Required information Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7) [The following...
Fantastic news! We've Found the answer you've been seeking!
Question:
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6658ea4f18f2e_1826658ea4e76d21.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/05/6658ea4fb20b0_1836658ea4f54bce.jpg)
Transcribed Image Text:
Required information Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7) [The following information applies to the questions displayed below.] On January 1, Year 1, the general ledger of a company includes the following account balances: Accounts Cash Debit $ 59,600 Credit Accounts Receivable 26,800 Allowance for Uncollectible Accounts $ 3,100 Inventory 37,200 Notes Receivable (5%, due in 2 years) 22,800 Land 164,000 Accounts Payable 15,700 Common Stock 229,000 Retained Earnings 62,600 Totals $310,400 $310,400 During January Year 1, the following transactions occur: January 1 Purchase equipment for $20,400. The company estimates a residual value of $2,400 and a four-year service life. January 4 Pay cash on accounts payable, $10,400. January 8 Purchase additional inventory on account, $91,900. January 15 Receive cash on accounts receivable, $22,900. January 19 Pay cash for salaries, $30,700. January 28 Pay cash for January utilities, $17,400. January 30 Sales for January total $229,000. All of these sales are on account. The cost of the units sold is $119,500. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $3,900 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Accrued interest revenue on notes receivable for January. d. Unpaid salaries at the end of January are $33,500. e. Accrued income taxes at the end of January are $9,900. Required information Exercise 7-21B Complete the accounting cycle using long-term asset transactions (LO7-4, 7-7) [The following information applies to the questions displayed below.] On January 1, Year 1, the general ledger of a company includes the following account balances: Accounts Cash Debit $ 59,600 Credit Accounts Receivable 26,800 Allowance for Uncollectible Accounts $ 3,100 Inventory 37,200 Notes Receivable (5%, due in 2 years) 22,800 Land 164,000 Accounts Payable 15,700 Common Stock 229,000 Retained Earnings 62,600 Totals $310,400 $310,400 During January Year 1, the following transactions occur: January 1 Purchase equipment for $20,400. The company estimates a residual value of $2,400 and a four-year service life. January 4 Pay cash on accounts payable, $10,400. January 8 Purchase additional inventory on account, $91,900. January 15 Receive cash on accounts receivable, $22,900. January 19 Pay cash for salaries, $30,700. January 28 Pay cash for January utilities, $17,400. January 30 Sales for January total $229,000. All of these sales are on account. The cost of the units sold is $119,500. Information for adjusting entries: a. Depreciation on the equipment for the month of January is calculated using the straight-line method. b. The company estimates future uncollectible accounts. The company determines $3,900 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) c. Accrued interest revenue on notes receivable for January. d. Unpaid salaries at the end of January are $33,500. e. Accrued income taxes at the end of January are $9,900.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
From the trial balance, what is the net amount of sales (sales minus sales returns and allowances)? Does it equal the total amount of yearly sales shown on the inventory yearly sales report?
-
Online Tutors offers monthly access to students for either or both math or science tutors. A market study found that the served by Online Tutors can be divided into two types of students: students...
-
E7-16 Cawley Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $300,000 $500,000 $200,000 Variable expenses 150,000 200,000 145,000...
-
The angles of depression of two ships from the top of a light house are 30 , 45" respectively towards east. If the ships are 200m apart, the height of the light house is (take 3 = 1.73)
-
Brighton Services repairs locomotive engines. It employs 100 full-time workers at $16 per hour. Despite operating at capacity, last year's performance was a great disappointment to the managers. In...
-
Using Chipotle: Capital structure decision case study Answer the following questions. How does debt policy and the percentage of debt affect Chipotle's firm value Use bullets to highlight the main...
-
Find the local extreme points of f (x) = x e.
-
Case Scenario: Imagine you are a project manager overseeing a team of software developers working on a critical project with a tight deadline. Two team members, Alex and Sarah, have been clashing...
-
Decision Analysis: Myka would like to maintain a 50% gross profit to cover AVS's administrative expenses of US$125,000 and target a 15% net profit. What should the target cost per case be in order to...
-
Internal Controls 1. Name of internal control description of internal control. a. Relevant Financial Statement Accounts - list of all relevant financial statement accounts b. Relevant Management...
-
Assume that 1 year ago, the spot rate of the British pound was $1.70. One year ago, the 1-year futures contract of the British pound exhibited a discount of 6 percent. At that time, you sold futures...
-
Uncertainty and Option Premiums. At 10:30 a.m., the media reported news that the Mexican governments political problems were reduced, which reduced the expected volatility of the Mexican peso against...
-
Which of the following statements is true? a. Cookies were originally intended to facilitate advertising on the Web. b. Cookies always contain encrypted data. c. Cookies are text files and never...
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App