1. For items (a)-G), analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round intermediate calculations.)
1. For items (a)-G), analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![1. For items (a)-0), analyze the transaction to determine effects on specific financial statement accounts and the overall accounting
equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round intermediate
calculations.)
Assets
Liabilities
Stockholders' Equity
а.
b.
C.
d.
e.
f.
g.
h.
i.
j.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ad87420-52d2-4e34-815e-eb9bcb5c95c0%2Fece0f602-176b-45c3-afd2-4b36579ec4e2%2Fuje1kp_processed.png&w=3840&q=75)
Transcribed Image Text:1. For items (a)-0), analyze the transaction to determine effects on specific financial statement accounts and the overall accounting
equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round intermediate
calculations.)
Assets
Liabilities
Stockholders' Equity
а.
b.
C.
d.
e.
f.
g.
h.
i.
j.
![Required information
[The following information applies to the questions displayed below.]
Web Wizard, Inc., has provided information technology services for several years. For the first two months of the current
year, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarter,
the company switched to the aging of accounts receivable method. The company entered into the following partial list of
transactions during the first quarter.
a. During January, the company provided services for $44,000 on credit.
b. On January 31, the company estimated bad debts using 1 percent of credit sales.
c. On February 4, the company collected $22,000 of accounts receivable.
d. On February 15, the company wrote off a $150 account receivable.
e. During February, the company provided services for $34,000 on credit.
f. On February 28, the company estimated bad debts using 1 percent of credit sales.
g. On March 1, the company loaned $2,200 to an employee, who signed a 6% note, due in 6 months.
h. On March 15, the company collected $150 on the account written off one month earlier.
i. On March 31, the company accrued interest earned on the note.
j. On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance for
Doubtful Accounts has an unadjusted credit balance of $1,240.
Number of Days Unpaid
Customer
Total
0-30
31-60
61-90
Over 90
Alabama Tourism
Bayside Bungalows
Others (not shown to save space)
Xciting Xcursions
230
110
90
30
440
440
18,000
7,200
390
8,800
1,100
900
390
Total Accounts Receivable
$19,060
$7,700
$8,890
$1,130
$1,340
Estimated Uncollectible (8)
28
10%
20%
30%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ad87420-52d2-4e34-815e-eb9bcb5c95c0%2Fece0f602-176b-45c3-afd2-4b36579ec4e2%2Fssrlahf_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Web Wizard, Inc., has provided information technology services for several years. For the first two months of the current
year, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarter,
the company switched to the aging of accounts receivable method. The company entered into the following partial list of
transactions during the first quarter.
a. During January, the company provided services for $44,000 on credit.
b. On January 31, the company estimated bad debts using 1 percent of credit sales.
c. On February 4, the company collected $22,000 of accounts receivable.
d. On February 15, the company wrote off a $150 account receivable.
e. During February, the company provided services for $34,000 on credit.
f. On February 28, the company estimated bad debts using 1 percent of credit sales.
g. On March 1, the company loaned $2,200 to an employee, who signed a 6% note, due in 6 months.
h. On March 15, the company collected $150 on the account written off one month earlier.
i. On March 31, the company accrued interest earned on the note.
j. On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance for
Doubtful Accounts has an unadjusted credit balance of $1,240.
Number of Days Unpaid
Customer
Total
0-30
31-60
61-90
Over 90
Alabama Tourism
Bayside Bungalows
Others (not shown to save space)
Xciting Xcursions
230
110
90
30
440
440
18,000
7,200
390
8,800
1,100
900
390
Total Accounts Receivable
$19,060
$7,700
$8,890
$1,130
$1,340
Estimated Uncollectible (8)
28
10%
20%
30%
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