Receivable credits 657000 45000 land 225000 salaries

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Unformatted text preview: payable, revenues, and selected expense accounts. Use T-accounts to analyze this activity and determine the ending balances for accounts receivable and accounts payable. At the beginning of the period, accounts receivable totaled $108,600, while accounts payable totaled $62,550. The company started the period with $170,000 in cash. Transaction #1 Services were provided to customers for cash in the amount of $30,460. Transaction #2 Supplies were purchased and used. This purchase occurred on account, in the amount of $4,800. Transaction #3 Collections of outstanding receivables occurred in the amount of $38,820. Transaction #4 Utilities costs in the amount of $1,526 were incurred and paid in cash. Transaction #5 Payments on outstanding accounts payable were made for $47,800. Transaction #6 Services were provided to customers on account in the amount of $97,308. Worksheet 4 CASH 1/1/X1 #1 REVENUES 170,000 15,230 15,230 ACCOUNTS RECEIVABLE 1/1/X1 #1 SUPPLIES EXPENSE 108,600 ACCOUNTS PAYABLE 62,550 UTILITIES EXPENSE 1/1/X1 The T-accounts reveal that ending Accounts Receivable amount to $_____________, and ending Accounts Payable amount to $ . Download free eBooks at bookboon.com 19 Accounting Cycle Exercises II Problem 4: Solution Solution 4 CASH 1/1/X1 REVENUES 170,000 1,526 #4 30,460 #1 #1 30,460 47,800 #5 97,308 #6 #3 38,820 ACCOUNTS RECEIVABLE 1/1/X1 #3 #2 62,550 1/1/X1 #4 4,800 #6 108,600 38,820 SUPPLIES EXPENSE 4,800 #2 97,308 205,908 38,820 167,088 ACCOUNTS PAYABLE #5 47,800 47,800 UTILITIES EXPENSE 1,526 67,350 19,550 The T-accounts reveal that ending Accounts Receivable amount to $167,088, and ending Accounts Payable amount to $19,550. Download free eBooks at bookboon.com 20 Accounting Cycle Exercises II Problem 5 Problem 5 Monte Ishiola distributes electronic parts. Most transactions with customers are immediately paid with cash or check. But, Monte has five major customers that have established accounts. These approved customers routinely buy on credit. The terms of the credit agreement provide that payment must occur within 30 days, and each customer has a maximum credit limit of $30,000. Following is information for May regarding each of the credit customers: Customer #1 Beginning balance, $4,209. Purchases on account on May 5, $21,711. Payment on account on May 17, $4,209. Customer #2 Beginning balance, $15,825. Purchase on account on May 15, $6,825. Payment on account on May 26, $12,825. Customer #3 Beginning balance, $0. Purchase on account on May 9, $28,650. Customer #4 Beginning balance, $22,671. Purchase on account on May 7, $6,300. Purchase on account on May 22, $28,332. Payment on account on May 11, $22,671. Customer #5 Beginning balance, $8,970. Payment on account on May 18, $8,970. Please click the advert You’re full of energy and ideas. And that’s just what we are looking for. © UBS 2010. All rights reserved. a) Prepare a subsidiary accounts receivable ledger account for each of Narayan’s customers. b) Prepare the general ledger Accounts...
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