Question

1. on June 30, 2016 , Guide assigned $200000 of accounts receivable to cell Fiance company.Guide received an advance from cell of 85% of the assigned accounts recivable, minus a commission on the advance of 3% . Prior to december 31,2016 , Guide collected $150000 on the assigned recivable and remitted $160000 to cell $10000 of which represented interest on advance from cell.
2. on december 12016 Guide sold $300000 of accounts receivable to factoring company and received 80% of the value of the factored receivables. Factoring company charged a 15% commission based on the gross amount of the factored receivables. The receivables were sold without recourse .
    Required

prepare a schedule showing the expenses reported on the income statement for the year ended december 31,2016,as a result of the preceding facts. show all supporting computations.
GUIDE COMPANY INCOME STATEMENT EFFECT FOR THE YEAR ENDED DECEMBER 31, 2016.
Expenses resulting from accounts receivable assigned (schedule 1)?
Expenses resulting from accounts receivable ?
Total expenses?
Schedule 1: computation of Expenses for accounts receivable Assigned
Assignment service charge expense (june30,2016)?
interest expense?
Total expenses?

Answer 1

Accounts receivables assigned

Accounts receivables 200000   

Cash 164900

Due from cell Fiance 30000

Notes Payable 20000

Interest Expense 10000

Commission expense 5100

Accounts receivables factored without recourse

Accounts receivables 300000

Cash 240000

Factoring expense   45000

Due from factor 15000

Expenses resulting from accounts receivable assigned : 15100

Expenses resulting from accounts receivable : 60100

Interest Expense :10000