12 Purchased supplies for P1,500 on account.15Received cash of P12,500 for services provided on June 5.17Purchased gasoline for P7,500 on account.20 Received P15,000 from customers of which P5,000 was for past accounts.Made a cash payment of P25,000 on the note payable.Received bills for utilities P5,000 but paid only P2,500.232629 Paid for the gasoline purchased on account on June 17.30 Paid P30,000 for employee salaries. A third of supplies remained on hand,Instructions:a. Show the effects of the above transactions on the accounting equation using thefollowing format.Date CashAccountsReceivableDeliveryVanNotes Accounts Fedor, Capital Revenues AccountPayable Payable (Drawings) (Expenses)TitleSuppliesb. Prepare an income statement for the month of July.c. Prepare a classified statement of financial position as at July 31did and analyze its movement prepare a working paper of cash flows.12. Fay Fedor started a delivery service, Fed Deliveries, on July 1, 2019. The followingtransactions occurred during the month of July.JulyShe contributed P100,000 cash.8412Purchased a used van for deliveries for P120,000 by paying P20,000 cash andsigned a two-year notes payable for the remaining balancePaid P15,000 for office rent for the month.35 Delivery services amounted to P44,000, half on account.Cash of P2,000 withdrawn by May.9

Accounting Equation - Accounting Equation is the horizontal way of recording balance sheet and…

12 Purchased supplies for P1,500 on account. 15 Received cash of P12,500 for services provided on June 5. 17 Purchased gasoline for P7,500 on account. 20 Received P15,000 from customers of which P5,000 was for past accounts. 23 Made a cash payment of P25,000 on the note payable. 26 Received bills for utilities P5,000 but paid only P2,500. Paid for the gasoline purchased on account on June 17. 29 30 Paid P30,000 for employee salaries. A third of supplies remained on hand, Instructions: a. Show the effects of the above transactions on the accounting equation using the following format. Date Cash Accounts Receivable Delivery Van Notes Accounts Fedor, Capital Revenues Account Title Payable Payable (Drawings) (Expenses) Supplies b. Prepare an income statement for the month of July. c. Prepare a classified statement of financial position as at July 31

12 Purchased supplies for P1,500 on account. 15 Received cash of P12,500 for services provided on June 5. 17 Purchased gasoline for P7,500 on account. 20 Received P15,000 from customers of which P5,000 was for past accounts. 23 Made a cash payment of P25,000 on the note payable. 26 Received bills for utilities P5,000 but paid only P2,500. Paid for the gasoline purchased on account on June 17. 29 30 Paid P30,000 for employee salaries. A third of supplies remained on hand, Instructions: a. Show the effects of the above transactions on the accounting equation using the following format. Date Cash Accounts Receivable Delivery Van Notes Accounts Fedor, Capital Revenues Account Title Payable Payable (Drawings) (Expenses) Supplies b. Prepare an income statement for the month of July. c. Prepare a classified statement of financial position as at July 31

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 46P: Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and...

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Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.
Scan House, Inc. prepares financial records during the year on a cash basis. As the newly appointed controller, you have been asked to prepare the annual financial statement on an accrual basis. The following cash flows occurred during the year ended December 31, 2020: Cash receipts:From customers $765,000Interest on note 3,000Loan from a local bank 200,000Total cash receipts $968,000Cash disbursements:Purchase of merchandise $450,000Annual insurance payment 12,000Payment of salaries and wages 250,000Dividends paid to shareholders 25,000Annual rent payment 36,000Total cash disbursements $773,000 Selected balance sheet information: 12/31/19 12/31/20Cash $25,000 $220,000Accounts receivable 62,000 115,000Inventory 80,000 50,000Prepaid insurance 2,500…
Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the com-pany hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. Cash sales $150,000 Collections on accounts receivable 350,000 Bank loan 90,000 Total cash receipts $590,000 The accounts receivable from customers at the end of the year are $120,000. You note that the accounts receivable at the beginning of the year were $190,000. The cash sales included $30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a.Compute the company’s accrual basis gross income for 2019. b.Would you recommend that Blue use the cash method or the…
Zambrano Wholesale Corporation maintains its records on a cash basis. At the end of each year the company’saccountant obtains the necessary information to prepare accrual basis financial statements. The following cashflows occurred during the year ended December 31, 2018:Cash receipts:From customers $675,000Interest on note 4,000Loan from a local bank 100,000Total cash receipts $779,000Cash disbursements:Purchase of merchandise $390,000Annual insurance payment 6,000Payment of salaries and wages 210,000Dividends paid to shareholders 10,000Annual rent payment 24,000Total cash disbursements $640,000Selected balance sheet information:12/31/17 12/31/18Cash $ 25,000 $164,000Accounts receivable 62,000 92,000Inventory 80,000 62,000Prepaid insurance 2,500 ?Prepaid rent 11,000 ?Interest receivable 3,000 ?Note receivable 50,000 50,000Equipment 100,000 100,000Accumulated depreciation—equipment (40,000) (50,000)Accounts payable (for merchandise) 110,000 122,000Salaries and wages payable 20,000…
On August 1, 2022, Colombo Company's treasurer signed a note promising to pay $121,800 on December 31, 2022. The proceeds of the note were $114,600. Record the journal entry to show the effects of signing the note and the receipt of the cash proceeds on August 1, 2022. Record the journal entry to show the effects of recording interest expense for the month of September. Record the journal entry to show the effects of repaying the note on December 31, 2022.
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On December 31, 2019, Taehyung Company had the following cash balances: Cash in bank- P2,500,000 Petty Cash fund (all funds were reimbursed on 12/31/2019)- P150,000 Time deposit (start date: December 1, 2019 and due February 14, 2020)- P350,000 Cash in bank included P900,000 of compensating balance against short-term borrowing arrangement on December 31, 2019. The compensating balance is legally restricted as to withdrawal. In the December 31, 2019, statement of financial position, what total amount should be reported as cash and cash equivalents?
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The cash in bank of Loveleen Company on December 31, 2018 has a balance of 1,000,000. Included among the checks drawn by Loveleen against its current account and recorded in December 2018 are: *Check written and dated December 23, 2018 and delivered to payee on January 6, 2019, P50,000. *Check written December 27, 2018 and dated January 31, 2019 delivered to payee on December 27, 2018, P75, 000. What amount of cash will be shown on December 31, 2018?