{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Week 2 - Suggested solutions to homework questions Week 2...

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

Suggested solutions to homework questions – Week 2 Problem 5.27 1. \$1 693 784 2. \$1 599 005 3. \$8 293 4. \$9 117 5. \$331 106 – \$12 738 = \$318 368 6. Accounts receivable = \$244 620 + \$1 693 784 – \$1 599 005 = \$339 399 Allowance = \$11 914 + \$9 117 = \$21 031 Collectible value = \$339 399 – \$21 031 = \$318 368 (same as part 5) Problem 5.12 1 a Dr Bad Debt Expense \$2 400* Cr Accounts Receivable \$2 400 b Dr Depreciation expense \$13 000 Cr Accumulated depreciation \$13 000 c Dr Accounts receivable \$11 200 Cr Revenue \$11 200 d Dr COGS \$4 600 Cr Inventory \$4 600 e Dr Interest expense \$900 Cr Interest payable \$900 f Dr Bonus expense \$5 000 Cr Bonus payable \$5 000 g Dr Income tax expense \$2 700 Cr Income tax payable \$2 700 *Please note, bad debt directly written off to expense as no allowance for doubtful debt exists. You may wish to elaborate on how the journal entry would change if an allowance for doubt debt existed.

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

View Full Document
2. Accounts Receivable Bal b/d 88200 Bad debts 2400 Revenue 11200 Bal c/d 97000 99400 99400 Bal b/d 97000 Accumulated Depreciation Bal b/d 0 Dep exp 13000 Bal c/d 13000 13000 13000 Bal b/d 13000 Inventory Bal b/d 116900 COGS 4600 Bal c/d 112300 116900 116900 Bal b/d 112300 Interest Payable Bal b/d 0 Bal c/d 900 Interest Exp 900 900 900 Bal b/d 900 Bonus Payable Bal b/d 0 Bal c/d 5000 Bonus Exp 5000 5000 5000 Bal b/d 5000 Income Tax Payable Bal b/d 0 Bal c/d 2700 Income Tax Exp 2700 2700 2700 Bal b/d 2700