200 ($500 + $700). The payment of accounts payable does not affect supplies. 9. c. Ending equity is $70‚000‚ computed as follows: Beginning owner’s equity…….. $ 50‚000 Add: Net income: Revenues……………….. $110‚000 Less: Expenses………. (30‚000) Net income……………... 80‚000 Less: Withdrawals……………‚ (60‚000) Ending owner’s equity………… $ 70‚000 √ Short Exercises (5 min.) S 2-1 Debits are increases for the following types of accounts: Assets Withdrawals Expenses Debits
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the accounts of Fleury Corporation on December 31‚ 2005‚ the end of the current reporting year. Dr. Cr. Cash $ 116‚000 Accounts receivable‚ trade 337‚000 Short-term investment in marketable securities 440‚000 Inventory of merchandise‚ FIFO 1‚295‚000 Prepaid expense (short term) 11‚000 Investment in Hydro One Bonds (Held to Maturity – June 30‚ 2008) 147‚000 Advances to suppliers (short term) 24‚000 Dividends (cash) declared during 2005 120‚000 Rent receivable 34
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furniture. (f) Issuance of capital stock. (g) Amortization of intangible assets. (h) Purchase of treasury stock. (i) Issuance of bonds for land. (j) Payment of dividends. (k) Increase in interest receivable on notes receivable. (l) Purchase of equipment. Question 2 Your answer is correct. The income statement of Rodriquez Company is shown below. RODRIQUEZ COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31‚ 2012 Sales
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to understand how accounts receivables and payroll affect a business. I think the hardest concepts for me in this course were stock transactions and dividends. So those will have to be a couple that I still need to focus on‚ as I feel they will be essential to having a successful business. Accounts receivables is a claim against the customer created by selling merchandise or services on credit and are classified on the balance sheets as a current asset. Accounts receivable is generally considered
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Peregrine was done by inflating revenue by booking revenue when sales never occurred. By recognizing revenue from sales that never occurred‚ the accounts receivable balance and net income were fraudulently overstated; the accounts receivable would never be collected‚ because the merchandise was never sold. To cover up their high‚ outstanding‚ accounts receivable balance as a result of booking sales that did not occur‚ Peregrine fraudulently engaged in financial agreements with banks. Evidently‚ Peregrine
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Aramis Company has accounts receivable of $800‚000 and an allowance for doubtful accounts of $40‚000. On January 16‚ 2008‚ Aramis Company determined that its receivable from Ramirez Company of $6‚000 will not be collected‚ and management authorized its write-off. Instructions (a) Prepare the journal entry for Aramis Company to write off the Ramirez receivable. (b) What is the net realizable value of Aramis Company’s accounts receivable before the write-off of the Ramirez receivable? (c) What is the
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Hachey Company has accounts receivable of $95‚100 at March 31‚ 2007. An analysis of the accounts shows these amounts. Balance‚ March 31 Month of Sale 2007 2006 March $65‚000 $75‚000 February 12‚600 8‚000 December and January 10‚100 2‚400 November and October 7‚400 1‚100 $95‚100 $86‚500 Credit terms are 2/10‚ n/30. At March 31‚ 2007‚ there is a $2‚200 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage of receivables basis for estimating
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Credited revenue 40‚000 G.) December 31‚ 20xx to account for 1‚750 in fees from parents earned in the first six months of operations‚ but collected in the second six months. Debited cash 1‚750 Credited accounts receivable 1‚750 H.) December 31‚ 20xx to account for 3‚000 in parent fees‚ earned in the second six months of operations but not yet collected. Debited accounts receivable 3‚000 Credited revenue 3‚000 I.) December 31‚ 20xx to account for expenses Johns Deli in the amount of 1‚500
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flow problems by mid-year 14 is the increases in accounts receivable compared to the increases in sales. From year 11 to year 12 accounts receivables went up by 79.53 percent‚ 82.21 percent from year 12 to year 13 and from year 13 to year 14‚ they went up by 34.28 percent. Even though this isn’t the main reason why FBN is facing serious cash flow problems‚ it is definitely something that they should take care of. Those increases in accounts receivables could be justified if sales had increased in a
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revenues (on account) and other financing sources (paid in cash) .~ during the year: . ~_ Revenues-real estate and personal property taxes ...................•........ Revenues-intergovernrnental ....................•........................ Other financing sources-bond proceeds . $19‚793 3‚563 2‚000 ’1 c. The City issues purchase invoices totaling $22‚187 (record the issuance of invoices as a lump sum) . . d. The City recognizes the following expenditures‚ all on account (these
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