Exercise 4-20 (Algo) Effects of adjustments LO 4-6, 4-7A bookkeeper prepared the year-end financial statements of Giftwrap, Incorporated The income statement showed net income of$22,800, and the balance sheet showed ending retained earnings of $91,900. The firm's accountant reviewed the bookkeeper's workand determined that adjustments should be made that would increase revenues by $5,600 and increase expenses by $8,900.Required:Calculate the amounts of net income and retained earnings after the preceding adjustments are recorded.Note: Enter any decreases as negatives.Amounts before adjustmentRevenue increase adjustmentExpense increase adjustmentAmounts after adjustmentNet Income Retained Earnings

The objective of the question is to calculate the adjusted net income and retained earnings after…

Answered: Exercise 4-20 (Algo) Effects of…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 54BE

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Week 7 Discussion question Accounting for Assets: Receivables Johnson company’s financial year ended on December 31, 2010. All the transactions related to the company’s uncollectible accounts are can be found below: January 15 Wrote of $440 account of Miller Company as uncollectible April 2nd Re-establish the account of Louisa Teller and record the collection of $1,050 as payment in full for her account which had been written off earlier July 31 Received 40% of the $700 balance owed by William John and wrote off the remainder as uncollectible August 15 Wrote off as uncollectible the accounts of Sherwin Company, $1,700 and V. Vasell $2,200 September 26 Received 25% of the $1,140 owed by Grant Company and wrote off the remainder as uncollectible October 16 Received $741 from M. Fuller in full payment of his account which had been written off earlier as uncollectible December 31 Estimated uncollectible…
TB 03-70 Company A receives $10,000 in advance this m... Company A receives $10,000 in advance this month for work to be performed next month. This month, the company should: Multiple Choice Debit Accounts Payable $10,000 and credit Cash $10,00. Debit Inventory $10,000 and credit Sales Revenue $10,000. Debit Cash $10,000 and credit Deferred Revenue $10,000. Debit Inventory $10,000 and credit Accounts Payable $10,000.
Required information Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7) [The following information applies to the questions displayed below.] On January 1, Year 1, the general ledger of a company includes the following account balances: Accounts Debit Credit Cash $ 59,200 Accounts Receivable 26,000 Allowance for Uncollectible Accounts $ 2,700 Inventory Notes Receivable (5%, due in 2 years) 36,800 18,000 Land 160,000 Accounts Payable 15,300 Common Stock 225,000 57,000 $ 300,000 Retained Earnings Totals $ 300,000 During January Year 1, the following transactions occur: January 1 Purchase equipment for $20,000. The company estimates a residual value of $2,000 and a four-year service life. 4 Pay cash on accounts payable, $10,000. 8 Purchase additional inventory on account, $87,900. January January January 15 Receive cash on accounts receivable, $22,500. January 19 Pay cash for salaries, $30,300. January 28 Pay cash for January utilities, $17,000.…
51 Transmute Company paid or collected during the current year the following items: Insurance premium paid 15,400 Interest collected 30,900 Salaries paid 135,200 The following balances have been excerpted from Transmute’s balance sheet: December 31 January 1 Prepaid insurance 1,200 1,500 Interest receivable 3,700 2,900 Salaries payable 12,300 10,600 The insurance expense on the income statement for the current year was Note for your final answer: Do not use peso sign Do not use comma Do not use decimal point Round off your final answer to the nearest whole number
Problem 6-3: The Kissagram Corporation The Kissagram Corporation produced the following summary of its Accounts Receivable on October 31, 2021: Customer Total $ Notes Aniston 9000 25% over 30-60 days; Remainder 90. Leblanc 9000 100% > 90 days outstanding. Required 1. Prepare an aged schedule of Accounts Receivable. Use the following categories: 90 days (delinquent). 2. Compute the balance for the Allowance for Doubtful accounts (rounded to the nearest $). Assume bad debt percentages for each category of 0.7%, 7%, 12% and 22%. Upon completion, enter the following data here: Allowance for Doubtful Accounts submit
Repayment Schedule End of Month Monthly Payment Interest Portion Principal Outstanding Principal Balance January $266.55 $30.00 $236.55 $2,763.45 February 266.55 27.63 238.92 2,524.53 March 266.55 25.25 241.30 2,283.23 April 266.55 22.83 243.72 2,039.51 Мay 266.55 20.40 246.15 1,793.36 June 266.55 17.93 248.62 1,544.74 July 266.55 15.45 251.10 1,293.64 August 266.55 12.94 253.61 1,040.03 September 266.55 10.40 256.15 783.88 October 266.55 7.84 258.71 525.17 November 266.55 5.25 261.30 263.87 December 266.51 2.64 263.87 0.00 Total $3,198.56 $198.56 $3,000.00 Effective interest rate: Monthly rate = 1% Annual percentage rate (APR) = 12% Monthly payment = $3,000/ f(1.01) Calculate the effective annual rate on each of the following loans: a. A $5,000 loan for two years, 10 percent simple annual interest, with principal repayment at the end of the second year b. A $5,000 loan for two years, 10 percent add-on interest, paid in 24 equal monthly installments c. A $5,000 loan to be repaid at the…
Balance on April 1, 2020Debtors control Dr. $65, 145Debtors control Cr. 600Creditors control Dr. 950Creditors control Cr. 75, 500Totals for the month of April 2020Cash purchases 35, 600Credit purchases 62, 600Cash Sales 47, 000Credit Sales 75, 000Contra entry: Set off 1, 800Refund to cash customers 2, 800Bad debt written off 3, 300Discount Allowed 3, 750Total payments to suppliers 87, 000Total receipt from customers 98, 800Discount received 5, 500Dishonoured cheques: customers 2, 900Increase in the allowance for bad debts 2, 100Return Inwards 2, 400Return Outwards 15, 200Balances at 30 April 2020Debtors control: Dr. ? Cr: $8 300Creditors control: Dr. $7 500 Cr: ?Required: Prepare the Sales ledger control account Prepare the Purchases control account
Customer Refunds and Allowances Assume the following data for Lusk Inc. before its year-end adjustments: Sales fasthe year $3,600,000 Estimated percent of refunds for the year 0.8% Journalize the adjusting entry for customer refunds and allowances. If an amount box does not require an entry, leave it blank. 88 Sales v Customer Refunds Payable v Feedback Check My Work Sales are reduced by the estimated amount of customer refunds and allowances which are calculated based upon a percentage of sales. Pre Check My Work Subm Save and Exit Email Instructor
QUESTION 10 The income statement for the year 2011 of SQU contains Not yet answered the following information: Revenues $63,000; Expenses $66,150. The entry to close Income Summary to Retained Marked out of1.00 P Flag question Earnings includes Select one: a. Credits to Expenses totaling $66,150. b. A debit to Retained Earnings for $3,150. cA debit to Revenue for $63,000. d. A debit to Income Summary for $3.150. 口□ 口口
Question Content Area On October 1, Black Company receives a 4% interest-bearing note from Reese Company to settle a $17,400 account receivable. The note is due in six months. At December 31, Black should record interest revenue of a. $174 b. $181 c. $171 d. $184
EXERCISE 12-4 The Income Statement columns of the August 31 (year-end) work sheet for Ralley Company are shown here, From the information given, prepare income statement for the company. To save time and space, the expenses have been grouped together into two categories. LO Pra Show m HOV 4 5 ACCOUNT NAME INCOME STATEMENT DEBIT 7 CREDIT 23 Income Summary Sales 32,000.00 31,000.00 324,000.00 24 25 Sales Returns and Allowances 13,310.00 7,700.00 126,360.00 26 Sales Discounts Purchases Purchases Returns and Allowances Purchases Discounts 27 1,200.00 1,300.00 28 29 30 7,500.00 61,560.00 Freight In 31 50,884.00 299,314.00 58.188.00 357,500.00 Selling Expenses 357,500.00 32 General Expenses 33 357,500.00 34 Net Income 35 36 Sheet3 Sheet2 Sheett
TB 02-79 Your company buys a $2 million warehouse pay... Your company buys a $2 million warehouse paying $300,000 in cash and issuing $1.7 million in promissory notes. This will be posted as: Multiple Choice O $2 million credited and $300,000 debited to assets; $1.7 million debited to liabilities. $2 million debited and $300,000 credited to assets; $1.7 million credited to liabilities. O $2 million credited to assets and $2 million debited to liabilities. $2 million debited to assets and $2 million credited to liabilities.

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