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Accounting
Roth Inc. experienced the following transactions for 2016, its first year of operations: 1. Issued common stock for $80,000 cash. 2. Purchased $240,000 of merchandise on account. 3. Sold merchandise that cost $158,000 for $314,000 on account. 4. Collected $258,000 cash from accounts receivable. 5. Paid $225,000 on accounts payable. 6. Paid $52,000 of salaries expense for the year. 7. Paid other operating expenses of $41,000. 8. Roth adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Due Amount Percent Likely to Be Uncollectible Allowance Balance Current $ 33,600 .01 0-30 14,000 .05 31-60 2,800 .10 61-90 2,800 .20 Over 90 days 2,800 .50 c. What is the net realizable value of the accounts receivable at December 31, 2016?
Accounting
Conduct internet research on "cash vs accrual basis" of accounting and find an article that compares both of these methods. Share some details about the article. Besides simplifying the accounting process, why do many small businesses prefer the cash basis over the accrual basis of accounting? Why do you think generally accepted accounting principles require the accrual basis to be used?
Accounting
5.The ending balance of the Accounts Receivable account was $10,000 and the beginning balance was $14,000. Services billed to customers for the period were $21,500. What was the amount of collections from customers? $17,500 $25,500 None of the others alternatives are correct $45,500 $31,500 7?When a company uses the periodic inventory system in accounting for its merchandise inventory, which of the following is true? None of the others alternatives are correct Cost of goods sold is computed at the end of the accounting period rather than at each sale The inventory account is updated throughout the year as purchases are made The inventory account is updated after each sale. Purchases are recorded in the cost of goods sold account. 10.Banner Ltd., bought merchandise for $900, terms 2/10, n/30. If Banner returns $300 worth of the goods to the vendor, the entry to record the return should include a None of the others alternatives are correct Debit to Discounts Lost of $6 Debit to Purchases Returns and Allowances of $294 Debit to Accounts Payable of $300 Credit to Purchases Returns and Allowances of $294
Accounting
Required: Complete all of the steps of the accounting cycle. This Excel workbook has been prepared to simulate an accounting information system. You will enter the daily transactions,month end adjusting entries, and closing entries. After each journal, you will post the entries to the general ledger, prepare the appropriate trial balances and financial statements. After you have entered the daily transactions and adjusting entries, review the general ledger, adjusted trial balance, and financial statements for accuracy. Make adjustments as necessary (to the journal entries). When you have verified the accuracy of the financial statements, complete the closing entries and post closing trial balance. The temporary accounts on the general ledger should have zero balances. Review of transaction analysis and accounting cycle Steps in the accounting information system. 1. Analyze the transaction a. Is it form the business or personal? b. It is financial? c. What type of account is it? (asset, lability, equity, revenue, expense, dividend) d. Does it increase or decrease the account? e. It is a debit or credit to the account? 2. Record the transaction in the general journal (chronological) 3. Verify the information was posted correctly from the journal to the general ledger. 4. Prepare the trial balance. 5. Record month end adjustments in the adjusting journal. Verify the information was posted to the general ledger correctly. a. a. Deferrals: expenses or revenues paid or received, recorded as assets or liabilities before they are used or earned. b. Depreciation: allocate the cost of fixed assets over the period covered. c. Accruals: revenues earned, expenses incurred but not yet paid or received, not recorded. 6. Prepare the trial balance. 7. Using the adjusted trial balance, prepare the financial statements: Income statement, balance sheet, and statement of retained earnings. 8. Record closing entries in the closing journal. Post the entries to the general ledger. 9 Prepare the post closing trial balance using the account balances from the general ledger. Practice Set Monthly transactions 1-Dec Issued 10,000 shares of stock at $10 per share. Raised $100,000 cash. 2-Dec Borrowed $60,000 cash at 10%. Principle and interest is due at end of 2nd year. (Month end adjustment = $500 interest/mo) 2-Dec Paid 1 month's rent, $3,000. 7-Dec Purchased supplies inventory $3,100; paid cash. 8-Dec Purchased yacht $286,000; $100,000 cash payment, financed remainder at 8%, principle and interest due at end of 4 years. (Month end adjustment = 1,240 interest/mo.) 9-Dec Purchased 1 year of insurance $1,200; paid cash 15-Dec Sold $25,000 worth of services, on accounts receivable. 29-Dec Received $13,000 from accounts receivable. 30-Dec Issued cash dividend to stockholders, $4,000.
Finance
Which of the following statements is the MOST accurate? An increase in disposable income improves the current account. An increase in disposable income does not affect the current account. An increase in disposable income worsens the current account. An increase in income worsens the current account.
Accounting
At the beginning of the current period, Sunland Company had balances in Accounts Receivable of $201,700 and in Allowance for Doubtful Accounts of $9,590 (credit). During the period, it had net credit sales of $875,700 and collections of $796,820. It wrote off as uncollectible accounts receivable of $7,410. However, a $2,808 account previously written off as uncollectible was recovered before the end of the current period. Uncollectible accounts are estimated to total $25,830 at the end of the period. (Omit cost of goods sold entries.) Attached is what I have, the only thing I cannot grasp is the bad debt entry
Accounting
Question: In chapter #2, we are introduced to double-entry accounting where all changes in account balances are impacted with either a debit or a credit. What is a T-Account? On which side is the debit and on which side is the credit? Does this hold true under all circumstances? The book touches up on "source documents" which are used as documents to support journal entries made in the Accounting system? Provide examples of different types of source documents that a business might use. Newman company made a purchase of office supplies "on account". How will this transaction impact Newman's accounting equation? Be sure to specify both sides of the accounting equation! Newman production services has the following transactions for the year:Beginning cash balance of $45,000 Accounts receivable arising from credit sales of $45,000 Cash collections on credit sales of $30,000 Utility bill received but not yet paid of $5,000 Owner investment of $7,500 Owner withdrawal of $6,500 Cash sales amounting to $12,000 What is the ending cash balance as a result of the you recording all of the above transactions?
Accounting
The following current year information is available from a manufacturing company: Sales..............................640,000 Gross Profit on sales..............276,000 Operating Income................... 64,000 Income Before Taxes................ 44,000 Net Income......................... 33,600 Account Receivable, Beginning Year..58,000 Account Receivable, end of year.....70,000 Calculate the company's accounts receivable turnover and its days' sales uncollected.
Economics
The U.S. government uses: cash accounting for discretionary spending and capital accounting for defense spending. cash accounting for discretionary spending and capital accounting for nondiscretionary spending. only cash accounting. only capital accounting. cash accounting for foreign assistance spending and capital accounting for domestic spending. A balanced budget requires that: politicians vote for a budget in which spending exceeds revenues in order to be eligible for reelection. a deficit in that year be smaller than that of the previous year. entitlement spending equals discretionary spending. deficit spending equals entitlement spending. total spending equals total revenue. The budget process distinguishes between: entitlement spending and deficit spending. discretionary spending and deficit spending. surplus spending and deficit spending. debt spending and surplus spending. entitlement spending and discretionary spending.
Accounting
Which of the following is CORRECT about the flow of recording a transaction? A) Occurrence of event - voucher—Journal—Ledger—Trial Balance—profit and loss account—Balance Sheet B) Occurrence of event—Journal - voucher —Ledger—Trial Balance—profit and loss account—Balance Sheet C) Occurrence of event—Ledger - voucher—Journal—Trial Balance—profit and loss account—Balance Sheet D) Occurrence of event—Trial Balance - voucher—Journal—Ledger—profit and loss account—Balance Sheet
Accounting
Hi Michael, I would like to resubmit with the $25 fee. I didn't see a form below unless this is it. Please advise if it is not. attached is an excel file with a consolidation problem. The first 2 tabs are the question that was given and the rest of the tabs are my answers. Can anyone please look it over and let me know if I did it correctly or if I need to make changes or add any additional information to the problem. thanks
Accounting
Itasca International performed services on account for $160,000 in 2015. Itasca collected $120,000 cash from accounts receivable during 2015, and the remaining $40,000 was collected in cash during 2016. a. Record the 2015 transactions in T-accounts b. Record the 2015 transactions in a horizontal statements model like the following one: Assets = Liability + Equity Revenue - Expenses = Net Income Cash Flow Cash + Accts. Rec = Ret. Earn c. Determine the amount of revenue Itasca would report on the 2015 income statement d. Determine the amount of cash flow from operating activities Itasca would report on the 2015 statement of cash flows e. Open a T-account for Retained Earnings, and close the 2015 Service Revenue account to the Retained Earnings Account f. Record the 2016 cash collection in the appropriate T-accounts g. Record the 2016 transaction in a horizontal statements model, like the one shown in requirement b h. Assuming no other transactions occur in 2016, determine the amount of net income and the net cash flow from operating activities for 2017.
Accounting
"Valuation of Accounts Receivables" Please respond to the following: Watch the following youtube video https://www.youtube.com/watch?v=r3YPSwFsIps Then discuss the primary advantages and disadvantages of applying the direct write-off and the allowance method of writing off accounts. Even though the direct write-off method is not acceptable for generally accepted accounting principles (GAAP) reporting, take a position on whether or not estimating the allowance for doubtful accounts distorts gross income. Propose an alternative method to increase the accuracy of reporting. Explain your rationale.
Accounting
1. The Sales Returns and Allowances A) account is presented on the balance sheet as a deduction from Accounts Receivable. B) on the income statement as a deduction from Sales. C) on the income statement as an addition to Sales. D) on the balance sheet as a deduction from Capital. 2. If a firm had sales of $50,000 during a period and sales returns and allowances of $4,000, its net sales were A) $54,000. B) $50,000. C) $46,000. D) $4,000. 3. The entry to record a return by a credit customer of defective merchandise on which no sales tax was charged includes: A) a debit to Return Expense and a credit to Accounts Receivable. B) a debit to Sales and a credit to Sales Returns and Allowances. C) a debit to Sales Returns and Allowances and a credit to Accounts Receivable. D) a debit to Accounts Receivable and a credit to Sales Returns and Allowances. 4. With the accrual basis of accounting, it is appropriate to recognize revenue from a credit sale A) on the date of the sale. B) on the date the account is collected in full. C) each time a payment on an account balance is received. D) either on the date of the sale or when the amount of the sale is collected. 5. On December 31, prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $200. An age analysis of the accounts receivable produces an estimate of $1,000 of probable losses from uncollectible accounts. The adjusting entry needed to record the estimated losses from uncollectible accounts is made for A) $800. B) $1,000. C) $1,200 D) $200 6. When the allowance method of recognizing losses from uncollectible accounts is used, the entry to record the write-off ofa specific account consists of A) a debit to Uncollectible Accounts Expense and a credit to Accounts Receivable. B) a debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable. C) a debit to Uncollectible Accounts Expense and a credit to Allowance for Doubtful Accounts. D) a debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts. 7. A firm reported sales of $300,000 during the year and has a balance of $20,000 in its Accounts Receivable account at year-end. Prior to adjustment, Allowance for Doubtful Accounts has a credit balance of $300. The firm estimated its losses from uncollectible accounts to be one-half of 1 percent of sales. The entry to record the estimated losses from uncollectible accounts will include a credit to Allowance for Doubtful Accounts for A) $1,200 B) $1,500 C) $1,800 D) $3,0008. 8.When a firm uses the allowance method to provide for losses, the collecting of an account previously written off as uncollectible requires an entry A) to reinstate the account receivable. B) to increase the balance of the Sales account. C) to reduce the balance of Uncollectible Accounts Expense. D) to decrease the balance of the Allowance for Doubtful Accounts. 9. On December 31, prior to adjustments, the balance of Accounts Receivable is $16,000 and Allowance for Doubtful Accounts has a credit balance of $95. The firm estimates its losses from uncollectible accounts to be 5% of accounts receivable at the end of the year. The adjusting entry needed to record the estimated losses from uncollectible accounts is made for A) $705. B) $800. C) $895. D) $95. 10. The adjusting entry to record accrued interest on a note receivable requires A) a debit to Interest Income and a credit to Notes Receivable. B) a debit to Interest Receivable and a credit to Interest Revenue. C) a debit to Interest Revenue and a credit to Cash. D) a debit to Interest Revenue and a credit to Interest Receivable. 11. When a company issues a promissory note, the accountant records an entry that includes a credit to Note Receivable for A) the face value of the note. B) the face value of the note plus the interest that will accrue. C) the face value less the interest that will accrue. D) the maturity value of the note. 12. How much interest will accrue on a $20,000 face value, 60-day note that bears interest at 9 percent a year (based on a 360 day year)? A) $300 B) $1,800 C) $450. D) $900. 13. Notes payable which are to be satisfied with current assets and are due within one year are usually shown A) in the Current Assets section of the balance sheet. B) in the Current Liabilities section of the balance sheet, C) in the Other Expenses section of the income statement. D) in the Long-Term Liabilities section of the balance sheet. 14. Upon collection of the amount due on a $6,000 face value, 90-day note with interest at 10 percent a year, the Note Receivable account is A) debited for $6,600. B) credited for $6,000. C) credited for $6,150. D) debited for $6,000. 15. The balance sheet shows A) the results of business operations. B) all revenues and expenses. C) the amount of net income or loss. D) the financial position of a business at a given time. 16. Amounts that a business must pay in the future are known as A) accounts receivable. B) accounts payable. C) stock. D) expenses. 17. Examples of assets are A) cash and accounts receivable. B) cash and revenue. C) cash and rent expense. D) investments by the owner and revenue. 18. A net loss results A) when expenses are greater than revenue. B) when assets are greater than liabilities. C) when revenue is greater than expenses D) when expenses are greater than assets. 19. The income statement shows A) the financial position of a business on a specific date. B) revenue and stockholders' equity. C) the results of operations for a period of time. D) the total value of the business. 20. If liabilities are $4,000 and stockholders' equity is $15,000, assets are A) $9,000. B) $15,000. C) $19,000 D) $4,000 21. Assets and liabilities are reported on A) the balance sheet. B) the income statement. C) the statement of stockholders' equity. D) both the balance sheet and the income statement. 22. The rent paid for future months is a (n) A) asset. B) liability. C) expense. D) revenue. 23. Credits are used to record A) decreases in assets and stockholders' equity and increases in liabilities. B) decreases in assets, liabilities, and stockholders' equity. C) decreases in liabilities and increases in assets and stockholders' equity. D) increases in liabilities and stockholders' equity. 24. Debits are used to record increases in A) assets and revenue .B) revenue and stockholders' equity. C) assets and expenses. D) assets and liabilities. 25. A firm paid cash to apply against a debt. To record this transaction, the accountant would A) debit Accounts Receivable and credit Cash. B) debit Accounts Payable and credit Cash. C) debit Cash and credit Accounts Payable. D) Debit Cash and credit Accounts Receivable. 26. When charge customers pay cash to apply against their accounts, the amount is recorded A) on the debit side of the Cash account and the credit side of the Fees Income account. B) on the debit side of the Accounts Payable account and the credit side of the Cash account. C) on the debit side of the Cash account and the credit side of the Accounts Receivable account. D) on the debit side of the Accounts Receivable account and the credit side of the Cash account. 27. The account used to record increases in stockholders' equity from the sale of goods or services is A) the revenue account. B) the Cash account. C) the stock account. D) the dividends account. 28. Which of the following types of accounts normally have debit balances? A) assets and revenue. B) assets, liabilities, and stockholders' equity. C) expenses and assets. D) liabilities and Stockholders' equity. 29. Which of the following groups contain only accounts that normally have credit balances? A) accounts receivable and fees income. B) salaries expense and accounts payable. C) fees income and stock. D) accounts payable and equipment. 30. The journal entry to record the sale of services on credit should include A) debit to Accounts Receivable and a credit to Stock. B) a debit to Cash and a credit to Accounts Receivable. C) a debit to Fees Income and a credit to Accounts Receivable. D) a debit to Accounts Receivable and a credit to Fees Income
Accounting
Dapper Hat Makers Company sells merchandise on credit. During the fiscal year ended July 31, the company had net sales of $2,300,000. At the end of the year, it had Accounts Receivable of $600,000 and a debit balance in Allowance for Uncollectible Accounts of $3,400. In the past, approximately 1.4 percent of net sales have proved to be uncollectible. Also, an aging analysis of accounts receiv- able reveals that $30,000 of the receivables appears to be uncollectible. Prepare journal entries to record uncollectible accounts expense using (a) the percentage of net sales method and (b) the accounts receivable aging method.