Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

- The statement of comprehensive income for Squad Carpentry Ine for the year anded December 31, 2019. is as follows: S2I8.200 Squared Carpentry, Inc. Statement

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
- The statement of comprehensive income for Squad Carpentry Ine for the year anded December 31, 2019. is as follows: S2I8.200 Squared Carpentry, Inc. Statement of Comprehensive Income For the Year Ended December 31, 2019 Service revenge Less expenses Wages expense $100,750 Utilities expense 4,890 Advertising expense 18,640 Interest expense 17,340 Total expenses Net income Other comprehensive income Comprehensive income Dividends of 518,600 were paid on December 30, 2019. 141,620 $76,580 1.420 $78,000 Instructions Give the entry required to close the (a) revenues account (b) expenses account (c) dividends account at December 31, 2019. (9%) (3x3) - The records of Derma Corporation show the following bank statement information for December 1. Bank balance, December 31, 2019, 587,450 2. Service charges for December, $50 3. Note receivable collected by bank (including $300 interest), $2,300 4. December check returned marked NSF (check was a payment of an account receivable), $200 5. Cash account balance, December 31, 2019, $81,200 6. Outstanding checks, $9,200 7. Deposits in transit, $5,000 Instructions (a) Prepare a bank reconciliation for December (14%) (@2x 7) (b) Prepare the entry to correct the cash account as of December 31, 2019. (4%) Mahogany Company had the following information relating to its accounts receivable at December 31,2018, and for the year ended December 31, 2019: Accounts receivable balance at 12/31/2018 Allowance for bad debts at 12/31/2018 (credit balance) Gross sales during 2019 (all credit) Collections from customers during 2019 Accounts written off as uncollectible during 2019 Estimated uncollectible receivables at 12/31/2019 $750,000 45,000 3,500,000 $3,075,000 50,000 90,000 Mahogany Company uses the allowance method to estimate bad debt expense. Instructions (a) Ar December 31, 2019, what is the balance of Mahogany Company's Allowance for Bad Debts? (3%) (b) At December 31, 2019, what is the bad debt expense for 2019? (3%) (c) Ar December 31, 2019, what is the balance of Mahogany Company's gross accounts receivable? (3%) On June 10, Vareen Company purchased $8,000 of merchandise from Harrah Company, FOB shipping point, terms 3/10, 1/30. Vareen pays the freight costs of $400 on June 11. Damaged goods totaling $300 are returned to Harrah for credit on June 12. The fair value of these goods in $70 On June 19, Vareen pays Harrah Company in full, less the purchase discount. Vareen Company use a perpetual inventory system. Harrah Company use a Periodic inventory system, Instructions: (16%) (a) Prepare separate entries for each transaction on the books of Vareen Company. (@2x4) (b) Prepare separate entries for each transaction on the books of Harrah Company. (@2x4)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: David Spiceland

6th Edition

1260786528, 9781260786521

More Books

Students also viewed these Accounting questions

Question

Self-awareness is linked to the businesss results.

Answered: 1 week ago

Question

1. Too reflect on self-management

Answered: 1 week ago

Question

Food supply

Answered: 1 week ago