Use the following information on end of year account balances
(as of December 31, 2015) for...
Use the following information on end of year account balances
(as of December 31, 2015) for Warren Clinic to construct its
balance sheet, keeping in mind the accounting identity (assets =
liabilities + equity):
Accounts Payable $20,000
Accounts Receivables (net) $60,000
Cash $30,000 Equity $230,000
Long-term debt $120,000
Long-term investments $100,000
Net property and equipment $150,000
Other assets $40,000
Other long-term liabilities $10,000
Lord of the Fries, Inc., has the following account balances at
the end of the year...
Lord of the Fries, Inc., has the following account balances at
the end of the year before adjustments:
Accounts Receivable
$70,000
Allowance for Doubtful Accounts
$200 debit balance
Sales
$700,000
Doubtful Accounts Expense
$0
Management estimates that 12% of Accounts Receivable will be
uncollectible. After the correct adjusting entry has been made,
what is total Doubtful Accounts Expense on the
income statement for the year?
Do not include $ or negative signs in your
answer.
Oriole Company, organized in 2019, has set up a single account
for all intangible assets. The...
Oriole Company, organized in 2019, has set up a single account
for all intangible assets. The following summary discloses the
debit entries that have been recorded during 2020.
1/2/20
Purchased patent (7-year life)
$311,500
4/1/20
Purchase goodwill (indefinite life)
355,000
7/1/20
Purchased franchise with 10-year life; expiration date
7/1/30
435,000
8/1/20
Payment of copyright (5-year life)
162,000
9/1/20
Research and development costs
225,000
$1,488,500
Prepare the necessary entry to clear the Intangible Assets
account and to set up separate accounts...
Marshall Company, organized in 2016, has set up a single account
for all intangible assets. The...
Marshall Company, organized in 2016, has set up a single account
for all intangible assets. The following summary discloses the
debit entries that have been recorded during 2017.
1/2/17
Purchased patent (8-year life)
$350,000
4/1/17
Purchase goodwill (indefinite life)
360,000
7/1/17
Purchased franchise with 10-year life; expiration date
7/1/27
450,000
8/1/17
Payment of copyright (5-year life)
156,000
9/1/17
Research and development costs
215,000
$1,531,000
-Prepare the necessary entry to clear the Intangible Assets
account and to set up separate accounts...
A company has the following unadjusted account balances at
December 31, of the current year; Accounts...
A company has the following unadjusted account balances at
December 31, of the current year; Accounts Receivable of $185,700
and Allowance for Doubtful Accounts of $1,000 (credit balance). The
company uses the aging of accounts receivable to estimate its bad
debts. The following aging schedule reflects its accounts
receivable at the current year-end:
Account Age
Balance
Estimated
Uncollectible
Percentage
Current (not yet due)
$96,000
1.0%
1-30 days past due
64,000
2.5%
30-60 days past due
16,000
11.0%
61-90 days past...
The Baldwin Company currently has the following balances on
their balance sheet:
Total Assets $130,692
Total...
The Baldwin Company currently has the following balances on
their balance sheet:
Total Assets $130,692
Total Liabilities $57,915
Retained Earnings $62,384
Suppose next year the Baldwin Company generates $44,200 in net
profit, pays $12,000 in dividends, total assets increase by
$55,000, and total liabilities remain unchanged. What will ending
Baldwins balance in Common Stock be next year? Select: 1
$33,193
$97,593
$149,023
$305,991
The Baldwin Company currently has the following balances on
their balance sheet: Total Assets $239,562 Total...
The Baldwin Company currently has the following balances on
their balance sheet: Total Assets $239,562 Total Liabilities
$148,310 Retained Earnings $35,008 Suppose next year the Baldwin
Company generates $44,200 in net profit, pays $12,000 in dividends,
total assets increase by $55,000, and total liabilities remain
unchanged. What will ending Baldwins balance in Common Stock be
next year?
Select: 1
$375,664
$79,044
$477,880
$143,444
Carrie Heffernan, Inc., has the following assets at the end of the
year:
Petty cash fund...
Carrie Heffernan, Inc., has the following assets at the end of the
year:
Petty cash fund
$1,000
Cash in checking account
13,000
Time deposits
12,000
Accounts Receivable
40,000
Short-Term Investments
22,000
Investments in high-grade government securities, maturing in 90
days (at time of purchase)
14,000
Cash restricted under a compensating balance agreement on a
short-term loan
100,000
Prepaid Rent
20,000
Supplies
12,000
Prepare the current assets section of the balance sheet for this
company.
Charlie Corporation's adjusted trial balance included the
following items (all account balances are normal): Accounts payable...
Charlie Corporation's adjusted trial balance included the
following items (all account balances are normal): Accounts payable
$65,000, Accounts receivable $45,000, Capital stock $100,000, Cash
$50,000, Dividends $10,000, Goodwill $47,000, Interest expense
$4,000, Interest payable $2,000, Inventory $38,000, Notes payable
$80,000, Prepaid expenses $5,000, Property, plant & equipment
$123,000, Retained earnings $46,000, Rent expense $18,000, Revenues
$101,000, and Salary expense $60,000. How much are total
assets?
On December 31, 2020, Corotel Company’s year-end, the unadjusted
trial balance included the following items:
Account...
On December 31, 2020, Corotel Company’s year-end, the unadjusted
trial balance included the following items:
Account
Debit
Credit
Accounts receivable
$
2,140,000
Allowance for doubtful accounts
37,000
Sales ($3,210,000 cash sales)
$
12,840,000
Required:
1. Prepare the adjusting entry needed in Corotel’s books
to recognize bad debts under each of the following independent
assumptions.
Bad debts are estimated to be 2% of credit sales.
An analysis suggests that 5% of outstanding accounts receivable
on December 31, 2020, will become uncollectible....