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The following list of accounts was drawn for Tile, Etc., Inc. on December 31, Year 1, after the closing entries were posted Account Title Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $150,000 133,000 22,000 441,000 103,000 490,000 109,000 Tile, Etc. had the following transactions in Year 2 1. Purchased merchandise on account for $620,000. 2. Sold merchandise that cost $460,000 for $970,000 on account. 3. Sold for $285,000 cash merchandise that had cost $176,000 4. Sold merchandise for $230,000 to credit card customers. The merchandise had cost $112.000. The credit card company charges 4 percent fee. 5. Collected $700,000 cash from accounts receivable. 6. Paid $650,000 cash on accounts payable. 7. Paid $153,000 cash for selling and administrative expenses. 8. Collected cash for the full amount due from the credit card company (see item 4) 9. Loaned $50,000 to J. Parks. The note had an 9 percent interest rate and a one-year term to maturity 10 Wrote off $8,300 of accounts as uncollectible. 11. Made the following adjusting entries: (a) Recorded uncollectible accounts expense estimated at 1 percent of sales on account. (b) Recorded seven months of accrued interest on the note at December 31, Year 2 (see item 9)

The following list of accounts was drawn for Tile, Etc., Inc. on December 31, Year 1, after the closing entries were posted Account Title Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $150,000 133,000 22,000 441,000 103,000 490,000 109,000 Tile, Etc. had the following transactions in Year 2 1. Purchased merchandise on account for $620,000. 2. Sold merchandise that cost $460,000 for $970,000 on account. 3. Sold for $285,000 cash merchandise that had cost $176,000 4. Sold merchandise for $230,000 to credit card customers. The merchandise had cost $112.000. The credit card company charges 4 percent fee. 5. Collected $700,000 cash from accounts receivable. 6. Paid $650,000 cash on accounts payable. 7. Paid $153,000 cash for selling and administrative expenses. 8. Collected cash for the full amount due from the credit card company (see item 4) 9. Loaned $50,000 to J. Parks. The note had an 9 percent interest rate and a one-year term to maturity 10 Wrote off $8,300 of accounts as uncollectible. 11. Made the following adjusting entries: (a) Recorded uncollectible accounts expense estimated at 1 percent of sales on account. (b) Recorded seven months of accrued interest on the note at December 31, Year 2 (see item 9)

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter5: Accounting Systems
Section: Chapter Questions
Problem 19E: After Bunker Hill Assay Services Inc. had completed all postings for March in the current year...
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Assets Total assets Liabilities Total liabilities Stockholders' equity TILE, ETC., INC. Balance Sheet As of December 31, Year 2 Total stockholders' equity Total liabilities and stockholders' equity P MA $ 0 0 0
Transcribed Image Text:Assets Total assets Liabilities Total liabilities Stockholders' equity TILE, ETC., INC. Balance Sheet As of December 31, Year 2 Total stockholders' equity Total liabilities and stockholders' equity P MA $ 0 0 0
The following list of accounts was drawn for Tile, Etc., Inc. on December 31, Year 1, after the closing entries were posted Account Title Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $150,000 133,000 22,000 441,000 103,000 490,000 109,000 Tile, Etc. had the following transactions in Year 2: 1. Purchased merchandise on account for $620,000. 2. Sold merchandise that cost $460,000 for $970,000 on account. 3. Sold for $285,000 cash merchandise that had cost $176,000. 4. Sold merchandise for $230,000 to credit card customers. The merchandise had cost $112.000. The credit card company charges a 4 percent fee. 5. Collected $700,000 cash from accounts receivable. 6. Paid $650,000 cash on accounts payable 7. Paid $153,000 cash for selling and administrative expenses. 8. Collected cash for the full amount due from the credit card company (see item 4) 9. Loaned $50,000 to J. Parks. The note had an 9 percent interest rate and a one-year term to maturity 10 Wrote off $8,300 of accounts as uncollectible. 11. Made the following adjusting entries: (a) Recorded uncollectible accounts expense estimated at 1 percent of sales on account. (b) Recorded seven months of accrued interest on the note at December 31, Year 2 (see item 9)
Transcribed Image Text:The following list of accounts was drawn for Tile, Etc., Inc. on December 31, Year 1, after the closing entries were posted Account Title Cash Accounts receivable Allowance for doubtful accounts Inventory Accounts payable Common stock Retained earnings $150,000 133,000 22,000 441,000 103,000 490,000 109,000 Tile, Etc. had the following transactions in Year 2: 1. Purchased merchandise on account for $620,000. 2. Sold merchandise that cost $460,000 for $970,000 on account. 3. Sold for $285,000 cash merchandise that had cost $176,000. 4. Sold merchandise for $230,000 to credit card customers. The merchandise had cost $112.000. The credit card company charges a 4 percent fee. 5. Collected $700,000 cash from accounts receivable. 6. Paid $650,000 cash on accounts payable 7. Paid $153,000 cash for selling and administrative expenses. 8. Collected cash for the full amount due from the credit card company (see item 4) 9. Loaned $50,000 to J. Parks. The note had an 9 percent interest rate and a one-year term to maturity 10 Wrote off $8,300 of accounts as uncollectible. 11. Made the following adjusting entries: (a) Recorded uncollectible accounts expense estimated at 1 percent of sales on account. (b) Recorded seven months of accrued interest on the note at December 31, Year 2 (see item 9)
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