Required information P9-2 (Algo) Recording and Reporting Current Liabilities with Discussion of Cash Flow Effects LO9-1, 9-5 [The following information applies to the questions displayed below.] Roger Company completed the following transactions during Year 1. Roger's fiscal year ends on December 31. Jan. 8 Purchased merchandise for resale on account. The invoice amount was $14,850; assume a perpetual inventory system. 17 Paid January 8 invoice. Apr. 1 Borrowed $48,000 from National Bank for general use; signed a 12-month, 12% annual interest-bearing note for the money. June 3 Purchased merchandise for resale on account. The invoice

Required information P9-2 (Algo) Recording and Reporting Current Liabilities with Discussion of Cash Flow Effects LO9-1, 9-5 [The following information applies to the questions displayed below.] Roger Company completed the following transactions during Year 1. Roger's fiscal year ends on December 31. Jan. 8 Purchased merchandise for resale on account. The invoice amount was $14,850; assume a perpetual inventory system. 17 Paid January 8 invoice. Apr. 1 Borrowed $48,000 from National Bank for general use; signed a 12-month, 12% annual interest-bearing note for the money. June 3 Purchased merchandise for resale on account. The invoice

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400
Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)
Indie Company had the following account balances at December 31, 2021:Cash in Metrobank (includes P300,000 of compensating balance against short term borrowing arrangements. The compensating balance is not legally restricted as to withdrawal by Indie Company) - P1,875,000Cash in BPI - P180,000Cash on hand (includes a customers check for P15,000 dated January 5, 2022) - P125,000Cash restricted for acquisition of machinery (expected to be disbursed in 2022) - P1,600,000How much is the total cash reported in the current asset section of Indie Company's December 31, 2021 statement of financial position?
On February 1, 2023 MANGOSTEN Company factored receivable with a carrying amount of ₱ 300,000 to ACKEE Company. ACKEE Company assesses a finance charge of 3% of the receivables and retains 5% of the receivables. Relative to this transaction, assume MANGOSTEEN factors receivables on a without recourse basis. Using the same information on the previous number, what amount of cash was received? A. ₱ 276,000 B. ₱ 285,000 C. ₱ 291,000 D. ₱ 300,000
ABC Company finances some of its current operations by factoring its accounts receivable to a finance company. On July 1, 2020, the company factored P2,000,000 of its accounts receivable to XYZ Finance Company. Purchase price was 85% of the receivable factored. XYZ withheld 5% of the. purchase price as protection against sales returns and allowances. What was the net cash received by ABC from this factored accounts? A. P1,600,000 B. P2,385,000 C. P1.615,000 D. 2,015,000
The following information relates to Maharlika Corporation for the year ended June 30, 2021. Sales revenue 450000 Opening balance of trade receivables (net of allowance) 100000 Closing balance of trade receivable (net of allowance) 132500 Doubtful debt expense 5000 Increase in allowance for doubtful debts 2000 Bad debts are written off against the allowance for doubtful debts. What is the amount of cash collected from the customers during the year ended June 30, 2021? 487,500 481,500 418,500 412,500
Show the solution in good accounting form. On February 1, 2021, MARIGOLD Company factored receivables with a carrying amount of P300,000 to SUNFLOWER Company. SUNFLOWERCompany assesses a finance charge of 3% of the receivables and retains 5% of the receivable for possible sales returns. Relative to this transaction, you are to determine the amount of loss on sale or factoring to be reported in the income statement of MARIGOLD Company for February. Assume that MARIGOLD factors the receivables on a without recourse basis. The amount of cash initially to be received is? A. 291,000 B. 300,000 C. 276,000 D. 285,000 Assume that MARIGOLD factors the receivables on a without recourse basis. The loss to be reported is? A. 24,000 B. - 0 C. 9,000 D. 15,000
December 5, 2019, PQR Company sold P500,000 worth of inventories with trade discounts of 10%, 15%,25%, terms: 2/10, n/30. How much is debited to accounts receivable if the company uses allowancemethod in accounting for its cash discounts? P286,875.00 P490,000 P245,000 P281,137.50
ABC Corporation sells merchandise on the installment basis, and the uncertainties of cash collection make the use of the installment sales method of accounting acceptable. The following data relate to two years of operations. 2020 2021Installment sales ............................ P500,000 P600,000Cost of installment sales .................... ? ?Gross profit ................................. 180,000 150,000Gross profit percentage ...................... ? ?The realized gross profit for 2020 was 132,500 which includes 62,500 for 2020 sale. How much was the total collection for the year 2020?
Quart Company had the following account balances at December 31, 2021:Cash in banks - P2,250,000*Cash on hand - P125,000Cash legally restricted for additions to plant (expected to be disbursed in 2022) - P1,600,000*Cash in banks include P500,000 of compensating balances against short-term borrowing arrangements. The compensating balances are not legally restricted as to withdrawal by Quart.How much is the total cash reported under current assets in Quart Company's December 31, 2021 statement of financial position?
Pandoy Inc. reported purchases of P2,500,000 in its cash basis income statement during 2020. Additional information revealed the balance of accounts payable on January 1, 2020 is P600,000 and on December 31, 2020 is P800,000.How much is the purchases under accrual basis of accounting? *A. P2,300,000B. P2,500,000C. P2,700,000D. P3,900,000E. answer not given
JFK Corp. factors $300,000 of accounts receivable with LBJ Finance Corporation on a without recourse basis on July 1, 2020. The receivables records are transferred to LBJ Finance, which will receive the collections. LBJ Finance assesses a finance charge of 1½% of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. Instructions a. Prepare the journal entry on July 1, 2020, for JFK Corp. to record the sale of receivables without recourse. b. Prepare the journal entry on July 1, 2020, for LBJ Finance Corporation to record the purchase of receivables without recourse.