Sales & Receivables Journal 2/1/2009 To 31/1/2009 21/4/2010 17:32:29 Page 1 ID# Acct# Account Name Debit Credit Job No. SJ 3/1/2009 Discount: Okaya Trading Ltd SJ000001 6-2500 Discounts Allowed HK$401.00 SJ000001 1-2000 Accounts Receivable HK$401.00 SJ 6/1/2009 Sale; Okaya Trading Ltd CN001 1-2000 Accounts Receivable HK$5‚000.00 CN001 4-1100 Sales HK$5‚000.00 SJ 6/1/2009 Okaya Trading Ltd: Credit from CN001 SJ000002 1-2000 Accounts Receivable HK$5‚000.00 SJ000002 1-2000 Accounts Receivable
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collection expense. Production and marketing costs represent 72 percent of sales. The company is in a 30 percent tax bracket and has a receivables turnover of six times. No other asset buildup will be required to service the new customers. The firm has a 10 percent desired return on investment. a. Should Curtis extend credit to these customers? Added sales $240‚000 Accounts uncollectible (12% of new sales) 28‚800 Annual incremental revenue 211‚200 Collection costs 21‚000 Production and selling
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eACC 212 – Handout #8 XYZ‚ Inc. reports the following balances in its accounts on 5/1/09 Debit Credit Cash $ 210‚000 Account Receivable 90‚000 Inventory 200‚000 Account Payable 100‚000 Common Stock (100‚000 shares $1 par) 100‚000 Paid in Capital in excess of par 250‚000 Retained Earnings 1/1/09 0 Net Sales Revenue 250‚000 Cost of Merchandise Sold 150‚000 Expenses 50‚000 Transactions for May:
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Chapter 2 Review of the Accounting Process AACSB assurance of learning standards in accounting and business education require documentation of outcomes assessment. Although schools‚ departments‚ and faculty may approach assessment and its documentation differently‚ one approach is to provide specific questions on exams that become the basis for assessment. To aid faculty in this endeavor‚ we have labeled each question‚ exercise and problem in Intermediate Accounting‚ 7e with the following
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Time! 100% Satisfaction Guarantee DESCRIPTION FOR THIS STUDY GUIDE: Dq1 Suppose you selected a sample of customers’ accounts receivable and wanted to find supporting evidence for the entries in the accounts. Where would you go to vouch the debit entries? What would you expect to find? Where would you go to vouch the credit entries? What would you expect to find? Dq2 What account balances are included in a revenue and collection cycle? What specific control procedures should be in place and operating
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CHAPTER 2 The Recording Process ASSIGNMENT CLASSIFICATION TABLE Study Objectives 1. Explain what an account is and how it helps in the recording process. Define debits and credits and explain their use in recording business transactions. Identify the basic steps in the recording process. Explain what a journal is and how it helps in the recording process. Explain what a ledger is and how it helps in the recording process. Explain what posting is and how it helps in the recording process. Prepare
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company to generate funds from internal sources. • The company has been forced to forgo taking discounts on accounts payable and to borrow in increasing amounts from its bank to maintain its expansion. • Jones must decide whether to continue to expand and‚ if so‚ how to finance the growth. © Dr. C. Bulent Aybar Impact of Growth on Jones: Investment Requirements – Inventories + Accounts Receivables 2004 2005 2006 $430 $509 $643 – Investment in inventory and A/R has been growing at a rate of ~22%
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Revenue Cycle and Control Activities The revenue cycle for many companies is considered the primary source to earn revenue from the sale of goods or service. Good controls must be established to maintain the effectiveness of receivables and credit sales‚ not doing so can harm the company and might be costly to the business. Six classes of internal controls guides us in evaluating and designing transaction processing. They are authorization‚ supervision‚ segregation of duties‚ access control‚ independent
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highlights certain intermediate components of income. Condensed Income Statement: A condensed income statement is one that summarizes much of the income statement detail into a few captions and amounts. Details of these captions are present in Notes to account. Retain Earning Statement: The financial statement which calculates the balance of retained earnings at the end of the period is called the statement of retained earnings. It is very similar to the statement of changes in equity however it only
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Inc.’s revenue process‚ cycle of test ending 12/31/2007 and in the receivable aged trial balance sheet. In the following you will see a step listed that was taken during the process. A total of approximately ten transactions have been selected for the twelve months as randomly selections for testing. In order to support each transaction the sample invoices were located for each‚ and posted to the ledger as well as customer accounts. All purchase orders were found aside from the December shipment of
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