INTERMEDIATE ACCOUNTING
10th Edition
ISBN: 9781264046249
Author: SPICELAND
Publisher: MCG
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Chapter 21, Problem 21.1BE
To determine
Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period.
Journal: Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system
Rules of Debit and Credit:
Following rules are followed for debiting and crediting different accounts while they occur in business transactions:
- Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and stockholders’ equities.
- Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.
To Journalize: The given transaction of Company HH, to determine the net effect of selling and collection activities.
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QUESTION 7
The general ledger account for Accounts Receivable shows a debit balance of $25,000. Allowance for Uncollectible Accounts has a credit
balance of $1,500. Net sales for the year were $250,000. In the past, 3 percent of sales have proved uncollectible, and an aging of accounts
receivable resulted in an estimate of $10,000 of uncollectible accounts receivable.
Using the accounts receivable aging method, the Allowance for Uncollectible Accounts balance (after adjustment) would be
$11,500
$10,000
$8.500
$10.750
Exercise 21-4 (Algo) Summary entries for cash received from customers [LO21-3]
For each of the three independent situations determine the amount of cash received from the customers and prepare journal entries
that summarize the selling and collection activities for the reporting period. All dollars are in millions.
Complete this question by entering your answers in the tabs below.
Cash Recd
from Cust
General
Journal
Determine the amount of cash received from the customers. (Enter your answers in millions (i.e., 10,000,000 should be
entered as 10).)
Sales
Revenue
Situation
1
155
2
155
3
155
Accounts Receivable Cash Received from
Increase (Decrease)
Customers
0
19
(19)
Problem 8
JAJA Company, provided the following information pertaining to its petty cash fund during the year:
The company established a P40,000 petty cash fund on November 12, 2021.
On November 30, 2021, the PCF was replenished, and the accountant recorded the replenishment as follows:
Various expenses 14,000Loss on petty cash shortage 1,000Cash in bank 15,000
At year-end the petty cash fund was not replenished, and the random cash count at December 31, 2021 revealed the following:
Bills and coins 6,000
Paid expense vouchers
Transportation 2,000Fuel and gasoline 3,000Office supplies 1,500IOUs 10,000
Unpaid expense vouchers
Representation fees 9,000Payment for parking 4,500
Postdated checks of the following:
Company officers 10,000Petty cash custodian 5,000Customers 12,000
How much is the (net shortage)/net overage during the year ended December 31, 2021? (If net shortage, use the "-" symbol, if net overage positive sign)
Chapter 21 Solutions
INTERMEDIATE ACCOUNTING
Ch. 21 - Effects of all cash flows affect the balances of...Ch. 21 - Prob. 21.2QCh. 21 - Prob. 21.3QCh. 21 - Prob. 21.4QCh. 21 - Prob. 21.5QCh. 21 - Prob. 21.6QCh. 21 - Prob. 21.7QCh. 21 - The sale of stock and the sale of bonds are...Ch. 21 - Does the statement of cash flows report only...Ch. 21 - Prob. 21.10Q
Ch. 21 - Perhaps the most noteworthy item reported on an...Ch. 21 - Prob. 21.12QCh. 21 - Given sales revenue of 200,000, how can it be...Ch. 21 - Prob. 21.14QCh. 21 - When determining the amount of cash paid for...Ch. 21 - Prob. 21.16QCh. 21 - When using the indirect method of determining net...Ch. 21 - Prob. 21.18QCh. 21 - Prob. 21.19QCh. 21 - Where can we find authoritative guidance for the...Ch. 21 - U.S. GAAP designates cash outflows for interest...Ch. 21 - Prob. 21.1BECh. 21 - Prob. 21.2BECh. 21 - Prob. 21.3BECh. 21 - Prob. 21.4BECh. 21 - Investing activities LO215 Carter Containers sold...Ch. 21 - Financing activities LO216 Refer to the situation...Ch. 21 - Prob. 21.11BECh. 21 - Prob. 21.12BECh. 21 - Classification of cash flows LO213 through LO216...Ch. 21 - Indirect method; reconciliation of net income to...Ch. 21 - Prob. 21.29ECh. 21 - Prob. 21.30ECh. 21 - Prob. 21.31ECh. 21 - Prob. 21.32ECh. 21 - Prob. 21.1PCh. 21 - Research Case 219 FASB codification; locate and...Ch. 21 - IFRS Case 2110 Statement of cash flows...
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