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Newton Company has the following accounts in its general ledger at July 31: Accounts
Receivable $40,000 and Allowance for Doubtful Accounts $2,500. During August, the
following transactions occurred.
Oct. 15 Sold $15,000 of accounts receivable to Fast Factors, Inc. who assesses a 3%
finance charge.
25 Made sales of $800 on VISA credit cards. The credit card service charge is 2%.
Instructions
Journalize the transactions.
Answer:
A mortgage note payable with a fixed interest rate requires the borrower to make
installment payments over the term of the loan. Each installment payment includes
interest on the unpaid balance of the loan and a payment on the principal. With each
installment payment, indicate the effect on the portion allocated to interest expense and
the portion allocated to principal.
Answer:
A primary objective of the statement of cash flows is to show the income or loss on
investing and financing transactions.
Answer:
Prepare an income statement, a retained earnings statement, and a balance sheet for the
accupuncture practice of Golda Bear, from the items listed below for the month of
September, 2015.
Answer:
Debit and credit can be interpreted to mean increase and decrease, respectively.
Answer:
The receipt of dividends from long-term investments in stock is classified as a cash
inflow from investing activities.
Answer:
If a corporation pays taxes on its income, then stockholders will not have to pay taxes
on the dividends received from that corporation.
Answer:
Transactions that affect inventories on hand have an effect on both the balance sheet
and the income statement.
Answer:
