EP FINANCIAL+MANAGERIAL ACCT. >CUSTOM<
5th Edition
ISBN: 9781323590287
Author: *ST.LEO UNIV.
Publisher: PEARSON C
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Textbook Question
Chapter C, Problem 39BP
Classic Rare Coins (CRC) was formed on January 1, 2018. Additional data for the year follow:
- a. On January 1, 2018, CRC issued no par common stock for $525,000.
- b. Early in January, CRC made the following cash payments:
- 1. For store fixtures, $51,000
- 2. For merchandise inventory, $240,000
- 3. For rent expense on a store building, $18,000
- c. Later in the year, CRC purchased merchandise inventory on account for $243,000. Before year-end, CRC paid $153,000 of this accounts payable.
- d. During 2018, CRC sold 2,800 units of merchandise inventory for $325 each. Before year-end, the company collected 95% of this amount. Cost of goods sold for the year was $290,000, and ending merchandise inventory totaled $193,000.
- e. The store employs three people. The combined annual payroll is $82,000, of which CRC still owes $5,000 at year-end.
- f. At the end of the year, CRC paid income tax of $17,000. There was no income taxes payable.
- g. Late in 2018, CRC paid cash dividends of $38,000.
- h. For store fixtures, CRC uses the
straight-line depreciation method , over five years, with zero residual value.
Requirements
- 1. What is the purpose of the statement of cash flows?
- 2. Prepare CRC’s income statement for the year ended December 31, 2018. Use the single-step format, with all revenues listed together and all expenses listed together.
- 3. Prepare CRC’s balances sheet at December 31, 2018.
- 4. Prepare CRC’s statement of cash flows using the indirect method for the year ended December 31, 2018.
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On January 1, 2022, Harvee Company had Accounts Receivable of $54,200 and Allowance for Doubtful Accounts of $3,700. Harvee Company prepares financial statements annually. During the year, the following selected transactions occurred:
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Sold $4,000 of merchandise to Rian Company, terms n/30.
Feb. 2
Accepted a $4,000, 4-month, 9% promissory note from Rian Company for balance due.
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Sold $12,000 of merchandise to Cato Company and accepted Cato’s $12,000, 2-month, 10% note for the balance due.
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Sold $5,200 of merchandise to Malcolm Co., terms n/10.
Apr. 5
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Collected Cato Company note in full.
June 2
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- Journalize the transactions (Omit cost of good sold entries)
The following transactions occurred for Salamon Co. in 2021. The beginning balance of Accounts Receivable is $200,000 and Allowance for Doubtful Accounts (ADA) has a credit balance of $10,000.
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On January 1, 2022, Kingbird, Inc. had Accounts Receivable of $49,900 and Allowance for Doubtful Accounts of $3,500. Kingbird, Inc. prepares financial statements annually. During the year, the following selected transactions occurred:
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Sold $3,450 of merchandise to Rian Company, terms n/30.
Feb. 2
Accepted a $3,450, 4-month, 8% promissory note from Rian Company for balance due.
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Sold $11,800 of merchandise to Cato Company and accepted Cato’s $11,800, 2-month, 9% note for the balance due.
26
Sold $5,300 of merchandise to Malcolm Co., terms n/10.
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Accepted a $5,300, 3-month, 8% note from Malcolm Co. for balance due.
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Collected Cato Company note in full.
June 2
Collected Rian Company note in full.
15
Sold $2,200 of merchandise to Gerri Inc. and accepted a $2,200, 6-month, 11% note for the amount due.
Journalize the transactions. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is…
Chapter C Solutions
EP FINANCIAL+MANAGERIAL ACCT. >CUSTOM<
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Ch. C - Prob. 2QCCh. C - Prob. 3QCCh. C - Prob. 4QCCh. C - Prob. 5QCCh. C - Prob. 6QCCh. C - Prob. 7QCCh. C - Prob. 8QCCh. C - Prob. 9QCCh. C - Prob. 10QCCh. C - Prob. 1RQCh. C - Prob. 2RQCh. C - Prob. 3RQCh. C - Prob. 4RQCh. C - Prob. 5RQCh. C - Prob. 6RQCh. C - Prob. 7RQCh. C - If a company experienced a loss on disposal of...Ch. C - Prob. 9RQCh. C - Prob. 10RQCh. C - Prob. 11RQCh. C - Prob. 12RQCh. C - Prob. 13RQCh. C - Prob. 14RQCh. C - How does the direct method differ from the...Ch. C - Prob. 16RQCh. C - Prob. 1SECh. C - Prob. 2SECh. C - Prob. 3SECh. C - DVR Equipment, Inc. reported the following data...Ch. C - Prob. 5SECh. C - Prob. 6SECh. C - Prob. 7SECh. C - Prob. 8SECh. C - Prob. 9SECh. C - Julie Lopez Company expects the following for...Ch. C - Prob. 11SECh. C - Prob. 12SECh. C - Prob. 13SECh. C - Prob. 14SECh. C - Prob. 15SECh. C - Prob. 16ECh. C - Prob. 17ECh. C - Prob. 18ECh. C - Prob. 19ECh. C - Prob. 20ECh. C - The income statement of Boost Plus, Inc. follows:...Ch. C - Prob. 22ECh. C - Rouse Exercise Equipment, Inc. reported the...Ch. C - Use the Rouse Exercise Equipment data in Exercise...Ch. C - Prob. 25ECh. C - Prob. 26ECh. C - Prob. 27ECh. C - Prob. 28ECh. C - Prob. 29ECh. C - Prob. 30ECh. C - Prob. 31ECh. C - American Rare Coins (ARC) was formed on January 1,...Ch. C - Prob. 33APCh. C - Prob. 34APCh. C - Prob. 35APCh. C - Boundary Rare Coins (BRC) was formed on January 1,...Ch. C - Use the Rolling Hills, Inc. data from Problem...Ch. C - Prob. 38APCh. C - Classic Rare Coins (CRC) was formed on January 1,...Ch. C - Accountants for Benson, Inc. have assembled the...Ch. C - Prob. 41BPCh. C - Prob. 42BPCh. C - Prob. 43BPCh. C - Use the Sweet Valley data from Problem P14-41B....Ch. C - Prob. 45BPCh. C - Prob. 47PCh. C - Before you begin this assignment, review the Tying...Ch. C - Prob. 1DCCh. C - Prob. 1EICh. C - Details about a companys cash flows appear in a...
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