About Maurice Tutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:

Algebra,Applied Sciences See all

Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all

Teaching Since:	May 2017
Last Sign in:	402 Weeks Ago, 5 Days Ago
Questions Answered:	66690
Tutorials Posted:	66688

Education

MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011

Experience

Professor
Phoniex University
Oct-2001 - Nov-2016

Category > Accounting Posted 05 Aug 2017 My Price 15.00

Francis Equipment Co

Problem 7-2

Francis Equipment Co. closes its books regularly on December 31, but at the end of 2014 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes. Cash receipts and disbursements for the first 10 days of January were recorded as December transactions. The information is given below.


1.	January cash receipts recorded in the December cash book totaled $45,640, of which $28,000 represents cash sales, and $17,640 represents collections on account for which cash discounts of $360 were given.

2.	January cash disbursements recorded in the December check register liquidated accounts payable of $22,450 on which discounts of $250 were taken.

3.	The ledger has not been closed for 2014.

4.	The amount shown as inventory was determined by physical count on December 31, 2014.

The company uses the periodic method of inventory.

Instructions

(a)

Prepare any entries you consider necessary to correct Francis's accounts at December 31.

(b)

To what extent was Francis Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open? (Compute working capital and the current ratio.) Assume that the balance sheet that was prepared by the company showed the following amounts:

	Dr.	Cr.
Cash	$39,000
Accounts receivable	42,000
Inventory	67,000
Accounts payable		$45,000
Other current liabilities		14,200

7-2


1.	January cash receipts recorded in the December cash book totaled $45,640, of which $28,000 represents cash sales, and $17,640 represents collections on account for which cash discounts of $360 were given.

2.	January cash disbursements recorded in the December check register liquidated accounts payable of $22,450 on which discounts of $250 were taken.

3.	The ledger has not been closed for 2014.

4.	The amount shown as inventory was determined by physical count on December 31, 2014.

The company uses the periodic method of inventory.

Instructions

(a)

Prepare any entries you consider necessary to correct Francis's accounts at December 31.

(b)

	Dr.	Cr.
Cash	$39,000
Accounts receivable	42,000
Inventory	67,000
Accounts payable		$45,000
Other current liabilities		14,200

Answers

Maurice Tutor

(5)

Status NEW Posted 05 Aug 2017 10:08 PM My Price 15.00

Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------and----------- ac-----------qui-----------sit-----------ion----------- of----------- my----------- po-----------ste-----------d s-----------olu-----------tio-----------n.P-----------lea-----------se -----------pin-----------g m-----------e o-----------n c-----------hat----------- I -----------am -----------onl-----------ine----------- or----------- in-----------box----------- me----------- a -----------mes-----------sag-----------e I----------- wi-----------ll

Not Rated(0)

Buy Answer

Hire Dedicated Virtual Team / Business Solution for SMEs.