Fundamentals Of Financial Accounting
6th Edition
ISBN: 9781259864230
Author: PHILLIPS, Fred, Libby, Robert, Patricia A.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 2, Problem 12ME
Reporting a Classified Balance Sheet
Given the transactions in M2-9 (including the sample), prepare a classified balance sheet for Spot- lighter, Inc., as of January 31.
M1-9 Determining Financial Statement Effects of Several Transactions
For each of the following transactions of Spotlighter, Inc., for the month of January, indicate the accounts, amounts, and direction of the effects on the
- a. (Sample) Borrowed $3,940 from a local bank on a note due in six months.
- b. Received $4,630 cash from investors and issued common stock to them.
- c. Purchased $1,000 in equipment, paying $200 cash and promising the rest on a note due in one year.
- d. Paid $300 cash for supplies.
- e. Bought and received $700 of supplies on account.
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Classifying Items Related to Receivables and Payables in a Balance Sheet
When examining the accounts of WholeFoods Company, we ascertain that balances relating to both receivables and payables are included in a single controlling account (called receivables), which has an $7,200 debit balance. An analysis of the details of this account reveals the following.
Items
Debit
Credit
Accounts receivable—customers
$16,000
Accounts receivable—officers (current collection expected)
1,000
Travel advances to sales staff
400
Accounts payable for merchandise
$7,700
Unpaid salaries
1,320
Credit balances in customer accounts (accounts receivable)
800
Cash received in advance from customers for goods not yet shipped
180
Allowance for doubtful accounts, adjusted
200
Indicate how each of the items should be reported on WholeFoods Company’s balance sheet.
Some accounts below may have a zero balance.
Do not use negative signs in your answers.
Cash and…
(c) What is the balance of accounts receivable on it December 31 balance sheet?
Estimating Uncollectible Accounts and Reporting Accounts ReceivableLaFond Company analyzes its accounts receivable at December 31, and arrives at the age categories below along with the percentages that are estimated as uncollectible.
Age Group
Accounts
Receivable
Estimated
Loss %
0-30 days past due
$ 180,000
1%
31-60 days past due
40,000
2
61-120 days past due
22,000
5
121-180
12,000
10
Over 180 days past due
8,000
25
Total accounts receivable
$ 262,000
When examining the accounts of Palma Company, you ascertain that balance relating to bothreceivables and payables are included in a single controlling account (called receivables),which has a P23,050 debit balance. An analysis of the details of this account revealed thefollowing:
Items
Debit
Credit
Accounts Receivable - customers
P 40,000
Accounts receivable - officers (Current collection expected)
2,500
Debit balances - creditors
450
Expense advances to salespersons
1,000
Share capital subscriptions receivable
4,600
Accounts payable for merchandise
P 19,250
Unpaid salaries
3,300
Credit balance in customer accounts
2,000
Cash received in advance from customers for goods not yet shipped
450
Expected bad debts, cumulative
500
Required:1. How should each item be reported on Palma Company’s statement of financial position?
Chapter 2 Solutions
Fundamentals Of Financial Accounting
Ch. 2 - Define the following: a. Asset b. Current asset c....Ch. 2 - Define a transaction anti give an example of each...Ch. 2 - For accounting purposes, what is an account?...Ch. 2 - What is the basic accounting equation?Ch. 2 - Prob. 5QCh. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - What is a journal entry? What is the typical...Ch. 2 - What is a T-account? What is its purpose?Ch. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Which of the following is not an asset account? a....Ch. 2 - Which of the following statements describe...Ch. 2 - Total assets on a balance sheet prepared on any...Ch. 2 - The duality of effects can best be described as...Ch. 2 - The T-account is used to summarize which of the...Ch. 2 - Prob. 6MCCh. 2 - A company was recently formed with 50,000 cash...Ch. 2 - Which of the following statements would be...Ch. 2 - Prob. 9MCCh. 2 - Prob. 10MCCh. 2 - Prob. 1MECh. 2 - Prob. 2MECh. 2 - Matching Terms with Definitions Match each term...Ch. 2 - Prob. 4MECh. 2 - Prob. 5MECh. 2 - Prob. 6MECh. 2 - Prob. 7MECh. 2 - Identifying Events as Accounting Transactions Half...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Preparing Journal Entries For each of the...Ch. 2 - Posting to T-Accounts For each of the transactions...Ch. 2 - Reporting a Classified Balance Sheet Given the...Ch. 2 - Prob. 13MECh. 2 - Prob. 14MECh. 2 - Identifying Transactions and Preparing Journal...Ch. 2 - Prob. 16MECh. 2 - Prob. 17MECh. 2 - Prob. 18MECh. 2 - Prob. 19MECh. 2 - Prob. 20MECh. 2 - Prob. 21MECh. 2 - Prob. 22MECh. 2 - Prob. 23MECh. 2 - Prob. 24MECh. 2 - Prob. 25MECh. 2 - Prob. 1ECh. 2 - Identifying Account Titles The following are...Ch. 2 - Classifying Accounts and Their Usual Balances As...Ch. 2 - Determining Financial Statement Effects of Several...Ch. 2 - Recording Journal Entries Refer to E2-4. Required:...Ch. 2 - Prob. 6ECh. 2 - Recording Journal Entries Refer to E2-6. Required:...Ch. 2 - Analyzing the Effects of Transactions in...Ch. 2 - Inferring Investing and Financing Transactions and...Ch. 2 - Analyzing Accounting Equation Effects, Recording...Ch. 2 - Recording Journal Entries and Preparing a...Ch. 2 - Analyzing the Effects of Transactions Using...Ch. 2 - Explaining the Effects of Transactions on Balance...Ch. 2 - Calculating and Evaluating the Current Ratio...Ch. 2 - Prob. 15ECh. 2 - Determining Financial Statement Effects of Various...Ch. 2 - Recording Transactions (in a Journal and...Ch. 2 - Recording Transactions (in a Journal and...Ch. 2 - Prob. 1PACh. 2 - Recording Transactions (in a Journal and...Ch. 2 - Recording Transactions (in a Journal and...Ch. 2 - Determining Financial Statement Effects of Various...Ch. 2 - Prob. 2PBCh. 2 - Recording Transactions (in a Journal and...Ch. 2 - Finding and Analyzing Financial Information Refer...Ch. 2 - Finding and Analyzing Financial Information Refer...Ch. 2 - Prob. 4SDCCh. 2 - Prob. 5SDCCh. 2 - Accounting for the Establishment of a Business...
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