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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$
54,000$
78,600
78,600$
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:
574,000$
54,000
Percentage
Amount Uncollectible
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
Student Name:
Class:
Account Debit Credit
35,000
35,000 «- Correct!
Debit Credit
462,000$
1,750,000
30,000$
Debit Credit
% 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
Student Name:
Class:
Instructor
Problem 07-04
McGraw-Hill/Irwin
20% 69,400 15% 10,410
30,000$
Debit Credit
Accounts Year-end Net
Receivable Allowance Amount
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
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
Student Name:
Class:
Note Face Date of Interest Date Discount Proceeds
Note Value Note Rate Discounted Rate Received
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
Note 2 50,000$
3,000
Note 3 50,000$
Note 4 80,000$
2,400
Note 5 80,000$
2,400
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
4,422$
(90)
42,650$
41,853$
90
41,918$
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
3,231$
1,200
123$
3,231$
43,000
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
Account Debit Credit
Land 16 «- Correct!
Requirement 2:
2,000,000$
3,169,870$
Account Debit Credit
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
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
20,000,000$
Given Data P07-15:
ROTHSCHILD CHAIR COMPANY, INC.
Bank note
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