Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780133851496
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Question
Chapter C, Problem C.1CTDC
1.
To determine
Decision Case
Case Summary: The certain accounts of Company GB are destroyed in a fire. Only
To determine: The beginning and ending balance of accounts receivable.
2.
To determine
The sales on account in the month of April.
3.
To determine
The total cash receipts on account from customers during April.
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A fire destroyed certain accounting records of Green Books. The controller, Marilyn Green, asks your help in reconstructing the records. All of the sales are on account, with credit terms of n/30. The only accounting record preserved from the fire is the accounts receivable subsidiary ledger, which follows.
Requirements
Determine the beginning and ending balances of Accounts Receivable.
Determine the sales on account in the month of April.
Determine total cash receipts on account from customers during April
The following misstatements are included in theaccounting records of the Joyce Manufacturing Company:1. A sales invoice was miscalculated by $1,000 as a result of a key-entry mistake.2. Cash paid on accounts receivable that had been prelisted by a secretary was stolenby the bookkeeper who records cash receipts and accounts receivable. He failed torecord the transactions.3. A material sale was recorded on the last day of the year even though the goods werenot shipped until 3 days later.4. Merchandise was shipped to a customer, but no bill of lading was prepared. Becausebillings are prepared from bills of lading, the customer was not billed.5. The controller approved a payment to a consulting firm owned by his sister. Theconsulting firm did not actually perform any services for the company.6. The shipping clerk included several additional valuable items to a shipment that werenot included in the customer’s order and were not invoiced to the customer. Theshipping clerk has an arrangement…
The following misstatements are included in the accounting records of the Dillon Manufacturing Company:
Cash paid on accounts receivable was stolen by the mail clerk when the mail was opened.
A sales invoice was miscalculated by $1,000 as a result of a key-entry mistake.
Cash paid on accounts receivable that had been prelisted by a secretary was stolen by the bookkeeper, who records cash receipts and accounts receivable. He failed to record the transactions.
A material sale was recorded on the last day of the year even though the goods were not shipped until three days later.
Merchandise was shipped to a customer, but no bill of lading was prepared. Because billings are prepared from bills of lading, the customer was not billed.
The controller approved a payment to a consulting firm owned by his sister. The consulting firm did not actually perform any services for the company.
The shipping clerk included several additional valuable items in a shipment that were not…
Chapter C Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition (5th Edition)
Ch. C - Prob. 1QCCh. C - Prob. 2QCCh. C - Prob. 3QCCh. C - Prob. 4QCCh. C - Prob. 5QCCh. C - Centex Sound Systems purchased merchandise...Ch. C - Every transaction recorded in the cash payments...Ch. C - Prob. 8QCCh. C - Prob. 9QCCh. C - What is an accounting information system (AIS)?
Ch. C - Prob. 2RQCh. C - Explain the three basic components of an...Ch. C - Prob. 4RQCh. C - What is the purpose of a subsidiary ledger?Ch. C - Prob. 6RQCh. C - List the four special journals often used in a...Ch. C - Explain the posting process of the sales journal.Ch. C - Provide some examples of transactions that would...Ch. C - Explain the posting process of the cash payments...Ch. C - When is the general journal used in a manual...Ch. C - Prob. 14RQCh. C - Prob. 15RQCh. C - Prob. 16RQCh. C - How would a business record a sale of services on...Ch. C - Prob. 18RQCh. C - Evaluating features of an effective accounting...Ch. C - Prob. C.2SECh. C - Identifying special journals Use the following...Ch. C - Prob. C.4SECh. C - Prob. C.6SECh. C - Prob. C.8SECh. C - Prob. C.9SECh. C - Prob. C.10SECh. C - Posting transactions from a cash payments journal...Ch. C - Prob. C.12SECh. C - Prob. C.13SECh. C - Recording transactions-sales journal Feb. 1 Sold...Ch. C - Prob. C.15ECh. C - Prob. C.16ECh. C - Prob. C.17ECh. C - Prob. C.18ECh. C - Prob. C.19ECh. C - Prob. C.20ECh. C - Prob. C.21ECh. C - Prob. C.22ECh. C - Prob. C.23ECh. C - Prob. C.24APCh. C - Using the purchases, cash payments, and general...Ch. C - Prob. C.26APCh. C - Prob. C.27BPCh. C - Prob. C.28BPCh. C - Prob. C.29BPCh. C - Prob. C.30CPCh. C - Prob. C.31PSCh. C - Prob. 1COPCh. C - Prob. C.1CTDCCh. C - Didrikson Rubin, the auditor of Red Barn Farm...Ch. C - Communication Activity C-1 In 150 words or fewer,...
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- On December 31, 2021, a typhoon damaged a warehouse of Iceman Corporation. The entire company and many accounting records stored in the warehouse were completely destroyed. Although the Inventory was not Insured, a portion could be sold for scrap. Through the use of microfilmed records, the following data were gathered: Inventory, January 1, P450,000; Purchases, P2,160,000; Cash sales, P273,600; Amount of account receivable collected, P2,520,000; Accounts receivable-January 1; P210,000; Accounts written off, P9,600; Recovery of accounts written-off P3,600; Accounts receivable-December 31, P342,000; Sales returns, P36,000: Sales discounts, P14,400; Purchase returns, P60,000; Purchase discounts, P12,000; Freight in, P21,600; Salvage value of damaged Inventory, P90,000 while an undamaged Inventory that were marked to sell at P150,000 were recovered. Gross profit percentage on sales, 32%. How much is the value of Inventory loss?arrow_forward6. On June 30, 20X3, a storm damaged a warehouse of ABC Company. The entire inventory and many accounting records stored in the warehouse were completely destroyed. Although the inventory was not insured, a portion could be sold for scrap. Through the use of microfilmed records, the following data are assembled. Inventory, January 1 7,500,000 Purchases, January 1 – June 30 31,500,000 Cash sales, January 1 – June 30 5,000,000 Collection of accounts receivable, January 1 – June 30 45,000,000 Accounts receivable, January 1 3,000,000 Accounts receivable, June 30 4,000,000 Salvage value of inventory 400,000 Gross profit percentage on sales 40% The inventory loss as a result of the storm should be reported at a.8,400,000 b.8,000,000 c.9,000,000 d.8,600,000arrow_forwardYour examination of the accounts revealed the following information: 1. On December 28, the branch remitted P12,500 in cash to the home office that was not received until January 4. 2. Merchandise that was billed to the branch at P7,500 was in transit at December 31. 3. The branch failed to take up a P1,200 credit memo from the home office representing the cash collections. 4. The branch returned damaged merchandise worth P3,000 but the home office recorded it as P13,000 5. The unadjusted balances in the home office and branch books are P23,140 and P14,340, respectively. What is the adjusted balance of Investments in Branch and Home Office accounts on December 31, 2020?arrow_forward
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