ZuoTi.Pro
Question

An example how to calculate the balances in the general ledger accounts and how to prepare...

An example how to calculate the balances in the general ledger accounts and how to prepare the Schedules of Accounts Receivable and Accounts Payable.

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Let us assume that a firm has made $2,000,000 of credit sales during its first year of operation. Out of which, firm could collect $1,500,000 during the year itself and happened to write-off $100,000 as an uncollectible account as the customer filed bankruptcy. Of the total credit sales, 4 customers yet owe firm such as $100,000 $175,000, $100,000 and $25,000 respectively, totaling $400,000 Let us also assume that a firm has made $1,500,000 of credit purchases during its first year of operation. Out of which, firm could pay $1,000,000 during the year itself and received an allowance of $50,000 as a promotion offer. Of the total credit purchases, firm owes 3 vendors such as $150,000, $100,000 and $200,000 respectively, totaling $450,000 In General Ledger: Accounts Payable 1,000,000 Beg. Bal Accounts Receivable Cash Allowance $0 $50,000 Credit Purch. $1,500,000 $0 Cash Beg. Bal Credit Sale $1,500,000 $100,000 $2,000,000Bad debt End. Bal $400,000 End. Bal $450,000 Schedule of Accounts Pavable: Vendor-1 Vendor-2 Vendor-3 Schedule of Accounts Receivable Customer-1 $100,000 Customer-2 $175,000 Customer-3 $100,000 Customer-4 Totals $150,000 $100,000 $200,000 $25,000 $400,000 Totals $450,000

0 0
Add a comment
Know the answer?
Add Answer to:
An example how to calculate the balances in the general ledger accounts and how to prepare...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Need an example, how to set up the General Ledger accounts, Accounts Receivable, and Accounts Payable...

    Need an example, how to set up the General Ledger accounts, Accounts Receivable, and Accounts Payable accounts. And how to Journalized entries from the same Narrative of Transactions.    Then, Post the general journal entries to the General Ledger, the Accounts Receivable Ledger, and the Accounts Payable Ledger. Use the Post Ref. column to ensure that each line item of the journal entries is posted correctly to each general ledger account. Please note that I need a sample example. Thanks.

  • Questions 1.Signify the item that represents an example of a subsidiary ledger. a) The accounts receivable...

    Questions 1.Signify the item that represents an example of a subsidiary ledger. a) The accounts receivable general ledger account b) An accounts payable journal entry c) Supporting detail of individual vendor balances that comprise the total balance of accounts payable d) A list of all general ledger accounts e) A list of all controlling accounts 2.Signify the item that most accurately and completely describes a subsidiary ledger. a) A controlling account b) Supporting detail behind a general ledger account c)...

  • SE2-8. Prepare a Trial Balance The following balances were taken from the general ledger of Howse...

    SE2-8. Prepare a Trial Balance The following balances were taken from the general ledger of Howse Corporation as of December 31. All balances are normal. Prepare a trial balance. 6,000 Accounts receivable. Cash. Accounts payable. .. Equipment Utilities expense... Sales revenue. 6,000 Common stock... 30,000 Dividends. 2,000 Administrative expense. 17,200 $10,800 sss. 36,000 2,400 8,000 SE29. Prepare a Corrected Trial Balance The following trial balance for Magill Company has errors that cause it to be out of balance. Prepare a...

  • PART II: PROBLEM 2 GENERAL LEDGER WITH ADJUSTED BALANCES APPEAR BELOW: FORMB Required: (1-4) Using the accounts in...

    PART II: PROBLEM 2 GENERAL LEDGER WITH ADJUSTED BALANCES APPEAR BELOW: FORMB Required: (1-4) Using the accounts in the General Ledger below, prepare 4 closing entries in the General Journal Post the closing entries to the Ledger and then complete 05 (posting not graded) General Journal A CCOUNT Debit Credit ENTRYW 4 5. After CLOSING entries are posted ENDING CAPTIAL = $ indicate il CAPITAL balance is a debitor a credit GENERAL LEDGER ASSETS LIABILITIES OWNER'S EQUITY Service Revenue Z...

  • On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Cash De...

    On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances: Accounts Cash Debit Credit 27,900 15,600 Accounts Receivable Allowance for Uncollectible Accounts 4,800 Supplies Notes Receivable (6%, due in 2 years) 4,500 24,000 80,900 Land Accounts Payable 9,700 Common Stock 104,000 Retained Earnings 34,400 $152,900 $152,900 Totals During January 2021, the following transactions occur: January 2 Provide services to customers for cash, $55,100 January January 15 Write off accounts receivable as uncollectible, $4,500. January...

  • Using Taccounts, post the following journal entries to the general ledger and calculate ending balances journal...

    Using Taccounts, post the following journal entries to the general ledger and calculate ending balances journal entries presented in the question.) Credit Date Sept. 2 Debit 4,670 4,670 2,230 General Journal Account titles Accounts Receivable Service Revenue Cash Accounts Receivable Cash Service Revenue Cash Accounts Receivable 2.230 10 3.080 3,080 28 1.240 1,240 Cash Accounts Receivable Service Revenue

  • Following are the general ledger account balances, listed in alphabetical order Accounts payable Accounts receivable Accumulated...

    Following are the general ledger account balances, listed in alphabetical order Accounts payable Accounts receivable Accumulated depreciation-equipment 3,700 Rent expense Cash Common shares Dividends declared Equipment s 3,000 Held for trading investments 5,600 400 900 11,720 3,700 6,020 160 4,000 Income tax expense 2,400 Retained earnings 9,100 Salaries expense 300 Service revenue 16,400 Unearned revenue Identify the normal balance of each account. Normal Balance Accounts payable Accounts receivable Accumulated depreciation-equipment Cash Common shares Dividends declared Equipment Held for trading investments...

  • The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances: Accounts...

    The general ledger of Jackrabbit Rentals at January 1, 2021, includes the following account balances: Accounts Debits Credits Cash $ 46,500 Accounts Receivable 30,700 Land 115,800 Accounts Payable 15,800 Notes Payable (due in 2 years) 35,000 Common Stock 105,000 Retained Earnings 37,200 Totals $ 193,000 $ 193,000 The following is a summary of the transactions for the year: 1. January 12 Provide services to customers on account, $67,400. 2. February 25 Provide services to customers for cash, $77,800. 3. March...

  • XYZ Company has the following General Ledger accounts and their balances. This is the first month...

    XYZ Company has the following General Ledger accounts and their balances. This is the first month operations for XYZ Company. January 31, xxx1 Account Description Balance Accounts Payable $ 1,920 Capital Stock $ 48,000 Cash $ 5,600 Dividends $ 7,200 Land $ 50,000 Miscellaneous Expense $ 1,320 Rent Expense $ 7,640 Revenues $ 36,000 Salaries and Wages Expense $ 12,000 Utilities Expense $ 2,160 Actions to take: Prepare the Balance Sheet (including heading) Prepare the Income Statement (including heading) Prepare...

  • On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Accounts...

    On January 1, 2021, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Debit Credit Cash $ 25,500 Accounts Receivable 6,900 Supplies 4,800 Land 67,000 Accounts Payable $ 4,900 Common Stock 82,000 Retained Earnings 17,300 Totals $ 104,200 $ 104,200 During January 2021, the following transactions occur: January 2 Purchase rental space for one year in advance, $11,100 ($925/month). January 9 Purchase additional supplies on account, $5,200. January 13 Provide services to customers on account, $27,200. January...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT