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Intermediate Accounting Chapter 7 Answers Workbook - by Kieso

The document provides financial information about cash and receivables for various companies. It includes items such as cash balances, accounts receivable amounts, notes receivable, sales, interest, and adjusting entries. The document contains practice questions and answers related to accounting for cash, receivables, bad debts, and factoring.

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9K views

Intermediate Accounting Chapter 7 Answers Workbook - by Kieso

The document provides financial information about cash and receivables for various companies. It includes items such as cash balances, accounts receivable amounts, notes receivable, sales, interest, and adjusting entries. The document contains practice questions and answers related to accounting for cash, receivables, bad debts, and factoring.

Uploaded by

d
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
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BE7-1

Cash in banksavings account

67,880

Checking account balance

Cash on hand

8,670

Postdated checks

Cash refund due from IRS

40,120

Certificates of deposit (180-day)

Answer to Questions

Cash in banksavings account ...................................


$67,880
Cash on hand ..............................................................
8,670
Checking account balance............................................
24,390
Cash to be reported.....................................................
$100,940

BE7-3

Relates to 7-2 (Uses net method to account for cash)

1-Jun Accounts Receivable ..............................61838


Sales.....................................................
12-Jun Cash........................................................
Accounts Receivable......................

61,838
61,838
61,838

BE7-5

Use 7-4 for Wilton Inc C


A. Uncollectible of net sales
B. Uncollectible of net sales
Aging Schedule with uncollectibl

0.1
29900

Answer to Questions

(a)

(b)

Bad Debt Expense .


Allowance for Doubtful Accounts

21,950

Bad Debt Expense


Allowance for Doubtful Accounts

26,030

21,950

26,030

BE7-7
Dold Acrobats
Lent
16529
Accepting two years
20000
Interest zero bearing
Implied interest rate
0.1
Collection of maturity
20000

Answer to Questions

Notes Receivable .......................................


16,529
Cash ..........................................................................
Notes Receivable .......................................
1,653

16,529

Interest Revenue
$16,529 X 10% ....................................................

1,653

Notes Receivable .......................................


1,818
Interest Revenue
($16,529 + $1,653) X 10% ................................
Cash..........

1,818

20,000

Notes Receivable..................................................

BE7-9

20,000

Wood Incorporated
Accounts Receivables
150,000.00
Finance charge
0.02
Retained to Account Receivables
0.06

Answer to Questions
Wood
Cash...........................................................................138,000
Due from Factor..........................................................9000
Loss on Sale of Receivables ......................................3000
Accounts Receivable ..........................................
*6% X $150,000 = $9,000
**2% X $150,000 = $3,000
Engram
Accounts Receivable ..................................................
Due to Wood...........................................................
Financing Revenue ..............................................
Cash ..........................................................................

150,000

150,000
9,000
3,000
138,000

BE7-2
Restin Co. 2014

hecking account balance

24,390

ostdated checks

810

ertificates of deposit (180-day)

92,350

Sales
percent
Discount days
Total day

Answer to Questions

1-Jun Accounts Receivable ............


Sales.....................................

12-Jun Cash
Sales Discounts.

Accounts Receivable.............

BE7-4
Wilton Inc Dec. 31 2014
Net Sales

Before Adjusting entries o

Accounts Receivables
Allowance for Doubful Acc
Uncollectible of net sales

Answer to Questi

Bad Debt Expense................


Allowance

BE7-6

Tung Decorators Novembe


Milner sold goods for
Accepts
months
Percent

Answer to Questi

11/1/2010
12/31/2010

5/1/2011

BE7-8
Chung Inc. October 2014

Assigns Account Receivab


Collateral Note
Bank finance charge
interest on the note

Answer to Questi
Chung, Inc.

Cash .........................................
Finance Charge (1,000,000 X 2
Notes Payable ..........................

Seneca National Bank

Notes Receivable.......................
Cash .........................................
Financing Revenue (1,000,000

n Co. 2014
63100
2%
15
45

to Questions

unts Receivable ...............................63,100


.....................................................

63,100

61838
1,262

Discounts.

unts Receivable......................

63,100

n Inc Dec. 31 2014


1431800

e Adjusting entries of balance sheet

unts Receivables
ance for Doubful Accounts
llectible of net sales

258200
3870
0.02

Answer to Questions

Debt Expense.............................................................
28,636
Allowance for Doubtful Accounts
(1,400,000 X 2%).................................................

###

Decorators November 2014

r sold goods for

30,000.00
30,000.00
6.00
6%

Answer to Questions

Notes Receivable...........................................
Sales .......................................................
Interest Receivable .......................................
Interest Revenue
($30,000 X 6% X 2/12).....................
Cash................................................................... Notes Receiv
Interest Receivable ............................
Interest Revenue
($30,000 X 6% X 4/12)......................

g Inc. October 2014

ns Account Receivable
teral Note
finance charge
est on the note

1,000,000.00
750,000.00
0.02
0.09

Answer to Questions

...............................................................730,000
e Charge (1,000,000 X 2%) ..................
20,000
Payable ........................................................

750,000

30,000
30,000
300
300
30,900
30,000
300
600

a National Bank

Receivable.............................................................
.........................................................................
ing Revenue (1,000,000 X 2%)...........

750,000
730,000
20,000

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