Cash 34,300 Interest Expense Accounts Receivable 490 26,300 Doubtful Debts Expense Inventory (1 July 2019) 3,200...

Cash	34,300
Interest Expense Accounts Receivable	490 26,300
Doubtful Debts Expense Inventory (1 July 2019)	3,200 41,600
Shop Rent Expense	1,800
Telephone Expense Building	1,300 86,000
Depreciation Expense – Building	4,200
Sales Staff Wages Expense	21,300
Accum. Depreciation – Equipment		4,800
Freight Inwards	4,340
General Expense Capital (1 July 2019)	17,600	161,840
Drawings	12,500
Sales Income		248,600
Sales Returns	7,450
Interest Payable Discount Allowed	2,400	240
Cost of Sales	147,200
Unearned Income Discount Received		5,200 1,900
Freight Outwards	2,150
Accounts Payable		6,200
Equipment	45,000
Accum. Depreciation – Building Depreciation Expense – Equipment Loan Payable	2,800	5,400 38,500
Allowance for Doubtful Debts Insurance Expense	3,600	3,200
Advertising Expense	3,750
Prepaid Rent	6,600	. .
	$475,880	$475,880
Continued on the next page…

Question (Continued)

Requirements:

a. Prepare a fully classifiedIncome Statementfor the year ended 30^thJune 2020.

b. Prepare a Statement of Changes in Equityfor the period and a fully classified Balance Sheet(must classify the assets and liabilities like we did in class) as at 30^thJune 2020.

Expert Solution

The solution is as under:

ekkarill92 answered 1 year ago

On 1 June, Mason and Boyce had Accounts Receivable and Allowance for Doubtful Debts accounts as...

On 1 June, Mason and Boyce had Accounts Receivable and Allowance for Doubtful Debts accounts as below. Ignore GST. accounts recievables 1/6 balance 849,555 allowance for doubtful debts 1/6 balance 12.100 During June, the following transactions occurred: 1. Revenue earned on credit, $1,195,000 . 2. Sales returns, $24,100. 3. Accounts receivable collected, $1,400,000 . 4. Accounts written off as uncollectable, $15,851. Based on an ageing of accounts receivable on 30 June, the firm determined that the Allowance for Doubtful...

Cash 5,633,555 Accounts Receivable 190,000 Allowance for Doubtful Accounts 13,300 Merchandise Inventory ...

Cash 5,633,555 Accounts Receivable 190,000 Allowance for Doubtful Accounts 13,300 Merchandise Inventory 1,454,919 Parts inventory 437,900 Prepaid insurance 20,667 Supplies 39,520 Short term Investments, FV-NI 390,000 Assets held for sale, fair value 190,000 Investments, FV-OCI 845,000 Building 2,200,000 Accumulated Depreciation: Building 1,540,000 Land 1,845,000 Vehicles 252,000 Accumulated Depreciation: Vehicles 138,600 Equipment 2,640,000 Accumulated Depreciation: Equipment 1,188,000 Bank loan 654,714 Accounts payable ...

Accounts Debits Credits cash $41,150 Account Receivable 4,806 Allowance for Doubtful Accounts 58 Inventory 2,670...

Accounts Debits Credits cash $41,150 Account Receivable 4,806 Allowance for Doubtful Accounts 58 Inventory 2,670 Prepaid Insurance 2,200 Land 20,000 Accounts Payable 1,500 Interest Payable 90 Payroll Taxes Payable 113 Wages Payable 817 Mortgage Payable 18,000 Owners investment 50,000 Retained Earnings - Sales 11,680 Repair revenue 20 Cost of goods sold 3,504 Advertising 200 Bad debt expense 58 Bank charges 50 Insurance expense 200 Payroll taxes 603 Rent 2,240 Supplies 150 Wages 4,357 Interest...

What does impairment on Accounts Receivable refer to and how is it different from bad/doubtful debts...

What does impairment on Accounts Receivable refer to and how is it different from bad/doubtful debts and its allowance?

2019 (Adjustment a) Dec. 31 Uncollectible Accounts Expense 4,290.00 Allowance for Doubtful Accounts 4,290.00 To record...

2019 (Adjustment a) Dec. 31 Uncollectible Accounts Expense 4,290.00 Allowance for Doubtful Accounts 4,290.00 To record estimated loss from Uncollectible accounts based on 0.6% of net credit sales, $715,000 (Adjustment b) 31 Supplies Expense 3,700.00 Supplies 3,700.00 To record supplies used during the year (Adjustment c) 31 Insurance Expense 1,050.00 Prepaid Insurance 1,050.00 To record expired insurance on 1-year $4,200 policy purchased on Oct. 1 (Adjustment d) 31 Depreciation. Exp.—Store Equipment 13,300.00 Accum. Depreciation—Store Equip. 13,300.00 To record depreciation (Adjustment...

Cash 800 Accounts Receivable 700 Allowance for Doubtful Acc, 20 Inventory 500 Supplies 200 Equipment 6,600...

Cash 800 Accounts Receivable 700 Allowance for Doubtful Acc, 20 Inventory 500 Supplies 200 Equipment 6,600 Accum. Dep.: Equipment 2,000 Accounts Payable 600 Notes Payable 1,000 Common Stock 2,200 Retained. Earnings 1,380 Dividends 900 Sales Revenue 7,000 Cost of Goods Sold 3,200 Salaries Expense 1,000 Sales Comm. Expense 300 Totals 14,200 14,200 INSTRUCTIONS A Enter the adjustments onto the worksheet and complete the worksheet. B Prepare the CLOSING JOURNAL ENTRIES for the period. ADJUSTMENT DATA 1 Pumpkin Company estimates...

Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has

Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $148,000, and it estimates that 5% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $2,516 credit balance before the adjustment. (b) a $740 debit balance before the adjustment.

Account Debit Credit Cash 31,680 Accounts Receivable 52,992 Notes Receivable 14,400 Interest Receivable 0 Inventory 52,128...

Account Debit Credit Cash 31,680 Accounts Receivable 52,992 Notes Receivable 14,400 Interest Receivable 0 Inventory 52,128 Prepaid Insurance 5,184 Land 28,800 Buildings 216,000 Equipment 86,400 Patent 12,960 Allowance for Doubtful Accounts 720 Accumulated Depreciation—Buildings 72,000 Accumulated Depreciation—Equipment 34,560 Accounts Payable 39,312 Salaries and Wages Payable 0 Notes Payable (due April 30, 2023) 15,840 Income Taxes Payable 0 Interest Payable 0 Notes Payable (due in 2028) 50,400 Common Stock 72,000 Retained Earnings 91,584 Dividends 17,280 Sales Revenue 1,296,000 Interest Revenue 0...

Set up following T – Accounts Cash- ? Accounts Receivable- 800,000 Allowance for bad debts- 100,000...

Set up following T – Accounts Cash- ? Accounts Receivable- 800,000 Allowance for bad debts- 100,000 Shoe Inventory-? Supplies- 50,000 Prepaid Insurance- 10,000 Equipment- 1,000,000 Accumulated Depreciation Equipment- 400,000 Auto-100,000 Accumulated Depreciation - Auto- 75,000 Accounts Payable-80,000 Wages payable-? Unearned Revenue- 40,00 note payable- 90,000 JHJ Common Stock- 2,000,000 JHJ Retained Earnings- 1,500,000 JHJ Dividends Shoe Sales Cost of Shoes Sold Rent Expense Supplies Expense Depreciation Expense Journalize the following transactions utilizing WEIGHTED AVERAGE inventory valuation method. Invested additional $200,000...

Accounts Payable 420 Accounts Receivable 3,200 Capital Stock 240 Cash 100 Cost of Goods Sold 600...

Accounts Payable 420 Accounts Receivable 3,200 Capital Stock 240 Cash 100 Cost of Goods Sold 600 Inventory 380 Long-term Debt 4,640 Net Income 280 Property, Plant, and Equipment (net) 1,400 Retained Earnings (220) Sales 3,000 Note: The retained earnings amount reported is as of the END of the year (after the closing entries have been made). Compute AVERAGE COLLECTION PERIOD (also called NUMBER OF DAYS’ SALES IN ACCOUNTS RECEIVABLE). Note: If you need to compute the average balance for any...

Question