Record the following transactions for the Scott Company:
November 4 Received a $6,500, 90-day, 6% notefrom Michael Timâs in payment of his account. December 31 Accrued interest on the Timâsnote. February 2 Received the amount due from Timâson his note.
Required:
Journalize the abovetransactions. Refer to the Chart of Accounts for exact wording ofaccount titles. Round your answers to two decimalplaces.
Journalize the entry for thetransaction on November 4. Refer to the Chart of Accounts for exactwording of account titles.
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DATE DESCRIPTION POST.REF. DEBIT CREDIT 1
2
Journalize the entry for thetransaction on December 31. Refer to the Chart of Accounts forexact wording of account titles. Round your answers to two decimalplaces.
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DATE DESCRIPTION POST.REF. DEBIT CREDIT 1
2
Journalize the entry for thetransaction on February 2. Refer to the Chart of Accounts for exactwording of account titles. Round your answers to two decimalplaces.
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DATE DESCRIPTION POST.REF. DEBIT CREDIT 1
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Record the following transactions for the Scott Company:
| November 4 | Received a $6,500, 90-day, 6% notefrom Michael Timâs in payment of his account. |
| December 31 | Accrued interest on the Timâsnote. |
| February 2 | Received the amount due from Timâson his note. |
Required:
Journalize the abovetransactions. Refer to the Chart of Accounts for exact wording ofaccount titles. Round your answers to two decimalplaces.
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Related questions
Flush Mate Co. wholesales bathroom fixtures. During the currentfiscal year, Flush Mate Co. received the following notes:
| Date | FaceAmount | Term | Interest Rate | |
|---|---|---|---|---|
| 1. | Mar. 6 | $79,600 | 45days | 6% |
| 2. | Apr. 23 | 27,900 | 60days | 8% |
| 3. | July 20 | 41,500 | 120days | 7% |
| 4. | Sept. 6 | 51,500 | 90days | 8% |
| 5. | Nov. 29 | 30,800 | 60days | 7% |
| 6. | Dec. 30 | 69,300 | 30days | 5% |
| Required: | ||||||||||||||||||||||
| 1. | Determine for each note (a) thedue date and (b) the amount of interest due at maturity,identifying each note by number. (Note: Round eachinterest computation to the whole dollar.) | |||||||||||||||||||||
| 2. | Journalize the entry to recordthe dishonor of Note (3) on its due date. Refer to the Chart ofAccounts for exact wording of account titles. | |||||||||||||||||||||
| 3. | Journalize the adjusting entryto record the accrued interest on Notes (5) and (6) on December 31.Refer to the Chart of Accounts for exact wording of accounttitles. | |||||||||||||||||||||
| 4. | Journalize the entries to record the receipt of the amountsdue on Notes (5) and (6) in January. Refer to the Chart of Accountsfor exact wording of account titles. Starting Queston 1. Determine for each note (a) the due date and (b) the amountof interest due at maturity, identifying each note by number.(Note: Round each interest computation to thewhole dollar.)
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Journal
Flush Mate Co. wholesales bathroom fixtures. During the currentfiscal year, Flush Mate Co. received the following notes:
| Date | FaceAmount | Term | Interest Rate | |
|---|---|---|---|---|
| 1. | Mar. 6 | $79,600 | 45days | 6% |
| 2. | Apr. 23 | 27,900 | 60days | 8% |
| 3. | July 20 | 41,500 | 120days | 7% |
| 4. | Sept. 6 | 51,500 | 90days | 8% |
| 5. | Nov. 29 | 30,800 | 60days | 7% |
| 6. | Dec. 30 | 69,300 | 30days | 5% |
| Required: | |
| 1. | Determine for each note (a) thedue date and (b) the amount of interest due at maturity,identifying each note by number. (Note: Round eachinterest computation to the whole dollar.) |
| 2. | Journalize the entry to recordthe dishonor of Note (3) on its due date. Refer to the Chart ofAccounts for exact wording of account titles. |
| 3. | Journalize the adjusting entryto record the accrued interest on Notes (5) and (6) on December 31.Refer to the Chart of Accounts for exact wording of accounttitles. |
| 4. | Journalize the entries torecord the receipt of the amounts due on Notes (5) and (6) inJanuary. Refer to the Chart of Accounts for exact wording ofaccount titles. |
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Starting Question
1. Determine for each note (a) the due date and (b) the amountof interest due at maturity, identifying each note by number.(Note: Round each interest computation to thewhole dollar.)
| Note | DueDate | Interest Due at Maturity |
|---|---|---|
| 1. | $ | |
| 2. | $ | |
| 3. | $ | |
| 4. | $ | |
| 5. | $ | |
| 6. | $ |
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Journal
2. Journalize the entry to record the dishonor of Note (3) onits due date. Refer to the Chart of Accounts for exact wording ofaccount titles.
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| DATE | DESCRIPTION | POST.REF. | DEBIT | CREDIT | |
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3. Journalize the adjusting entry to record the accrued intereston Notes (5) and (6) on December 31. Refer to the Chart of Accountsfor exact wording of account titles.
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| DATE | DESCRIPTION | POST.REF. | DEBIT | CREDIT | |
|---|---|---|---|---|---|
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4. Journalize the entries to record the receipt of the amountsdue on Notes (5) and (6) in January. Refer to the Chart of Accountsfor exact wording of account titles.
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The following selected transactions were taken from the recordsof Shipway Company for the first year of its operations endingDecember 31, 2016:
| Apr. | 13. | Wrote off account of Dean Sheppard,$8,460. | |
| May | 15. | Received $550 as partial payment onthe $7,040 account of Dan Pyle. Wrote off the remaining balance asuncollectible. | |
| July | 27. | Received $8,460 from Dean Sheppard,whose account had been written off on April 13. Reinstated theaccount and recorded the cash receipt. | |
| Dec. | 31. | Wrote off the following accounts asuncollectible (record as one journal entry): | |
| Paul Chapman | $2,055 | ||
| Duane DeRosa | 3,580 | ||
| Teresa Galloway | 4,760 | ||
| Ernie Klatt | 1,480 | ||
| Marty Richey | 1,690 | ||
| 31. | If necessary, record the year-endadjusting entry for uncollectible accounts. |
Required:
| A. | Journalize the transactions for2016 under the direct write-off method. If no entry is required,simply skip to the next transaction. Refer to the Chart of Accountsfor exact wording of account titles. |
| B. | Journalize the transactions for2016 under the allowance method. Shipway Company uses the percentof credit sales method of estimating uncollectible accountsexpense. Based on past history and industry averages, 0.90% ofcredit sales are expected to be uncollectible. Shipway Companyrecorded $3,788,000 of credit sales during 2016. If no entry isrequired, simply skip to the next transaction. Refer to the Chartof Accounts for exact wording of account titles. |
| C. | How much higher (lower) wouldShipway Companyâs net income have been under the direct write-offmethod than under the allowance method? |
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Journal
A. Journalize the transactions for 2016 under the directwrite-off method. If no entry is required, simply skip to the nexttransaction. Refer to the Chart of Accounts for exact wording ofaccount titles.
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The following selected transactions were taken from the recordsof Shipway Company for the first year of its operations endingDecember 31, 2016:
| Apr. | 13. | Wrote off account of Dean Sheppard,$8,460. | |
| May | 15. | Received $550 as partial payment onthe $7,040 account of Dan Pyle. Wrote off the remaining balance asuncollectible. | |
| July | 27. | Received $8,460 from Dean Sheppard,whose account had been written off on April 13. Reinstated theaccount and recorded the cash receipt. | |
| Dec. | 31. | Wrote off the following accounts asuncollectible (record as one journal entry): | |
| Paul Chapman | $2,055 | ||
| Duane DeRosa | 3,580 | ||
| Teresa Galloway | 4,760 | ||
| Ernie Klatt | 1,480 | ||
| Marty Richey | 1,690 | ||
| 31. | If necessary, record the year-endadjusting entry for uncollectible accounts. |
Required:
| A. | Journalize the transactions for2016 under the direct write-off method. If no entry is required,simply skip to the next transaction. Refer to the Chart of Accountsfor exact wording of account titles. |
| B. | Journalize the transactions for2016 under the allowance method. Shipway Company uses the percentof credit sales method of estimating uncollectible accountsexpense. Based on past history and industry averages, 0.90% ofcredit sales are expected to be uncollectible. Shipway Companyrecorded $3,788,000 of credit sales during 2016. If no entry isrequired, simply skip to the next transaction. Refer to the Chartof Accounts for exact wording of account titles. |
| C. | How much higher (lower) wouldShipway Companyâs net income have been under the direct write-offmethod than under the allowance method? |
X
Journal
A. Journalize the transactions for 2016 under the directwrite-off method. If no entry is required, simply skip to the nexttransaction. Refer to the Chart of Accounts for exact wording ofaccount titles.
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B. Journalize the transactions for 2016 under the allowancemethod. Shipway Company uses the percent of credit sales method ofestimating uncollectible accounts expense. Based on past historyand industry averages, 0.90% of credit sales are expected to beuncollectible. Shipway Company recorded $3,788,000 of credit salesduring 2016. If no entry is required, simply skip to the nexttransaction. Refer to the Chart of Accounts for exact wording ofaccount titles.
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C. How much higher (lower) would Shipway Companyâs net incomehave been under the direct write-off method than under theallowance method?
Higher or Lower or No Change by $____
Selected transactions completed by Canyon Ferry BoatingCorporation during the current fiscal year are as follows:
| Jan. | 8 | Split the common stock 2 for 1 andreduced the par from $80 to $40 per share. After the split, therewere 123,000 common shares outstanding. |
| Apr. | 30 | Declared semiannual dividends of$0.80 on 16,500 shares of preferred stock and $0.27 on the commonstock payable on July 1. |
| Jul. | 1 | Paid the cash dividends. |
| Oct. | 31 | Declared semiannual dividends of$0.80 on the preferred stock and $0.15 on the common stock (beforethe stock dividend). In addition, a 3% common stock dividend wasdeclared on the common stock outstanding. The fair market value ofthe common stock is estimated at $51. |
| Dec. | 31 | Paid the cash dividends and issuedthe certificates for the common stock dividend. |
Journalize the transactions. If no entry is required, simplyskip to the next transaction. Refer to the Chart of Accounts forexact wording of account titles.
Journalize the transactions. If no entry is required, simplyskip to the next transaction. Refer to the Chart of Accounts forexact wording of account titles. Enter the October 31 and December31 transactions as two separate journal entries on each date.
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