person or company is unable to pay debts in time
Q: You have been appointed the external auditor of BOA Ltd. On 25 August 2019, you were advised by…
A: Answer: Annual date of financials = 30 June 2019 Completion of audit work = 17 August 2019 Sign of…
Q: On January 1, 2020, the office of Everlasting Company was burned to ashes due to a fire incident.…
A: As we do not know about the date of issue of promissory note, we will calculate the present value of…
Q: Using the information from 2020 for ABC Company and proceed into 2021. Update the TAccounts and…
A: A ledger is a log or list of accounts that keep track of account transfers.
Q: Because of the inability to pay debts, Steven Company has been forced into bankruptcy as of April…
A: Answer - Correct Option is Option B- 67% Because, Expected recovery percentage is generally…
Q: LG Co. has recently hired a new independent auditor, Jeff Clan, CPA, who says he wants "to get…
A: Change in the accounting estimates: A change which is occurred due to the new information or…
Q: On 1st Jan 2020 Suntop LLC has Opening accounts receivable for RO 8000. During the year 2020 amount…
A: The amount of money due to a company for goods or services delivered or utilized but not yet paid…
Q: Noel Bank loaned 9,000,000 to a borrower on January 1, 2017. The terms of the loan were payment in…
A: Impairment loss=Total carrying value-Present value of loan
Q: Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal…
A: 1. No, Colleen Fernandez is not acting in a professional manner. Omitting the financial statements…
Q: In the year, Jack owed RM2,000 and Rose owed RM5,000 to Wakanda Enterprise. At the end of the year,…
A: The business allows credit facility to the customers regarding sales. If the customers cannot repay…
Q: On June 30, 2010, Musk and Associates borrows money from a local bank, repayable in full on June 30,…
A: Introduction: Any liability which is repayable within next 12 months from the date of balance sheet…
Q: Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal…
A: Since we only answer up to 3 sub-parts, we’ll answer the first three. Please resubmit the question…
Q: Mathew Corporation's had a specific receivable from a customer in the amount of P 600,000 as of…
A: carrying value of receivables=600000
Q: January 2019, the events took place during the process of liquidating the partnershi Accounts…
A: Problem 13 solution : Profit sharing ratio of Tugade, Masinsin and Biore = 40%, 40% and 20%…
Q: Cypress Corp. went into business on October 1, 2020. Following are some of Cypress's transactions…
A: Long-term liabilities are those that payable after the 12 month period.
Q: On June 30, 2019, Franz Inc. borrowed P1,800,000 for one year from the bank with an interest of 12%.…
A: Bank charges = accounts receivable x 8.46% = 2500000 x 8.46% = P211,500
Q: Mr. Kamau started his business on 1 January 2016 with £35,000 in a bank account. Unfortunately he…
A: A profit and loss statement summarizes the sales, expenses, profits, and losses of a corporation.…
Q: The following events and transactions related to David Company ocurred after the balance sheet date…
A: International accounting standard 10 deals with Occurrence of events that take place after the end…
Q: sent Rover Ltd has a year-end of 30 June 2022. The accountant has prepared the following schedule…
A: The accounting should be accordings with the generally accepted Accounting principles and…
Q: 3.1 Prepare the journal entry to record the transaction of December 31, 2019, for Halen company. 3.2…
A: Discount on notes receivable The present value of the payments to be received from a note receivable…
Q: (a) Lara Croft has been hired as a new auditor for Jolie Inc. Ms. Croft has suggested the following…
A: Accounting policies indicate the rules and standards requires to follow for the preparation of…
Q: How much is the latest carrying amount of the note before the fire incident?
A: Introduction A promissory note is issued when a person promise to pay a certain amount at a certain…
Q: On December 31,2019, Halen company performed environmental consulting services for Stuart…
A: Present value of note = $900,000 * PV factor at 10% for 2nd period = $900,000 * 0.8264 =…
Q: In 2X19, Land Corporation acquired land by paying P2,000,000 and signing a note with a face value of…
A: NOTE : As per BARTLEBY guidelines, when multiple sub parts are given then first three sub parts are…
Q: Because of the inability to pay debts, Steven Company has been forced into bankruptcy as of April…
A: SOLUTION- BECAUSE TO INABILITY TO PAY DEBTS , STEVEN COMPANY HAS BEEN FORCED IN TO BANKRUPTCY AS OF…
Q: Palpet, the client, is a small manufacturing company currently in need of cash in order to stay in…
A: An audit refers to inspection of various documents and books of accounts of an entity by an auditor…
Q: On April 1, 2024, Oakland Corporation realizes that one of its main suppliers is having difficulty…
A: Entries are used to keep financial transactions organized. Your journal entries are entered into to…
Q: Mooncake Corp.’s accounts payable at December 31, 2018, totaled P800,000 before any necessary…
A: Accounts payable is a short-term debt and a liability on a balance sheet where a business owes money…
Q: On June 30, 2019, Franz Inc. borrowed P1,800,000 for one year from the bank with an interest of 12%.…
A: Answer: correct answer is option C C. P 1,588,500; P 319,500
Q: Penn Co.'s allowance for uncollectible accounts was $200,000 at the end of 2019 and $180,000 at the…
A: Write off actual bad debts = Beginning balance of allowance for uncollectible accounts + bad debt…
Q: In 2X19, Land Corporation acquired land by paying P2,000,000 and signing a note with a face value of…
A: NOTE: As per BARTLEBY guidelines, when multiple sub parts are given then first three sub parts are…
Q: Russia Company provided the following information on December 31, 2021: Jan. 15, 2022 - P3,000,000…
A: A company prepares its financial statements showing profitability…
Q: wants “to get everything straightened out." Consequently, she has proposed the following accounting…
A: Accounting is a system that collects and processes which includes analyzing, measuring, and…
Q: On December 31, 2021, LOL Company is experiencing extreme financial pressure and is in default in…
A: Debt restructuring is a process of modification in the terms of a loan obtained by a debtor from the…
Q: On December 31, 2020, Whispering Co. performed environmental consulting services for Hayduke Co.…
A: Present value of note = Amount of zero-interest-bearing note x PVIF (11%, 2 years) = $318,100 x…
Q: Extended the maturity to December 31, 2X23. • The P480,000 interest due on December 31, 2X21 was…
A: NOTE : As per BARTLE BY guidelines, when multiple sub parts are given then the first three sub…
Q: On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co.…
A: a. Prepare the journal entry to record the transaction of December 31, 2020, for the Ed Abbey Co:…
Q: Russia Company provided the following information on December 31, 2021: Jan. 15, 2022 - P3,000,000…
A:
Q: Russia Company provided the following information on December 31, 2021: Jan. 15, 2022 - P3,000,000…
A: Adjusting entries refer to journal entries which are made at the end of the accounting year or…
Q: The owner of Ryzen Trading, Mr. Bon has been informed by the business' bookkeeper that there is an…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Cypress Corp. went into business on October 1, 2020. Following are some of Cypress's transactions…
A: Current liabilities are those liabilities which are to be paid in short period of time, say one…
Q: During 2021, PUMPKIN Company experienced financial difficulties and is likely to default on a…
A: Here in this question, we are required to calculate how much gain or loss should recorded on…
Q: Gamestop Corp. said the following about its gift card sales in its most recent (2019) annual report:…
A: Here, company policy is to recognise liability at the time of issuance of gift cards and revenue is…
Q: OJO Company obtained a loan from a Rural Bank for P420,000 on November 16, 2020. On the same date,…
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…
Q: Mathys Inc. has recently hired a new independent auditor, Karen Ogleby, who says she wants “to get…
A: a. Classify the given following.
Q: On January 15, 2020, XYZ Company received a two-month, 4%, $7,000 note from ABC Company for the…
A: When the note value is said to be uncollectible, it is called as a dishonored note and entry for…
Q: Shi Company is going through a Chapter 7 bankruptcy. All assets have been liquidated, and the…
A: Under Chapter 7 Bankruptcy, the bankruptcy trustee gathers and sells the debtor's nonexempt assets…
Q: On January 1, 2019, an entity was indebted to a bank under a P4,800,000, 10% loan. The loan was…
A: Impairment loss is when the carrying amount is more than the recoverable amount. Every entity should…
Q: why is it worked out 1/1.1 and answer divided by 1.1 to get 0.826446? Can you explain it to me step…
A: Present value calculation at a certain rate uses the below formula: Amount = Principal /…
Q: On December 31, 2020, Ed Abbey Co. performed environmental consulting services for Hayduke Co.…
A: Notes receivable: It is a written document by which the other person promises to pay a certain…
Step by step
Solved in 2 steps
- Assume that Kingbird Company has recently fallen into financial difficulties. By reviewing all available evidence on December 31, 2025, one of Kingbird's creditors, the National American Bank, determined that Kingbird would pay back only 65% of the principal at maturity. As a result, the bank decided that the loan was impaired. If the loss is estimated to be $242,200. What entry should National American Bank make to record this loss? (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) Date Dec. 31, 2025 Account Titles and Explanation Debit CreditAssume that Toni Braxton Company has recently fallen into financial difficulties. By reviewing all available evidence on December 31, 2020, one of Toni Braxton’s creditors, the National American Bank, determined that Toni Braxton would pay back only 65% of the principal at maturity. As a result, the bank decided that the loan was impaired. If the loss is estimated to be $225,000, what entry(ies) should National American Bank make to record this loss?Assume that Waterway Company has recently fallen into financial difficulties. By reviewing all available evidence on December 31, 2020, one of Waterway’s creditors, the National American Bank, determined that Waterway would pay back only 65% of the principal at maturity. As a result, the bank decided that the loan was impaired. The loss is estimated to be $239,300.What entry should National American Bank make to record this loss?
- Ali Coffee Bean assumes that due to Corona, at the end of September 2020 there will be bad debts of $5,000,000 from accounts receivable belonging to Budi's Coffee Shop amounting to $20,000,000. It turned out that on October 21, 2020, Budi's Coffee Shop stated that they were unable to pay their receivables amounting to $1,000,000, so the CEO of Ali Coffee Bean allowed to write-off the receivables. As Ali Coffee Bean's financial staff, make:a. Journal Entry for write-off of Budi's Coffee Shop.b. What was the cash realizable value of Ali Coffee Shop's receivables prior to the write-off of Budi's Coffee Shop receivables in September?c. What is the cash realized value of Ali Coffee Shop's receivables after the write-off of Budi's Coffee Shop receivables?As at the end of 2019 one notable bank among the first three banks which were affected by the banking sector clean-up had large number of cars and mortgages which it had taken lien over as collateral. Despite these securities, one of the major causes identified for the collapse of the bank was non-performing assets. This contributed to the bankruptcy of the bank since it was badly affected by ill-liquidity. You are required to explain why the securities could not protect the bank from bankruptcy?At December 31, 2018, Wynne Company reported Accounts Receivable of $45,000 and Allowance for Doubtful Accounts of $3,500. On January 7, 2019, Brown Enterprises declares bankruptcy and it is determined that the receivable of $1,200 from Brown is not collectible. What is the cash realializable value of accounts receivab;le after the Brown account is written off?
- At December 31, 2019, one of TOCINO Company’s credit customers, HOTDOG Trading, is experiencing financial difficulties. As a result, HOTDOG Trading has missed the payment of the principal amount of its notes payable of P3, 000, 000 and accrued interest for the year is P300, 000. A restructuring arrangement was approved by the management of TOCINO Company, as follows:❖ The principal was reduced to P2, 000, 000 and will be due on December 31, 2021;❖ Accrued interest of P300, 000 is condoned;❖ Interest rate is reduced to 8% payable on December 31, 2020 and December 31, 2021.The prevailing market interest rate for similar instrument at the time of restructuring (December 31, 2019) is 12%. What is the impairment loss to be recognized on December 31, 2019? (use four decimal places for the PV factor)a. P 0 c. P1, 369, 520b. P 1, 157, 432 d. P1, 447, 184Bugler Corp had the following transactions for 2021 related to bad debts. Bugler began 2021 with $20,500 in their Allowance for Doubtful Accounts. a. Record the following transactions in the general journal provided. Feb 4 Wrote off the balance of Cooper Company, $3,500 Jun 12 Wrote off the balance of Jones Corp., $6,500 Aug 9 Recovered $1,200 from Wilson Company whose account was written off in 2020 Aug 10 Deposited the check received from Wilson for the recovered amount written off Nov 21 Wrote off the balance of Atlantic Company, $4,000 Dec 31 Estimated uncollectible accounts as 2% of credit sales. Credit sales were $775,000 b. Calculate the amount in the Allowance for Doubtful Accounts at the end of 2021. Enter the ending balance here…It is February 16, 2020, and you are auditing Davenport Corporation's financial statements for 2019 (which will be issued in March 2020). You read in the newspaper that Travis Corporation, a major customer of Davenport, is in financial difficulty. Included in Davenports accounts receivable is 50,000 (a material amount) owed to it by Travis. You approach Jim Davenport, president, with this information and suggest that a reduction of accounts receivable and recognition of a loss for 2019 might be appropriate. Jim replies, Why should we make an adjustment? Ted Travis, the president of Travis Corporation, is a friend of mine; he will find a way to pay us, one way or another. Furthermore, this occurred in 2020, so lets wait and see what happens; we can always make an adjustment later this year. Our 2019 income and year-end working capital are not that high; our creditors and shareholders wouldnt stand for lower amounts than they already are. Required: From financial reporting and ethical perspectives, prepare a response to Jim Davenport regarding this issue.
- Aron Larson is a customer of Bank Enterprises. Mr. Larson took out a loan in the amount of $120,000 on August 1. On December 31, Bank Enterprises determines the loan to be uncollectible. Larson had not paid anything toward the balance due on account. What is the journal entry recording the bad debt write-off?At the beginning of 2021, Brad’s Heating & Air (BHA) has a balance of $26,000 in accounts receivable. Because BHA is a privately owned company, the company has used only the direct write-off method to account for uncollectible accounts. However, at the end of 2021, BHA wishes to obtain a loan at the local bank, which requires the preparation of proper financial statements. This means that BHA now will need to use the allowance method. The following transactions occur during 2021 and 2022.1. During 2021, install air conditioning systems on account, $190,000.2. During 2021, collect $185,000 from customers on account.3. At the end of 2021, estimate that uncollectible accounts total 15% of ending accounts receivable.4. In 2022, customers’ accounts totaling $8,000 are written off as uncollectible.Required:1. Record each transaction using the allowance method.2. Record each transaction using the direct write-off method.3. Calculate the difference in net income (before taxes) in 2021 and…Einhorn Industries believes it is not probable that Thaler Inc. will default on an account receivable, but given thepossibility of default, Einhorn believes it will collect $30,000 less than the receivable’s current carrying value onEinhorn’s balance sheet. Under current GAAP, how much impairment charge should Einhorn recognize?
