accounting questions

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Business Finance

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These problems will allow you to practice skills you are reading about.

  • Try working through these end of chapter problems: Chapter 6 problems 6-4B and 6-5B; Chapter 7 problems 7-3B, 7-4B, and 7-5B attached images are the problems
  • These must be completed in Excel and submitted to the drop box by Sunday at 11:59 p.m. ET
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  • Solutions will be released on Monday following the day they are due
  • Use these problems to study for your graded tests

All assignments must be an individual effort. Any indication that you submit work that is not your own will result in a zero for the assignment.

The homework grading rubric is as follows (out of 10 points):

PointsRequirements
2 Complete the assignment by due date
3 The proper accounting format
5 Attempting all of the assigned problems

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Chapter 6 Reporting and Analyzing Cash and Internal Controls Shamara Systems most recently reconciled its bank balance on April 30 and reported two checks outstand- ing at that time, No. 1771 for $781 and No. 1780 for $1,425.90. The following information is available for its May 31, 2013, reconciliation. Problem 6-5B Prepare a bank reco and record adjustm From the May 31 Bank Statement P3 PREVIOUS BALANCE FRECKS AND DEBITS TOTAL DEPOSITS AND CREDITS CURRENT BALANCE 18,290.70 13,094.80 16,566.80 21,762.70 CHECKS AND DES. DEPOSITS AND CREDITS DAILY BALANCE Amount Date No. Amount 05/01 1771 781.00 05/02 1783 382.50 05/04 1782 1,285.50 05/11 1784 1,449.60 05/18 431.80 NSF 05/25 1787 8,032.50 05/26 1785 63.90 05/29 1788 654.00 05/31 14.00 SC Date 05/04 05/14 05/22 05/25 05/26 2,438.00 2,898.00 1,801.80 7,350.00 CM 2,079.00 Date 04/30 05/01 05/02 05/04 05/11 05/14 05/18 05/22 05/25 05/26 05/29 05/31 Amount 18,290.70 17,509.70 17,127.20 18,279.70 16,830.10 19,728.10 19,296.30 21,098.10 20,415.60 22,430.70 21,776.70 21,762.70 ints receivable. h. In adjusting the accounts on December 31, the company estimated that 1% of accounts receivable will be uncollectible. Required (h) Dr. Bad Del $9.773 Prepare journal entries to record Sherman's 2012 and 2013 summarized transactions and its year-end adjusting entry to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable. Round amounts to the nearest dollar.) At December 31, 2013, Ingleton Company reports the following results for the year: Cash sales ... Credit sales .. $1,025,000 1,342,000 Problem 7-3B Estimating and repo bad debts In addition, its unadjusted trial balance includes the following items: P2 I counts receivable .. cwance for doubtful accounts GO $575,000 debit 7,500 credit Og Required Check Bad debts e (1b) $35,505, (1c) $2 1. Prepare the adjusting entry for Ingleton Co. to recognize bad debts under each of the following inde- pendent assumptions. a. Bad debts are estimated to be 2.5% of credit sales. b. Bad debts are estimated to be 1.5% of total sales. C. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2013, balance sheet given the facts in part la. 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2013, balance sheet given the facts in part 1c. Hovak Company has credit sales of $4.5 million for year 2013. At December 31, 2013, the company's Problem 7-4B diusted debit balance of $3,400. Hovak prepares a schedule of its Aging accounts re nu nerience, it estimates the percent of accounting for bac a. Bad debts are estimated to be 2.5% of credit sales. b. Bad debts are estimated to be 1.5% of total sales. Check Bad debts (1b) $35,505, (1c) $ c. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2013, balance sheet given the facts in part la. 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2013, balance sheet given the facts in part 1c. Hovak Company has credit sales of $4.5 million for year 2013. At December 31, 2013, the company's Problem 7-4) Allowance for Doubtful Accounts has an unadjusted debit balance of $3,400. Hovak prepares a schedule of its Aging accounts December 31, 2013, accounts receivable by age. On the basis of past experience, it estimates the percent of accounting for receivables in each age category that will become uncollectible. This information is summarized here. P2 lax 10 - B / U PRAWA Arial File Edit View insert the trade para acounting Window Help 2 0 DAL 2t de 43 100% Expected Percent Uncollectible Age of Accounts Receivable 1 December 31, 2017 Accounts Receivable 2.0% 2 Not yet due 4.0 $396,400 3 8.5 277,800 1 to 30 days past due 31 to 60 days past due 4 39.0 48,000 5 82.0 61 to 90 days past due 6,600 6 Over 90 days past due 2,800 7 8 I Sheet1 Sheet2 X Sheet3 05/25 05/26 05/29 05/31 20,415.60 22,430.70 21,776.70 21,762.70 From Shamara Systems' Accounting Records Cash Receipts Deposited Cash Disbursements Check Cash Debit Cash Date No. Credit May 4 2,438.00 1782 1,285.50 2,898.00 1783 382.50 1.801.80 1784 1,449.60 Ia & m 1785 63.90 26 2,079.00 1786 353.10 2,727.30 1787 8,032.50 11,944.10 644.00 1788 639.50 1789 12,850.60 Acct. No. 101 Cash Balance Credit PR Debit Date Explanation 16,083.80 28,027.90 30 Balance R7 11,944.10 15,177.30 Apr. May 12,850.60 31 Total receipts D8 31 Total disbursements the recordkeeper misread aging of accounts receivable method. 2013, using (2) Dr. Bad Debts Expense $31,390 2. Prepare the adjusting entry to record bad debts expense at December 31, 2013. Analysis Component 3. On July 31, 2014, Hovak concludes that a customer's $3,455 receivable (created in 2013) is uncollect. ible and that the account should be written off. What effect will this action have on Hovak's 2014 net income? Explain. n 7-5B The following selected transactions are from Springer Company. g and journalizing notes e transactions 2012 3 Nov. 1 Accepted a $4,800, 90-day, 8% note dated this day in granting Steve Julian a time extension on his past-due account receivable. Dec. 31 Made an adjusting entry to record the accrued interest on the Julian note. 2013 7.30, Cr. Interest venue $32 130, Cr. Interest enue $124 Jan. 30 Received Julian's payment for principal and interest on the note dated November 1. Feb. 28 Accepted a $12,600,8%, 30-day note dated this day in granting a time extension on the past- due account receivable from King Co. Mar. 1 Accepted a $6,200, 50-oxy, 12% note dated this day in granting Myron Shelley a time exten- sion on his past-due account acceivable. 30 The King Co. dishonoscd it note when presented for payment. April 30 Received payment of principal plus interest from M. Shelley for the March 1 note. June 15 Accepted a $2,000, 72-day, 8% note dated this day in granting a time extension on the past-due account receivable of Ryder Solon. 21 Accepted a $9,500, 90-day, 8% note dated this day in granting J. Felton a time extension on his past-due account receivable. Aug. 26 Received payment of principal plus interest from R. Solon for the note of June 15. Sep. 19 Received payment of principal plus interest from J. Felton for the June 21 note. Nov. 30 Wrote off King's account against Allowance for Doubtful Accounts. 19, Cr. Interest nue $190 Required 1. Prenare inurnal entries to record these transactions and events. (Round amounts to the nearest dollar.
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