Additional Information:The following has not been taken into account in arriving at the figures above:1. An amount of R5 202 owing by a debtor, F Skelm, must be written off asirrecoverable.2. The allowances for credit losses must be increased by R2 250.3. On 10 December 2021, goods to the value of R6 300 was purchased on credit, butwas incorrectly recorded in the sales journal.4. The credit balances in the debtors' ledger at 1 January 2021 must be transferred tothe creditors control account. The following information was extracted from the accounting records of Mega Store(Pty) Ltd on 31 December 2021.RSales journal78 102Purchases joumalSales returns journal50 6528 640Purchases returns journalCash receipts journal :4 356Debtors control column85 680Settlement discount granted column15 120Sales column149 778Cash payments journal:Purchases column88 506Debtors control column10 638Creditors control column81 720Settlement discount received column11 934General Journal: (Sundry entries)Debtors control: Debits: Sale of Vehicle12 186Credits: Credit losses1 860Creditors control: Debits:NILCredits: Purchased Equipment9 594General Ledger: Balances at 1 January 2021 –Debtors control account: debit balance121 140: credit balance2736Creditors control account: credit balance (only)82 116

Assets are resources that are controlled which results from prior transactions that are expected to…

Answered: The following has 1. An amount of…

Business

Accounting

The following has 1. An amount of irrecoverable.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5EA: Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises....

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Toby Company had the following sales transactions for March: Mar. 6Sold merchandise on account to Osbourne, Inc., invoice no. 1128, 563.17. 14Sold merchandise on account to Ortiz Company, invoice no. 1129, 823.50. 20Sold merchandise on account to Bailey Corporation, invoice no. 1130, 2,350.98. 24Sold merchandise on account to Shannon Corporation, invoice no. 1131, 1,547.07. Assume that Toby Company had beginning balances on March 1 of 3,569.80 (Sales 411) and 2,450.39 (Accounts Receivable 113). Record the sales of merchandise on account in the sales journal (page 24) and then post to the general ledger.
Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.
The following transactions were completed by Nelsons Hardware, a retailer, during September. Terms on sales on account are 1/10, n/30, FOB shipping point. Sept. 4Received cash from M. Alex in payment of August 25 invoice of 275, less cash discount. 7Issued Ck. No. 8175, 915.75, to Top Tools, Inc., for invoice. no. 2256, recorded previously for 925, less cash discount of 9.25. 10Sold merchandise in the amount of 175 on a credit card. Sales tax on this sale is 8%. The credit card fee the bank deducted for this transaction is 5. 11Issued Ck. No. 8176, 653.40, to Snap Tools, Inc. for invoice no. 726, recorded previously on account for 660. A trade discount of 15% was applied at the time of purchase, and Snap Tools, Inc.s credit terms are 1/10, n/45. 15Received 95 cash in payment of August 20 invoice from N. Johnson. No cash discount applied. 19Received 1,165 cash in payment of a 1,100 note receivable and interest of 65. 22Voided Ck. No. 8177 due to error. 26Received and paid telephone bill, 62; Ck. No. 8178, payable to Southern Telephone Company. 30Paid wages recorded previously for the month, 3,266, Ck. No. 8179. Required 1. Journalize the transactions for September in the cash receipts journal, the general journal (for the transaction on Sept. 10th), or the cash payments journal as appropriate. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals. Prove the equality of debit and credit totals.
Gomez Company sells electrical supplies on a wholesale basis. The balances of the accounts as of April 1 have been recorded in the general ledger in your Working Papers and CengageNow. The following transactions took place during April of this year: Apr. 1 Sold merchandise on account to Myers Company, invoice no. 761, 570.40. 5 Sold merchandise on account to L. R. Foster Company, invoice no. 762, 486.10. 6 Issued credit memo no. 50 to Myers Company for merchandise returned, 40.70. 10 Sold merchandise on account to Diaz Hardware, invoice no. 763, 293.35. 14 Sold merchandise on account to Brooks and Bennett, invoice no. 764, 640.16. 17 Sold merchandise on account to Powell and Reyes, invoice no. 765, 582.12. 21 Issued credit memo no. 51 to Brooks and Bennett for merchandise returned, 68.44. 24 Sold merchandise on account to Ortiz Company, invoice no. 766, 652.87. 26 Sold merchandise on account to Diaz Hardware, invoice no. 767, 832.19. 30 Issued credit memo no. 52 to Diaz Hardware for damage to merchandise, 98.50. Required 1. Record these sales of merchandise on account in the sales journal. If using Working Papers, use page 39. Record the sales returns and allowances in the general journal. If using Working Papers, use page 74. 2. Immediately after recording each transaction, post to the accounts receivable ledger. 3. Post the amounts from the general journal daily. Post the sales journal amount as a total at the end of the month: Accounts Receivable 113, Sales 411, Sales Returns and Allowances 412. 4. Prepare a schedule of accounts receivable. Compare the balance of the Accounts Receivable controlling account with the total of the schedule of accounts receivable.
Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
The following transaction relate to the month of June 2020 and is taken from the books of Magnificent Ltd. Balances on customers' accounts, June 1: Dr. 83,160 Cr. 1,200 Balances on suppliers' accounts, June 1: 54,040 Sales (including cash sales of $20,000) 113,900 Credit purchases 52,760 Set-off between customers' and suppliers' accounts 1,500 Cash purchases 13,000 Payment to credit suppliers 50,520 Discounts received 1,180 Provision for doubtful debts (June 30) 1,900 Returns to credit suppliers 1,240 Interest on overdue receiveables 90 Returns from credit customers 2,440 Cash and cheques received from credit customers (in full settlement of balances amounting to $83,300) 82,000 Bad debts written off 900 Customer's cheque dishonoured 250 Debit balances on suppliers' accounts, June 30 460 Credit balances on customers' accounts, June 30 240 a) Prepare the following: i. The sales ledger control account ii. The purchases ledger control account b) State TWO reasons why a firm would maintain…
Seed Enterprise gathered the following information from its accounting records for the year ended December 31, 2019, prior to adjustments: Net credit sales for the year Php 680,000 Accounts receivable at December 31, 2019 92,000 Allowance for uncollectible accounts at December 31, 2019 1,850 Seed uses the allowance method of accounting for uncollectible accounts and estimates uncollectible account expense at 2% of net credit sales. REQUIRED: 1. Determine the net balance of AR to be reflected in the balance sheet using net credit sales 2. Assume that Allowance for uncollectible accounts has a debit balance of 1,850 and Aging revealed that 11,040 may proved to be uncollectible, What amount of AR should be reflected in the balance sheet
The following is the trial balance of Aroro Enterprise as at 31 August 2019 Particulars Debit (RM) Credit (RM) Capital 48,400 Drawings 3,500 Trade receivables 9,000 Trade payables 12,500 Sales 40,400 Purchases 31,000 Sales returns 300 Purchases returns 250 Wages and salaries 5,600 Discounts allowed 120 Discounts received 200 Provision for doubtful debts 300 Insurance 700 Inventory as at 1 September 2018 2,400 Utilities 950 Rates 350 Premises 10,000 Fixtures and fittings 3,000 Motor van 20,000 Cash in hand 330 Cash at bank 14,800 TOTAL 102,050 102,050 Additional information as at 31 August 2019: Inventory as at 31 August 2019 amounted RM3,300 An entity from whom there is accounts receivables of RM200 was unable to settle his debt and this amount is to…
The following is the trial balance of Aroro Enterprise as at 31 August 2019 Particulars Debit (RM) Credit (RM) Capital 48,400 Drawings 3,500 Trade receivables 9,000 Trade payables 12,500 Sales 40,400 Purchases 31,000 Sales returns 300 Purchases returns 250 Wages and salaries 5,600 Discounts allowed 120 Discounts received 200 Provision for doubtful debts 300 Insurance 700 Inventory as at 1 September 2018 2,400 Utilities 950 Rates 350 Premises 10,000 Fixtures and fittings 3,000 Motor van 20,000 Cash in hand 330 Cash at bank 14,800 TOTAL 102,050 102,050 Additional information as at 31 August 2019: Inventory as at 31 August 2019 amounted RM3,300 An entity from whom there is accounts receivables of RM200 was unable to settle his debt and this amount is to be written off as…
The following is the trial balance of Aroro Enterprise as at 31 August 2019 Particulars Debit (RM) Credit (RM) Capital 48,400 Drawings 3,500 Trade receivables 9,000 Trade payables 12,500 Sales 40,400 Purchases 31,000 Sales returns 300 Purchases returns 250 Wages and salaries 5,600 Discounts allowed 120 Discounts received 200 Provision for doubtful debts 300 Insurance 700 Inventory as at 1 September 2018 2,400 Utilities 950 Rates 350 Premises 10,000 Fixtures and fittings 3,000 Motor van 20,000 Cash in hand 330 Cash at bank 14,800 TOTAL 102,050 102,050 Additional information as at 31 August 2019: Inventory as at 31 August 2019 amounted RM3,300 An entity from whom there is accounts receivables of RM200 was unable to settle…
Crane Company has a balance in its Accounts Payable control account of $ 8,020 on January 1, 2022. The subsidiary ledger contains three accounts: Hale Company, balance $ 2,570; Janish Company, balance $ 1,910; and Valdez Company. During January, the following payable-related transactions occurred. Purchases Payments Returns Hale Company $ 6,350 $ 5,560 $ 0 Janish Company 5,000 1,910 3,110 Valdez Company 6,255 6,290 0 (a) What is the January 1 balance in the Valdez Company subsidiary account? Balance in the Valdez Company subsidiary account $ enter the balance in the Valdez Company subsidiary account in dollars (b) What is the January 31 balance in the control account? Balance in the control account $ enter the balance in the control account in dollars (c) Compute the balances in the subsidiary accounts at the end of the month. The balances in the subsidiary accounts at the end of the month…
On 31 March 2023 , Polokwane Traders received a statement from Messina Traders, acreditor. The balance in the creditors ledger of Polokwane Traders was R12 667 (credit).The statement received from Messina Traders showed a debit of R 21 083.The following discrepancies were discovered:• Purchases returns of R 833 had been debited in the creditors’ ledger of PolokwaneTraders. The statement from Messina Traders showed no such records.• Cheque number C1OO, dated March 2023, amounting R 10 250 was debited inthe creditors ledger of Polokwane Traders but did not appear in the statement received from Messina Traders.• Invoice number IV 187 dated March 2023, amounting to R 4 750, was enteredincorrectly into the statement received from Messina Traders as R 6 250.• Invoice number IV 200 dated March 2023 amounting to R 4 167 was credited in the creditors ledger of Polokwane Traders but did not appear in the statement ofMessina Traders. Required:Show how the above errors can be corrected in the…