Problem I. Below is information related to Jay Hernandez, Inc. for the year ended, December 31, 2022. Various accounts are listed in alphabetical order. Administrative Expenses Allowance for Doubtful Accounts Cost of Goods Sold Depreciation expense omitted in 2020 Dividend Revenue Dividends Declared $ 24,000 60,000 400,000 35,000 10,000 42,000 Interest Expense 15,000 Interest Revenue 7,000 Loss from discontinued operations 75,000 Retained Earnings, December 31, 2021 1,800,000 Sales 700,000 Sales Discounts 15,000 Sales Returns and Allowances 35,000 Selling Expenses 32,000 Unearned Revenue 33,000 Write-off of damaged inventory 25,000 Instructions: a. Prepare a multi-step income statement for 2022 in proper form. Assume the tax rate is 30 percent and that there are 50,000 shares of common stock outstanding during 2022. b. Prepare a retained earnings statement for 2022 in proper form.

Problem I. Below is information related to Jay Hernandez, Inc. for the year ended, December 31, 2022. Various accounts are listed in alphabetical order. Administrative Expenses Allowance for Doubtful Accounts Cost of Goods Sold Depreciation expense omitted in 2020 Dividend Revenue Dividends Declared $ 24,000 60,000 400,000 35,000 10,000 42,000 Interest Expense 15,000 Interest Revenue 7,000 Loss from discontinued operations 75,000 Retained Earnings, December 31, 2021 1,800,000 Sales 700,000 Sales Discounts 15,000 Sales Returns and Allowances 35,000 Selling Expenses 32,000 Unearned Revenue 33,000 Write-off of damaged inventory 25,000 Instructions: a. Prepare a multi-step income statement for 2022 in proper form. Assume the tax rate is 30 percent and that there are 50,000 shares of common stock outstanding during 2022. b. Prepare a retained earnings statement for 2022 in proper form.

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

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 1MC: The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before...

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The following pretax amounts pertain to Han Ae Sook Company for the year ended December 31, 2020: Sales -P800,000; Distribution and administrative costs – P84,000; Other income - P40,000; Interest expense - P4,000; Cost of goods sold – P480,000; Correction of prior period error (credit) – P16,000; Discontinued operations (debit) – P40,000; Cumulative effect of change in accounting policy (credit) – P28,000; Retained earnings, January 1 (not restated) – P160,000; Dividends declared – P12,000; Income tax rate is 30%. How much retained earnings would be shown on December 31, 2020 statement of financial position? А. Р310,400 В. Р335,600 C. P341,200 D. P344,800
SM Company prepared an aging of its accounts receivable at December 31, 2021 and determined that the estimated uncollectibles on that date was P74,300. During 2021, some customers’ accounts were written off. Additional information is available as follows:Allow. for Uncollectible Accts, Dec. 31, 2020 - P63,000Uncollectible accounts expense reported in the statement of comprehensive income - P18,000Accounts Receivable, Dec. 31, 2021 - P607,500Recovery during 2021 of accounts previously written off - P12,000How much were the accounts written off during 2021?
The following pretax amounts pertain to Helsinki Company for the yearended December 31, 2021: Sales, P800,000; Distribution andadministrative costs, P84,000; Other income, P40,000; Interest expense, P4,000; Cost of goods sold, P480,000; Correction of priorperiod error (credit), P16,000; Discontinued operations (debit),P40,000; Cumulative effect of change in accounting policy (credit),P28,000; Retained earnings, January 1 (not restated), P160,000; Dividends declared, P12,000; Income tax rate is 30% How much retained earnings would be shown on December 31, 2021 statement of financial position?
The following selected account balances were taken from Buckeye Company's general ledger at January 1, 2019 and December 31, 2022: Accounts receivable Inventory Sales revenue Cost of goods sold January 1 $126,000 $163,000 The following information was taken from Buckeye Company's 2022 income statement: Salaries expense Income tax expense Net income December 31 $139,000 131,000 $967,250 $429, 240 $211,390 $ 97,986 $228,634 Calculate the average number of days that elapse between Buckeye Company buying their inventory from suppliers and then selling the inventory to customers.
23.K-Pop Company prepared an aging of its accounts receivable at December 31, 2021 and determined that the estimated uncollectibles on that date was P74,300. During 2021, some customers’ accounts were written off. Additional information is available as follows:Allow. for Uncollectible Accts, Dec. 31, 2020 - P63,000Uncollectible accounts expense reported in the statement of comprehensive income - P18,000Accounts Receivable, Dec. 31, 2021 - P607,500Recovery during 2021 of accounts previously written off - P12,000How much were the accounts written off during 2021?
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At December 31, 2019, SoundMaster Company reported this informationon its balance sheet.Accounts receivable $960,000Less: Allowance for doubtful accounts 78,000During 2019, the company had the following transactions related to receivables.1. Sales on account $3,600,0002. Sales returns and allowances 150,0003. Collections of accounts receivable 3,100,0004. Write-offs of accounts receivable deemed uncollectible 92,0005. Recovery of bad debts previously written off as uncollectible 28,000 Instructionsa) Prepare the journal entries to record each of these five transactions. Assumethat no cash discounts were taken on the collections of accounts receivable.(Omit cost of goods sold entries.)b) Enter the January 1, 2019, balances in Accounts Receivable andAllowance for Doubtful Accounts, post the entries to the two accounts(use T-accounts), and determine the balances.c) Prepare the journal entry to record bad debt expense for 2019, assumingthat aging the accounts receivable indicates that…
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B P14-9B Sarnia Hardware Ltd. reported the following shareholders' equity on December 31, 2019: Contributed capital Preferred shares, $0.50 cumulative, convertible to common on a 2-for-1 basis, 50,000 shares authorized, 20,000 shares issued and outstanding $ 55,000 Common shares, unlimited number of shares authorized, 50,000 shares issued and outstanding Total contributed capital Retained earnings Total shareholders' equity 62,500 117,500 110,000 $227,500