Problem 5-26

Accounting VitalSource Bookshelf File Edit View Book Window Help Groovy Green(+ Library Back Forward Make Highlight Make Note Current HighlighterZoom In Zoom Out Zoom to Fit Hand Tool Start Reading Search this book Q Accounting for Receivables and Inventory Cost Flow 215 Contents Highlights Accounting for Receivables and Inventory Cost Flow 199 Co un tin 9 a. Organize the transaction data in accounts under an accounting equation. b. Prepare the income statement, statement of changes in stockholders" equity, balance sheet, and statement of cash flows for Sage Inc. for 2018. What is the net realizable value of the accounts receivable at December 31,2018? c. Accounting for notes receivable and uncollectible accounts using the percent of sales allowance method Problem 5-26 LO 5-1, 5-4 apply to Hooper Co. for 2018, its first year of operations: The following 1. Issued $60,000 of common stock for cash. 2. Provided $90,000 of services on account. 3. Collected $78,000 cash from accounts receivable. 4. Loaned $20,000 to Mosby Co. on November 30, 2018. The note had a one-year term to maturity Not... 10 Ho.. 14 Ack...16 An... 18 and a 6 percent interest rate. 5. Paid $26,000 of salaries expense for the year. 6. Paid a $2,000 dividend to the stockholders. 7. Recorded the accrued interest on December 31, 2018 (see item 4). 8. Estimated that 1 percent of service revenue will be uncollectible. Required a. Show the effects of these transactions in a horizontal statements model like the one shown as Acc... 108 Inte... 146 follows. Assets Equity Rev.-Exp.= Net Inc. Cash Flows Acc... 222 Acc... 262 Even ash+ Accts. Rec. -Allow. for Doubtfull Accts. + Notes Rec. + Int. Rec. = Conn. Stk. + Ret. Earn. Pro... Fin... 342 An... 380 ? Cos 422 Cos... 456 Rel... 486 b. Prepare the income statement, balance sheet, and statement of cash flows for 2018. Problem 5-27 Multistep income statement and balance sheet LO 5-1, 5-2, 5-4 Required Use the following information to prepare a multistep income statement and a classified balance sheet for Chun Equipment Co. for 2018. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.) CHECK FIGURES Total Current Assets: $264,900 Total Current Liablities: $106,400 DIa 28 Chapters