3. At the end of the first month of operations for Glenniel's Delivery Service, the business had the ff. accounts; Accounts Receivable, Php1,200; Prepaid Insurance, Php 500; Equipment Php 36,200 and Cash 40,650. On the same date, Glenniel owed the ff. creditors: Kien's Supply,Php 12,000 (due in 6 months); Kian's Equipment, Php 9,500(due after 2 years. Current liabilities are

3. At the end of the first month of operations for Glenniel's Delivery Service, the business had the ff. accounts; Accounts Receivable, Php1,200; Prepaid Insurance, Php 500; Equipment Php 36,200 and Cash 40,650. On the same date, Glenniel owed the ff. creditors: Kien's Supply,Php 12,000 (due in 6 months); Kian's Equipment, Php 9,500(due after 2 years. Current liabilities are

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

See similar textbooks

Similar questions

Use the following information for 10 and 11. On October 31, 2021, Butter Company engaged in the following transactions: 1. Obtained a Php500,000, six month loan from Dope Bank, discounted at 12%. The company pledged Php500,000 of accounts receivable as security for the loan. 2. Factored Php1,000,000 of accounts receivable without recourse on a non notification basis with DNA Company. DNA charged a factoring fee of 2% of the amount of receivables factored and withheld 10% of the amount factored. 10. What is the total amount of cash received from the financing of the receivables? a. Php1,320,000 b. Php1,350,000 c. Php1,380,000 d. Php1,470,000 11. What is the amount of cash received from the pledged accounts receivables? a. Php880,000 b. Php980,000 c. Php470,000 d. Php440,000
On Feb 28, a company had a balance in its accounts receivable of Php 3,019,019. Mar 2. Sold merchandise on account, Php 576,000. The cost of the merchandise was Php 420,000. Mar 8. Sold Php 150,000 worth of accounts receivable which had been overdue for 70 days to Metrobank. Metrobank charged a 5% factoring fee. Mar 20. Borrowed Php 500,000 cash from UCPB, pledging Php 650,000 worth of accounts receivable as collateral for the loan. Prepare journal entries to record the above transactions from March. Assume the company uses a perpetual inventory system. Assume also that the company uses Aging of Accounts receivable to estimate its bad debts. The credit balance of Allowance for Bad Debts as of February is 285,000. The company estimates the following uncollectible rates per age: Account Age Current (not yet due) 1-30 days past due 30-60 days past due 61-90 days past due Over 90 days past due Balance Est. Uncollectible % 1,207,607.60 754,754.75 452,852.85 543,423.42 2.00% 3.00% 8.00%…
Kindly answer in good accounting form. Also show journal entries. On January 01, 2020 Kitkat Company, Inc. establishes a branch in Buang.During the year, Kitkat Inc. transfers cash and merchandise to the branchworth P15,000 and P45,000 respectively. Freight was paid by the homeoffice worth P1,500 included in the cost of merchandise. The home officealso incurred P5,700 expenses of which 30 percent was allocated to thebranch. On December 31, 2020, the branch incurred a loss of P4,000. What is the balance of the branch account as per home office books
A credit card statement shows an unpaid balance of Php3,150 on April 3. Purchases made were: April 8 purchase of PHP2 000; April 15 purchase of PHPI, 200; April 18 payment of PHP4 000; and April 23 purchase of PhP3 520. Find the current balance if the billing date is on May 3 and the interest rate is 2.75% per month. A. PhP5,999.53 B. PHP5,999.55 C. PHP5,999.58 Answer:
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.
The Accounts Recelvable account has a beglnning balance of $24.000 and the company des e $60,000 on account during the month. The ending balance was $18.000 How much did the company receive from customers during the montht O $6,000. O $66,000. O $102,000. O $54,000.
On January 1, 2020, the ledger of Chuan-Kwang contains the following liability accounts (amounts in thousands). Accounts Payable NT$52,000 Sales Taxes Payable 7,700 Unearned Service Revenue 16,000 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling NT$20,520, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of NT$10,000. (Credit Service Revenue) 14 Paid revenue department for sales taxes collected in December 2019 (NT$7,700). 20 Sold 900 units of a new product on credit at NT$50 per unit, plus 8% sales tax. This new product is subject to a 1‐year warranty. 21 Borrowed NT$27,000 from First National Bank on a 3‐month, 8%, NT$27,000 note. 25 Sold merchandise for cash totaling NT$12,420, which includes 8% sales taxes. Instructions: Journalize the adjusting entries at January 31 for (1) the outstanding notes payable, and…
On August 1, Year 1, Hernandez Company loaned $58,800 cash to Acosta Company. The one-year note carried a 5% rate of Interest. Which of the following shows how the December 31, Year 1, recognition of accrued Interest will affect Hernandez's financial statements? Assets A. $ 1,715 = B. $ 1,715 = C. $ 1,225 D. $ 1,225 = Multiple Choice O Balance Sheet = Liabilities + ΝΑ + ΝΑ + ΝΑ O O Option A Option B Option C Option D ΝΑ Income Statement Expenses = ΝΑ NA Equity Revenues $1,715 $ 1,715 - $1,715 $ 1,715 - $ 1,225 $1,225 - $1,225 + + $1,225 ΝΑ NA = = = = Net Income $ 1,715 $ 1,715 $ 1,225 $ 1,225 Statement of Cash Flows $ 1,715 OA ΝΑ $ 1,225 OA NA
The Accounts Receivable account has a beginning balance of $24,000 and the company provdes serices of $60,000 on account during the month. The ending balance was $18,00o. How much did the company receive from customers during the month? O $6,000. O $66,000. O $102,000. $54,000. • Previous MacBoc
On December 1, Williams Company borrowed $50,000 cash from Second National Bank by signing a 90-day, 5% note payable. a. Prepare Williams' journal entry to record the issuance of the note payable. b. Prepare Williams' journal entry to record the accrued interest due at December 31. C. Prepare Williams' journal entry to record the payment of the note on March 1 of the next year. Essay Toolbar navigation BIUS = 山 EE三、
On May 18, Rodriguez Co. issued an $84,000, 6%, 120-day note payable on an overdue account payable to Wilson Company. Assume that the fiscal year of Rodriguez ends on June 30. Which of the following relationships is true? a.Wilson is the creditor and debits Accounts Receivable b.Rodriguez is the borrower and debits Accounts Payable c.Rodriguez is the creditor and credits Accounts Receivable d.Wilson is the borrower and credits Accounts Payable
At December 31 year-end, Club Company has an $8,000 note receivable from a customer. Interest of 6% has accrued for 7 months on the note. What will Club's income statement for the year ended December 31, report for this situation? OA. Nothing because the business has not received the cash yet OB. Note receivable of $8,000 OC. Interest revenue of $280 OD. Both b and c