Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 2, Problem 2.20EX
Errors in
Identify the errors in the following trial balance. All accounts have normal balances.
| Ensemble Co. Unadjusted Trial Balance For the Year Ending December 31,2018 | ||
| Debit Balances | Credit Balances | |
| Cash | 42,900 | |
| Accounts Receivable | 123,500 | |
| Prepaid Insurance | 27,000 | |
| Equipment | 300,000 | |
| Accounts Payable | 52,000 | |
| Salaries Payable | 4,800 | |
| Common Stock | 40,000 | |
| 137,200 | ||
| Dividends | 5,000 | |
| Service Revenue | 1,216,000 | |
| Salary Expense | 660,000 | |
| Advertising Expense | 275,000 | |
| Miscellaneous Expense | 16,600 | |
| 1,801,500 | 1,801,500 | |
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Students have asked these similar questions
The following summarizes the aging of accounts receivable for Orange Incorporated as of July 31, Year 1:
Number of Days
Unpaid
Not yet due
1 to 30 days past
due
31 to 60 days
past due
Over 60 days
past due
Total
Accounts
Receivable
11.130
$ 175,982
89,200
53,600
31,800
Historical % Uncollectible
17,424 margin of error +/-3
www.
29
12%
18%
The unadjusted balance of the Allowance for Doubtful Accounts of Orange Incorporated is a credit balance in the amount of
$17.578 on July 31, Year 1. What is the amount of the adjusting entry to be recorded on July 31 Year 17
35%
At December 31, Hawke Company reports the following results for its calendar year. In addition, its unadjusted trial balance includes the following items. Cash sales. $1,905,000 Credit sales. $5,682,000 Accounts receivable. $1,270,100 debit Allowance for doubtful accounts. $16,580 debit Required 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 1.5% of credit sales. b. Bad debts are estimated to be 1% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1a. 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1c.
The following selected transactions were taken from the records of Rustic Tables Company for the year ending December 31:
June 8. Wrote off account of Kathy Quantel, $8,150.
Aug. 14. Received $5,790 as partial payment on the $14,590 account of Rosalie Oakes. Wrote off the remaining balance as uncollectible.
Oct. 16. Received the $8,150 from Kathy Quantel, whose account had been written off on June 8. Reinstated the account and recorded the cash
receipt.
Dec. 31. Wrote off the following accounts as uncollectible (record as one journal entry):
Wade Dolan
$2,360
Greg Gagne
1,470
Amber Kisko
5,620
Shannon Poole
3,260
Niki Spence
900
Dec. 31.
If necessary, record the year-end adjusting entry for uncollectible accounts.
If no entry is required, select "No entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.
a. Journalize the transactions under the direct write-off method.
June 8 Bad Debt Expense
Accounts Receivable-Kathy Quantel
Aug. 14 Cash…
Chapter 2 Solutions
Corporate Financial Accounting
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