Financial Accounting, Student Value Edition (4th Edition)
4th Edition
ISBN: 9780134114811
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 7, Problem 1CP
1.
To determine
Calculate the ending balance in
2.
To determine
3.
To determine
Report the accounts receivable in the balance sheet of Incorporation FED at July 31.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Moore General Store purchased office supplies on account during the month of March for $5,000. Payment for the supplies will be made in April. On March 1, the balance in the supplies account was $350. On March 31, supplies on hand amounted to $310. What was the amount of supplies used during March?
Select one:
a. $40
b. $310
c. $4,690
d. $5,040
e. $5,350
Moore General Store purchased office supplies on account during the month of March for $5,000. Payment for the supplies will be made in April. On March 1, the balance in the supplies account was $350. On March 31, supplies on hand amounted to $310.
What amount should appear on the company's March 31 balance sheet as Supplies, and what amount should appear on the company's March income statement as Supplies Expense, respectively?
Select one:
a. $310, $5,000
b. $350, $5,040
c. $310, $5,040
d. $350, $5,000
e. $310, $5,350
At the beginning of December, Camp David, Inc. purchased $5,000 of supplies on account for use in its business. At the end of December, 20% of the supplies were still on hand, but only 70% had been paid for. What amounts will appear on the company’s income statement and balance sheet on December 31?
A.
Supplies Expense
Supplies
Accounts Payable
$4,000
$1,000
$3,500
B.
Supplies Expense
Supplies
Accounts Payable
$1,000
$4,000
$5,000
C.
Supplies Expense
Supplies
Accounts Payable
$4,000
$4,000
$1,500
D.
Supplies Expense
Supplies
Accounts Payable
$4,000
$1,000
$1,500
Chapter 7 Solutions
Financial Accounting, Student Value Edition (4th Edition)
Ch. 7.A - Prob. 1SECh. 7.A - Prob. 2SECh. 7.A - Prob. 3AECh. 7.A - Prob. 4AECh. 7.A - Prob. 5BECh. 7.A - Prob. 6BECh. 7.A - Prob. 7APCh. 7.A - Prob. 8APCh. 7 - Which duties should be segregated in the...Ch. 7 - Prob. 2DQ
Ch. 7 - Prob. 3DQCh. 7 - Why does the allowance method of accounting for...Ch. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - How would the net realizable value of Accounts...Ch. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 1SCCh. 7 - Prob. 2SCCh. 7 - Prob. 3SCCh. 7 - Prob. 4SCCh. 7 - Prob. 5SCCh. 7 - Prob. 6SCCh. 7 - Prob. 7SCCh. 7 - Prob. 8SCCh. 7 - Prob. 9SCCh. 7 - Prob. 10SCCh. 7 - Prob. 11SCCh. 7 - Prob. 12SCCh. 7 - Prob. 1SECh. 7 - Prob. 2SECh. 7 - Prob. 3SECh. 7 - Prob. 4SECh. 7 - Prob. 5SECh. 7 - Prob. 6SECh. 7 - Prob. 7SECh. 7 - Prob. 8SECh. 7 - Prob. 9SECh. 7 - Prob. 10SECh. 7 - Prob. 11SECh. 7 - Prob. 12SECh. 7 - Prob. 13SECh. 7 - Prob. 14SECh. 7 - Prob. 15SECh. 7 - Quick ratio (Learning Objective 7) 510 min....Ch. 7 - Prob. 17SECh. 7 - Prob. 18AECh. 7 - Prob. 19AECh. 7 - Prob. 20AECh. 7 - Prob. 21AECh. 7 - Prob. 22AECh. 7 - Prob. 23AECh. 7 - Prob. 24AECh. 7 - Prob. 25AECh. 7 - Prob. 26AECh. 7 - Prob. 27AECh. 7 - Quick ratio and current ratio (Learning Objective...Ch. 7 - Prob. 29AECh. 7 - Prob. 30BECh. 7 - Prob. 31BECh. 7 - Prob. 32BECh. 7 - Prob. 33BECh. 7 - Prob. 34BECh. 7 - Prob. 35BECh. 7 - Prob. 36BECh. 7 - Prob. 37BECh. 7 - Prob. 38BECh. 7 - Prob. 39BECh. 7 - Quick ratio and current ratio (Learning Objective...Ch. 7 - Prob. 41BECh. 7 - Prob. 42APCh. 7 - Prob. 43APCh. 7 - Prob. 44APCh. 7 - Prob. 45APCh. 7 - Prob. 46APCh. 7 - Prob. 47APCh. 7 - Prob. 48APCh. 7 - Prob. 49BPCh. 7 - Prob. 50BPCh. 7 - Prob. 51BPCh. 7 - Prob. 52BPCh. 7 - Prob. 53BPCh. 7 - Prob. 54BPCh. 7 - Prob. 55BPCh. 7 - Continuing Exercise In this exercise, we continue...Ch. 7 - Prob. 1CPCh. 7 - Prob. 1CFSAPCh. 7 - Prob. 1EIACh. 7 - Prob. 2EIACh. 7 - Prob. 1FACh. 7 - Prob. 1IACh. 7 - Prob. 1SBACh. 7 - Prob. 1WC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Sewn for You had the following transactions in its first week of business. A. Jessica Johansen started Sewn for You, a seamstress business, by contributing $20,000 and receiving stock in exchange. B. Paid $2,250 to cover the first three months rent. C. Purchased $500 of sewing supplies. She paid cash for the purchase. D. Purchased a sewing machine for $1,500 paying $200 cash and signing a note for the balance. E. Finished a job for a customer earning $180. The customer paid cash. F. Received a $500 down payment to make a wedding dress. G. Received an electric bill for $125 which is due to be paid in three weeks. H. Completed an altering job for $45. The customer asked to be billed. Prepare the necessary journal entries to record these transactions. If an entry is not required for any of these transactions, state this and explain why.arrow_forwardALLOCATING OPERATING EXPENSERELATIVE NET SALES Hayley Doll owns a car stereo store. She has divided her store into three departments. Net sales for the month of July are as follows: Advertising expense for July was 20,000. Allocate the advertising expense among the three departments on the basis of relative net sales.arrow_forwardA apiary supply store in LA had the following events for 2015: a) purchased a two-year insurance policy $2,400 and made the appropriate entry on September 1, 2015, the date of purchase. b) Office supplies account had a $500 balance on January 1, 2015. At December 31, an inventory count showed $100 of supplies on hand. Supplies costing $3,100 were purchased during the year. c) has specialized Bee Keepers that sell and educate customers. On December 31, 2015, $4,800 of unpaid employee salaries had accumulated. d) Straight-line depreciation is recorded only at year end and is being used for a building that was purchased at the beginning of 2014. Depreciation expense to be recorded is $13000. Required: Prepare the appropriate December 31, 2015, adjusting entry for each item, or indicate that an adjusting entry is not necessary.arrow_forward
- At the beginning of May, The GAP's total assets totaled $400,000 . At the end of May, what is The GAP's new asset balance assuming the following transactions occurred in May? Paid S20,000 cash to to purchase new equipment for its stores. Prepaid rent for June for S6, 000. Sold $70,000 of clothes to customers who paid with cash. The inventory cost of the clothes sold was S20, 000.arrow_forwardSewn for You had the following transactions in its first week of business. Jessica Johansen started Sewn for You, a seamstress business, by contributing $20,000 and receiving stock in exchange. Paid $2,250 to cover the first three months’ rent. Purchased $500 of sewing supplies. She paid cash for the purchase. Purchased a sewing machine for $1,500 paying $200 cash and signing a note for the balance. Delivered a dress to a customer earning $180. The customer paid cash. Received a $500 down payment to make a wedding dress. Received an electric bill for $125 which is due to be paid in three weeks. Completed an altering job for $45. The customer asked to be billed. Prepare the necessary journal entries to record these transactions. No explanation is required. If an entry is not required for any of these transactions, state this and explain why.arrow_forwardHere is the question: The following transactions are July activities of Bennett’s Bowling, Inc., which operates several bowling centers, offering customers lanes for games and merchandise for sale. Bennett’s collected $15,000 from customers for games played in July. Bennett’s sold bowling merchandise inventory from its pro shop for $800; received $300 in cash and customers owed the rest on account. (Consider only the effect on revenue here.) Bennett’s received $400 from customers who purchased merchandise in June on the account. The men’s and ladies’ bowling leagues gave Bennett’s a deposit of $2,500 for the upcoming fall season. If revenue is not recognized in July, choose 'None' for the account affected. If revenue is to be recognized in July, indicate the revenue account title and amount. Please see attach for my answer. I got a, c and d wrong. I now understand question a should be Games Revenue and c is None (not recognized in July) but I dont undrestand why d is wrong. Thanksarrow_forward
- Here is the question: The following transactions are July activities of Bennett’s Bowling, Inc., which operates several bowling centers, offering customers lanes for games and merchandise for sale. Bennett’sprovided to customers bowling merchandise inventory costing Bennett’s $680. (Consider only the effect on cost of goods sold [expense] here.) Bennett’spaid $500 on the electricity bill for June (recorded as an expense in June). Bennett’spaid $3,600 to employees for work in July. Bennett’spurchased $1,500 in insurance for coverage from August 1 to November 1. Bennett’spaid $700 to plumbers for repairing a broken pipe in the restrooms. Bennett’sreceived the July electricity bill for $900 to be paid in August. If expenses are not recognized in July, choose 'None' for the account affected. If expense is to be recognized in July, indicate the expense account title and amount. See attach for my answer. I got h and j wrong and I don't understand why. h is wrong, is it because of the…arrow_forwardLindley Enterprises sells hand-woven rugs. Paige Corporation is a regular customer of Lindley. On June 30, Paige purchased 500 rugs from Lindley for $400,000 on credit. On August 15, Paige paid Lindley in full on its $400,000 balance. Prepare the related journal entries for Lindley.arrow_forwardSelected transactions for Concord’s Dog Care are as follows during the month of March. March 1 Paid monthly rent of $1,320. 3 Performed services for $150 on account. 5 Performed services for cash of $85. 8 Purchased equipment for $660. The company paid cash of $90 and the balance was on account. 12 Received cash from customers billed on March 3. 14 Paid wages to employees of $580. 22 Paid utilities of $80. 24 Borrowed $1,650 from Grafton State Bank by signing a note. 27 Paid $240 to repair service for plumbing repairs. 28 Paid balance amount owed from equipment purchase on March 8. 30 Paid $1,980 for six months of insurance. Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)arrow_forward
- Faraday Electronic Service repairs stereos and DVD players. During the year, Faraday engaged in the following activities: On September 1, Faraday paid Wausau Insurance $4,860 for its liability insurance for the next 12 months. The full amount of the prepayment was debited to prepaid insurance. At December 31, Faraday estimates that $1,520 of utility costs are unrecorded and unpaid. Faraday rents its testing equipment from JVC. Equipment rent in the amount of $1,440 is unpaid and unrecorded at December 31. In late October, Faraday agreed to become the sponsor for the sports segment of the evening news program on a local television station. The station billed Faraday $4,350 for 3 months' sponsorship—November, December, and January—in advance. When these payments were made, Faraday debited prepaid advertising. At December 31, 2 months’ advertising has been used and 1 month remains unused. 1. Prepare adjusting entries at December 31 for these four activities. If an amount box…arrow_forwardAt the beginning of January XYZ Company bought $10,000 of supplies. At that time they paid $3,000 for them and owed the rest. During the month they used $8,000 of supplies. What would be supplies expense under accrual accounting for January? Group of answer choices $7,000 $10,000 $3,000 $8,000arrow_forwardMaxFit Weight Loss Co. offers personal weight reduction consulting services to individuals. After all the accounts have been closed on November 30, 20Y4, the end of the fiscal year, the balances of selected accounts from the ledger of MaxFit Weight Loss Co. are as follows: Accounts Payable $ 44,800 Accounts Receivable 138,600 Accumulated Depreciation 221,300 Cash ? Equipment 563,000 Land 356,200 Prepaid Insurance 8,500 Prepaid Rent 24,900 Salaries Payable 10,700 Supplies 5,700 Unearned Fees 21,400 Vanessa Freeman, Capital 843,400 Prepare a classified balance sheet that includes the correct balance for Cash. Maxfit Weight Loss Co.November 30, 20Y4 Assets Current assets: $Cash Accounts receivable Supplies Prepaid insurance Prepaid rent Total current assets $fill in the blank 11 Property, plant, and equipment: $Land $Equipment Less accumulated depreciation…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY