{"id":10567,"date":"2021-10-22T19:13:36","date_gmt":"2021-10-22T19:13:36","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/intermediate-accounting-accounting-homework-help\/"},"modified":"2021-10-22T19:13:36","modified_gmt":"2021-10-22T19:13:36","slug":"intermediate-accounting-accounting-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/intermediate-accounting-accounting-homework-help\/","title":{"rendered":"Intermediate accounting | Accounting homework help"},"content":{"rendered":"
\n

Question 1<\/span><\/strong><\/p>\n

Sandhill Enterprises owns the following assets at December 31, 2017.<\/span><\/p>\n\n\n\n\n\n
\n

Cash in bank\u2014savings account<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

71,700<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

Checking account balance<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

27,000<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Cash on hand<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

8,400<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

Postdated checks<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

900<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Cash refund due from IRS<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

38,800<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

Certificates of deposit (180-day)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

94,380<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


What amount should be reported as cash?<\/span><\/p>\n\n\n\n
\n

Cash to be reported<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$<\/span><\/p>\n

\"Description:<\/span>\"\"<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/span><\/p>\n

Question 2<\/span><\/strong><\/p>\n

Blue Family Importers sold goods to Tung Decorators for $45,000\u00a0on November 1, 2017, accepting Tung\u2019s $45,000,\u00a06-month,\u00a05% note.<\/span><\/p>\n

Prepare Blue\u2019s November 1 entry, December 31 annual adjusting entry, and May 1 entry for the collection of the note and interest.\u00a0(If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)<\/span><\/em><\/strong><\/p>\n

Question 3<\/span><\/strong><\/p>\n

Your accounts receivable clerk, Mitra Adams, to whom you pay a salary of $3,345\u00a0per month, has just purchased a new Acura. You decide to test the accuracy of the accounts receivable balance of $182,860\u00a0as shown in the ledger.<\/span><\/p>\n

The following information is available for your\u00a0first year<\/em>\u00a0in business.<\/p>\n\n\n\n\n\n\n
\n

(1)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

Collections from customers<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$441,540<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(2)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

Merchandise purchased<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

713,600<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(3)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

Ending merchandise inventory<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

200,700<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

(4)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

Goods are marked to sell at\u00a040% above cost<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


Compute an estimate of the ending balance of accounts receivable from customers that should appear in the ledger and any apparent shortages. Assume that all sales are made on account.<\/span><\/p>\n\n\n\n\n
\n

The ending balance of accounts receivable from customers<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$<\/span><\/p>\n

\"Description:<\/span>\"\"<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Apparent shortage<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$<\/span><\/p>\n

\"Description:<\/span>\"\"<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\u00a0<\/span><\/p>\n

Question 4<\/span><\/strong><\/p>\n

The trial balance before adjustment of Whispering Inc. shows the following balances.<\/span><\/p>\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n\n

Dr.<\/span><\/strong><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

Cr.<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

Accounts Receivable<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$96,700<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n

Allowance for Doubtful Accounts<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

3,050<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n

Sales Revenue (all on credit)<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\n

$723,000<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Give the entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts on the basis of (a)\u00a05% of gross accounts receivable and (b)\u00a06% of gross accounts receivable and Allowance for Doubtful Accounts has a $1,654 credit balance.\u00a0<\/span>(If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)<\/span><\/em><\/strong><\/p>\n

Question 5<\/span><\/strong><\/p>\n

Sandhill, Inc. decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. The following information is available for the month of April.<\/span><\/p>\n

1.<\/strong>\u00a0On April 1, it established a petty cash fund in the amount of $265.
2.<\/strong>\u00a0A summary of the petty cash expenditures made by the petty cash custodian as of April 10 is as follows.<\/p>\n\n\n\n\n\n\n\n
\n

Delivery charges paid on merchandise purchased<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$76<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Supplies purchased and used<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

41<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Postage expense<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

49<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

I.O.U. from employees<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

33<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Miscellaneous expense<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

52<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


The petty cash fund was replenished on April 10. The balance in the fund was $12.<\/span><\/p>\n

3.<\/strong>\u00a0The petty cash fund balance was increased by $116\u00a0to $381\u00a0on April 20.<\/p>\n

Prepare the journal entries to record transactions related to petty cash for the month of April.\u00a0(If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)<\/span><\/em><\/strong><\/p>\n

Question 6<\/span><\/strong><\/p>\n

Kimmel Company uses the net method of accounting for sales discounts. Kimmel also offers trade discounts to various groups of buyers.<\/span><\/p>\n

On August 1, 2017, Kimmel sold some accounts receivable on a without recourse basis. Kimmel incurred a finance charge.<\/p>\n

Kimmel also has some notes receivable bearing an appropriate rate of interest. The principal and total interest are due at maturity. The notes were received on October 1, 2017, and mature on September 30, 2019. Kimmel\u2019s operating cycle is less than one year.<\/p>\n

Using the net method, how should Kimmel account for the sales discounts at the date of sale? What is the rationale for the amount recorded as sales under the net method?Using the net method, what is the effect on Kimmel\u2019s sales revenues and net income when customers do not take the sales discounts?<\/span><\/span>What is the effect of trade discounts on sales revenues and accounts receivable? Why?<\/span><\/p>\n

How should Kimmel account for the accounts receivable factored on August 1, 2017? Why?<\/span><\/p>\n

How should Kimmel account for the note receivable and the related interest on December 31, 2017? Why?
<\/span><\/span><\/p>\n

Question 8<\/span><\/h3>\n

From inception of operations to December 31, 2017, Buffalo Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Buffalo\u2019s usual credit terms are net\u00a030\u00a0days.<\/span><\/p>\n

The balance in Allowance for Doubtful Accounts was $147,300\u00a0at January 1, 2017. During 2017, credit sales totaled $9,061,900, the provision for doubtful accounts was determined to be $181,238, $90,619 of bad debts were written off, and recoveries of accounts previously written off amounted to $16,980. Buffalo installed a computer system in November 2017,\u00a0and an aging of accounts receivable was prepared for the first time as of December 31, 2017. A summary of the aging is as follows.<\/span><\/p>\n\n\n\n\n\n\n\n\n
\n

Classification by
Month of Sale<\/span><\/strong><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

Balance in
Each Category<\/span><\/strong><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

Estimated %
Uncollectible<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n

\n

November\u2013December 2017<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

$1,265,100<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\n

2%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

July\u2013October<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

677,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\n

10%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

January\u2013June<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

421,600<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\n

24%<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Prior to 1\/1\/17<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\n

157,300<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\n

74%<\/span><\/p>\n<\/td>\n<\/tr>\n

\u00a0<\/td>\n\u00a0<\/td>\n\n

$2,521,000<\/span><\/p>\n<\/td>\n

\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


Based on the review of collectibility of the account balances in the \u201cprior to 1\/1\/17\u201d aging category, additional receivables totaling $61,300\u00a0were written off as of December 31, 2017. The\u00a074% uncollectible estimate applies to the remaining $96,000\u00a0in the category. Effective with the year ended December 31, 2017, Buffalo adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable.<\/span><\/p>\n

Prepare a schedule analyzing the changes in Allowance for Doubtful Accounts for the year ended December 31, 2017. Show supporting computations in good form. (Hint<\/em>: In computing the 12\/31\/17 allowance, subtract the $61,300\u00a0write-off.)<\/span><\/p>\n\n\n\n
\n

BUFFALO CORPORATION
Analysis of Changes in the
Allowance for Doubtful Accounts
For the Year Ended December 31, 2017<\/span><\/strong><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Question 1 Sandhill Enterprises owns the following assets at December 31, 2017. Cash in bank\u2014savings account \u00a0 71,700 \u00a0 Checking account balance \u00a0 27,000 Cash on hand \u00a0 8,400 \u00a0 Postdated checks \u00a0 900 Cash refund due from IRS \u00a0 38,800 \u00a0 Certificates of deposit (180-day) \u00a0 94,380 What amount should be reported as cash? […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-10567","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/10567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=10567"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/10567\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=10567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=10567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=10567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}