Student Name:
Class:
Account Debit Credit
78,600
78,600 «- Correct!
Account Debit Credit
4,300
4,300 «- Correct!
Percent Estimated
Amount Uncollectible Allowance
430,000$ 4% 17,200$
Required allowance determined above)
Balance before adjustments
Deduct: Write-offs
54,000$
78,600
Year-end adjustment
78,600$
Accounts Receivable, net of allowance for uncollectible accounts
Current Assets:
Bad debt expense for 2016:
Monthly accruals
Add: Monthly bad debt accruals
Beginning balance
Instructor
SWATHMORE CLOTHING CORPORATION
Balance Sheet
Summary
General Journal
SWATHMORE CLOTHING CORPORATION
Problem 07-01
(Calculate below)
Allowance for uncollectible accounts
McGraw-Hill/Irwin
Requirement 3:
Requirement 2:
Allowance for uncollectible accounts
Bad Debt Expense
Bad debt expense
Requirement 1:
Monthly bad debt expense accrual summary.
0-60 days
Age Group
Allowance for uncollectible accounts analysis:
Accounts receivable
Allowance for uncollectible accounts
To record year 2016 accounts receivable write-offs.
574,000$
54,000
Percentage
Amount Uncollectible
monthly credit sales)
Bad debt estimate (percentage of
430,000$ 4%
98,000$ 15%
60,000$ 25%
Accounts Receivable, 12/31/15
91-120 days
61-91 days
0-60 days
Age Group
SWATHMORE CLOTHING CORPORATION
Given Data P07-01:
A/R aging at 12/31/2016:
Allowance for uncollectible accounts, 12/31/15
Credit sales, year 2016
Collections, year 2016
Write-offs, year 2016
Student Name:
Class:
Account Debit Credit
Allowance for uncollectible accounts
Bad debt expense
Less: Write-offs
Less: Cash collections
accounts
35,000
35,000 «- Correct!
Debit Credit
462,000$
1,750,000
Add: Collection of receivable
Required allowance (determined above)
Balance before adjustments
30,000$
Debit Credit
Allowance for uncollectible accounts
Bad debt expense
% of Year-end Percent Estimated
Receivables Amount Uncollectible Allowance
Age Group
Account
Beginning balance
Allowance for uncollectible accounts analysis:
Requirement 2(a):
Accounts receivable analysis:
RAINTREE COSMETIC COMPANY
Required Allowance
Requirement 1:
Requirement 2(c):
To record accounts receivable written off during the year 2016:
RAINTREE COSMETIC COMPANY
Requirement 2(b):
Account
Allowance for uncollectible accounts
Instructor
Add: Credit sales
Beginning balance
Accounts receivable
Problem 07-04
McGraw-Hill/Irwin
General Journal
Accounts receivable
Cash
To record collection of account receivable previously written off:
Allowance for uncollectible accounts
Accounts receivable
Student Name:
Class:
Instructor
Problem 07-04
McGraw-Hill/Irwin
20% 69,400 15% 10,410
Required allowance
Balance before adjustments
Add: Collection of receivable
30,000$
Debit Credit
Allowance for uncollectible accounts
Bad debt expense
Accounts Year-end Net
Receivable Allowance Amount
(c)
(b)
347,000$ 50,500$ 296,500$ «- Correct!
Account
(a)
Net Amount of Accounts Receivable
RAINTREE COSMETIC COMPANY
Requirement 3:
Allowance for uncollectible accounts analysis:
Beginning balance
61-90 days
432,000$
30,000
% of Year-End
Receivables Percent
in Group Uncollectible
accounts
Estimate of allowance for uncollectible
65% 4%
3%
0-60 days
Age Group
Given Data P07-04:
A/R aging at 12/31/2016
RAINTREE COSMETIC COMPANY
Allowance for uncollectible accounts, 12/31/15
for uncollectible accounts, 12/31/15
Receivables, net of allowance
credit sales)
Bad debt estimate (percentage of
Cash collected in 2016 from prior year write off.
A/R write-offs, year 2016
Cash collections, year 2016
Credit sales, year 2016
Student Name:
Class:
Note Face Date of Interest Date Discount Proceeds
Note Value Note Rate Discounted Rate Received
Maturity value
150,000$ 3/31/2016 8% 6/30/2016 10% 50,350$ «- Correct!
250,000 3/31/2016 8% 9/30/2016 10% 51,675 «- Correct!
Note 1 50,000$
3,000
Maturity value
Note 2 50,000$
3,000
Interest to maturity
Maturity value
Note 3 50,000$
Maturity value
Note 4 80,000$
2,400
Maturity value
Note 5 80,000$
2,400
Maturity value
Note 6 80,000$
2,400
Interest to maturity
Problem 07-11
McGraw-Hill/Irwin
Instructor
PROCEEDS RECEIVED
Face amount
Face amount
Interest to maturity
Face amount
Interest to maturity
Face amount
Interest to maturity
Face amount
Face amount
Interest to maturity
Note Face Date of Interest Date Discount
Note Value Note Rate Discounted Rate
150,000$ 3/31/2016 8% 6/30/2016 10%
PROCEEDS RECEIVED
Given P07-11:
Student Name:
Class:
3,851$
2,150
Service charges
NSF checks
4,422$
(90)
Bank deposits
Less: Deposit errors
Less: Prior months
42,650$
Add: check #365
Prior months checks:
December checks outstanding
41,853$
90
41,918$
Cash
Miscellaneous expense (bank svc. charges)
Accounts receivable (NSF checks)
90
Instructor
Reconciliation
EL GATO PAINTING COMPANY
Problem 07-14
McGraw-Hill/Irwin
Requirement 1:
Deduct:
Step 1: Bank Balance to Corrected Balance
Step 2: Book Balance to Corrected Balance
Requirement 2:
Balance per bank statement
Add: Deposits outstanding (1)
Deduct:
Bank error – deposit incorrectly credited
Balance per books
Error in recording check #411.
(1) Receipts
Less: December receipts deposited:
(2) December disbursements
Error in recording check #411.
Less: December checks cleared:
Total checks cleared
To record credits to cash revealed by the bank reconciliation:
Advertising expense
Outstanding checks (2)
3,231$
1,200
123$
Receipts
Balance, December 1
Disbursements
Checks processed
Service charges
NSF checks
3,231$
43,000
Amount recorded in books
Deposit not recorded in books
320$
EL GATO PAINTING COMPANY
Given Data P07-14:
#363
Less: Checks outstanding
Add: Deposits outstanding
Balance per bank, November 30
General ledger account:
Additional information:
December bank statement:
Balance, December 1
Deposits
Check #411:
Correct amount
#382
#381
#380
#365
Account Debit Credit
Land 16 «- Correct!
Requirement 2:
Principal
Principal
2,000,000$
3,169,870$
Account Debit Credit
Note receivable
Cash
Note receivable
Interest revenue
December 31, 2016
December 31, 2018
December 31, 2019
Interest revenue
Cash
Note receivable
Interest revenue
Note receivable
Interest revenue
Cash
8,584,980 «- Correct!
2,000,000
1,000,000
375,652
15,000,000
15,000,000 «- Correct!
General Journal
ROTHSCHILD CHAIR COMPANY, INC.
Problem 07-15
Interest
General Journal
ROTHSCHILD CHAIR COMPANY, INC.
Analysis
ROTHSCHILD CHAIR COMPANY, INC.
Amortization Schedule
January 1, 2016
New Value:
Previous Value:
Requirement 1:
Accrued 2015 interest
December 31, 2017
Loss on troubled debt restructuring
Accrued interest receivable
Cash
Note receivable
Cash
Note receivable
Student Name:
Class:
Problem 07-15
Instructor
McGraw-Hill/Irwin
Cash Effective Increase in
Interest Interest Balance Outstanding
(by agreement) 10% (Disc. Reduction) Balance
13,415,020
1,000,000 1,341,502 341,502 13,756,522
1,000,000 1,375,652 375,652 14,132,174
Student Name:
Class:
Problem 07-15
Instructor
McGraw-Hill/Irwin
Requirement 3:
Previous Value:
Account Debit Credit
December 31, 2016
Note receivable
Interest revenue
Note receivable
Interest revenue
Note receivable
December 31, 2018
Interest revenue
Note receivable
Interest revenue
Note receivable
December 31, 2019
3,029,397
2,000,000
1,029,397 «- Correct!
Amortization Schedule
Cash Effective Increase in
Interest Interest Balance Outstanding
(by agreement) 10%
(Discount Reduction)
Balance
18,970,603
– 1,897,060 1,897,060 20,867,663
Analysis
ROTHSCHILD CHAIR COMPANY, INC.
January 1, 2016
General Journal
ROTHSCHILD CHAIR COMPANY, INC.
Loss on troubled debt restructuring
Accrued interest receivable
Note receivable
New Value:
Interest
Accrued interest
Principal
20,000,000$
Given Data P07-15:
ROTHSCHILD CHAIR COMPANY, INC.
Bank note
Bank note interest
Fair market value of land
Book value of land
Remaining 4 interest payments
Principal reduced to
Settlement of debt at maturity date