number. 1. _____ The account‚ Supplies‚ will appear in the following debit columns of the worksheet. a. Trial balance b. Adjusted trial balance c. Balance sheet d. All of these answer choices are correct 2. _____ If Income Summary has a credit balance after revenues and expenses have been closed into it‚ the closing entry for Income Summary will include a a. debit to the owner’s capital account. b. debit to the owner’s drawings account. c. credit to the owner’s capital account. d. credit to the
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goods sold of $20 million. A simplified balance sheet for the firm appears below: THE GREEK CONNECTIONBalance SheetAs of December 31‚ 2012 (in $ thousand) | Assets | Liabilities and Equity | CashAccounts receivableInventory | $ 2‚000 3‚950 1‚300 | Accounts payableNotes payableAccruals | $ 1‚500 1‚000 1‚220 | Total current assets | $ 7‚250 | Total current liabilitiesLong-term debt | $ 3‚720 3‚000 | Net plant‚ property‚and equipment | $ 8‚500 | Total liabilitiesCommon equity | $ 6‚720 9‚030
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25‚636 Notes Payable $ 6‚500 Land 12‚000 Inventory 4‚700 Paid-in Capital 25‚000 Accounts Receivable 2620 Accounts Payable 5‚000 Prepaid Insurance 1‚224 Long Term Debt 9‚000 Retained Earnings 680 Total $ 46‚180 Total $ 46‚180 1. The store purchased and received merchandise for inventory for $5000‚ agreeing to pay within 30 days. = Inventory – 5000‚ Accounts Receivable – 5000 2. Merchandise costing $1‚500 was sold for $2‚300. which was received in Cash
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sheet.) Amount Classification (Circle one.) 12/31/20A Accounts receivable $225‚000 CA CIP > billings $1‚125‚000 CA 12/31/20B Accounts receivable $825‚000 CA Billings > CIP $150‚000 CL 20A 20B Previous billings 0 2‚250‚000 Billings during year 2‚250‚000 6‚000‚000 Cash collected in previous years 0 (2‚025‚000) Cash collected during year (2‚025‚000) (5‚400‚000) Accounts Receivable 225‚000 825‚000 Costs incurred in previous years 0 2‚700‚000
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its regular investment in acquiring fixed assets ➢ Increase in stock /inventory shows piling up of stock with possibility that store is not able to achieve its targeted sales ➢ Increase in Account Receivable shows a increase in debtors for the store ➢ Increase in Account Payable ➢ Acquisition of Lechmere‚ discount retailer of sporting goods & electronic products depicts that company has future expansion plans ➢ Increase in long term borrowing can be assumed
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information will be available through corporate Intranet and the Internet. Having the proper hardware and software integrating Riordan’s data into automated systems will make life easier for those involved with all the accounting cycles‚ especially accounts receivable. Who Needs Access To What Information Many different departments of Riordan will need access to different levels of the new system. The accounting clerk needs access to enter and edit billings‚ payments‚ and adjustments of credits/debits
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Cash $198‚000 $102‚000 for 2003 and 2004: Receivables $106‚000 $78‚000 2004 2003 Inventory $100‚000 $120‚000 Prepaid expenses $12‚000 $18‚000 Cash $ 198‚000 $102‚000 Plant assets $840‚000 $700‚000 Receivables 106‚000 78‚000 Accumulated depreciation $(300‚000) $(250‚000) Inventory 100‚000 120‚000 Patent $102‚000 $116‚000 Prepaid expenses 12‚000 18‚000 $1‚058‚000 $884‚000 Plant assets 840‚000 700‚000 Accounts payable $102‚000 $112‚000 Accumulated depreciation
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inventory turnover 65days and 57days respectively. And Harvey Norman Company has 91 days and 98 days in the same two years. In general‚ the speed of inventory turnover faster‚ the lower the occupation and the stronger liquidity‚ the inventory or accounts receivable into cash will be faster. Increasing inventory turns to improve the liquidity of companies‚ and slower inventory turnovers is worse liquidity. So‚ the data shows JB Company decline the inventory turnover days‚ it means that this company improves
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Prior to the cash receipts reaching the accounts receivable clerk‚ the auditor should make a list of all cash receipts without the clerk’s knowledge. After the clerk posted cash receipts to the journal‚ the auditor should compare the details of the cash receipt listings he made to the detail of daily deposit tickets made by the clerk. 2. Trace a sample of customers’ accounts from journal to ledgers. 3. Investigate debit entries in the general ledger cash account other than from the cash receipt journal
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for a number of reasons. The company’s inability to receive payments from customers in a timely manner created a severe impact in the company’s cash flows. The age of account receivables increased each year. In 1995 it took 49 days on average to receive payments from customers. Because of the delay in accounts receivable‚ Clarkson Lumber’s ability to pay suppliers on time is also impacted. In 1995 it took Clarkson 38 days on average to pay its suppliers. Additionally Clarkson Lumber continues
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