ACC chap 8
Journalize the 2024 and 2025 transactions on First Fidelity's books. Explanations are not needed. Use a 365-day year to compute interest. Round interest calculations to the nearest dollar. First Fidelity's accounting period ends on December 31. (See Learning Objective 4) Apr 1 A. Loaned $8,000 to Bland Co. received a six-month, 10% note.
2024 Apr 1 Notes Rec-BlandCo8000 Cash 8000
Journalize, without explanations, 2024 entries for Monarch and post to the Accounts Receivable and Allowance for Bad Debts T-accounts. (See Learning Objectives 1, 3) a. Total credit sales for 2024 were $80,000 (ignore Cost of Goods Sold).
Acc Rec: 80000 sales Revenue 80000
Journalize, without explanations, 2024 entries for Monarch and post to the Accounts Receivable and Allowance for Bad Debts T-accounts. (See Learning Objectives 1, 3) c. Accounts receivable identified to be uncollectible totaled $2,700.
Allow for bad debt 2700 Acc recivable 2700
Record the adjusting entry to recognize bad debts expense using the following independent situations, and then post to the Bad Debts Expense and Allowance for Bad Debts T-accounts. (See Learning Objective 3) a. 3% of credit sales were estimated to be uncollectible.
Bad debt expense 2,400 Allow for bad debt 2,400 (80,000 x 0.03 = 2,400)
Record the adjusting entry to recognize bad debts expense using the following independent situations, and then post to the Bad Debts Expense and Allowance for Bad Debts T-accounts. (See Learning Objective 3) b. An aging of receivables indicates that $2,200 of the receivables are estimated to be uncollectible.
Bad debts exp 2,900 Allow for bad debt 2900
Journalize the 2024 and 2025 transactions on First Fidelity's books. Explanations are not needed. Use a 365-day year to compute interest. Round interest calculations to the nearest dollar. First Fidelity's accounting period ends on December 31. (See Learning Objective 4) E. Collected the Flores note at maturity
Cash 6355 notes rec-flores inc 6000 interest rec 59 Interst reveue 296
Journalize, without explanations, 2024 entries for Monarch and post to the Accounts Receivable and Allowance for Bad Debts T-accounts. (See Learning Objectives 1, 3) b. Monarch received cash payments on account during 2024 of $74,300.
Cash 74300 acc rec 74300
Journalize the 2024 and 2025 transactions on First Fidelity's books. Explanations are not needed. Use a 365-day year to compute interest. Round interest calculations to the nearest dollar. First Fidelity's accounting period ends on December 31. (See Learning Objective 4) c. Loaned 6000 to flores, inc on a 180-day, 12% note
Dec 1 Notesrec-Flores Inc6000 cash 6000
Journalize the 2024 and 2025 transactions on First Fidelity's books. Explanations are not needed. Use a 365-day year to compute interest. Round interest calculations to the nearest dollar. First Fidelity's accounting period ends on December 31. (See Learning Objective 4) d. Accrued interest revenue on the flores note
Dec 31 Interest Rec 59 interstRevenue(6000x0.12x30/365) 59
Monarch Map Company's balance sheet at December 31, 2023, reported the following: Acc rec : 60,000 Allowance for bad debts : 2000
Net realizable value of receivables=$60,000−$2,000=$58,000
Journalize the 2024 and 2025 transactions on First Fidelity's books. Explanations are not needed. Use a 365-day year to compute interest. Round interest calculations to the nearest dollar. First Fidelity's accounting period ends on December 31. (See Learning Objective 4) b. Collected the Bland note at maturity
Oct 1 D.Cash (8000+400) 8400 C.notesrec-blandco8000 C.interest Rev 400
