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LP1 Chap 8 Solutions

LP1 Chap 8 Solutions - P8-27A(25-35 min Req 1 Journal Entry...

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Unformatted text preview: P8-27A (25-35 min) Req. 1 Journal Entry Date Dec. Accounts 28 Allowance for uncollectible accounts Accounts receivable - Black Co. Accounts receivable - Jim Waters Accounts receivable - Moon, Inc. 31 Uncollectible-account expense Allowance for uncollectible accounts Debit 3,100 Credit 1,700 1,000 400 Dec. 4,900 4,900 Req. 2 Allowance for uncollectible accounts 3,100 3,300 4,900 5,100 Req. 3 South Terrace Medical Center Balance Sheet (partial) December 31, 2011 Accounts receivable Less: Allowance for uncollectible accounts Accounts receivable, net $166,000 (5,100) $160,900 P8-30A (35-45 min) Req. 1 Note (1) (2) (3) Req. 2 Due date Month/ Day Year June Dec. Dec. 1 30 18 2011 2010 2010 Maturity value $19,800 15,413 7,105 Date 2010 Jun. Journal Entry Accounts 1 Note receivable (Note 1) Cash Debit 18,000 Credit 750 18,000 Sep. 30 Note receivable (Note 2) Cash 15,000 15,000 138 Oct. 19 Note receivable (Note 3) Cash 7,000 7,000 21 Oct. 31 Interest receivable Interest revenue 909 909 909 30 30 30 30 30 Req. 3 Date 2011 June Journal Entry Accounts 1 Cash Note receivable (Note 1) Interest receivable Interest revenue Debit 19,800 Credit 1800 = = = 1800 18000*.1*150/360 18000*.1*210/360 150 150 days 210 days 18,000 750 1,050 750 1050 2010 Dec. 30 Cash Note receivable (Note 2) Interest receivable Interest revenue 15,413 15,000 138 275 413 = = = 413 15000*.11*30/360 15000*.11*60/360 138 275 30 days 60 days 2010 Dec. 18 Cash Note receivable (Note 3) Interest receivable Interest revenue 7,105 7,000 21 84 105 21 84 = = = 105 7000*.09*12/360 7000*.09*48/360 12 days 48 days P8-32A (20-30 min) Req. 1 2012 a. b. c. Current ratio Acid-test ratio Days' sales in receivables = = = 2011 1.56 1.31 0.82 0.77 17 days 18 days Req. 2 The current ratio improved from 2011 to 2012. This trend is favorable the company. The acid-test ratio improved from 2011 to 2012. This trend is favorable the company. The days sales in receivable improved from 2011 to 2012. This trend is favorable the company. ...
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LP1 Chap 8 Solutions - P8-27A(25-35 min Req 1 Journal Entry...

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