Chapter 21 Spiceland 6th edition

Chapter 21 Spiceland 6th edition - Exercise 21-1 Example F...

Info icon This preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Exercise 21-1 Example F 1. Sale of common stock I 2. Sale of land F 3. Purchase of treasury stock O 4. Merchandise sales F 5. Issuance of a long-term note payable O 6. Purchase of merchandise F 7. Repayment of note payable O 8. Employee salaries I 9. Sale of equipment at a gain F 10. Issuance of bonds I 11. Acquisition of bonds of another corporation O 12. Payment of semiannual interest on bonds payable F 13. Payment of a cash dividend I 14. Purchase of building I 15. Collection of nontrade note receivable (principal amount) I 16. Loan to another firm F 17. Retirement of common stock O 18. Income taxes F 19. Issuance of a short-term note payable I 20. Sale of a copyright Exercise 21-2 Requirement 1  ($ in millions) Inventory _____________________________________ Beginning balance90 Goods purchased 303 300 Cost of goods sold
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Ending balance 93 Accounts Payable _____________________________________ 14 Beginning balance Cash paid 301 303 Goods purchased 16 Ending balance Requirement 2 Summary Entry ($ in millions) Cost of goods sold 300 Inventory 3 Accounts payable 2 Cash (paid to suppliers of goods) 301
Image of page 2
Exercise 21-3 ($ in millions) Situation Sales Accounts Bad debt Allowance for Cash received revenue receivable expense uncollectible from accounts customers increase increase (decrease) (decrease) 1 100 -0- -0- -0- 100 1. Summary Entry Cash (received from customers) 100 Sales revenue 100 2 100 5 -0- -0- 95 2. Summary Entry Cash (received from customers) 95 Accounts receivable 5 Sales revenue 100 3 100 (5) -0- -0- 105 3.
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern