Bundle: Accounting, 27th + Cengagenowv2, 2 Terms Printed Access Card
27th Edition
ISBN: 9781337587419
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Question
Chapter 4, Problem 4.1CP
(1)
To determine
Ethical Case:
In this case, Person M has deliberately reported a personal loan of $56,000 to the accounts receivable account in the
To discuss: Whether Person M behaving ethically by reporting the loan to Person T as a trade accounts receivable and explain why.
(2)
To determine
To explain: The person who gets affected by the decision made by Person M.
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The following information has been presented to you for 2018 by Wonder Projects Limited:
September
October
November
Rand
Rand
Rand
Cash revenue
200 000
220 000
240 000
Credit revenue
120 000
180 000
190 000
Purchases (all credit)
130 000
140 000
120 000
Additional information:
Collection of credit revenue: 50% in the month of invoice 30% one month after invoice
15% two months after invoice and the balance written off as irrecoverable.
Purchases are on credit and are paid for one month after the purchase, less 5%
Rent income amounts to R10 000 per The rent will increase by 8% on 1 October 2018.
A fixed deposit of R150 000 will mature on 31 October 2018. Interest of R15 000 will also be received on this
A new computer will be purchased on 3 September 2018 for R25 000
Salaries amount to R20 000 per A 10% increase will take effect on 1 October 2018.
The owner is expected to take R5 000 cash from the business on 20 October…
Harrah Company provided the following information for the month of October:
Beginning cash balance
$ 35,000
Cash receipts
460,000
Cash disbursements
485,000
Harrah's policy is to keep a minimum end of the month cash balance of $30,000. How much will Harrah's need to
borrow during October?
4C. Draw up a cashbudget for Amal showing the balance at the end of each month, from the following information for the six months from July to December 2019:
(a) Opening cash (including bank) balance on 1 July 2019 OMR 3600
(b) Production in units:
Jan 500
Feb800
March 700
April 900
May1000
June850
July890
Aug1050
Sep650
Oct750
Nov 900
Dec800
(c) Raw materials used in production cost OMR 25 per unit. Of this, 75 per cent is paid in the month of production and remaining balance in the month after production.
(d) Direct labour costs of OMR 20 per unit are payable in the month of production.
(e) Variable expenses are OMR 10 per unit, payable 50 per cent in the same month as production and remaining balance in the month after production.
(f) Sales at OMR 70 per unit:
Jan 450
Feb 600
March 900
April 800
May 850
June 700
July 1,000
Aug 800
Sep 900
Oct 500
Nov 600
Dec 750
Debtors to pay their accounts one month after that in which sales is made
(g) Fixed expenses of OMR 1,200 per month…
Chapter 4 Solutions
Bundle: Accounting, 27th + Cengagenowv2, 2 Terms Printed Access Card
Ch. 4 - Why do some accountants prepare an end-of-period...Ch. 4 - Describe the nature of the assets that compose the...Ch. 4 - Prob. 3DQCh. 4 - Prob. 4DQCh. 4 - Why are closing entries required at the end of an...Ch. 4 - What is the difference between adjusting entries...Ch. 4 - What is the purpose of the post-closing trial...Ch. 4 - Prob. 8DQCh. 4 - What is the natural business year?Ch. 4 - Prob. 10DQ
Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Statement of owner's equity Marcie Davies owns and...Ch. 4 - Statement of owner's equity Blake Knudson owns and...Ch. 4 - Classified balance sheet The following accounts...Ch. 4 - Classified balance sheet The following accounts...Ch. 4 - Closing entries After the accounts have been...Ch. 4 - Closing entries After the accounts have been...Ch. 4 - Accounting cycle From the following list of steps...Ch. 4 - Accounting cycle From the following list of steps...Ch. 4 - Working capital and current ratio Current assets...Ch. 4 - Working capital and current ratio Current assets...Ch. 4 - Flow of accounts into financial statements The...Ch. 4 - Classifying accounts Balances for each of the...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Financial statements from the end-of-period...Ch. 4 - Income statement The following account balances...Ch. 4 - Income statement; net loss The following revenue...Ch. 4 - Income statement FedEx Corporation had the...Ch. 4 - Statement of owners equity Apex Systems Co. offers...Ch. 4 - Statement of owners equity; net loss Selected...Ch. 4 - Classifying assets Identify each of the following...Ch. 4 - Balance sheet classification At the balance sheet...Ch. 4 - Balance sheet Optimum Weight Loss Co. offers...Ch. 4 - Balance sheet List the errors you find in the...Ch. 4 - Identifying accounts to be closed From the list...Ch. 4 - Closing entries Prior to closing, total revenues...Ch. 4 - Closing entries with net income Assume that the...Ch. 4 - Closing entries with net loss Stylist Services Co....Ch. 4 - Identifying permanent accounts Which of the...Ch. 4 - Post-closing trial balance An accountant prepared...Ch. 4 - Steps in the accounting cycle Rearrange the...Ch. 4 - Working capital and current ratio The following...Ch. 4 - Prob. 4.22EXCh. 4 - Completing an end-of-period spreadsheet List (a)...Ch. 4 - Adjustment data on an end-of-period spreadsheet...Ch. 4 - Completing an end-of-period spreadsheet Alert...Ch. 4 - Prob. 4.26EXCh. 4 - Adjusting entries from an end-of-period...Ch. 4 - Closing entries from an end-of-period spreadsheet...Ch. 4 - Reversing entry The following adjusting entry for...Ch. 4 - Adjusting and reversing entries On the basis of...Ch. 4 - Adjusting and reversing entries On the basis of...Ch. 4 - Entries posted to wages expense account Portions...Ch. 4 - Entries posted to wages expense account Portions...Ch. 4 - Financial statements and closing entries Beacon...Ch. 4 - Financial statements and closing entries Finders...Ch. 4 - T accounts, adjusting entries, financial...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Complete accounting cycle For the past several...Ch. 4 - Financial statements and closing entries Last...Ch. 4 - Financial statements and closing entries The...Ch. 4 - T accounts, adjusting entries, financial...Ch. 4 - Ledger accounts, adjusting entries, financial...Ch. 4 - Complete accounting cycle For the past several...Ch. 4 - The unadjusted trial balance of PS Music as of...Ch. 4 - Kelly Pitney began her consulting business, Kelly...Ch. 4 - Prob. 4.1CPCh. 4 - Communication Your friend, Daniel Nat, recently...Ch. 4 - Financial statements The following is an excerpt...Ch. 4 - Financial statements Assume that you recently...
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