Cornerstones of Financial Accounting
4th Edition
ISBN: 9781337690881
Author: Jay Rich, Jeff Jones
Publisher: Cengage Learning
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Chapter 2, Problem 63.1C
To determine
Introduction:
A typical financial statement consists of income statement,
Requirements for transaction recognition ignored when the accounts receivable, building, and equipment were recorded.
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You work as an accounting professional and have been contracted by the auditors of Jane Company for a job. In examining the company’s records, you have extracted the following information:
Jane Account Balances
2018
2019
Accounts Payable
$ 24,600.00
$ 21,250.00
Accounts receivable
$ 15,700.00
$ 12,340.00
Cash
$ 23,450.00
$ 28,600.00
Cost of goods sold
$ 19,700.00
$ 23,000.00
Depreciation
$ 3,090.00
$ 4,590.00
Dividends
$ 5,800.00
$ 10,800.00
Interest
$ 2,340.00
$ 2,890.00
Inventory
$ 7,050.00
$ 8,640.00
Long-term debt
$ 28,000.00
$ 30,000.00
Net fixed Assets
$ 41,500.00
$ 48,000.00
Other expenses
$ 2,400.00
$ 2,800.00
Sales
$ 58,000.00
$ 62,500.00
Short-term notes payable
$ 2,890.00
$ 2,340.00
Shares outstanding
$ 85,000.00
$ 90,000.00
The tax rate is 32%
You are required to:…
You work as an accounting professional and have been contracted by the auditors of Jane Company for a job. In examining the company’s records, you have extracted the following information:
Jane Account Balances
2018
2019
Accounts Payable
$ 24,600.00
$ 21,250.00
Accounts receivable
$ 15,700.00
$ 12,340.00
Cash
$ 23,450.00
$ 28,600.00
Cost of goods sold
$ 19,700.00
$ 23,000.00
Depreciation
$ 3,090.00
$ 4,590.00
Dividends
$ 5,800.00
$ 10,800.00
Interest
$ 2,340.00
$ 2,890.00
Inventory
$ 7,050.00
$ 8,640.00
Long-term debt
$ 28,000.00
$ 30,000.00
Net fixed Assets
$ 41,500.00
$ 48,000.00
Other expenses
$ 2,400.00
$ 2,800.00
Sales
$ 58,000.00
$ 62,500.00
Short-term notes payable
$ 2,890.00
$ 2,340.00
Shares outstanding
$ 85,000.00
$ 90,000.00
The tax rate is 32%
You are required to:…
Question
Carlene Johnson is the Accountant in the Finance Department at Fairway Trading Limited who
manages the company Accounts Receivables. She was given the following information by the
Finance Manager which was extracted from the debtor's ledger as at December 31, 2022.
Category of Total value of
Customers
Sales
To Customer
$
Keith
Green
Karen White
June Hinds
John Wayne
180,0000
240,000
390,000
380,000
Paul Gayle 346,000
Date of Sales
December 16, 30 days
2021
December 10, 60 days
2021
November
15, 2022
30 days
June 26, 2022
30 days
30 days
August 25,
2022
Terms
Percentage provision to
be created
Date of Last
Payment on
A/C
January 15,
2022
February
14, 2022
December 20,
2022
October 24,
2022
September
24, 2022
Total
Amount
Paid to Date
on Account
S
90,500
180,000
170,000
295,000
235,000
The Accountant decided that she would age the debt outstanding in the following category and
the percentage to be provided for bad debt in the amount stated beside each category
accordingly.
Aging…
Chapter 2 Solutions
Cornerstones of Financial Accounting
Ch. 2 - What is the conceptual framework of accounting?Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Describe the constraint on providing useful...Ch. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Of all the events that occur each day, how would...Ch. 2 - Prob. 10DQ
Ch. 2 - Prob. 11DQCh. 2 - In analyzing a transaction, can a transaction only...Ch. 2 - How do revenues and expenses affect the accounting...Ch. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - The words debit and credit are used in two ways in...Ch. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Prob. 19DQCh. 2 - Prob. 20DQCh. 2 - Prob. 21DQCh. 2 - Prob. 22DQCh. 2 - Prob. 1MCQCh. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Which principle requires that expenses be recorded...Ch. 2 - Taylor Company recently purchased a piece of...Ch. 2 - Prob. 8MCQCh. 2 - The effects of paying salaries for the current...Ch. 2 - Which of the following statements is false? The...Ch. 2 - Which of the following statements are true? Debits...Ch. 2 - Debits will: increase assets. expenses, and...Ch. 2 - Which of the following statements are true? A...Ch. 2 - Posting: involves transferring the information in...Ch. 2 - A trial balance: lists only revenue and expense...Ch. 2 - CORNERSTONE 2.1 Cornerstone Exercise 2-16...Ch. 2 - Prob. 17CECh. 2 - CORNERSTONE 2.1 Four statements are given below....Ch. 2 - Prob. 19CECh. 2 - Cornerstone Exercise 2-20 Transaction Analysis...Ch. 2 - Cornerstone Exercise 2-21 Transaction Analysis...Ch. 2 - Cornerstone Exercise 2-22 Transaction Analysis The...Ch. 2 - Cornerstone Exercise 2-23 Debit and Credit...Ch. 2 - Cornerstone Exercise 2-24 Journalize Transactions...Ch. 2 - Cornerstone Exercise 2-25 Journalize Transactions...Ch. 2 - Cornerstone Exercise 2-26 Preparing a Trial...Ch. 2 - Prob. 27BECh. 2 - Brief Exercise 2-28 Assumptions and Principles...Ch. 2 - Brief Exercise 2-2? Events and Transactions...Ch. 2 - Brief Exercise 2-30 Transaction Analysis Galle...Ch. 2 - Brief Exercise 2-31 Debit and Credit Procedures...Ch. 2 - Brief Exercise 2-32 Journalize Transactions Galle...Ch. 2 - Brief Exercise 2-33 Posting Journal Entries Listed...Ch. 2 - Brief Exercise 2-34 Preparing a Trial Balance The...Ch. 2 - Prob. 35ECh. 2 - Prob. 36ECh. 2 - Exercise 2-37 Events and Transactions Several...Ch. 2 - Exercise 2-38 Events and Transactions The...Ch. 2 - Exercise 2-39 Transaction Analysis OBJECTIVE e The...Ch. 2 - Exercise 2-40 Transaction Analysis Amanda Webb...Ch. 2 - Exercise 2-41 Transaction Analysis and Business...Ch. 2 - Exercise 2-42 Inferring Transactions from Balance...Ch. 2 - Exercise 2-43 Transaction Analysis Goal Systems, a...Ch. 2 - Exercise 2-44 Transaction Analysis OBJECTIVE 9...Ch. 2 - Prob. 45ECh. 2 - Exercise 2-46 Normal Balances and Financial...Ch. 2 - OBJECTIVE 9 Exercise 2-47 Debit and Credit Effects...Ch. 2 - Prob. 48ECh. 2 - Exercise 2-49 Journalizing Transactions Kauai...Ch. 2 - Exercise 2-50 Journalizing Transactions Remington...Ch. 2 - Exercise 2-51 Transaction Analysis and Journal...Ch. 2 - Exercise 2-52 Accounting Cycle Rosenthal...Ch. 2 - Exercise 2-53 Preparing a Trial Balance...Ch. 2 - Exercise 2-54 Effect of Errors on a Trial Balance...Ch. 2 - Problem 2-55A Events and Transactions The...Ch. 2 - Problem 2-56A Analyzing Transactions Luis Madero,...Ch. 2 - Problem 2-57A Inferring Transactions from...Ch. 2 - Prob. 58APSACh. 2 - Problem 2-59A Journalizing Transactions Monroe...Ch. 2 - Problem 2-60A Journalizing and Posting...Ch. 2 - Problem 2-61A The Accounting Cycle Karleens...Ch. 2 - Problem 2-62B Comprehensive Problem Mulberry...Ch. 2 - Prob. 55BPSBCh. 2 - Prob. 56BPSBCh. 2 - Prob. 57BPSBCh. 2 - Problem 2-58B Debit and Credit Procedures A list...Ch. 2 - Problem 2-593 Journalizing Transactions Monilast...Ch. 2 - Problem 2-603 Journalizing and Posting...Ch. 2 - Problem 2-6B The Accounting Cycle Sweetwater...Ch. 2 - Problem 2-62B Comprehensive Problem Mulberry...Ch. 2 - Prob. 63.1CCh. 2 - Prob. 63.2CCh. 2 - Prob. 63.3CCh. 2 - Prob. 64.1CCh. 2 - Prob. 64.2CCh. 2 - Case 2-64 Analysis of the Effects of Current Asset...Ch. 2 - Prob. 64.4CCh. 2 - Prob. 65.1CCh. 2 - Prob. 65.2CCh. 2 - Prob. 66.1CCh. 2 - Prob. 66.2CCh. 2 - Prob. 66.3CCh. 2 - Case 2-67 Comparative Analysis: Under Armour,...Ch. 2 - Prob. 67.2CCh. 2 - Case 2-67 Comparative Analysis: Under Armour,...Ch. 2 - Case 2-68 Accounting for Partially Completed...Ch. 2 - Prob. 68.2CCh. 2 - Prob. 69.1CCh. 2 - Case 2-69 CONTINUING PROBLEM: FRONT ROW...Ch. 2 - Case 2-69 CONTINUING PROBLEM: FRONT ROW...
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