The following information has been extracted from the financial statements of ChopChop Pty. Ltd., a knife wholesaler. Accounts 2021 in thousands Cash at bank $160 Interest Expense $60 Accounts Receivable $457 Inventory $661 Bank Loan (5 years) $580 Accounts Payable $326 Property, Plant and Equipment $1,300 Sales $675 COGS $255 Wages Expense $67 Required: Calculate current ratio for the year 2021. Leave two (2) decimal places.

The following information has been extracted from the financial statements of ChopChop Pty. Ltd., a knife wholesaler. Accounts 2021 in thousands Cash at bank $160 Interest Expense $60 Accounts Receivable $457 Inventory $661 Bank Loan (5 years) $580 Accounts Payable $326 Property, Plant and Equipment $1,300 Sales $675 COGS $255 Wages Expense $67 Required: Calculate current ratio for the year 2021. Leave two (2) decimal places.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 18EB: Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received...

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Krespy Corp. has a cash balance of $7,500 before the following transactions occur: A. received customer payments of $965 B. supplies purchased on account $435 C. services worth $850 performed, 25% is paid in cash the rest will be billed D. corporation pays $275 for an ad in the newspaper E. bill is received for electricity used $235. F. dividends of $2,500 are distributed What is the balance in cash after these transactions are journalized and posted?
Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
The following summarized transactions occurred in December 2020 in Syco Co. Dec 1 Purchased plant and equipment for $515 in cash. 2 Borrowed $758 from a bank, signing a note payable. 5 Provided $37,522 in service to customers, with $27,250 on account and the rest received in cash. 9 Paid $4,300 cash on accounts payable. 14 Purchased $30,449 inventory on account. 18 Paid salaries, $3,500. 22 Received $37,410 on account paid by customers. 26 Purchased and used fuel of $750 in delivery vehicles during the year (paid for in cash). 31 Incurred $68 in utility usage during the year; paid $55 in cash and owed the rest on account. Required: Prepare journal entries for those transactions.
Joyful Corp. provided the following information regarding their first year of operation for the year ended, December 31, 2021: Credit sales P6,000,000 Cash sales 1,000,000 Collection from customers 5,600,000 Cash purchases 600,000 Purchases on account 4,000,000 Payment to trade creditors 3,200,000 Payment of employees' salaries 1,300,000 Cash purchases of office supplies 400,000 Cash payment of other expenses 100,000 Interest received 80,000 Machinery (purchased on January 1 with estimated useful life of 10 years with no residual value) 800,000 The following details were gathered on December 31: Accrued salaries payable 140,000 Office supplies unused 100,000 Accrued interest receivable 20,000 Doubtful accounts 180,000 Merchandise inventory, ending 800,000 What should be reported as purchases under the cash basis?A. 3,800,000B. 580,000C. 780,000D. 2,800,000
The following information is related to ABC Co.:1. Accounts receivable of €60,000 (gross) are factored with BFO Credit without guarantee at a financing charge of 9%. Cash is received for the proceeds; collections are handled by the finance company.2. Specific accounts receivable of €45,000 (gross) are pledged to ADORO Credit. as security for a loan of €30,000 at a finance charge of 6% of the amount of the loan. The finance company will make the collections.Required:Prepare all necessary entries in general journal form for ABC Co.
Described below are certain transactions of XYZ Company:Feb 2 The Company purchased goods from ABC Corp for P150,000, 2/10, n/30. The Company records purchases and accounts payable at net amounts after cash discounts. The invoice was paid on February 25.Apr 1 The Company purchased a truck for P1,200,000 from Bye Motors Corp, paying P120,000 in cash and signing a one-year, 12% note for the balance of the purchase price.May 1 The Company borrowed P2,400,000 from Philippine Bank by signing a P2,760,000 noninterest-bearing note due one year from May 1.Aug 1 The Company’s board of directors declared a P900,000 cash dividend payable on September 10 to shareholders of record on August 31.Required:1.Prepare all journal entries necessary to record the above transactions.2.Prepare any adjusting entries concerning interest that are necessary to present fair financial statements, assuming that XYZ’s financial year ends on December 31 and that no adjusting entries relative to transactions above…
The following transactions occurred for Donaldson Inc. during the month of July. Jul. 1 Sold 50 items to Palm Springs Inc. and offered terms of 2/10, n/30, $6,500 on July 1, and issued invoice #12 on account #312. Jul. 5 Sold 20 thing-a-jigs to Miami Inc. for $2,650 cash on July 5, and issued invoice #13. Jul. 8 Sold 30 what-is to Smith Mfg. for $8,000 and offered terms of 2/10, n/30; issued invoice #14 on account #178. Jul. 9 Received payment from Palm Springs Inc. Jul. 22 Received payment from Smith Mfg. after expiration of the discount period. Record the transactions for Donaldson Inc. in the proper special journal and subsidiary ledger. If an amount box does not require an entry, leave it blank. SALES JOURNAL Page: 22 Date Account InvoiceNo. Ref. DR Accts.ReceivableCR Sales DR COGSCR MerchandiseInventory 2019 Jul. 1 fill in the blank 2 fill in the blank 3 fill in the blank 4 fill in the blank 5 Jul. 8 fill in the blank 7 fill in the blank 8…
Presented below is information from Larkspur Computers Incorporated. July 1 Sold $19,200 of computers to Robertson Company with terms 3/15, n/60. Larkspur uses the gross method to record cash discounts. Larkspur estimates allowances of $1,248 will be honored on these sales. 10 Larkspur received payment from Robertson for the full amount owed from the July transactions. 17 Sold $192,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Larkspur for its purchase of July 17. Prepare the necessary journal entries for Larkspur Computers.
On January 1, 2022, the ledger of Sandhill Co. contained these liability accounts. Accounts Payable $44,600 Sales Taxes Payable 8,700 Unearned Service Revenue 21,100 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $6,360, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $13,600. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $8,700. 20 Sold 710 units of a new product on credit at $54 per unit, plus 5% sales tax. During January, the company’s employees earned wages of $60,000. Withholdings related to these wages were $4,590 for Social Security (FICA), $5,200 for federal income tax, and $1,560 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume…
The followimg assets were among those that appeared on Baird’s Co.’s books at the end of the year:Demand bank deposits P650,000Net Long-Term Receivables 400,000Patents and Trademarks 150,000 In preparing constant peso financial statements, how much should Baird classify as monetary assets?a.1,200,000b.1,050,000c.800,000d.650,000
On January 1, 2022, the ledger of Ivanhoe Company contained these liability accounts. Accounts Payable $44,000 Sales Taxes Payable 8,100 Unearned Service Revenue 20,500 During January, the following selected transactions occurred. Jan. 1 Borrowed $18,000 in cash from Apex Bank on a 4-month, 5%, $18,000 note. 5 Sold merchandise for cash totaling $6,360, which includes 6% sales taxes. 12 Performed services for customers who had made advance payments of $11,000. (Credit Service Revenue.) 14 Paid state treasurer’s department for sales taxes collected in December 2021, $8,100. 20 Sold 650 units of a new product on credit at $46 per unit, plus 6% sales tax. During January, the company’s employees earned wages of $96,000. Withholdings related to these wages were $7,344 for Social Security (FICA), $5,086 for federal income tax, and $1,526 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax.…
The following items were selected from among the transactions completed by Aston Mar-tin Inc. during the current year: Apr. 15. Borrowed $225,000 from Audi Company, issuing a 30-day, 6% note for that amount. May 1. Purchased equipment by issuing a $320,000, 180-day note to Spyder Manufacturing Co., which discounted the note at the rate of 6%. 15. Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. (Record both the debit and credit to the notes payable account.) July 14. Paid Audi Company the amount due on the note of May 15. Aug. 16. Purchased merchandise on account from Exige Co., $90,000, terms, n/30. Sept. 15. Issued a 45-day, 6% note for $90,000 to Exige Co., on account. Oct. 28. Paid Spyder Manufacturing Co. the amount due on the note of May 1. 30. Paid Exige Co. the amount owed on the note of September 15. Nov. 16. Purchased store equipment from Gallardo Co. for $450,000, paying $50,000 and issuing a…

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bartleby, a Learneo, Inc. business

Accounts	2021 in thousands
Cash at bank	$160
Interest Expense	$60
Accounts Receivable	$457
Inventory	$661
Bank Loan (5 years)	$580
Accounts Payable	$326
Property, Plant and Equipment	$1,300
Sales	$675
COGS	$255
Wages Expense	$67