Question
In early January 2011, LabTech purchases computer equipment for $147,000 to use in operating activities for the next four years. It estimates the equipments salvage
In early January 2011, LabTech purchases computer equipment for $147,000 to use in operating activities for the next four years. It estimates the equipments salvage value at $30,000. Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation. (Omit the "$" sign in your response.) YearAnnual DepreciationYear-End Book Value 2011$ $ 2012 2013 2014 Total$ In early January 2011, LabTech purchases computer equipment for $147,000 to use in operating activities for the next four years. It estimates the equipments salvage value at $30,000. |
Prepare a table showing depreciation and book value for each of the four years assuming straight-line depreciation.(Omit the "$" sign in your response.) |
Year | Annual Depreciation | Year-End Book Value |
2011 | $ | $ |
2012 | ||
2013 | ||
2014 | ||
Total | $ | |
|
1. On June 30, Roman Co. has $124,100 of accounts receivable.
July4 Sold $7,980 of merchandise (that had cost $5,107) to customers on credit.
July 9 Sold $17,374 of accounts receivable to Center Bank. Center charges a 4% factoring fee.
July 17 Received $4,389 cash from customers in payment on their accounts.
July 27 Borrowed $9,928 cash from Center Bank, pledging $12,906 of accounts receivable as security for the loan.
Prepare journal entries to record the aboveselected July transactions. (The company uses the perpetual inventory system.)
2. Following are selected transactions for Eduardo Company.
Nov.1 Accepted a $10,000, 180-day, 6% note dated November 1 from Melosa Allen in granting a time extension on her past-due account receivable.
Dec.31 Adjusted the year-end accounts for the accrued interest earned on the Allen note.
Apr.30 Allen honors her note when presented for payment; February has 28 days for the current year.
Prepare journal entries to record the above transactions.
3.
At December 31, GreenTea Company reports the following results for its calendar-year. |
Cash sales | $ | 1,200,000 |
Credit sales | 900,000 |
Its year-end unadjusted trial balance includes the following items. |
Accounts receivable | $ | 195,000 | debit |
Allowance for doubtful accounts | 3,000 | debit |
a. | Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 1.5% of credit sales.(Omit the "$" sign in your response.) |
Date | General Journal | Debit | Credit |
Dec 31 | (Click to select)Sales expense and allowanceAccounts receivableAllowance for doubtful accountsCashPrepaid insuranceDelivery expenseNotes payableBad debts expense | ||
(Click to select)Bad debts expenseCashSales expense and allowanceAccounts receivableNotes payableAllowance for doubtful accountsDelivery expensePrepaid insurance |
b. | Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 0.5% of total sales.(Omit the "$" sign in your response.) |
Date | General Journal | Debit | Credit |
Dec 31 | (Click to select)Notes receivableSales expense and allowanceSalesBad debts expenseMerchandise inventoryAccounts receivableCost of goods soldAllowance for doubtful accounts | ||
(Click to select)SalesNotes receivableBad debts expenseSales expense and allowanceAllowance for doubtful accountsMerchandise inventoryAccounts receivableCost of goods sold |
c. | Prepare the adjusting entry to record Bad Debts Expense assuming uncollectibles are estimated to be 6% of year-end accounts receivable.(Omit the "$" sign in your response.) |
Date | General Journal | Debit | Credit |
Dec 31 | (Click to select)Merchandise inventoryCost of goods soldAccounts receivableNotes receivableBad debts expenseAllowance for doubtful accountsSalesCash | ||
(Click to select)Notes receivableMerchandise inventorySalesAccounts receivableBad debts expenseAllowance for doubtful accountsCost of goods soldCash | |||
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started