Accounting Chapter 7 Homework Maturity Value Discount Cash Proceeds Interest Rate

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subject Pages 9
subject Words 1095
subject Authors David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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page-pf1
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:
page-pf2
574,000$
54,000
Percentage
Amount Uncollectible
430,000$ 4%
98,000$ 15%
60,000$ 25%
91-120 days
61-91 days
0-60 days
Age Group
SWATHMORE CLOTHING CORPORATION
Given Data P07-01:
page-pf3
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
page-pf4
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
page-pf5
432,000$
30,000
% of Year-End
Receivables Percent
in Group Uncollectible
65% 4%
3%
0-60 days
Age Group
Given Data P07-04:
RAINTREE COSMETIC COMPANY
credit sales)
Bad debt estimate (percentage of
page-pf6
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
page-pf7
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:
page-pf8
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
page-pf9
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
page-pfa
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
page-pfb
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
page-pfc
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
page-pfd
20,000,000$
Given Data P07-15:
Bank note

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