Accounting for uncollectible accounts using the allowance method (percent-of-receivables) and reporting receivables on the balance sheet

At January 1, 2016, Carl's Garage had Accounts Receivable of $ 34,000 and Allowance for Bad Debts had a credit balance of $ 3,000. During the year, Carl's Garage recorded the following:

a.   Sales of $189,000 ($165,000 on account; $ 24,000 for cash).
b.   Collections on account, $ 133,000.
c.   Write-offs of uncollectible receivables, $ 2,800.

Requirements
1.   Journalize Carl’s transactions that occurred during 2016. The company uses the allowance method.
2.   Post Carl’s transactions to the Accounts Receivable and Allowance for Bad Debts T-accounts.
3.   Journalize Carl’s adjustment to record bad debts expense assuming Carl estimates bad debts as 1% of receivables. Post the adjustment to the appropriate T- accounts.
4.   Show how Carl's Garage will report net accounts receivable on its December 31, 2016 balance sheet.

For a recent 2-year period, the balance sheet of Grouper Company showed the following stockholders’ equity data at December 31 (in millions).

(a) Answer the following questions.

(1) What is the par value of the common stock? (Round par value to 2 decimal places, e.g. $3.15.)

(2) What is the cost per share of treasury stock at December 31, 2017, and at December 31, 2016?

(b) Prepare the stockholders’ equity section at December 31, 2017.

What actions taken by the Bank of Canada in 2015 and 2016 would you expect to have influenced real GDP growth in 2018? Explain how those policy actions would transmit to real GDP. In 2015 and 2016, the Bank of Canada kept the overnight rate low. This policy would transmit to real GDP by all of the following except ______

A. an increase in net exports

B. an increase in investment

C. an increase in consumption expenditure

D. an increase in short-run aggregate supply

Draw a graph of aggregate demand and aggregate supply to illustrate your answer to the previous question. The graph shows the aggregate demand curve and the short-run aggregate supply in Canada in 2016. Suppose the Bank of Canada keeps the overnight rate low, which lowers the real interest rate and stimlates the economy. Draw a curve to show the Bank's desired effect. Label it. Draw a point at the new equilibrium price level and new equilibrium real GDP.

Question 2: Manufacturing Statement and Income Statement

Lake Ltd.’s accounting department provided following financial information:

Required: prepare a statement of Cost of Goods Manufactured and an Income Statement for Lake Ltd. for the year ended 30^th June 2017. You can prepare the statements in an Excel spreadsheet then paste into Word.

What is the cash flow of the firm, or CF(A), for 2017?

1)    Fill in the blanks to complete Whole Food’s Income Statement ($ millions).

2) )   Fill in the blanks to complete Whole Food’s Balance Sheet ($ millions).

3) Whole Foods reports the following balances in its stockholders’ equity accounts. Fill in the blanks.

The following transactions affected Alpenrose Corporation’s merchandise inventory during the month of March 2016: March 1 — Inventory on hand — 3,000 units; cost $8.00 each. March 8 — Purchased 5,000 units for $8.20 each on account. March 14 — Sold 4,000 units for $14.00 each on account. March 18 — Purchased 6,000 units for $8.40 each on account. March 25 — Sold 2,000 units for $14.00 each on account. March 31 — Inventory on hand — 8,000 units.

Alpenrose uses periodic inventory system. Determine the inventory balance Alpenrose would report on its March 31, 2016, balance sheet and the cost of goods sold it would report on its March 2016, income statement using each of the following cost flow methods:

         1.       First-in, first-out (FIFO)

         2.       Last-in, first-out (LIFO)

         3.       Average cost (round the average cost per unit to the nearest dollar)