Question
In: Accounting
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years...
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations.
| June | 12, | 2021 | Provide services to customers on account for $38,600. | |||
| September | 17, | 2021 | Receive $23,000 from customers on account. | |||
| December | 31, | 2021 | Estimate that 45% of accounts receivable at the end of the year will not be received. | |||
| March | 4, | 2022 | Provide services to customers on account for $53,600. | |||
| May | 20, | 2022 | Receive $10,000 from customers for services provided in 2021. | |||
| July | 2, | 2022 | Write off the remaining amounts owed from services provided in 2021. | |||
| October | 19, | 2022 | Receive $43,000 from customers for services provided in 2022. | |||
| December | 31, | 2022 | Estimate that 45% of accounts receivable at the end of the year will not be received. |
Required:
1. Record transactions for each date.
(If no entry is required for a particular
transaction/event, select "No Journal Entry Required" in the first
account field.)
2. Post transactions to the following accounts:
Cash, Accounts Receivable, and Allowance for Uncollectible
Accounts.
3. Calculate net accounts receivable at the end of
2021 and 2022.
Solutions
Expert Solution
1.
2.
3.
Net accounts receivable at the end of 2021 = 15,600-7,020 = 8,580
Net accounts receivable at the end of 2022 =10,600-4,770 = 5,830
ekkarill92 answered 2 years agoRelated Solutions
The following events occur for The Underwood Corporation during 2021 and 2022, its first two years...
The following events occur for The Underwood Corporation during
2021 and 2022, its first two years of operations. June 12, 2021
Provide services to customers on account for $35,000. September 17,
2021 Receive $20,000 from customers on account. December 31, 2021
Estimate that 40% of accounts receivable at the end of the year
will not be received. March 4, 2022 Provide services to customers
on account for $50,000. May 20, 2022 Receive $10,000 from customers
for services provided in 2021....
The following events occur for The Underwood Corporation during 2018 and 2019, its first two years...
The following events occur for The Underwood Corporation during
2018 and 2019, its first two years of operations. June 12, 2018
Provide services to customers on account for $38,000. September 17,
2018 Receive $22,500 from customers on account. December 31, 2018
Estimate that 45% of accounts receivable at the end of the year
will not be received. March 4, 2019 Provide services to customers
on account for $53,000. May 20, 2019 Receive $10,000 from customers
for services provided in 2018....
The following events occur for The Underwood Corporation during 2018 and 2019, its first two years...
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2018 and 2019, its first two years of operations.
June 12, 2018 Provide services to customers on
account for $35,000.
September 17, 2018 Receive $20,000 from customers on
account.
December 31, 2018 Estimate that 40% of accounts
receivable at the end of the year will not be received.
March 4, 2019 Provide services to customers on account
for $50,000.
May 20, 2019 Receive $10,000 from customers for
services provided...
The following events occur for The Underwood Corporation during 2018 and 2019, its first two years...
The following events occur for The Underwood Corporation during
2018 and 2019, its first two years of operations.
June 12, 2018 Provide services to customers on
account for $29,000.
September 17, 2018 Receive $15,000 from customers on
account.
December 31, 2018 Estimate that 40% of accounts
receivable at the end of the year will not be received.
March 4, 2019 Provide services to customers on account
for $44,000.
May 20, 2019 Receive $10,000 from customers for
services provided...
The following events occur for The Underwood Corporation during 2018 and 2019, its first two years...
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2018 and 2019, its first two years of operations.
June 12, 2018 Provide services to customers on account for
$36,200.
September 17, 2018 Receive $21,000 from customers on
account.
December 31, 2018 Estimate that 45% of accounts receivable at
the end of the year will not be received.
March 4, 2019 Provide services to customers on account for
$51,200.
May 20, 2019 Receive $10,000 from customers for services
provided in...
The following events occur for Morris Engineering during 2018 and 2019, its first two years of...
The
following events occur for Morris Engineering during 2018 and 2019,
its first two years of operations.
February 2, 2018 Provide services to customers on account for
$33,800.
July
23, 2018 Receive $23,500 from customers on account.
December 31, 2018 Estimate that 30% of uncollected accounts will
not be received.
April
12, 2019 Provide services to customers on account for
$46,800.
June
28, 2019 Receive $6,000 from customers for services provided in
2018.
September 13, 2019 Write off the...
In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation. 2021...
In 2022, Draper Company discovered errors made in 2019-2021, its
first three years of operation.
2021
2020
2019
Items not recognized:
Prepaid expenses
$1,300
$900
$550
Accrued expenses
950
700
800
Other information:
Reported net income
$23,000
$25,000
$20,000
Dividends declared and paid
4,100
2,600
5,000
Common stock and additional paid in capital at
12/31
22,000
17,000
15,000
Corrected 12/31/21 Total Equity will be:
Select one:
a. $78,450
b. $110,300
c. $77,950
d. $110,650
e. $78,650
In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation. 2021...
In 2022, Draper Company discovered errors made in 2019-2021, its
first three years of operation.
2021
2020
2019
Items not recognized:
Prepaid expenses
$1,300
$900
$550
Accrued expenses
950
700
800
Other information:
Reported net income
$23,000
$25,000
$20,000
Dividends declared and paid
4,100
2,600
5,000
Common stock and additional paid in capital at
12/31
22,000
17,000
15,000
Restated 2020 Net Income will be:
Select one:
a. $25,250
b. $26,600
c. $25,200
d. $24,550
e. $25,450
In 2022, Draper Company discovered errors made in 2019-2021, its first three years of operation. 2021...
In 2022, Draper Company discovered errors made in 2019-2021, its
first three years of operation.
2021
2020
2019
Items not recognized:
Prepaid expenses
$1,300
$900
$550
Unearned Revenues
950
700
800
Other information:
Reported net income
$23,000
$25,000
$20,000
Dividends declared and paid
4,100
2,600
5,000
Common stock and additional paid in capital at
12/31
22,000
17,000
15,000
Indicate the error in 12/31/21 Retained
Earnings:
Select one:
a. $400 overstated
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c. $400 understated
d. $350 understated
e....
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years of its operations:
Year 1:
Issued $17,000 of common stock for cash.
Provided $85,700 of services on account.
Provided $43,000 of services and received cash.
Collected $76,000 cash from accounts receivable.
Paid $45,000 of salaries expense for the year.
Adjusted the accounting records to reflect uncollectible
accounts expense for the year. Leach estimates that 4 percent of
the ending accounts receivable balance will be uncollectible.
Closed the revenue account....
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