Assume the conditions for to be recorded as a sale are met. Prepare the journal entry on August 15, 2020, for Sheffield to record the sale of receivables, assuming the recourse obligation has a fair value of $5,200. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter Ofor the amounts)
Q: prepare a bank reconciliation.
A: Bank Reconciliation is process in accounting in which company compare or match their bank statements…
Q: . Calculate the present value of the $580,000 future cash benefit. Assuming that the retirement…
A: Present Value Present value is the concept that states an amount of money today is worth more than…
Q: sted a prototype electronic product and are about to start your new business. You have purchase…
A: Inventories refer to the stock piled up in the company's warehouses for the purpose of selling them…
Q: Following is relevant information for Philly's Sandwich Shop, a small business that serves sa Total…
A: Solution: Under Contribution margin income statement, contribution margin is separately reported by…
Q: Gabriela has the following income for the quarter
A: As per the provisions of Burau of Internal Revenue , Phillipines , quarterly…
Q: The following is a listing of the income statement accounts for Mulberry Street Sportswear as they…
A: Income Statement - This statement shows the income earned and loss incurred by the organization in…
Q: Assets Cash LAG Network IC. Comparative Balance Sheet Information Accounts receivable Merchandise…
A: LAG Network Inc's Statement of Cash Flows for the Year 2020 $ $ Cash Flows From Operating…
Q: Indigo Corporation, during the year ended October 31, 2021, had the following transactions for…
A: Introduction Money market instruments: Financial instruments called "money market instruments" are…
Q: Multiple Choice revenues minus expenses.
A: Revenue : Revenue is the result of sale of goods , exchange of assets, interest ,dividend earned on…
Q: At the end of 2021, which of the following deferred tax accounts and balances is reported on…
A: Deffered Tax :— Differed tax means there is difference in tax due to Companies accounting & As…
Q: Impairment occurs when the estimated future cash flows from a long-lived asset are greater than the…
A: Long-lived assets are the long-term or non-current assets of an entity. These are the resources that…
Q: In each accounting period, a manager can select the inventory costing method that yields the highest…
A: Change in accounting policy can only be done if it helps improve the accuracy of the organization's…
Q: xplains why Tim does or does not have enough money to pay $200 each month on his credit card. If he…
A: Credit Card: It is card which is issued by the financial institutions / Banks to the individual to…
Q: A machine, purchased for$50,000, has a depreciable life of five years. It will have an expected…
A:
Q: mith & Co. Pty. Ltd. recently purchased a new factory. The factory was very run down having been…
A: Capital expenditure means the amount spent on the purchase of the building, machinery, land, and…
Q: Nick is nearing retirement and is looking to purchase a mutual fund that will provide a relatively…
A: To invest your money, mutual fund shares are divided into many types. These can be classified as…
Q: a. Determine the return on total assets, the return on stockholders' equity, and the return on…
A: Ratio analysis :— Relationship Between two no. Of the same kind. The ratio analysis is one the most…
Q: The Russell Company provides the following standard cost data per unit of product: Direct material…
A: Lets understand the basics. Direct labor usage variance is a variance between the standard labor…
Q: Frank Trading is an accessory wholesale company. The
A: Dear student you asked multiple questions and as per rule we will solve only one .…
Q: Assume you have developed and tested a prototype electronic product and are about to start your new…
A: 1. PARTICULARS (Per Unit) AMOUNT (In RM) Direct Material: Computer Chip 80…
Q: An employer in Ontario has 4 employees (A,B,C,D)paid $40000 annually. A is paid monthly B is paid…
A: Wages Payment System is the type of system through which industry determine the payment to be paid…
Q: Accounting Selecting an Allocation Base for Service Costs. Winstead, Inc., is looking for an…
A: Overheads are the indirect costs that are to be allocated to different departments based upon some…
Q: All revenue from construction contracts is always recognized over time. O True O False
A: Contract revenues and expenses are recorded in accordance with the level of contract activity…
Q: Question 68 Which of the following statements aligns with legitimacy theory? O Companies will engage…
A: Reporting- A report is a piece of writing that contains facts and details about a subject. A report…
Q: What was the standard cost per unit of product? (Round answer to 2 decimal places, e.g. 2.75.)…
A: Standard rate is the rate at established to as basic limited rate as per actual practice of…
Q: Auditors must collect sufficient and appropriate audit evidence to reduce audit risk. This audit…
A: Auditors must collect sufficient and appropriate audit evidence to reduce audit risk. This audit…
Q: Johanna Computer manufactures laptop computers under its own brand, but acquires all the components…
A: There are no beginning or ending units in the process therefore the cost assigned to work-in-process…
Q: Carla Vista Company is considering three long-term capital investment proposals. Each investment has…
A:
Q: On October 31, 2024, Affleck Company's general ledger shows a cash account balance of $8,442. The…
A: The bank reconciliation statement is prepared to adjust the balances of cash book and pass book with…
Q: Refer to the following adjusted trial balance after the first year of operations. Debit Credit…
A: The answer for the multiple choice question and relevant working are presented hereunder : Retained…
Q: Analyze the major pros and cons of a single-step income statement and a multistep income statement.…
A: Lets understand the basics. Income statement is a statement which shows revenue expenses and net…
Q: ABC Co. financial data for 2020 & 2019 are given below: Total Assets Total Liabilities Cash…
A: Ratio Analysis - Ratio Analysis is the technique used to compare two financial years or two…
Q: Heiner Company began business on July 1, 2022 and made the following four inventory purchases in…
A: Introduction:- LIFO means Last-in-first-out It is one of the inventory valuation method. As per…
Q: a) Using the straight line basis for depreciation: i) Show the calculation of the depreciation. ii)…
A: The straight-line method is a depreciation method in which depreciation remains the same over the…
Q: 1) what are the major problems facing Google in 2009?
A: Recession refers to the term which states significant decrease in the activity of the general…
Q: Question 68 Which of the following statements aligns with legitimacy theory? O Companies will engage…
A: Answer:- Legitimacy theory meaning:- According to the legitimacy theory, the business entities…
Q: Teal Mountain Inc. uses a periodic inventory system. Its records show the following for the month of…
A: The ending inventory includes the number of units that are left in stock at the end of period. Using…
Q: The following is the Balance sheet of Moin lilited as on 31st march 2020. You are required to…
A: The current ratio is a measurement of the short-term solvency of an organization. This ratio refers…
Q: e at cost. Abdalla accepted of 1, 00000B / R on 3rd June 2016. Kareem discounted it from bank at…
A: Consignment : It is the process of sending the goods by one person (Consigner) to another…
Q: Anchor Company manufactures a variety of tool boxes. The firm is currently operating at 80% of its…
A: Income statement: The financial statements consist set of statements. The three major statements in…
Q: Compute the basic earnings per share for 2021. (Round answer to 2 decimal places, e.g. 52.75.) Basic…
A: Earnings per shares (EPS) refers to the amount of profit earned by each shareholder after paying all…
Q: Emma Corporation uses an overhead absorption rate of $3·50 per machine hour, based on 32,000…
A: Total overhead expenditure = $108,875 Machine hours = 30,000 hours Absorption rate (per machine…
Q: If interest rate is 10% per year, which one of the following annuities give maximum benefit and…
A: In the given question, different set of annuities having different time periods and amounts is…
Q: XYZ Corporation, a U.S. parent firm, has a wholly owned sales affiliate, ABC Ltd., in the United…
A: Liabilities- The balance sheet items known as liabilities refer to the debts that must be repaid in…
Q: Tan-O-Rama is a local tanning salon. Its regression output is as follows: Coefficients 4,601.18 2.84…
A: Solution: Contribution is the amount of margin that arrives at be reducing total variable costs from…
Q: QUESTION 4 Below is the trial balance as at 31 December 2021 of K.S.Raswoth runs a stationery…
A: Liquidity ratios A business needs to calculate the ability to pay its current debt obligations…
Q: A company has share capital of Kshs 20 million and is planning to invest an additional fund of KShs…
A: Budgeting options gives us a clear idea about the cost of capital raised in various way like share,…
Q: monetary Unit 7. The principle of objectivity includes the concept of A. Summarization B.…
A: Since you have posted multiple questions, we will do the first one for you. To get the remaining…
Q: RAF has four possible suppliers, all of which offer different credit terms. Except for the…
A: Expense- An expense is a cost of operations that a business incurs to generate revenue. The term…
Q: Which of the following is not a characteristic of a partnership firm? Select one: A. Limited…
A: Partnership Accounts - Partnership is a agreement between two partners agreed to carry business and…
Step by step
Solved in 3 steps
- Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First National Bank, on which 16,651 of interest has accrued. On January 2, 2019, the bank agrees to restructure the note. It forgives the accrued interest, extends the repayment date to December 31, 2021, and reduces the interest rate to 10%. Required: Prepare a schedule for Northfield to compute the annual interest expense in regard to the preceding note for each year of the restructuring agreement.Spath Company borrows 75,000 by issuing a 4-year, noninterest-bearing note to a customer on January 1, 2019. In addition, Spath agrees to sell inventory to the customer at reduced prices over a 5-year period. Spaths incremental borrowing rate is 12%. The customer agrees to purchase an equal amount of inventory each year over the 5-year period so that a straight-line method of revenue recognition is appropriate. Required: Prepare the journal entries on Spaths books for 2019 and 2020. (Round answers to 2 decimal places.)
- On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.Starlight Enterprises has net credit sales for 2019 in the amount of $2,600,325, beginning accounts receivable balance of $844,260, and an ending accounts receivable balance of $604,930. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2019 (round answers to two decimal places). What do the outcomes tell a potential investor about Starlight Enterprises if the industry average is 1.5 times and the number of days sales ratio is 175 days?On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
- Bramble Corp. factors $630,000 of accounts receivable with Marin Inc., Inc. on a with recourse basis. Marin Inc. will collect the receivables. The receivable records are transferred to Marin Inc. on August 15, 2020. Marin Inc. assesses a finance charge of 3.0% of the amount of accounts receivable and also reserves an amount equal to 5.40% of accounts receivable to cover probable adjustments. Bramble prepares financial statements under ASPE. Assume the conditions for to be recorded as a sale are met. Prepare the journal entry on August 15, 2020, for Bramble to record the sale of receivables, assuming the recourse obligation has a fair value of $5,900SK Inc, factors $400,000 of accounts receivable with Mars Finance Company on a without recourse basis on July 1,2020. The receivables records are transferred to Mars Finance, which will receive the collections. Mars Finance assesses a finance charge of 1 ½% of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. Instructions: Prepare the journal entry on July1,2020, for SK Inc. to record the sale of receivables without recourse. Prepare the journal entry on July1,2020, for Mars Finance Company. to record the purchase of receivables without recourseSK Inc, factors $400,000 of accounts receivable with Mars Finance Company on a without recourse basis on July 1,2020. The receivables records are transferred to Mars Finance, which will receive the collections. Mars Finance assesses a finance charge of 1 ½% of the amount of accounts receivable and retains an amount equal to 4% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. Instructions: a) Prepare the journal entry on July1,2020, for SK Inc. to record the sale of receivables without recourse. b) Prepare the journal entry on July1,2020, for Mars Finance Company. to record the purchase of receivables without recourse. Answer a and b
- Vaughn Corp. factors $440,000 of accounts receivable with Bramble Finance Corporation on a without recourse basis on July 1, 2025. The receivables records are transferred to Bramble Finance, which will receive the collections. Bramble Finance assesses a finance charge of 1.90% of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable to cover sales discounts, returns, and allowances. The transaction is to be recorded as a sale. (a) Prepare the journal entry on July 1, 2025, for Vaughn Corp. to record the sale of receivables without recourse. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation July 1, 2025 Debit CreditKingbird Corporation factors $ 276,900 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2020. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments.(b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2020, for Kingbird to record the sale of receivables, assuming the recourse obligation has a fair value of $ 3,520. (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 the amount is entered. Do not indent manually.) The journal entry has the date of Aug 15th & a space for 5 possible…Waterway Corporation factors $260,800 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2025. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. (b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2025, for Waterway to record the sale of receivables, assuming the recourse obligation has a fair value of $5,000. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)