Chapter 2, Problem 18P

Which of the following transactions is affecting the current asset of accounts receivable?   a. Sold merchandise to customers on account b. Received cash from issuance of common stock c. Received cash from customers for this month’s sales d. Paid balance on account for last month’s inventory purchases

In the process of your examination of the financial statements of the Malu-oy Company for the year ended December 31, 20X6, you obtained the following data on its current account. The bank statement on November 30, 20X6 showed a balance of P76,500. Among the bank credits in November was a customer’s note for P25,000 collected for the account of the company which the company recognized in December among its receipts. Included on the bank debits were cost of checkbooks amounting to P300 and a P10,000 check which was charged by the bank in error against Malu-oy Company account. Also in November, you ascertained that there were deposits in transit amounting to P20,000 and outstanding checks totaling P42,500. The bank statement for the month of December showed total credit of P104,000 and total charges of P51,000. The company’s books for December showed total receipts of P183,900, disbursements of P101,800 and a balance of P121,400. Bank debit memos for December were: No. 14334 for service…

Presented below are a number of balance sheet accounts of Deep Blue Something, Inc. a.    Debt Investments. b.    Treasury Stock. c.    Common Stock. d.    Dividends Payable. e.    Accumulated Depreciation—Equipment. f.    Construction in Process. g.    Petty Cash. h.    Interest Payable. i.    Deficit. j.    Equity Investments (ownership stake of less than 20%). k.    Income Taxes Payable. l.    Unearned Subscriptions Revenue. m.    Work in Process. n.    Salaries and Wages Payable. Instructions For each of the accounts above, indicate the proper balance sheet classification. In the case of borderline items, indicate the additional information that would be required to determine the proper classification.

Would anyone be able to help me with this? Pepper Company provided the incomplete financial statements shown below as well as the following additional information: a. All sales during the year were on account. b. There was no change in the number of shares of common stock outstanding during the year. c. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change during the year. d. Selected balances at the beginning of the current year were: Accounts receivable $ 340,000 Inventory $ 450,000 Total Assets $ 2,510,000 e. Selected financial ratios computed from the statements below for the current year are: Earnings per share $ 3.15 Debt-to-equity ratio 0.900 Accounts receivable turnover 15.0 Current ratio 2.10 Return on total assets 12% Times interest earned ratio 6.00 Acid-test ratio 1.19 Inventory turnover 8.0   Required: Compute the missing amounts on the company's financial statements. Sales = 4,800,000 Interest Expense =…

The bank statement on 31 October 20X7 showed an overdraft of $800. On reconciling the bank statement, it was discovered that a cheque drawn by your company for $80 had not been presented for payment, and that a cheque for $130 from a customer had been dishonoured on 30 October 20X7, but that this had not yet been notified to you by the bank. What is the correct bank balance to be shown in the statement of financial position at 31 October 20X7? A $1,010 overdrawn B $880 overdrawn C $750 overdrawn D $720 overdrawn

Which of the following is not a way to manage earnings? A. Change the method for bad debt estimation. B. Change the figure for the uncollectible percentage. C. Under the balance sheet aging method, change the past-due categories. D. Change the dates of common stock issuance.