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The company estimates that 3 % of its accounts receivable balance will be uncollectable. Economic Events February 1 . Nicole sold one - half of
The company estimates that of its accounts receivable balance will be uncollectable.
Economic Events
February Nicole sold onehalf of the training equipment purchased in January for cash.
The sale resulted in a profit of $ Hint: determine the book value of the equipment sold
and then determine the selling price. Profit selling price book value.
February Nicole obtained a line of credit with Commerce Bank for $ The interest
rate on the line of credit is Payments of interest and of outstanding balance are due
on the last day of each month.
February Nicole obtained $ from the line of credit established on February
February Nicole purchased a van for $ plus sales tax by paying $ cash
and issuing a month installment note for the balance. The monthly payment on the note
is $ Nicole estimates the van to have a year useful life and a salvage value of
$
February Nicole hired a parttime assistant to begin working on February The
assistant is paid $ per month on the th day of the month with the first payment due
on March
February DunnRite Training purchased $ in office supplies on account.
February DunnRite Training paid for the inventory purchased on January
February DunnRite purchased logoed tank tops for $ per tank and logoed t
shirts for $ per tshirt. This inventory was purchased on account with payment due in
days.
February DunnRite Training received $ cash for training services February to
February
February DunnRite Training performed $ of training services on account. Payment
is due in days.
February DunnRite Training received payment in full for all training services performed
on account in January.
February Lynne Lulu, one of Nicoles clients, filed a lawsuit against DunnRite Training for
$ The lawsuit alleges that Nicole did not take proper precautions during a training
session. While Ms Lulu did not receive any physical injuries, she claims that the lack of care
resulted in emotional distress that prevents her from training. Nicole consulted an attorney
which stated that the likelihood of any payment to Ms Lulu is remote.
February DunnRite Training completed $ training for Champions Scholastic
Programs on account. Payment is due in days.
February DunnRite Training paid $ in dividends.
February DunnRite Training received $ cash for training services to be performed
from March to March
February DunnRite sold tanks during the month of February for $ per tank and
tshirts at $ per tshirt. All customers paid cash at the time of purchase.
February Nicole completed an inventory of supplies and determined that $ was on
hand.
February Nicole made the first payment on the installment note issued on February
February Nicole made the minimum payment due on the line of credit with Commerce
Bank.
Assignment
Record the transactions using the horizontal balance sheet method used
throughout the course.
Set up an Excel spreadsheet with all the accounts identified in part of this
assignment listed in the spreadsheet's columns. Accounts should appear in
the following order:
Assets
Liabilities
Equity
Revenue
Expense
Record each transaction in the rows under the account name.
The last two columns should be for the statement of cash flows. Indicate the
amount of the change in cash and the type of cash flow eg Investing,
Financing, Operating
Record any necessary adjusting entries in the spreadsheet.
Prepare comparative financial statements
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