Answered: Questions to be Answered: Why is it…

Questions to be Answered: Why is it important to closely monitor the company’s accounts receivable balance? Why could a large balance lead to cash flow problems?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter1: The Demand For And Supply Of Financial Accounting Information

Section: Chapter Questions

Problem 14C: Codification Situation You are conducting an accounting research project for your boss. Your boss...

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Check my work 10 The Chair Company provides a 120-day parts-and-labor warranty on all merchandise it sells. The Chair Company estimates the warranty expense for the current period to be $1,240. During the period, a customer returned a product that cost $930 to repair. Required a. Show the effects of these transactions on the financial statements using a horizontal statements model like the example shown here. Use a + to indicate increase or a - for decrease. if the element is not affected, leave the cell blank. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). (Not all cells will require entry.) Hint Ask Print CHAIR COMPANY Horizontal Statements Model Balance Sheet Income Statement Statement of Cash Flow Stockholder's Equity Event Assets Liabilities + Revenue - Expense = Net Income Estimates Paid
According to your studying of the Conceptual Framework, Discuss the following: 1. Selane Eatery operates a catering service specializing in business luncheons for large companies. Selane requires customers to place their orders 2 weeks in advance of the scheduled events. Selane bills its customers on the tenth day of the month following the date of service and requires that payment be made within 30 days of the billing date. Conceptually, when should Selane recognize revenue related to its catering service? 2. Mogilny Company paid $135,000 for a machine. The Accumulated Depreciation account has a balance of $46,500 at the present time. The company could sell the machine today for $150,000. The company president believes that the company has a “right to this gain.” What does the president mean by this statement? Do you agree? 3. Three expense recognition methods (associating cause and effect, systematic and rational allocation, and immediate recognition) were discussed in the chapter…
Please show the solution in good accounting form 5. With the goal of attracting as many customers as possible in the CAR region, LISA Appliance Co. engaged in a customer satisfaction program and marketing strategy for two of their major lines of products: (1) electrical appliances and (2) household and office furniture. All branches in the region are participating in the company’s promotions. In the customer satisfaction program, LISA provides a one-year warranty replacement of parts and labor of the electrical appliances sold. Based on past experience, the estimated warranty cost is 3% of sales. In 2021, total sales of electrical appliances were ₱7,200,000. Replacement parts and labor for warranty work totaled ₱184,000 during 2021. In the company’s marketing strategy for the household and office furniture section, customers are given a coupon for every ₱1,000 spent on these items. Customers may exchange 10 coupons plus ₱500 for a “hot and cold” water dispenser. Each water dispenser…
Part A: If Stacy Lynn wants to show the bank the maximum profit over the previous 2-year period, which costing method should be presented? Part B: However, the bank requires that all financial statements conform to Generally Accepted Accounting Principles (GAAP). Based on that requirement, which costing method should be presented? Part C: The bank has delivered a memo in preparation for the meeting to negotiate the Credit Line; the memo states that they will expect a significant Net Income. Based on your responses to Parts A and B, what are some of the legal and ethical issues that may be of importance to Stacy Lynn?
According to the revenue recognition principle, revenues should be recognized when they areearned, which happens when the company performs acts promised to the customer. For most businesses, this condition is met at the point of delivery of goods or services. The following transactions occurred in September:a. A customer paid $10 cash for 10 song files from Apple ’s iTunes store. Answer from Apple’sstandpoint.b. Home Depot provided a carpet installation for $2,000 cash. A comparable installation fromother companies costs $3,000.c. AT&T is scheduled to install digital cable at 1,000 Austin area homes next week. The installation charge is $100 per home. The terms require payment within 30 days of installation.Answer from AT&T’s standpoint.d. AT&T completed the installations described in ( c ). Answer from AT&T’s standpoint.e. AT&T received payment from customers for the installations described in ( c ). Answer fromAT&T’s standpoint.f. A customer purchased a ticket…
Please show the solution in good accounting form 6. With the goal of attracting as many customers as possible in the CAR region, LISA Appliance Co. engaged in a customer satisfaction program and marketing strategy for two of their major lines of products: (1) electrical appliances and (2) household and office furniture. All branches in the region are participating in the company’s promotions. In the customer satisfaction program, LISA provides one-year warranty replacement of parts and labor of the electrical appliances sold. Based on past experience, the estimated warranty cost is 3% of sales. In 2021, total sales of electrical appliances were ₱7,200,000. Replacement parts and labor for warranty work totaled ₱184,000 during 2021. In the company’s marketing strategy for the household and office furniture section, customers are given a coupon for every ₱1,000 spent on these items. Customers may exchange 10 coupons plus ₱500 for a “hot and cold” water dispenser. Each water dispenser…
#5_Issue: During the last week of 2017, George Green, controller of We ‘R’ Appliances, received a memorandum from the firm’s president, Jane Anderson. The memorandum stated that Anderson had negotiated a very large sale with a new customer and directed Green to see that the order was processed and the goods shipped before the end of the year. Anderson noted that she had to depart from the usual credit terms of n/30 and allow terms of n/60 to clinch the sale. Although the credit terms were unusual for the company, Green was particularly pleased with the news because business had been somewhat slow. The goods were shipped on December 29 and the sale was incorporated into the 2017 financial data. It is now mid-February 2018, and two events have occurred recently that, together, cause concern for Green. First, he was inadvertently copied on a letter from the firm’s bank to Anderson. The letter stated that the bank had reconsidered its decision to deny a loan to the company and is now…
Please show the solution in good accounting form 4. With the goal of attracting as many customers as possible in the CAR region, LISA Appliance Co. engaged in a customer satisfaction program and marketing strategy for two of their major lines of products: (1) electrical appliances and (2) household and office furniture. All branches in the region are participating in the company’s promotions. In the customer satisfaction program, LISA provides a one-year warranty replacement of parts and labor of the electrical appliances sold. Based on past experience, the estimated warranty cost is 3% of sales. In 2021, total sales of electrical appliances were ₱7,200,000. Replacement parts and labor for warranty work totaled ₱184,000 during 2021. In the company’s marketing strategy for the household and office furniture section, customers are given a coupon for every ₱1,000 spent on these items. Customers may exchange 10 coupons plus ₱500 for a “hot and cold” water dispenser. Each water dispenser…
12. Gingerbread Corp received an advance cash payment from a customer for 40 gingerbread kits at $10 per kit. Gingerbread Corp is scheduled to deliver the kits in 30 days. What is the correct journal entry to record the sale? a.DR Accounts receivable 400 CR Sales revenue 400 b.DR Cash 400 CR Sales revenue 400 c.DR Cash 400 CR Unearned revenue 400 d.DR Accounts receivable 400 CR Unearned revenue 400
Suppose you have been given a job as an Accounting Clerk in a retail store and have been asked by the manager for advice on an accounting issue. You were told that most of the companies customers pay immediately for services rendered while a few pay stsometime later. As at December 31 , 2013 the company collected $30,000 from its cash customers, while $25,000 is owed by other customers for services rendered within the same period. Advice the manager how much should be recorded as service revenue under the cash basis and accrual basis of accounting for the period in question.
PLEASE SHOW SOLUTIONS IN GOOD ACCOUNTING FORM. 8. Mary Corporation has a branch in Caloocan. During 2021, the home office shipped to the branch supplies costing P156,000 at a billed price of 30% above cost. The inventories of supplies at the branch were as follows: January 1, 2021 P110,000; December 31, 2021 128,000. On December 31, 2021, the home office holds inventories of P112,800 which includes P11,500 held on consignment and which excludes P5,000 inventories out on consignment. How much is the inventories in a combined balanced sheet as of December 31, 2021?
Identify transaction(s) with a variable consideration 1. Ford Motor estimates expenses relating to a quality-assurance warranty on its cars that were sold. 2. An attorney is entitled to 40% of the award to his/her client if the litigation is won, and nothing if the litigation is lost. 3. An accounting firm charges every audit client $10,000 plus $150 per hour. 4. As a promotion of it new store, Acme Inc. mailed $25 voucher to every family in a city. Acme estimates that customers will probably redeem three-fourth of all vouchers. 2, 3 and 4 1 and 4 2 and 4 1, 2 and 3