A number of unrelated transactions recorded by Abba Company are as fol.pdf

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A number of unrelated transactions recorded by Abba Company are as follows: that is $14,000 greater than the equipment's liquidation value: loan. In December, the bank demanded payment of $100,000 from Abba, who negotiated to make the payments in 4 equal monthly instalments, the first of which was made in December. The following entry was recorded by Abba when the December payment was made. No further information was provided in its financial statements because it is probable that Provincial will be able to make the remainder of the payments. Instructions For each of the above situations, identify the accounting assumption, concept, constraint, or recognition criteria that have been violated. Prepare the correct journal entry as it should have been made. If no entry should have been made, or if additional financial statement disclosure is required, explain. At year end the Depreciation expense is calculated as $10,000, which results in a net book 1. value.

Education

This document discusses receivable financing, which allows a company to raise funds using its accounts receivable. It describes pledge, assignment, and factoring of receivables. Pledging involves using receivables as collateral for a bank loan. The company retains collection rights but may need to remit funds to the bank. Accounting involves recording the loan and subsequent payments. Financial statements must disclose pledged receivables. Illustrations demonstrate journal entries for pledging receivables and repaying a loan.

Accounting cycle

Institute of Management Studies UOP

The accounting cycle is the process by which accountants prepare financial statements for an entity over a period of time. It involves analyzing transactions, journalizing them, posting to ledger accounts, adjusting entries, preparing a trial balance and financial statements, and closing entries. Key steps include journalizing, posting, preparing a trial balance, adjusting entries, and financial statements.

How to Make Journal Entries Using the Double Entry System

UNowAcademics

Accounting questions

aditya kashyap

This document provides definitions and examples of key accounting terms. It defines real accounts as accounts for assets and liabilities like furniture, land, and machinery accounts. Nominal accounts record incomes and expenses like salary, commission, and telephone expenses accounts. Personal accounts debit the receiver and credit the giver. Real accounts debit what comes in and credit what goes out, while nominal accounts debit expenses and losses and credit incomes and revenues.

Illustration of the Accounting Cycle In this section, the complete ac.pdf

fakhrifoam

Illustration of the Accounting Cycle In this section, the complete accounting cycle for one period is Blustrated. Assume that for several years Kelly Pitney has operated a part-time consulting business from her hime, As of April 1, 20Y8, Kelly decided to move to rented quarters and to operate the besiness is a full-time basis. The business will be known as Kelly Consulting. During April, Kelly Consultion entered into the following transactions: Apr. 1. The following assets were received from Kelly Pitney as an investment in Kelly Cin. sulting: cash, \$13,100, accounts receivable, \$3,000; supplies, \$1,400, and office eqpip ment, $12,500. There were no liabilities received. 1. Paid three month' rent on a lease rental contract, $4,800. 2. Paid six months' premiums on property and casualty insurance policies, $1,800. 4. Received cash from clients as an advance payment for services to be provided and recorded it as uneamed fees, $5,000. 5. Purchased additional office equipment on account from Office Station Co0,32,000 6. Received cash from clients on account, $1,800. 10. Paid cash for a newspaper advertisement, $120. 12. Paid Office Station Ca. for part of the debt incurred on April 5,$1,200. 12. Recorded services provided on account for the period April 1-12,\$4,200. 14. Paid part-time receptionist for two weeks' salary, $750. 17. Recorded cash from cash clients for fees eamed during the period April 1-16, 46,250. 18. Paid cash for supplies, $800. 20. Recorded services provinfed cur account for the period April 13-20, \$2,100. 24. Recorded cash from wash suents for fees earned for the period April 17-24, $3,850. 27. Paid part-time receptlomint for two weeks' salary, $750. 29. Paid telephone bill for April, $130. 30. Paid electricity bill for April, $200. 30. Recorded cash from cash clients for fees earned for the period April 25-30, \$3,050. 30. Recorded services provided on account for the remainder of April, \$1,500, 30. Paid cash to Kelly Pitney for personal use, $6,000. Step 1. Analyzing and Recording Transactions in the Journal The first step in the accounting cycle is to analyze and record transactions in the journal using the double-entry accounting system. As illustrated in Chapter 2, transactions are analyzed and journalized as follows: - Step 1. Carefully read the description of the transaction to determine whether an asket. liability, owner's equity (capital or drawing), revenue, or expense account is affected. - Step 2. For each account affected by the transaction, determine whether the accoust increases or decreases. - Step 3. Determine whether each increase or decrease should be recorded as a debir er 1 credit, following the rules of debit and credit shown in Exhibit 3 of Chapter 2. - Step 4. Record the transaction using a journal entry. The company's chart of accounts is useful in determining which accounts are alfectrd by the transaction. The chart of accounts for Kelly Consulting is shown in Exhibit 9. 11 Cash 12 Accounts Recei.

Rick Hall owns a card shop Halls Cards The following cash.pdf

adaacollections

Rick Hall owns a card shop. Hall's Cards. The following cash information is avallable for the month of August Year 1 : As of August 31, the bank statement shows a balance of $14,140. The August 31 unadjusted balance in the Cash account of Hall's Cards is $9,564. A review of the bank statement revealed the following information: 1. A deposit of $1,010 on August 31, Year 1, does not appear on the August bank statement. 2. It was discovered that a check to pay for baseball cards was correctly written and paid by the bank for $1,720 but was recorded on the books as $2, 620. 3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4.765 were found to be outstanding. 4. A debit memo for $79 was included in the bank statement for the purchase of a new supply of checks. Required: Prepare a bank reconcillation at the end of August showing the true cash balance. Note: Negative amounts should be indicated with minus sign.Austin Company established a petty cash fund by issuing a check for $300 and appointing Steve Mack as petty cash custodian. Mack had vouchers for the following petty cash payments during the month; There was $21 of currency in the petty cash box at the time it was replenished. The four distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2) reimbursements made to employees, (3) recognition of expenses (Note. all expenses are recorded in total as miscellaneous expense). and (4) replenishment of the fund. Assume the Company uses the traditional approach to petty cash expense recognition and replenishment. Required: a. Show each of the four events in a horizontal statements model. c. Identify the events depicted in Requirement a as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Complete this question by entering your answers in the tabs below.Complete this question by entering your answers in the tabs below. Show each of the four events in a horizontal statements model. Note: Enter amy decreases to account balances whth a minus sign. For changes on the 5 tatement of Cash Flows, indicate whether the item is an operating activity (OA), investing (IA), finanoing activity (FA), or leave the cell blank if there is no effect.Complete this question by entering your answers in the tabs below. Identify the events depicted in Requirement a as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Note: Select "NE" if there is no effect..

Accounting for Receivables Lecture PPT.pptx

juweldba

a. Total estimated uncollectible: March sales (1-30 days) - 2% of 65,000 = 1,300 February sales (31-60 days) - 5% of 17,600 = 880 January sales (61-90 days) - 30% of 8,500 = 2,550 Prior to January (over 90 days) - 50% of 7,000 = 3,500 Total estimated uncollectible = 1,300 + 880 + 2,550 + 3,500 = 8,230 b. Adjusting entry at March 31: Bad debts expense Dr. 8,230 Allowance for doubtful accounts Cr. 8,230 (To record estimated

1. The document summarizes key concepts related to accounting for sales revenue, receivables, and cash including revenue recognition principles, credit card sales, sales discounts, sales returns and allowances, bad debts, and cash controls. 2. It also discusses calculating ratios like gross profit percentage, receivables turnover, average collection period, and preparing bank reconciliations. 3. Examples are provided of journal entries for credit card sales, sales discounts, sales returns, estimating bad debts expense, and reconciling cash accounts.

ch09-200529002111.pptx

MostafaGamal216952

Companies recognize accounts receivable when goods or services are sold on credit. Accounts receivable are valued at their expected cash realizable value by estimating and recording an allowance for doubtful accounts through a credit to Bad Debt Expense. When specific accounts are written off as uncollectible, the allowance account is debited with an offsetting credit to Accounts Receivable. The allowance method following this process provides a better matching of revenues and expenses than the direct write-off method.

Uncollectable account expense

UCP

This document provides examples of accounting entries for uncollectible accounts (bad debts) using both the direct write-off method and provision method. Under the direct write-off method, uncollectible accounts are directly expensed against accounts receivable when deemed uncollectible. The provision method estimates bad debts at the end of each period by debiting bad debt expense and crediting an allowance account to match expenses with revenues. When debts are written off, the allowance is reduced and receivables are credited.

Chapter 5, Fundamentals of Accounting I (2).pptx

Kalkaye

This chapter discusses accounting for receivables. It defines receivables as amounts due from customers and others that are expected to be collected in cash. The chapter covers the different types of receivables including accounts receivable and notes receivable. It explains how companies recognize and value receivables, and the journal entries for adjusting accounts and writing off uncollectible amounts. The chapter also discusses methods for estimating uncollectible accounts, such as the percentage of sales and percentage of receivables approaches.

1 The Company relies on the its auditor to calculate its provision for.docx

astephen4

1 The Company relies on the its auditor to calculate its provision for depreciation. Using the straight-line method, depreciation on assets that existed as of the end of the prior year was $7 , 553 . 2 The Company book-keeper does not understand all the rules of accrual-basis accounting. As such, she books fixed asset additions to office supply expense. A review of the general ledger detail revealed the following items. The Company's capitalization policy\# is $1 , 000 and it uses the straight-lined method half-year convention+ for recording depreciation. \# A capitalization policy dictates a threshold for which purchases of long-term assets are recorded as PP\&E and depreciated. Amounts below the threshold are expensed as incurred, even if they have a long-term useful life. + Half-year convention means that 1/2 of a full year's worth of depreciation is taken in the year the asset is placed in service, regardless of the in-service date. 3 Another error that the book-keeper always makes is to record pre-payments of insurance directly to expense. On November 1 , the Company booked the payment of its annual liability insurance premium in the amount of $12 , 000 . (Hint: Determine the portion of this payment that should be a prepaid). 4 The Company received a $5 , 000 deposit of grant proceeds that was originally recorded as a debit to cash and credit to grant revenue on December 15. This grant will assist the Organization in providing charity-care in the subsequent year. (Hint. this receipt is unearned as of 12/31 ) 5 To test the completeness of accounts payable recorded by the client, the auditor reviewed a listing of checks written subsequent to 12/31 in excess of SI of $3 , 000 . None of these amounts have been accrued and were recorded as expenses when paid. (Hint In vour A.JE. accrue onlv those items that meet the criteria for expense recoanition) * ISI = Individual Significant Items. Auditors calculate a threshold for materiality purposes when searching for errors that may need adjusting. Amounts > ISI that are discovered to be in error require adjustment; the conclusion on amounts T\&E is a common abbreviation for "Travel \& Entertainment" expense, almost always considered a high-risk area for auditors b/c it is subject to abuse by management. It is in this account that we can often use to quantify "agency problems". .

Fatca ii defusing the bomb (ban) uab magazine september 2012

Bachir El-Nakib, CAMS

- The document provides answers to questions about FATCA (Foreign Account Tax Compliance Act) regulations. - It advises that foreign banks will start reporting US client account information to the IRS annually beginning in 2014, including basic account data and by 2016 more detailed activity information. - It recommends that clients with undisclosed foreign accounts voluntarily disclose them to avoid potential criminal prosecution, and to consult tax attorneys and CPAs to evaluate compliance options.

Credits and debits

L.C. Fernando Vicente Reyes

The document explains how to understand debits and credits in bookkeeping. It defines debits and credits as entries on the left or right side of accounts. Debits increase asset and expense accounts, and credits increase liability, equity, and revenue accounts. The steps are to understand debits and credits, remember basic rules like assets increasing with debits, set up a basic balance sheet and ledger accounts, record transactions by increasing and decreasing appropriate accounts with debits and credits, update account balances, and ensure the books are balanced.

Acc300 final exam score 90%

homeworkecrater

The document contains 30 multiple choice questions related to accounting concepts such as the current ratio, horizontal analysis, accounting principles, internal controls, and financial statements. The questions cover topics like the balance sheet, income statement, cash flows statement, accounting for investments, and adjusting entries. An expert achieved a score of 90% by selecting the correct answer for most of the multiple choice questions.

The following selected events and transactions were recorded by Milos.pdf

RyanGMMDickenss

The following selected events and transactions were recorded by Milos County Hospital. 1. Gross charges for hospital services, all charged to accounts and notes receivable, were as follows: 2. The hospital cafeteria and gift shop had cash sales of $296 , 500 . 3. Additional information determined subsequently to recording patient service revenues and relating to the current year is as follows 4. A federal cost reimbursement research grant of $362 , 000 was awarded. As of the end of the year, $320 , 000 in expenses related t the grant had been made. 5. Vouchers totaling $1 , 354 , 140 were issued for the following items: 6. Collections of accounts receivable totaled $1 , 171 , 000 . Accounts written off as uncollectible amounted to $13 , 100 . 7. Cash payments on vouchers payable (paid to employers and suppliers) during the year were $1 , 037 , 200 . 8. Supplies of $100 , 970 were issued to nursing services. 9. On December 31 , accrued interest income on investments was $2 , 000 . 0 . Depreciation of buildings and equipment was as follows: 11. On December 31, closing entries were made in the general journal. Required a-1. Prepare journal entries for each of the transactions in accordance with the standards for a governmental health care entity that follows proprietary fund accounting. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the b. Prepare journal entries to record the foregoing transactions, assuming the hospital is a business-type government facility. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet B C D E F D > The hospital has a contractual agreement with a lender requiring that $550 , 000 in cash be set aside to meet its future debt payment. Note: Enter debits before credits..

Power pointchapter2

phireflies

This document discusses key concepts for understanding a company's balance sheet, including the activities that cause changes and how specific activities affect balances. It covers the conceptual framework for financial reporting, including elements of financial statements, qualitative characteristics, and the objective of providing useful information to external users. Key aspects of the accounting cycle are also summarized, such as analyzing transactions, recording journal entries, and preparing financial statements.

Question 2The Trial Balance of the Hope, Faith and Cha.docx

wraythallchan

AWeek One Exercise AssignmentBasic Accounting Equations1.Recog.docx

ikirkton

AWeek One Exercise Assignment Basic Accounting Equations 1.Recognition of normal balances The following items appeared in the accounting records of Triguero's, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability, revenue, or expense from the company's viewpoint. Also indicate the normal account balance of each item. a. The albums, tapes, and CDs held for sale to customers. b. A long-term loan owed to Citizens Bank. c. Promotional costs to publicize a concert. d. Daily sales of merchandise sold, e. Amounts due from customers, f. Land held as an investment, g. A new fax machine purchased for office use. h. Amounts to be paid in 10 days to suppliers, i. Amounts paid to a mall for rent. 2.Basic journal entries The following April transactions pertain to the Jennifer Royall Company: Apr. 1 Jennifer Royall invested cash of $15,000 and land valued at $10,000into the business. Apr.5 Provided $1,200 of services to Jason Ratchford, a client, on account. Apr.9 Paid $250 of salaries to an employee. Apr.14 Acquired a new computer for $3,200, on account. Apr.20 Collected $800 from Jason Ratchford for services provided on April 5. Apr.24 Borrowed $7,500 from BestBanc by securing a six-month loan. Prepare journal entries (and explanations) to record the preceding transactions and events. 3. Balance sheet preparation. The following data relate to Preston Company as of December 31, 20XX: Building $44,000 Accounts receivable $24,000 Cash 17,000 Loan payable 30,000 J. Preston, Capital 65,000 Land 21,000 Accounts payable ? Prepare a balance sheetas of December 31, 20XX. (See Exhibit 1.1 and 1.4) 4. Basic transaction processing. On November 1 of the current year, Richard Parker established a sole proprietorship. The following transactions occurred during the month: 1: Parker invested $19,000 into the business for $19,000 in common stock. 2: Paid $9,000 to acquire a used minivan. 3: Purchased $1,800 of office furniture on account. 4: Performed $2,100 of consulting services on account. 5: Paid $300 of repair expenses. 6: Received $800 from clients who were previously billed in item 4. 7: Paid $500 on account to the supplier of office furniture in item 3. 8: Received a $150 electric bill, to be paid next month. 9: Parker withdrew $600 from the business. 10: Received $250 in cash from clients for consulting services rendered. Instructions a. Arrange the following asset, liability, and owner’s equity elements of the accounting equation: Cash, Accounts Receivable, Office Furniture, Van, Accounts Payable, Common Stock/Dividends, and Revenues/Expenses. (See Exhibit 1.5) b. Record each transaction on a separate line. After all transactions have been recorded, compute the balance in each of the preceding items. c. Answer the following questions for Parker. (1) How much does the company owe to its creditors at month-end? On which financial statement(s) would this information be found? ...

Accounting for non profit organization

Asadullah Sharifi

Jeremiah Restoration Company completed the following selected transa.pdf

ambersushil

Jeremiah Restoration Company completed the following selected transactions during January: Required: Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. CHART OF ACCOUNTSJeremiah Restoration CompanyGeneral Ledger JOURNAL ACCOUNTING EQUATION 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Jan. 1.Established a petty cash fund of $730.12.The cash sales for the day, according to the cash register records, totaled $11,525. The actual cash received from cash sales was $11,551.31.Petty cash on hand was $142. Replenished the petty cash fund for the following disbursements, each evidenced by a petty cash receipt:.

Final visit receivables

JeamsVidal

The document outlines an audit program for testing trade receivables for Sheridan AV for the year ending March 31, 2021. Substantive testing is to be carried out on the statement of financial position to assess presentation and disclosure, accuracy/classification/valuation, rights and obligations, completeness and cut-off, and existence. Tests include vouching samples of receivables to supporting documentation, testing bad debt provisions, and cut-off testing of sales and returns. A trade receivables circularization is also to be performed. The auditor notes issues with amounts presented, calculations, and lack of support for bad debts, but otherwise the receivables appear fairly stated subject to matters highlighted.

Accounting principles 1B

Advance Business Consulting

Current Liabilities and Payroll

Devy Sylvia Silaban

The document discusses current liabilities and payroll accounting. It defines current liabilities as debts due within one year, including accounts payable, notes payable, unearned revenue, and the current portion of long-term debt. It also discusses internal controls for payroll, including hiring, timekeeping, payroll preparation, and payment. Key aspects of payroll accounting covered include computing gross pay, mandatory and voluntary deductions, and filing payroll tax forms.

| Accounting Cycle | Double Entry Accounting | Basic Accounting Equation | 8 ...

Ahmad Hassan

Principles of accounting, the accounting cycle, double entry accounting, debits and credits, basic accounting equation, ownership structure, steps in accounting cycle, transactions and events, journalizing, techniques of journalizing, posting, trial balance, adjusting entries, classes of adjusting entries, adjusted trial balance, preparing financial statements, closing entries, post-closing trial balance

Chapter 09 ACCOUNTING FOR RECEIVABLES.ppt

JemalSeid25

This chapter summary discusses accounting for receivables, including accounts receivable and notes receivable. It covers recognizing, valuing, and disposing of both accounts receivable and notes receivable. Specific topics covered include the allowance method and direct write-off method for estimating uncollectible accounts, percentage of sales and receivables bases, and sales of receivables through factoring or credit card transactions.

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A number of unrelated transactions recorded by Abba Company are as fol.pdf

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