Wig Creations Company supplies wigs and hair care products to beauty salons throughout Texas and the Southwest. The accounts receivable clerk for Wig Creations prepared the following partially completed aging of receivables schedule as of the end of business on December 31, 20Y7:
Wig Creations has a past history of uncollectible accounts by age category, as follows:
Percent
Age Class Uncollectible
Not past due â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦ 1%
1â30 days past due â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦. 4
31â60 days past due â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦. 16
61â90 days past due â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦ 25
91â120 days past due â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦. 40
Over 120 days past due â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦â¦ 80
Instructions:
1. Determine the number of days past due for each of the preceding accounts.
2. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals.
3. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule.
4. Assume that the allowance for doubtful accounts for Wig Creations has a credit balance of $7,375 before adjustment on December 31. Journalize the adjustment for uncollectible accounts.
5. Assume that the adjusting entry in (4) was inadvertently omitted, how would the omission affect the balance sheet and income statement?
> Alert Security Services Co. offers security services to business clients. Complete the following end-of-period spreadsheet for Alert Security Services Co.:,,,
> Financial information related to Ebony Interiors for February and March 2013 is as follows:a. Prepare balance sheets for Ebony Interiors as of February 28 and March 31, 2013.b. Determine the amount of net income for March, assuming that no additional com
> On January 1 of Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31 of Year 1.a. Prepare a table for this installment note, similar to the o
> Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services has been prepared on the following end-of-period spreadsheet for the year ended October 31, 20Y3:a. Fees earned, but not yet billed, $
> Imaging Services was organized on March 1, 20Y5. A summary of the revenue and expense transactions for March follows:Fees earned ……………………………………………………………………… $482,000Wages expense …………………………………………………………………… 300,000Rent expense ………………………………………………………………….……
> Determine the due date and the amount of interest due at maturity on the following notes:,,,
> Financial information related to Organic Products Company for the month ended June 30, 2019, is as follows:Net income for June …………………………………………………………….…………. $ 115,000Dividends paid in June …………………………………………………………….…………. 25,000Common stock, June 1, 2019 ……
> Selected data (in thousands) derived from the income statement and balance sheet of National Beverage Corp. for a recent year are as follows:Income statement data:Net income ……………………………………………………………………………………. $49,311Gain on disposal of property …………………………
> Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 60,000 shares of cumulative preferred 2% stock, $60 par and 300,000 shares of $20 par common. During its first four years of operations, the following amounts were di
> Based upon the data presented in Exercise 2-13, (a) prepare an unadjusted trial balance, listing the accounts in their proper order. (b) Based upon the unadjusted trial balance, determine the net income or net loss.Exercise 2-13:Rocky Mountain Tours Co.
> On the basis of the following data, determine the value of the inventory at the lower of cost or market applied to (a) each item in the inventory, (b) each class of inventory, and (c) total inventory. Assemble the data in the form illustrated in Exhibit
> According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $25,000 was subject to state and federal unemployment taxes.a. Calculate the employer’s payroll taxes,
> On December 31, 20Y5, the balances of the accounts appearing in the ledger of Wyman Company are as follows:Instructions:1. Does Wyman Company use a periodic or perpetual inventory system? Explain.2. Prepare a multiple-step income statement for Wyman Comp
> On June 30, 20Y9, the balances of the accounts appearing in the ledger of Simkins Company are as follows:Instructions:1. Does Simkins Company use a periodic or perpetual inventory system? Explain.2. Prepare a multiple-step income statement for Simkins Co
> The following selected transactions were completed during July of the current year:1. Billed customers for fees earned, $112,700.2. Purchased supplies on account, $4,500.3. Received cash from customers on account, $88,220.4. Paid creditors on account, $3
> Evers Industries has a past history of uncollectible accounts, as follows. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule you completed in Exercise 8-8.
> The accounts receivable clerk for Evers Industries prepared the following partially completed aging of receivables schedule as of the end of business on July 31:The following accounts were unintentionally omitted from the aging schedule and not included
> Assume that the business in Exercise 6-5 maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustra
> Selected accounts and related amounts for Kanpur Co. for the fiscal year ended June 30, 20Y7, are presented in Problem 5-5B.Problem 5-5B:The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year end
> For the past several years, Jeff Horton has operated a part-time consulting business from his home. As of April 1, 20Y6, Jeff decided to move to rented quarters and to operate the business, which was to be known as Rosebud Consulting, on a full-time basi
> Selected accounts and related amounts for Clairemont Co. for the fiscal year ended May 31, 20Y2, are presented in Problem 5-5A.Problem 5-5A:The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal y
> Beginning inventory, purchases, and sales data for prepaid cell phones for December are as follows:Exhibit 4:b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method?
> Dev’s Dry Cleaners is owned and operated by Beverly Zahn. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets, liabilities, an
> Sunshine Interiors deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of July 31, 20Y0, have been taken from various documents and records and are reproduc
> The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 20Y7:Instructions:1. Prepare a multiple-step income statement.2. Prepare a statement of stockholders’ equit
> D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another company at wholesale rates. The assets, liabilities, and
> Sears Editing Company is a small editorial services company owned and operated by Deloris Sears. On January 31, 20Y1, the end of the current year, Sears Editing Company’s accounting clerk prepared the following unadjusted trial balance:
> The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is as follows:Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:a. The investments were sold for $175,000 cash.b. Equipment and
> Beeler Furniture Company deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of June 30, 20Y2, have been taken from various documents and records and are re
> The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2:Instructions:1. Prepare a multiple-step income statement.2. Prepare a statement of stockholders’ eq
> The unadjusted trial balance of Recessive Interiors at January 31, 20Y2, the end of the year, follows:The data needed to determine year-end adjustments are as follows:(a) Supplies on hand at January 31 are $2,850.(b) Insurance premiums expired during the
> For the past several years, Steffy Lopez has operated a part-time consulting business from his home. As of July 1, 20Y2, Steffy decided to move to rented quarters and to operate the business, which was to be known as Diamond Consulting, on a full-time ba
> Income statement data for Winthrop Company for two recent years ended December 31 are as follows:b. What conclusions can be drawn from the horizontal analysis?
> Assume that the business in Exercise 6-3 maintains a perpetual inventory system, costing by the last-in, first-out method. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrat
> The unadjusted trial balance of Lakota Freight Co. at March 31, 20Y4, the end of the year, follows:The data needed to determine year-end adjustments are as follows:(a) Supplies on hand at March 31 are $7,500.(b) Insurance premiums expired during year are
> Morrow Enterprises Inc. manufactures bathroom fixtures. Morrow Enterprises’ stockholders’ equity accounts, with balances on January 1, 20Y6, are as follows:Common Stock, $20 stated value (500,000 shares authorized, 375
> The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $5,140. During October, the total cash deposited was $39,175, and checks written totaled $40,520. The bank statement indicated a balance of $8,980 on October 31, 20Y9. Compa
> Seth Feye established Reliance Financial Services on July 1, 20Y2. Reliance Financial Services offers financial planning advice to its clients. The effect of each transaction and the balances after each transaction for July follow:1. Prepare an income st
> Jose Loder established Bronco Consulting on August 1, 20Y1. The effect of each transaction and the balances after each transaction for August follow:Instructions:1. Prepare an income statement for the month ended August 31, 20Y1.2. Prepare a statement of
> The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:Instructions:1. Journalize the entries to record the foregoing transactions.2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2.3. Dete
> On October 1, 20Y4, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business:Enter the following transactions on Page 2 of the two-column journal:21. Paid c
> The unadjusted trial balance of La Mesa Laundry at August 31, 20Y5, the end of the fiscal year, follows:The data needed to determine year-end adjustments are as follows:(a) Wages accrued but not paid at August 31 are $2,200.(b) Depreciation of equipment
> The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:Instructions:1. Journalize the entries to record the transactions. Round all amounts to the nearest dollar.2. Indicate the amount of the interest expense
> Ehrlich Co. began business on January 2. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in the middle of the mon
> The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records rev
> The unadjusted trial balance of Epicenter Laundry at June 30, 20Y6, the end of the fiscal year, follows:The data needed to determine year-end adjustments are as follows:(a) Laundry supplies on hand at June 30 are $8,600.(b) Insurance premiums expired dur
> On November 1, 20Y9, Lexi Martin established an interior decorating business, Heritage Designs. During the month, Lexi completed the following transactions related to the business: Enter the following transactions on Page 2 of the two-column journal:29.
> The following comparative income statement (in thousands of dollars) for two recent fiscal years was adapted from the annual report of Speedway Motorsports, Inc. (TRK), owner and operator of several major motor speedways, such as the Atlanta, Texas, and
> The assets and liabilities of Wilderness Travel Service on April 30, 20Y7, and its revenue and expenses for the year are as follows:Common stock was $25,000 and retained earnings was $155,000 as of May 1, 20Y6. During the year, additional common stock of
> The beginning inventory for Dunne Co. and data on purchases and sales for a three-month period are shown in Problem 6-1B.Problem 6-1B:The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as foll
> The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to other businesses and occasionally to retail customers:Instructions:Journalize the entries to record the transactions of Green Lawn
> Last Chance Company offers legal consulting advice to prison inmates. Last Chance prepared the end-of-period spreadsheet that follows at June 30, 20Y3, the end of the fiscal year.Instructions:1. Prepare an income statement for the year ended June 30, 20Y
> On August 1, 20Y7, Rafael Masey established Planet Realty, which completed the following transactions during the month:a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $
> The assets and liabilities of Global Travel Agency on December 31, 20Y5, and its revenue and expenses for the year are as follows:Common stock was $525,000 and retained earnings was $1,250,000 as of January 1, 20Y5. During the year, additional common sto
> The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows:Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:a. Net income, $250
> Trophy Fish Company supplies flies and fishing gear to sporting goods stores and outfitters throughout the western United States. The accounts receivable clerk for Trophy Fish prepared the following partially completed aging of receivables schedule as of
> Wyoming Restoration Company completed the following selected transactions during July 20Y1:Instructions:Journalize the transactions
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> On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month:a. Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock
> Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 20Y8. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following
> The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period ending June 30 are as follows:Instructions:1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one il
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> Using the general periodic table you developed in Question 25, show how the valence-electron configuration of most of the elements can be written just by knowing the relative location of the element on the table. Give specific examples. From 15: Nob
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> List the order in which the orbitals are filled as the atoms beyond hydrogen are built up. How many electrons overall can be accommodated in the first and second principal energy levels? How many electrons can be placed in a given s subshell? In a given
> Summarize the postulates of the wave mechanical model of the atom.
> Describe electron spin. How does electron spin affect the total number of electrons that can be accommodated in a given orbital? What does the Pauli exclusion principle tell us about electrons and their spins?
> Describe the sublevels and orbitals that constitute the third and fourth principal energy levels of hydrogen. How is each of the orbitals designated and what are the general shapes of their probability maps?
> Use the wave mechanical picture of the hydrogen atom to describe what happens when the atom absorbs energy and moves to an “excited” state. What do the principal energy levels and their sublevels represent for a hydrogen atom? How do we designate specifi
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> Do atoms in excited states emit radiation randomly, at any wavelength? Why? What does it mean to say that the hydrogen atom has only certain discrete energy levels available? How do we know this? Why was the quantization of energy levels surprising to sc
> Explain what it means for an atom to be in an excited state and what it means for an atom to be in its ground state. How does an excited atom return to its ground state? What is a photon? How is the wavelength (color) of light related to the energy of th
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> The first law of thermodynamics indicates that the total energy content of the universe is constant. If this is true, why do we worry about “energy conservation”? What do we mean by the quality of energy, rather than the quantity? Give an example. Althou
> Hess’s law is often confusing to students. Imagine you are talking to a friend who has not taken any science courses. Using the reactions P4(s) + 6Cl2(g) / 4PCl3(g) (H = 22.44 * 103 kJ 4PCl5(g) / P4(s) + 10Cl2(g) (H = 3.43 * 103 kJ Explain to your frie
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> This chemistry course may have been the first time you have encountered the method of dimensional analysis in problem solving. Explain the terms conversion factor and equivalence statement. Give an everyday example of how you might use dimensional analys
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> What is the study of energy and energy changes called? What is the “first law” of thermodynamics and what does it mean? What do scientists mean by the internal energy of a system? Is the internal energy the same as heat?
> When describing a reaction, a chemist might refer to the system and the surroundings. Explain each of these terms. If a reaction is endothermic, does heat travel from the surroundings into the system, or from the system into the surroundings? Suppose a r
> What does temperature measure? Are the molecules in a beaker of warm water moving at the same speed as the molecules in a beaker of cold water? Explain. What is heat? Is heat the same as temperature?
> What is potential energy? What is kinetic energy? What do we mean by the law of conservation of energy? What do scientists mean by work? Explain what scientists mean by a state function and give an example of one.
> Solid calcium carbide (CaC2) reacts with liquid water to produce acetylene gas (C2H2) and aqueous calcium hydroxide. a. Write the balanced equation for the reaction that is occurring, including all phases. b. If a 100.0-g sample of calcium carbide (CaC
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> Consider 2.45-g samples of each of the following elements or compounds. Calculate the number of moles of the element or compound present in each sample. a. Fe2O3(s) b. P4(s) c. Cl2(g) d. Hg2O(s) e. HgO(s) f. Ca(NO3)2(s) g. C3H8(g) h. Al2(SO4)3(s)
> What do we mean by the theoretical yield for a reaction? What is meant by the actual yield? Why might the actual yield for an experiment be less than the theoretical yield? Can the actual yield be more than the theoretical yield?
> After studying a few chapters of this text, and perhaps having done a few lab experiments and taken a few quizzes in chemistry, you are probably sick of hearing the term significant figures. Most chemistry teachers make a big deal about significant figur
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> What is meant by a limiting reactant in a particular reaction? In what way is the reaction “limited”? What does it mean to say that one or more of the reactants are present in excess? What happens to a reaction when the limiting reactant is used up?
> In the practice of chemistry one of the most important calculations concerns the masses of products expected when particular masses of reactants are used in an experiment. For example, chemists judge the practicality and efficiency of a reaction by seein
> Consider the unbalanced equation for the combustion of propane: C3H8(g) + O2(g) / CO2(g) + H2O(g) First, balance the equation. Then, for a given amount of propane, write the mole ratios that would enable you to calculate the number of moles of each pro
> Balanced chemical equations give us information in terms of individual molecules reacting in the proportions indicated by the coefficients, and also in terms of macroscopic amounts (that is, moles). Write a balanced chemical equation of your choice, and