Question

In: Accounting

The balance sheet for The Itex Corporation on December 31, 2014, includes the following cash and...

The balance sheet for The Itex Corporation on December 31, 2014, includes the following cash and receivables balances.

Cash – First Security Bank……………………………………………………………………………………………………………. $45,000

Currency on hand………………………………………………………………………………………………………………………… 16,000

Petty cash fund……………………………………………………………………………………………………………………………. 1,000

Cash in bond sinking fund……………………………………………………………………………………………………………. 15,000

Notes receivable (including notes discounted with recourse, $15,500)………………………………………........ 36,500

Accounts receivable…………………………………………………………………………………………………………………….. $85,600

Less: Allowance for bad debts……………………………………………………………………………………………………… 4,150 81,450

Interest receivable………………………………………………………………………………………………………………………. 525

Current liabilities reported in the December 31, 2014, balance sheet included:

Obligation on discounted notes receivable………………………………………………………………………………..…. $15,500

Transactions during 2015 included the following:

(a) Sales on account were $767,000.

(b) Cash collected on accounts totaled $576,500, including accounts of $93,000 with cash discounts of 2%.

(c) Notes received in settlement of accounts totaled $82,500.

(d) Notes receivable discounted as of December 31, 2014, were paid at maturity with the exception of one $3,000 note on which the company had to pay the bank $3,090, which included interest and protest fees. It is expected that recovery will be made on this note early in 2016.

(e) Customer notes of $58,500 were discounted with recourse during the year, proceeds from their transfer being $58,500. (All discounting transactions were recorded as loans). Of this total, $48,000 matured during the year without notice of protest.

(f) Customer accounts of $8,720 were written off during the year as worthless.

(g) Recoveries of bad debts written off in prior years were $2,020.

(h) Notes receivable collected during the year totaled $27,000 and interest collected was $2,450.

(i) On December 31, accrued interest on notes receivable was $630.

(j) Uncollectible accounts are estimated to be 5% of the December 31, 2015, Accounts Receivable balance.

(k) Cash of $35,000 was borrowed from First Security Bank with accounts receivable of $40,000 being pledged on the loan. Collections of $19,500 had been made on these receivables [included in the total given in transaction (b)], and this amount was applied on December 31, 2015, to payment of accrued interest on the loan of $600, and the balance to partial payment of the loan.

(l) The petty cash fund was reimbursed (meaning that cash was removed from the bank account and placed in the petty cash fund) based on the following analysis of expenditure vouchers:

Travel expense……………………………………….. $112

Entertainment expense………………………….. 78

Postage expense…………………………………….. 93

Office supplies expense………………………….. 173

Cash short and over (a revenue account).... 6

(m) Cash of $3,000 was added to a bond retirement fund.

(n) Currency on hand at December 31, 2015, was $12,000.

(o) Total cash payments for all expenses during the year were $680,000. Charge to General Expenses.

Instructions:

1. Prepare journal entries summarizing the preceding transactions and information.

2. Prepare a summary of current cash and receivables for balance sheet presentation.

Expert Solution

ANSWER

(1)

(2)

===========================================

DEAR STUDENT,

If you have any query or any Explanation please ask me in the comment box, i am here to helps you.please give me positive ratings

*****************THANK YOU****************

ekkarill92 answered 3 months ago

Devin E Corporation Balance Sheet As of December 31, 2015 2014 Assets: Cash & Cash Equivalents...

Devin E Corporation Balance Sheet As of December 31, 2015 2014 Assets: Cash & Cash Equivalents $41,900 $25,000 Accounts Receivable 24,000 6,250 Inventory 30,000 36,000 Current Assets 95,900 67,250 Land 25,000 10,000 Equipment 42,000 38,500 Less: Accumulated Depreciation (14,000) (7,000) 53,000 41,500 Total Assets 148,900 108,750 Liabilities: Accounts Payable 17,500 22,500 Accrued Salaries Payable 5,500 8,000 Rent Expense Payable 2,200 1,000 Income Tax Payable 6,900 4,000 Current Liabilities 32,100 35,500 Long-term notes payable 50,000 30,000 Total Liabilities 82,100 65,500...

The December 31, 2017, balance sheet of Hess Corporation includes the following items: 9% bonds payable...

The December 31, 2017, balance sheet of Hess Corporation includes the following items: 9% bonds payable due December 31, 2026 $5,000,000 Unamortized premium on bonds payable 135,000 The bonds were issued on December 31, 2016, at 103, with interest payable on July 1 and December 31 of each year. Hess uses straight-line amortization. On March 1, 2018, Hess retired $2,000,000 of these bonds at 98 plus accrued interest. What should Hess record as a gain on retirement of these bonds?...

Cash and cash equivalents balance, December 31, 2014 $ 38,000 Cash and cash equivalents balance, December...

Cash and cash equivalents balance, December 31, 2014 $ 38,000 Cash and cash equivalents balance, December 31, 2015 106,856 Cash received as interest 3,800 Cash paid for salaries 110,200 Bonds payable retired by issuing common stock (no gain or loss on retirement) 170,000 Cash paid to retire long-term notes payable 190,000 Cash received from sale of equipment 93,100 Cash received in exchange for six-month note payable 38,000 Land purchased by issuing long-term note payable 98,600 Cash paid for store equipment...

The stockholders’ equity section on the December 31, 2014, balance sheet of American Corporation follows: Stockholders’...

The stockholders’ equity section on the December 31, 2014, balance sheet of American Corporation follows: Stockholders’ Equity Contributed capital Preferred stock (par $21; authorized 17,000 shares, ? issued, of which 700 shares are held as treasury stock) $ 126,000 Common stock (no-par; authorized 24,000 shares, issued and outstanding 9,000 shares) 801,000 Contributed capital (includes $3,000 from treasury stock transactions) 15,000 Retained earnings 48,000 Cost of treasury stock, preferred (16,800 ) Required: 1. Calculate the number of shares of preferred stock...

The balance sheet at December 31, 2021, for Nevada Harvester Corporation includes the liabilities listed below:...

The balance sheet at December 31, 2021, for Nevada Harvester Corporation includes the liabilities listed below: 11% bonds with a face amount of $38 million were issued for $38 million on October 31, 2012. The bonds mature on October 31, 2032. Bondholders have the option of calling (demanding payment on) the bonds on October 31, 2022, at a redemption price of $38 million. Market conditions are such that the call is not expected to be exercised. Management intended to refinance...

The balance sheet at December 31, 2018, for Nevada Harvester Corporation includes the liabilities listed below:...

The balance sheet at December 31, 2018, for Nevada Harvester Corporation includes the liabilities listed below: A. 11% bonds with a face amount of $49 million were issued for $49 million on October 31, 2009. The bonds mature on October 31, 2029. Bondholders have the option of calling (demanding payment on) the bonds on October 31, 2019, at a redemption price of $49 million. Market conditions are such that the call is not expected to be exercised B. Management intended...

Boatwig, Corp. Balance Sheet December 31, 2013 and December 31, 2014 2013 Dr. Cr. 2014 Assets...

Boatwig, Corp. Balance Sheet December 31, 2013 and December 31, 2014 2013 Dr. Cr. 2014 Assets Cash $19,000 $71,000 Accounts Receivable 66,000 84,000 Inventory 185,000 184,000 Land 113,000 67,000 Equipment 195,000 256,000 Accummulated Depreciation (42,000) (69,000) Total $536,000 $593,000 Liabilities and Stockholders' Equity Accounts Payable $44,000 $36,000 Bonds Payable 198,000 143,000 Common Stock 167,000 222,000 Retained Earnings 127,000 192,000 Total $536,000 - ...

Deitz Corporation is projecting a cash balance of $34,200 in its December 31, 2019, balance sheet....

Deitz Corporation is projecting a cash balance of $34,200 in its December 31, 2019, balance sheet. Deitz’s schedule of expected collections from customers for the first quarter of 2020 shows total collections of $210,900. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $49,020. Other information gathered for the first quarter of 2020 is sale of equipment $3,420; direct labor $79,800, manufacturing overhead $39,900, selling and administrative expenses $51,300; and purchase...

Deitz Corporation is projecting a cash balance of $36,900 in its December 31, 2019, balance sheet....

Deitz Corporation is projecting a cash balance of $36,900 in its December 31, 2019, balance sheet. Deitz’s schedule of expected collections from customers for the first quarter of 2020 shows total collections of $227,550. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $52,890. Other information gathered for the first quarter of 2020 is sale of equipment $3,690; direct labor $86,100, manufacturing overhead $43,050, selling and administrative expenses $55,350; and purchase...

Complete a Balance Sheet ABC Corporation Income Statement For the Year Ended December 31, 2014 Sales...

Complete a Balance Sheet ABC Corporation Income Statement For the Year Ended December 31, 2014 Sales Revenue 792,845 Less: Operating Expenses Wages Expense 80,350 Office Expense 21,700 Utilities Expense 31,000 Advertising Expense $ 8,400 Insurance Expense 82,000 Employee Compensation Expense 10,000 Bad Debt Expense 25,000 Pension Expense 40,000 Depreciation Expense 33,759 Total Operating Expenses 332,209 Income from Operations 460,636 Other Revenue/Expenses Rent Revenue 12,000 Interest Income 19,561...