Account Titles Cash Accounts Receivable Prepaid Insurance Machinery Accumulated Depreciation Accounts Payable Contributed Capital Retained Earnings Sales Revenue Administrative Expenses Wages Expense Totals Debit Credit $76 28 44 156 64 29 $397 $ 0 28 152 23 194 $397 Other data not yet recorded at December 31 are as follows: a. Insurance expired during the year, $24. b. Depreciation expense for the year, $23. c. Wages payable, $26. d. Income tax expense, $28. Required: 1. Prepare the adjusting journal entries for the year ended December 31. (If no entry is required for a transaction/event, se

Account Titles Cash Accounts Receivable Prepaid Insurance Machinery Accumulated Depreciation Accounts Payable Contributed Capital Retained Earnings Sales Revenue Administrative Expenses Wages Expense Totals Debit Credit $76 28 44 156 64 29 $397 $ 0 28 152 23 194 $397 Other data not yet recorded at December 31 are as follows: a. Insurance expired during the year, $24. b. Depreciation expense for the year, $23. c. Wages payable, $26. d. Income tax expense, $28. Required: 1. Prepare the adjusting journal entries for the year ended December 31. (If no entry is required for a transaction/event, se

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following transactions were completed by Irvine Company during the current fiscal year ended December 31: Required: 1. Record the January 1 credit balance of $25,685 in a T-account for Allowance for Doubtful Accounts. 2.A. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. B. Post each entry that affects the following selected T-accounts and determine the new balances: Allowance for Doubtful Accounts and Bad Debt Expense. 3. Determine the expected net realizable value of the accounts receivable as of December 31 (after all of the adjustments and the adjusting entry). 4. Assuming that instead of basing the provision for uncollectible accounts on an analysis of receivables, the adjusting entry on December 31 had been based on an estimated expense of ¼ of 1% of the net sales of $17,710,000 for the year, determine the following: A. Bad debt expense for the year. B. Balance in the allowance account after the adjustment of…
Required:1. Assume that the aging of accounts receivable method was used by the company and that$7,050 of the accounts receivable as of December 31 were estimated to be uncollectible. Youare now required to:a. Determine the amount to be charged to uncollectible expense (show yourworkings for the computation of this figure).b. Prepare the balance sheet extract to show the net realizable value of the AccountsReceivable as at December 31
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