Homework Answers
Answer 10:
Working:
Immediately before the debt was cancelled:
Ashley has total assets = $27,000 and
his total liabilities = $25,000
As immediately before the debt was cancelled his total assets > total liabilities, the insolvency exclusion does not apply.
Hence entire amount of cancelled debt of $6,000 is taxable and has to be included in gross income.
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Question 10 0.1 pts Ashley had $10,000 in credit card debt. She negotiated a settlement with...
Ashley had $10,000 in credit card debt. She negotiated a settlement with the credit card company....
Ashley had $10,000 in credit card debt. She negotiated a settlement with the credit card company. Ashley paid $4,000 of the credit card debt, and the credit card company agreed to cancel $6,000 of the debt. If Ashley has total assets of $27,000 and total liabilities of $25,000 immediately before the debt was cancelled, what amount of gross income does Ashley have as a result of the credit card company cancelling $6,000 of her debt?
Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2017. BRECKER INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,000 Accounts receivable 62,000 51,000 Short-term debt investments (available-for-sale) 35,000 18,000 Inventory 40,000 60,000 Prepaid rent 5,000 4,000 Equipment 154,000 130,000 Accumulated depreciation—equipment (35,000 ) (25,000 ) Copyrights 46,000 50,000 Total assets $313,000 $295,000 Accounts payable $46,000 $40,000 Income taxes payable 4,000 6,000 Salaries and wages payable 8,000...
Question 3 2.5 pts Jake Company records had debt expense using the net credit sales method...
Question 3 2.5 pts Jake Company records had debt expense using the net credit sales method and has estimated that 5.5% of its credit sales will prove to be uncollectible. During 2019, Jake Company reported net credit sales of $120,000 and collected $150.000 cash from its credit customers. The $150,000 includes a $6,000 recovery of an account receivable written off in the previous year. During 2019, Jake Company wrote-off as uncollectible accounts receivable of $4,000. Take Company reported accounts receivable...
Question 3 2.5 pts Jake Company records bad debt expense using the net credit sales method...
Question 3 2.5 pts Jake Company records bad debt expense using the net credit sales method and has estimated that 5.5% of its credit sales will prove to be uncollectible. During 2019, Jake Company reported net credit sales of $120,000 and collected $150,000 cash from its credit customers. The $150,000 includes a $6,000 recovery of an account receivable written off in the previous year. During 2019, Jake Company wrote-off as uncollectible accounts receivable of $4,000. Jake Company reported accounts receivable...
Nash Inc., a greeting card company, had the following statements prepared as of December 31, 2017....
Nash Inc., a greeting card company, had the following statements prepared as of December 31, 2017. NASH INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2017 AND 2016 12/31/17 12/31/16 Cash $6,000 $7,000 Accounts receivable 62,600 50,600 Short-term debt investments (available-for-sale) 35,200 18,100 Inventory 39,600 59,700 Prepaid rent 5,000 4,000 Equipment 152,800 128,900 Accumulated depreciation—equipment (34,900 ) (24,800 ) Copyrights 45,900 49,800 Total assets $312,200 $293,300 Accounts payable $45,900 $39,900 Income taxes payable 4,000 6,000 Salaries and wages payable 8,100...
D Question 49 4 pts The following financial information is from Bronco Company. All debt is...
D Question 49 4 pts The following financial information is from Bronco Company. All debt is due within one year unless stated otherwise. Common Stock $100,000 Interest Payable $5,000 Supplies $2,000 Cash $25,000 Notes Payable (due in 18 months) $75,000 Accounts Payable $15,000 Accounts Receivable $22,000 Deferred Revenue $9,000 Retained Earnings $50,000 Equipment $110,000 What is the amount of current liabilities? Question 51 20 pts Use the following to answer the questions Net Sales $900,000 Gross profit $405,000 Beginning inventory...
Question 9 2015 2014 | Revenues 2015 Not yet answered Points out of 10.00 Flag question...
Question 9 2015 2014 | Revenues 2015 Not yet answered Points out of 10.00 Flag question Assets Current Assets Cash Accounts Receivable Credit Card Receivable Marketable Securities Notes Receivable Inventory Prepaid Expenses Total Current Assets $25,000 $5,000 $7,000 $20,000 $30,000 $32,000 $40,000 $159,000 $23,000 $4,500 $6,000 $18,000 $25,000 $27,000 $36,000 $139,500 Cash Sales AVR Sales Credit Card Sales Total Sales Cost of Sales Gross Profit $45,000 $21,000 $76.000 $142,000 $28.340 $103,660 Direct Operating Expenses Payroll Expenses Other Expenses Total Departmental...
Question 7 2015 2014 Revenues 2015 Not yet answered $45,000 Points out of 10.00 $21,000 Flag...
Question 7 2015 2014 Revenues 2015 Not yet answered $45,000 Points out of 10.00 $21,000 Flag question Assets Current Assets Cash Accounts Receivable Credit Card Receivable Marketable Securities Notes Receivable Inventory Prepaid Expenses Total Current Assets $25,000 $5,000 $7,000 $20,000 $30,000 $32,000 $40,000 $159,000 $76,000 $142.000 $22,000 $4,500 $6,000 $18,000 $25,000 $27,000 $36.000 $139,500 Cash Sales NR Sales Credit Card Sales Total Sales Cost of Sales Gross Profit $34,340 $102,660 Direct Operating Expenses Payroll Expenses Other Expenses Total Departmental Expenses...
Question 6 2015 2014 Revenues Assets Current Assets Sales Points out of 1.00 Flag question Cash...
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Question 3 2015 2014 2015 Assets Current Assets Not yet answered $45,000 Points out of 10.00...
Question 3 2015 2014 2015 Assets Current Assets Not yet answered $45,000 Points out of 10.00 Flag question Accounts Receivable Credit Card Receivable Marketable Securities Notes Receivable Inventory Prepaid Expenses Total Current Assets $25,000 $5,000 $7,000 $20,000 $30,000 $32,000 $40,000 $159,000 $23,000 $4,500 $6,000 $18,000 $25,000 $27,000 $36,000 $139,500 Revenues Sales Cash Sales A/R Sales Credit Card Sales Toual Sales Cost of Sales Gross Profit $21,000 $76,000 $142,000 $38.340 $103,660 Direct Operating Expenses Payroll Expenses Other Expenses Total Departmental Expenses...
Question 3 2.5 pts Jake Company records had debt expense using the net credit sales method and has estimated that 5.5% of its credit sales will prove to be uncollectible. During 2019, Jake Company reported net credit sales of $120,000 and collected $150.000 cash from its credit customers. The $150,000 includes a $6,000 recovery of an account receivable written off in the previous year. During 2019, Jake Company wrote-off as uncollectible accounts receivable of $4,000. Take Company reported accounts receivable...
Question 3 2.5 pts Jake Company records bad debt expense using the net credit sales method and has estimated that 5.5% of its credit sales will prove to be uncollectible. During 2019, Jake Company reported net credit sales of $120,000 and collected $150,000 cash from its credit customers. The $150,000 includes a $6,000 recovery of an account receivable written off in the previous year. During 2019, Jake Company wrote-off as uncollectible accounts receivable of $4,000. Jake Company reported accounts receivable...
D Question 49 4 pts The following financial information is from Bronco Company. All debt is due within one year unless stated otherwise. Common Stock $100,000 Interest Payable $5,000 Supplies $2,000 Cash $25,000 Notes Payable (due in 18 months) $75,000 Accounts Payable $15,000 Accounts Receivable $22,000 Deferred Revenue $9,000 Retained Earnings $50,000 Equipment $110,000 What is the amount of current liabilities? Question 51 20 pts Use the following to answer the questions Net Sales $900,000 Gross profit $405,000 Beginning inventory...
Question 9 2015 2014 | Revenues 2015 Not yet answered Points out of 10.00 Flag question Assets Current Assets Cash Accounts Receivable Credit Card Receivable Marketable Securities Notes Receivable Inventory Prepaid Expenses Total Current Assets $25,000 $5,000 $7,000 $20,000 $30,000 $32,000 $40,000 $159,000 $23,000 $4,500 $6,000 $18,000 $25,000 $27,000 $36,000 $139,500 Cash Sales AVR Sales Credit Card Sales Total Sales Cost of Sales Gross Profit $45,000 $21,000 $76.000 $142,000 $28.340 $103,660 Direct Operating Expenses Payroll Expenses Other Expenses Total Departmental...
Question 7 2015 2014 Revenues 2015 Not yet answered $45,000 Points out of 10.00 $21,000 Flag question Assets Current Assets Cash Accounts Receivable Credit Card Receivable Marketable Securities Notes Receivable Inventory Prepaid Expenses Total Current Assets $25,000 $5,000 $7,000 $20,000 $30,000 $32,000 $40,000 $159,000 $76,000 $142.000 $22,000 $4,500 $6,000 $18,000 $25,000 $27,000 $36.000 $139,500 Cash Sales NR Sales Credit Card Sales Total Sales Cost of Sales Gross Profit $34,340 $102,660 Direct Operating Expenses Payroll Expenses Other Expenses Total Departmental Expenses...
Question 6 2015 2014 Revenues Assets Current Assets Sales Points out of 1.00 Flag question Cash Accounts Receivable Credit Card Receivable Marketable Securities Notes Receivable Inventory Prepaid Expenses Total Current Assets $25,000 $5,000 $7,000 $20,000 $30,000 $32,000 $40,000 $159,000 $23,000 $4,500 $6,000 $18,000 $25,000 $27,000 $36,000 $139,500 Cash Sales A/R Sales Credit Card Sales Total Sales Cost of Sales Gross Proli $145,000 $51.000 $76,000 $272,000 $73,440 5198,560 Direct Operating Expenses Payroll Expenses Other Expenses Total Departmental Expenses $27,200 $24.480 $51,680...
Question 3 2015 2014 2015 Assets Current Assets Not yet answered $45,000 Points out of 10.00 Flag question Accounts Receivable Credit Card Receivable Marketable Securities Notes Receivable Inventory Prepaid Expenses Total Current Assets $25,000 $5,000 $7,000 $20,000 $30,000 $32,000 $40,000 $159,000 $23,000 $4,500 $6,000 $18,000 $25,000 $27,000 $36,000 $139,500 Revenues Sales Cash Sales A/R Sales Credit Card Sales Toual Sales Cost of Sales Gross Profit $21,000 $76,000 $142,000 $38.340 $103,660 Direct Operating Expenses Payroll Expenses Other Expenses Total Departmental Expenses...
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