Financial Accounting
5th Edition
ISBN: 9781618531650
Author: Thomas Dyckman
Publisher: Cambridge Business Publishers
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Chapter 2, Problem 46E
a.
To determine
Prepare the
b.
To determine
Prepare the balance sheet as on July 02, 2015.
c.
To determine
Determine the
d.
To determine
Comment on B Contractors’ current and quick ratio relative to the industry ratios.
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The current assets and current liabilities sections of the balance sheet of Sunland Co. appear as follows.
Sunland Co.Balance Sheet (Partial)As of December 31, 2017
Cash
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$Â 17,900
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Accounts payable
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$Â 29,500
Accounts receivable
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$Â 39,600
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Notes payable
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15,400
    Less: Allowance for doubtful accounts
Â
3,200
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36,400
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Unearned revenue
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3,800
Inventory
Â
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61,100
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Total current liabilities
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$Â 48,700
Prepaid expenses
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7,400
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Total current assets
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$Â 122,800
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The following errors in the corporation’s accounting have been discovered:
1.
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Keane collected $ 5,200 on December 20, 2017 as a down payment for services to be performed in January, 2018. The company’s controller recorded the amount as revenue.
2.
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The inventory amount reported included $ 2,300 of merchandise that had been received on December 31, 2017 but for which no purchase invoices had been received or entered. Of this amount, $ 1,600 had been received on…
The following transactions (in summary) affecting the accounts receivable of Seraphine
company occurred during the year ended December 31, 2021:
Accounts Receivable balance, January 1
674,000
Allowance for bad debt balance, January 1 (credit balance)
24,000
Sales (all on account, terms: 2/10, 1/15, n/60)
3,000,000
Cash received includes the following:
3,200,000
The cash received includes the following:
Customers paying within the 10-day discount period
1,764,000
Customers paying within the 15-day discount period
990,000
Recovery of accounts written-off
6,000
Customers paying beyond the discount period
?
Accounts Receivable written-off as worthless
22,000
Credit memo for sales return
12,000
It is the company's policy to provide for uncollectible accounts equal to 1% of sales. How much
is the carrying amount of the accounts receivable as of December 31, 2021?
Given the following information, complete the balance sheet shown next
Collection period
Days' sales in cash
Current ratio
Assets
Current assets:
Cash
Inventory turnover
Liabilities to assets
Payables period
(All sales are on credit. All calculations assume a 365-day year. The payat
Note: Round your answers to the nearest whole dollar.
Accounts receivable
Inventory
Total current assets
Net fixed assets
Total assets
Liabilities and shareholders equity
Current liabilities:
Accounts payable
Short-term debt
Total current liabilities
70 days
32
days
2.2
5
70%
36 days
Long-term debt
Shareholders equity
Total liabilities and equity
times
$ 1,300,000
S
S
1,900,000
8,000,000
2.400.000
8.000.000
Chapter 2 Solutions
Financial Accounting
Ch. 2 - Prob. 1MCCh. 2 - Prob. 2MCCh. 2 - Prob. 3MCCh. 2 - Prob. 4MCCh. 2 - Prob. 5MCCh. 2 - Prob. 1QCh. 2 - Prob. 2QCh. 2 - Prob. 3QCh. 2 - Prob. 4QCh. 2 - Prob. 5Q
Ch. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - Prob. 9QCh. 2 - Prob. 10QCh. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - Prob. 13QCh. 2 - Prob. 14MECh. 2 - Prob. 15MECh. 2 - Prob. 16MECh. 2 - Prob. 17MECh. 2 - Prob. 18MECh. 2 - Prob. 19MECh. 2 - Prob. 20MECh. 2 - Prob. 21MECh. 2 - Prob. 22MECh. 2 - Prob. 23MECh. 2 - Prob. 24MECh. 2 - Prob. 25MECh. 2 - Prob. 26MECh. 2 - Prob. 27MECh. 2 - Prob. 28MECh. 2 - Prob. 29MECh. 2 - Prob. 30MECh. 2 - Prob. 31MECh. 2 - Prob. 32MECh. 2 - Prob. 33MECh. 2 - Prob. 34ECh. 2 - Prob. 35ECh. 2 - Prob. 36ECh. 2 - Prob. 37ECh. 2 - Prob. 38ECh. 2 - Prob. 39ECh. 2 - Prob. 40ECh. 2 - Prob. 41ECh. 2 - Prob. 42ECh. 2 - Prob. 43ECh. 2 - Prob. 44ECh. 2 - Prob. 45ECh. 2 - Prob. 46ECh. 2 - Prob. 47ECh. 2 - Prob. 48ECh. 2 - Prob. 49PCh. 2 - Prob. 50PCh. 2 - Prob. 51PCh. 2 - Prob. 52PCh. 2 - Prob. 53PCh. 2 - Prob. 54PCh. 2 - Prob. 55PCh. 2 - Prob. 56PCh. 2 - Prob. 57PCh. 2 - Prob. 58PCh. 2 - Prob. 59PCh. 2 - Prob. 60PCh. 2 - Prob. 61PCh. 2 - Prob. 62PCh. 2 - Prob. 63PCh. 2 - Prob. 64PCh. 2 - Prob. 65PCh. 2 - Prob. 66PCh. 2 - Prob. 67PCh. 2 - Prob. 68PCh. 2 - Prob. 69PCh. 2 - Prob. 70PCh. 2 - Prob. 71CPCh. 2 - Prob. 72CP
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- Use the following information from financial statements of Hamilton Inc. Information from Balance Sheet Accounts: 12/31/2020 12/31/2021 Accounts receivable, gross Allowance for uncollectible accounts 5,000 70,000 90,000 Advances from customers 1,600 600 Information from Income Statement Accounts: Revenue (gross) carned during 2021 277,000 Bad debt expense in 2021 5,200 Other Information: Accounts receivable of 3,900 were written off during the year 2021.arrow_forwardThe companys balance sheet showed an accounts receivble balance of $80,000 at the begininng of the year and $47,000 at the end of the year. The company reported $720,000 in credit sales for the year. What was the amount of cash collected on account receivables durig the yeararrow_forwardOn November 1, 2017, Recchi Company showed the following account balances:  Account Debit Credit Accounts receivable $35,000  Allowance for doubtful accounts  $2,000 During the next fiscal year, the following events occurred:  a.)       Consulting revenues for the year were $425,000. 95% were on account, 5% were cash sales. b.)       Collections for the year were $375,000. c.)       $5,000 was added to the total accounts receivable due to interest on overdue accounts. d.)       Writeoffs of uncollectible accounts totaled $3,500. e.)       One of the accounts written off in part d.) was collected: $750. f.)       On October 31, 2018 (the company’s fiscal-year end), using the aging-of-receivables method, the allowance for doubtful accounts was estimated to be $3,500.  a.)       Record journal entries based on the summary events above.Required: b.)       Show how net receivables will be presented on the October 31, 2018 balance sheet.arrow_forward
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- Question: Perform the following accounting for the receivables of A & G, an accounting firm, at December 31, 2014. 1. Start with the beginning balances for these T-accounts: Accounts Receivable, $80,000 Allowance for Uncollectible Accounts, $9,000 Post the following 2014 transactions to the T-accounts: a. Service revenue of $850,000, all on account b. Collections on account, $790,000 c. Write-offs of uncollectible accounts, $7,000 d. Bad debt expense (allowance method), $8,000 2. What are the ending balances of Accounts Receivable and Allowance for Uncollectible Accounts? 3. Show two ways A & G could report accounts receivable on its balance sheet at December 31, 2014. Please explain & show steps, thank you.arrow_forwardPierce Corporation reported a $3,600 balance in accounts receivable on January 1, 2014. During the year, $24,800 of sales on account were made. During the year, Price wrote off accounts receivable of $1,700 as uncollectible. If the ending balance of accounts receivable is $2,000, what is the amount of cash received from customers? Multiple Choice $21,200 $21,500 $28,400 $24,700arrow_forwardTyrell Co. entered into the following transactions involving short-term liabilities. Purchased $35,000 of merchandise on credit from Locust, terms n/30.  Replaced the April 20 account payable to Locust with a 90-day, 8%, $35,000 note payable along with paying $0 in cash.  Borrowed $66,000 cash from NBR Bank by signing a 120-day, 12%, $66,000 note payable. Paid the amount due on the note to Locust at the maturity date.  Paid the amount due on the note to NBR Bank at the maturity date.  Borrowed $36,000 cash from Fargo Bank by signing a 60-day, 8%, $36,000 note payable.  Recorded an adjusting entry for accrued interest on the note to Fargo Bank.  Paid the amount due on the note to Fargo Bank at the maturity date. Prepare journal entries for all the preceding transactions and events.arrow_forward
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