balances of two accounts in one reporting period. * 21. The SoCE is prepared to help the readers understand the transactions that affected the balances of the drawing and equity accounts. * 19. The cost of transporting the merchandise purchased by the company is a reduction from the cost or merchandise purchased. * 32. Cash payment for bank loans are reported under cash flows from operating activities. *
Parts wriiten Subparts to be solve are the ones to be solved Question Requirement 1For each of the following transactions make the required entries in the General Journal:(See the General Ledger tab in the workbook Chapter 03 b - Problem 3-1 Forms for the accounts in OPJ’s accounting system.)Feb 01 Take $4,000 cash out of Big Bank to pay for February’s warehouse rent.Feb 04 Sale of inventory to a customer – selling price $62,000 – cost of inventory sold $16,000 – customer paid cash which was deposited in Big Bank.Feb 07 Take $10,000 cash out of Little Bank to pay employees for wages they have earned.Feb 15 Sale of inventory to a customer – selling price $88,000 – cost of inventory sold $22,000 – customer will pay in the future.Feb 18 Sale of inventory to a customer – selling price $110,000 – cost of inventory sold $28,000 – customer pays $40,000 cash which is deposited in Little Bank – customer will pay for the remaining amount of the sale in 30 days.Feb 22 Purchase additional…
EXERCISE 6: CALCULATING ROA USING THE DUPONT FINANCIAL SYSTEM The following accounts are included in Eva's retail store financial statements: Cost of sales Administrative expenses Prepaid expenses Inventories Depreciation/amortization Cash Trade receivables Revenue Non-current assets Distribution costs $2,300,000 170,000 60,000 300,000 25,000 25,000 250,000 3,000,000 1,700,000 200,000 170 Questions 1. Calculate her ROA by using the DuPont financial system. 2. What impact would there be on the ROA if the revenue account changed to $3,200,000?
Question 3 (b) To give you some assistance, your rather inexperienced colleague, Peter Tan, has attempted to extract and total the individual balances in the Sales Ledger. He provided you with the following listing which he has prepared. RM Berry Sdn Bhd 7,500 Penny and Son (Swindon) Ltd 2,000 Fast Work Enterprise 4,297 Roswell & Co. 6,847 Usaha Sdn Bhd 783 Landasan Enterprise 3,765 Warta Sdn Bhd 4,091 Penny and Son (Swindon) Ltd 2,000 Warisan Sdn Bhd 8,112 Kedai Rasa Sedap 5,910 Ashahi Enterprise 1,442 46,347 Subsequent to drawing up of the list, the following errors have been found: A sales invoice for RM267 sent to Warisan Sdn Bhd had been entered in the Sales Journal but had not then been posted to the account for Warisan Sdn Bhd in the Sales Ledger. One of the errors made by Peter Tan (you suspect that his list may contain more errors) was omitting the RM2,435…
Q#3) Auditor has discovered the following errors. Cash of $1000 received at the time the service was provided was journalized and posted as a debit to Cash $1000 and a credit to Accounts Receivable $1000. Instructions Prepare the correcting entries.
Question 2:The following Trial Balance was extracted from the books of Mr Smith as at30 December 20X1: Debit CreditRM RMSales and Purchases 68,080 215,580Returns 220 380Inventories as at 1 January 20X1 18,400Rent received 9,000Building at cost 520,000Advertising expenses 27,600Trade receivables and Trade Payables 168,000 100,000Salaries and wages 68,000Motor vehicles at cost 100,000Insurance 24,000Sundry expenses 15,000Accumulated depreciation: Motor vehicles 40,000Accumulated depreciation: Buildings 64,000Electricity and water 7,100Allowance for doubtful debts 1,200Discounts 3,000 7,000Printing and stationery 2,496Cash in hand 136,000Bank overdraft 736Capital 720,0001,157,896 1,157,896 Additional information:1. Rent received in arrears as at 31 December 20X1 was RM1,000.2. Insurance includes RM2,000 paid for January and February 20X2.3. Depreciation charges are to be provided as follows:- Motor vehicles at 10% per annum on net book value- Buildings at the rate of 1% per annum on…
(B) Assume that BRI reported the following selected balances at 12/31/2022: Accounts receivable (net) $ 299,600 Inventory 572,632 Accounts payable 200,164 Salaries and wages payable 33,670 Compute: Cash collected from customers Cash paid to suppliers Cash paid to employees Adjusted Trial Balance Account Titles Dr Cr Cash 26,143 Equity securities portolio 47,521 Fair value adjustment 3,585 Accounts receivable 284,171 Allowance for doubtful accounts 14,209 Inventory 623,636 Prepaid insurance 11,080 Land 414,518 Buildings 1,455,667 Accumulated depreciation-bldg 490,534 Equipment 1,041,038 Accumulated depreciation-equip 337,259 Deferred tax asset 6,000 Patent 17,970 Accounts payable 205,799 Income taxes…