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 $14,680; assume a perpetual inventory system. 17 Paid January 8 invoice. Apr. 1 Borrowed $42,000 from National Bank for general use; signed a 12-month, 13% annual interest-bearing note for the money. June 3 Purchased merchandise for resale on account. The invoice amount was $17,220. July 5 Paid June 3 invoice. Aug. 1 Rented office space in one of Roger's buildings to another company and collected six months' rent in advance amounting to $27,000. Dec.20 Received a $280 deposit from a customer as a guarantee to return a trailer borrowed for 30 days. 31 Determined wages of $10,000 were earned but not yet paid on December 31 (disregard payroll taxes). P9-2 Part 1 Required: 1. Prepare journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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 $14,680; assume a perpetual inventory system. 17 Paid January 8 invoice. Apr. 1 Borrowed $42,000 from National Bank for general use; signed a 12-month, 13% annual interest-bearing note for the money. June 3 Purchased merchandise for resale on account. The invoice amount was $17,220. July 5 Paid June 3 invoice. Aug. 1 Rented office space in one of Roger's buildings to another company and collected six months' rent in advance amounting to $27,000. Dec.20 Received a $280 deposit from a customer as a guarantee to return a trailer borrowed for 30 days. 31 Determined wages of $10,000 were earned but not yet paid on December 31 (disregard payroll taxes). P9-2 Part 1 Required: 1. Prepare journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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...

See similar textbooks

Similar questions

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.)
IMO 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 ............................ P240,000 P560,000Cost of installment sales .................... 150,000 364,000Gross profit percentage ...................... 37.5% 35% • After collecting 95,000 from the sales of 2020, the balance can no longer be collected in 2020. The net realizable value of the item repossessed was P 38,700.• Half of the sales price in 2021 was collected in 2021. Required: Compute the amount and identify the Financial Statement where they will be presented.a. Realized gross profit, 2020
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
The XYZ Company had the following income statement on 31.12.2020 Deprecation 15000 Net income 95000 OMR The following accounts decreased during 2020: Accounts receivable 18000 inventory 22000 OMR, Rent payable 16000, Machinery 15000 OMR The following accounts increased during 2020:Notes receivable 12000 Accounts Payable 11000 long term Bonds payable 30000 OMR Calculate cash flows from operating activities a. NONE OF THESE b. 145000 OMR c. 149000 OMR d. 133000 OMR
Use the information provided below to prepare the Cash Flow Statement Limited for the year ended 31 December 2020. Note:(a) Plant and equipment was purchased but there was no disposal.(b) The number of ordinary shares in issue was 930 000.(c) All purchases and sales of inventory were on credit.(d) Credit terms to debtors are 30 days. Debtors took approximately 28 days to settle their accounts during 2019.
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
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?
Carmela Company, as of December 31, 2021 provided the following balances: Cash, net of a P7,000 overdraft 80,000 Receivable, net of customer credit balances totaling P6,000 30,000 Inventory (P20,000 of which are held on consignment) 60,000 Prepayments 10,000 Property, plant and equipment, net of accumulated depreciation of P15,000 90,000 Accounts payable net of debit balances in suppliers’ accounts of P3,000 45,000 Notes payable – bank, due on July 2022 25,000 Income tax payable 15,000 Total current assets reported in the December 31, 2021 balance sheet is
The XYZ Company had the following income statement on 31.12.2020 Deprecation 12000 Net income 85000 OMR The following accounts decreased during 2020: Accounts receivable 18000 inventory 22000 OMR, Rent payable 6000, Machinery 15000 OMR The following accounts increased during 2020:Notes receivable 12000 Accounts Payable 11000 long term Bonds payable 30000 OMR Calculate cash flows from operating activities a. 149000 OMR b. 145000 OMR c. 130000 OMR d. NONE OF THESE
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