Financial Accounting (12th Edition) (What's New in Accounting)
12th Edition
ISBN: 9780134725987
Author: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Publisher: PEARSON
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Chapter 3, Problem 3.67BP
LO 3
(Learning Objective 3: Adjust the accounts) Journalize the
- a. The details of Prepaid Insurance are as follows:
Prepaid Insurance | |
|Jan 1 Bal 2, 100 | |
Mar 31 3,300 |
Rowling prepays Insurance on March 31 each year. At December 31, $200 Is still prepaid.
- b. Rowling pays employees each Friday. The amount of the weekly payroll is $5,930 for a five-day work week. The current accounting period ends on Monday.
- c. Rowling has a note receivable. During the current year, Rowling has earned accrued interest revenue of $400 that it will collect next year
- d. The beginning balance of supplies was $2,700. During the year, Rowling purchased supplies costing $6,400, and at December 31 supplies on hand total $2,100.
- e. Rowling is providing services for Lion Investments, and the owner of Lion paid Rowling an annual service fee of $10,600. Rowling recorded this amount as Unearned Service Revenue. Rowling estimates that it has earned 70% of the total fee during the current year.
- f.
Depreciation for the current year induces Office Furniture, $3,400, and Equipment, $6,100.
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(Learning Objectives 4, 5: Account for accounts receivable and uncollectibleaccounts) Perform the following accounting for the receivables of Hawkins and Harris, a CPAfirm, at December 31, 2018.Requirements1. Set up T-accounts and start with the beginning balances for these T-accounts:■ Accounts Receivable, $104,000■ Allowance for Uncollectible Accounts, $12,000Post the following 2018 transactions to the T-accounts:a. Service revenue of $695,000, all on accountb. Collections on account, $720,000c. Write-offs of uncollectible accounts, $8,000d. Uncollectible-account expense (allowance method), $15,0002. What are the ending balances of Accounts Receivable and Allowance for UncollectibleAccounts?3. Show how Hawkins and Harris will report accounts receivable on its balance sheet atDecember 31, 2018.
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Exercise 9-12 a-b (Part Levei SubmiSSion)
CES
CALCULATOR
PRINTER VERSION
4 ВАCK
Oriole Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest excer
ES-
December 31.
Nov. 1 Loaned $23,500 cash to Manny Lopez on a 12-month, 12% note.
t
Sold goods to Ralph Kremer, Inc., receiving a $61,200, 90-day, 10% note.
Dec. 11
16
Received a $97,200, 180 day, 8% note in exchange for Joe Fernetti's outstanding accounts receivable.
31
Accrued interest revenue on all notes receivable.
(a)
Your answer is correct.
Journalize the transactions for Oriole Supply Co. (Ignore entries for cost of goods sold.) (Credit account titles are automatically indented when amount is ente
indent manually. Use 360 days for calculation. Round answers to 0 decimal places, e.g.…
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please help me.
Thankyou.
Aurora Company received a four-month 6%, 2,800 note receivable on December 1. The adjusting entry on December 31 will include Question content area bottom Part 1 A. debit Interest Receivable 14. B. credit Interest Revenue 14. C. both a and b. D. credit Interest Revenue 168 .
Chapter 3 Solutions
Financial Accounting (12th Edition) (What's New in Accounting)
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