Brief Exercise 7-1
Your answer is correct.
Cheyenne Enterprises owns the following assets at December 31, 2017.
Cash in bank—savings account 71,600 Checking account balance 19,500
Cash on hand 8,510 Postdated c
...
Brief Exercise 7-1
Your answer is correct.
Cheyenne Enterprises owns the following assets at December 31, 2017.
Cash in bank—savings account 71,600 Checking account balance 19,500
Cash on hand 8,510 Postdated checks 950
Cash refund due from IRS 40,600 Certificates of deposit (180-day) 90,560
What amount should be reported as cash?
Brief Exercise 7-1
Checking account balance 19,500
Cash to be reported $99,610 Brief Exercise 7-7
Your answer is correct.
Sage Family Importers sold goods to Tung Decorators for $37,800 on November 1, 2017, accepting Tung’s $37,800, 6-month, 6% note.
Prepare Sage’s November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest. (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. Record journal entries in the order presented in the problem.)
Brief Exercise 7-7
5/1/18 Interest Revenue = ($37,800 × 6% × 4/12) = $756
Exercise 7-4
Your answer is correct.
Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $1,995 per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $109,060 as shown in the ledger.
The following information is available for your first year in business.
(1) Collections from customers $263,340
(2) Merchandise purchased 425,600
(3) Ending merchandise inventory 119,700
(4) Goods are marked to sell at 40% above cost
Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent shortages. Assume that all sales are made on account.
$
The ending balance of accounts receivable from
Customers 164920
$
Apparent shortage
55860
Exercise 7-4
Computation of cost of goods sold:
Merchandise purchased $425,600
Less: Ending inventory 119,700
Cost of goods sold $305,900
Selling price = 1.40(Cost of goods sold)
= 1.40($305,900)
= $428,260
Sales on account $428,260 Less: Collections 263,340
Uncollected balance
164,920
Apparent shortage $55,860
Enough for a new car = $55,860
Exercise 7-9
Your answer is correct.
The trial balance before adjustment of Pina Inc. shows the following balances.
Dr. Cr.
Accounts Receivable $95,600
Allowance for Doubtful Accounts 2,010
Sales Revenue (all on credit) $590,400
Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a) 4% of gross accounts receivable and (b) 5% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,743 credit balance. (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.)
Exercise 7-9
(a) Allowance for Doubtful
Accounts = ($95,600 × 4%) + $2,010 = $5,834
(b) Allowance for Doubtful
Accounts = [($95,600 x 5%) – $1,743] = $3,037
Exercise 7-22
Your answer is partially correct.
Marigold, Inc. decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. The following information is available for the month of April.
1. On April 1, it established a petty cash fund in the amount of $255.
2. A summary of the petty cash expenditures made by the petty cash custodian as of April 10 is as follows.
Delivery charges paid on merchandise purchased $73
Supplies purchased and used 38
Postage expense 46
I.O.U. from employees 30
Miscellaneous expense 49
The petty cash fund was replenished on April 10. The balance in the fund was $7.
3. The petty cash fund balance was increased by $113 to $368 on April 20.
Prepare the journal entries to record transactions related to petty cash for the month of April. (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.)
Cash 255
April 10 Freight-In
73
Supplies Expense
38
Postage Expense
46
Accounts Receiv
30
Miscellaneous Ex
49
Cash Over and S
12
Cash 248
EAT_144989552
Pet y Cash
April 20 113
Cash 113
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