Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Chapter 11, Problem 23BE
To determine
Compute the net cash provided by operating activities under indirect method.
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(Learning Objectives 1, 2, 3, 4, 5: Apply GAAP for proper revenue recognition;account for sales allowances; account for sales discounts; account for accounts receivable;write off account; estimate uncollectible account expense)Bowerston Variety Store had the following balances as of November 1:Accounts Receivable $5,100Allowance for Uncollectible Accounts $360The following selected transactions occurred at Bowerston Variety Store during the month ofNovember:November 3 Sold $300 of merchandise to Martino’s Inc., which paid for the items in cash.The items cost Bowerston $120.Sold $600 of merchandise to Liberty Co., which paid by credit card. The creditcard company charges Bowerston a fee of 2% on credit card sales. Bowerston’scost of this merchandise was $245.November 5Sold $900 of merchandise to Black River Inc., on account. Terms were 2/10,net 30. Bowerston’s cost of this merchandise was $387.November 12November 18 Willow Creek reported that some of the merchandise received was in a…
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E-F:5-23 Journalizing sales transactions (Learning Objective 3)
Journalize the following sales transactions for Antique Mall.
Explanations are not required. The company estimates sales returns at
the end of each month.
Jan. 4
&
4
7
8
13
20
20
29
Sold $16,000 of antiques on account, credit terms are n/30, to Cavalli
Designs. Cost of goods is $8,000.
Received a $300 sales return on damaged goods from Cavalli Designs. Cost
of goods damaged is $150.
Antique Mall received payment from Cavalli Designs on the amount due
from Jan. 4, less the return.
Sold $4,900 of antiques on account, credit terms are 1/10, n/45, FOB
destination, to White Furniture. Cost of goods is $2,450.
Antique Mall paid $70 on freight out to White Furniture.
Received payment from White Furniture on the amount due from Jan. 20,
less the discount.
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Chapter 11 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - Prob. 3DQCh. 11 - A company issued bonds during the year. Would this...Ch. 11 - Prob. 5DQCh. 11 - When using the indirect method, why are gains on...Ch. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - Prob. 9DQCh. 11 - Prob. 10DQ
Ch. 11 - Prob. 1SCCh. 11 - Operating activities are most closely related to:...Ch. 11 - Prob. 3SCCh. 11 - Prob. 4SCCh. 11 - Finlay, Inc., earned net income of 63,000 after...Ch. 11 - Prob. 6SCCh. 11 - Prob. 7SCCh. 11 - Prob. 8SCCh. 11 - Prob. 9SCCh. 11 - Elliot Enterprises had operating expenses of...Ch. 11 - Prob. 11SCCh. 11 - Prob. 12SCCh. 11 - Prob. 1SECh. 11 - Prob. 2SECh. 11 - Prob. 3SECh. 11 - Prob. 4SECh. 11 - Prob. 5SECh. 11 - Prob. 6SECh. 11 - Operating activitiesindirect method (Learning...Ch. 11 - Prob. 8SECh. 11 - Operating activitiesdirect method (Learning...Ch. 11 - Prob. 10SECh. 11 - Prob. 11SECh. 11 - Prob. 12SECh. 11 - Prob. 13AECh. 11 - Prob. 14AECh. 11 - Prob. 15AECh. 11 - Preparing a statement of cash flowsindirect method...Ch. 11 - Prob. 17AECh. 11 - Prob. 18AECh. 11 - Prob. 19AECh. 11 - Prob. 20AECh. 11 - Prob. 21AECh. 11 - Prob. 22BECh. 11 - Prob. 23BECh. 11 - Preparing a statement of cash flowsindirect method...Ch. 11 - Prob. 25BECh. 11 - Prob. 26BECh. 11 - Prob. 27BECh. 11 - Prob. 28BECh. 11 - Prob. 29BECh. 11 - Calculating certain information using the direct...Ch. 11 - Prob. 31APCh. 11 - Prob. 32APCh. 11 - Prob. 33APCh. 11 - Prob. 34APCh. 11 - Prob. 35APCh. 11 - Prob. 36APCh. 11 - Prob. 37BPCh. 11 - Prob. 38BPCh. 11 - Prob. 39BPCh. 11 - Prob. 40BPCh. 11 - Prob. 41BPCh. 11 - Prob. 42BPCh. 11 - Prob. 1CECh. 11 - Prob. 1CPCh. 11 - Apply Your Knowledge Ethics In Action Case 1....Ch. 11 - Case 2. Kevin Sailors, the CEO of Candle...Ch. 11 - Financial Analysis Purpose: To help to familiarize...Ch. 11 - Prob. 1IACh. 11 - Small Business Analysis Purpose: To help you...Ch. 11 - Written Communication Prepare a paper outlining...Ch. 11 - Comprehensive Problem The Accounting Cycle and...
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- Q E-F:5-22 Journalizing purchase transactions (Learning Objective 2) Howie Jewelers had the following purchase transactions. Journalize all necessary transactions. Explanations are not required. W Jun. 20 20 Jul. 4 14 & 16 18 Received a $300 allowance from Southboro Diamonds for damaged but usable goods. 24 Paid Southboro Diamonds, less allowance and discount. 4- Purchased inventory of $5,100 on account from Sanders Diamonds, a jewelry importer. Terms were 2/15, n/45, FOB shipping point. Paid freight charges, $400. Returned $600 of inventory to Sanders. 7 Paid Sanders Diamonds, less return. Purchased inventory of $3,500 on account from Southboro Diamonds, a jewelry importer. Terms were 2/10, n/EOM, FOB destination. 4+ 8 144 ( F5-56 A B insert ← prt sc backspace 9:28 PM 9/21/2022 delete homarrow_forwardInstruction: Do its general ledgers, trial balance, and worksheet Date Particulars Debit Credit May 1 Purchases 50,000 Accounts payable 50,000 (To record purchase of inventory) May 2 Account receivables 40,000 Sales revenue 40,000 (To record credit sales) May 5 Accounts payable 2,000 Purchase returns 2,000 (To record purchase return) May 9 Cash 39,200 Sales discount (40,000 x 2%) 800 Account receivables 40,000 (To record cash collection from customers) May 10 Accounts payable 48,000 Cash 47,040 Purchase discount (48,000 x 2%) 960 (To record payment to creditor) May 11 Supplies 9,000 Cash 9,000 (To record purchase…arrow_forwardActivity 3. Comprehensive Problems. Solve the following problems below. Present your solutions in good format. For the next seven (6) items, use the information below: Debit Credit Account Title Sales 875,000 Sales Returns and Allowances Sales Discounts Purchases 12,000 10,000 295,000 Purchases Returns and Allowances 14,000 Freight in Merchandise Inventory, 1/1/2020 36,000 46,000 20,000 75,000 125,000 15,000 Merchandise Inventory, 12/31/2020 Freight Out Office Salaries Commission Expense 1. Net purchases for the period were 2. Cost of goods available for sale for the period were 3. Cost of goods sold for the period were 4. Net sales for the period 5. Gross profit for the period were 6. The Profit or Loss for the period. 7. The following data pertain to the two year operation of Despacito business: Year 1 P200,000 250,000 90,000 Despacito's gross profit for year 1 and year 2 is? Year 2 Sales P250,000 150,000 40,000 Purchases Ending inventory 8. The cost of sale is P250,000. Total…arrow_forward
- ab User Management,... H https://outlook.offi... FES Protection Plan System 7 - North C... Homework Exercises Saved Lewis Corporation engaged in the following transactions during June. DATE TRANSACTIONS 20X1 4 Purchased merchandise on account from Salinas Company; Invoice 100 for $1,005; terms n/30. 15 Recorded purchases for cash, $1,490. 30 Paid amount due to Salinas Company for the purchase on June 4. June Book Required: Record these transactions in a general journal. erences View transaction list Journal entry worksheet 1. 21 3 Paid amount due to Salinas Company for the purchase on June 4. Note: Enter cebits before credits.arrow_forwardYear Ended December 31, Debit Credit Cash $ 624,500 Accounts Receivable 100,233 465,099 277,340 Equipment Merchandise Inventory Accounts Payable Common Stock Sales Interest Revenue $ 287,693 564,500 885,244 216,745 Rent Revenue 101,600 Sales Salaries Expense Office Supplies Expense Sales Discounts 29,878 5,942 112,431 Interest Expense Sales Returns and Allowances Cost of Goods Sold 9,560 162,312 Rent Expense Depreciation Expense: Office Equipment Insurance Expense Advertising Expense Totals 208,016 19,191 8,657 10,234 22,389 $2,055,782 $2,055,782 A. Use the data provided to compute net sales for 2019. B. Compute the gross margin or 2019. C. Compute the gross profit margin ratio (rounded to nearest hundredth) D. Prepare a simple income statement for the year ended December 31, 2019. E. Prepare a multi-step income statement for the year ended December 31, 2019.arrow_forwardThis problem challenges you to apply your cumulative accounting knowledge to move a step beyond the material in the chapter. Days cash is outstanding for merchandise: 54.04 days Combining the information provided by various ratios can enhance your understanding of the financial condition of a business. Review the information provided for Na Pali Coast Company in the Mastery Problem. Using this information, respond to the following questions: REQUIRED 1. Compute the average number of days required to sell inventory and collect cash from customers buying on account. 2. Note that Na Pali Coast Company also buys inventory on account. On average, how many days pass before Na Pali pays its creditors? 3. Using the information from your answers to parts (1) and (2), compute the number of days from the time Na Pali Coast pays for inventory until it receives cash from customers on account.arrow_forward
- Prepare the Multi-Step Statement of Comprehensive Income. Thank you! Instructions was also included in the photo.arrow_forwardCreate at least 3 transactions in one month for each specialized journalsi. Sales Journalii. Purchase journaliii. Return inwards journaliv. Return outward journalsv. Cash receipts journalsvi. Cash payment journalvii. General journalarrow_forwardMerchandising Business using Periodic Inventory System Instruction: Prepare journal entries for the following transactions using the general journal format given in class discussion. KIKAY HARDWARE CHART OF ACCOUNTS ASSETS INCOME 100 Cash and Cash Equivalents 400 Sales 101 Accounts Receivable 401 Sales Returns and Allowances 102 Merchandise Inventory 402 Sales Discount 103 Supplies 104 Equipment EXPENSES 500 Purchases LIABILITIES 501 Purchase returns and Allowances 200 Accounts Payable 502 Purchase Discounts 201 Bonds Payable 503 Freight In EQUITY 504 Advertising 300 Mark Reyes, Capital 505 Freight Out 301 Mark Reyes, Drawings 506 Salaries 507 Utilities 508 Income Summary Kikay HARDWARE STORE completed the following merchandising transactions in the month of May. At the beginning…arrow_forward
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