What is the process of analyzing accounts receivable and classifying by how old the due dates are?

1. What is the process of analyzing accounts receivable and classifying by how old the due dates are?
2. What is the name of the expense used to track receivable accounts estimated to be uncollectible?
3. Name one method used to estimate Bad Debts.
4. Name another method used to estimate Bad Debts.
5. Name the receivable created when customers are issued a formal, written document including specific terms of payment.
6. In what section on the Balance Sheet would Accounts Receivable be located?
7. What kind of account is Allowance for Doubtful Accounts?
8. Accounts Receivable should be collected in about how many days?
9. What is the name of the expense used to record the usage of fixed assets?
10. What is the name of the expense used to record the periodic write off of the cost of intangible assets?
11. What is the name of the expense used to record the utilization of natural resources?
12. Name the most popular depreciation method used by businesses today.
13. What kind of account is Accumulated Depreciation?
14. Is Land depreciated, yes or no?
15. Name one of the payroll taxes paid by employers.
16. Name another one of the payroll taxes paid by employers.
17. Name yet another one of the payroll taxes paid by employers.
18. What kind of account is Interest Payable?
19. Gross Wages LESS Deductions EQUAL what?
20. Do employees have contributions deducted from their paychecks for federal and state unemployment, yes or no?

KEY INFORMATION: On 3/5/07, our company, ABC Textbooks, Inc., borrows $150,000 from the First Bank & Trust. The terms of the note are 90-days at 8%.

21. What is the maturity date of the note?
22. – 23. What is the amount of total interest on this note?
24. – 25. What is the maturity value of the note?

#2: Record journal entries in the general journal below for Jax-Mart. Sample accounts include: Accounts Receivable, Allowance for Doubtful Accounts, Sales, Cash, Uncollectible Accounts Expense, and Notes Receivable. DO NOT ABBREVIATE.

1/2/07 Using the analysis of receivables method, write off Mr. Jones account of $585. His bankruptcy settlement was just completed. (3 points)

11/25/07 Mr. Jones paid his $585 balance in full. Record the journal entry to reinstate his account, and then record the cash receipt. (2 entries required)

12/31/07 Using the analysis of receivables method, record the provision for estimated uncollectible accounts at the end of the year at 10% with receivables of $175,000. Note that the balance in Allowance for Doubtful Accounts has a credit balance of $2000 before this journal entry.

12/31/07 - Now trying using a different method. Using the percent of sales method, record the provision for estimated uncollectible accounts at the end of the year, at 1% with sales of $1,500,000

#3: Instructions: Compute depreciation expense for two years using 3 different methods using the following information. Show all work for maximum points!!!:
• Machinery was acquired on the first day of the current year for $420,000
• The estimated useful life is 5 years or 40,000 hours
• The residual value is estimated at $20,000
• During year one, the machinery was used for 11,500 hours
• During year two, the machinery was used for 17,000 hours

METHOD YEAR ONE YEAR TWO

Straight Line (3 points)

Units of Production (6 points)

Double Declining Balance (6 points)

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Tiana Shar, the controller for Bondi Furniture Company, is in the process of analyzing the overhead costs for the month of November

Tiana Shar, the controller for Bondi Furniture Company, is in the process of analyzing the overhead costs for the month of November. She has gathered the following data for the month. Labor: Direct Labor Hours Job 77: 3,500 Job 78: 3,000 Job 79: 2,000 Labor Cost: Direct-Labor Wages: $204,000 Indirect-Labor Wages: 15,000 Supervisory Salaries:6,000 Material: Inventories, November 1: Raw Materials and Supplies: $10,500 Work in Progress (job 77): 54,000 Finished goods: 112,500 Purchases of raw material and supplies: Raw Material: $135,000 Supplies (indirect material): 15,000 Direct material and Supplies requisitioned for production Job 77: $45,000 Job 78: 37,500 Job 79: 25,500 Supplies (indirect material): 12,000 Total: $120,000 Other Building occupancy cost (heat, light, depreciation, etc) Factory Facilites: $6,400 Sales Offices: 1,600 Administrative Offices: 1,000 Total: $9,000 Production equipment costs: Power:$4,100 Repairs and maintenance: 1,500 Depreciation: 1,500 Other: 1,000 Total: $8,100 The firms job order costing system uses direct labor hours as the cost driver for overhead application. In december of the preceeding year. Shar has prepared the following budget for direct labor and manufacturing overhead costs for the current year. the plant is capable of operating at 150,000 direct labor hours per year. However, Shar estimates that the normal usage is 120,000 hours in a typical year. Manufacturing Overhead Direct Labor Hours Variable Fixed 100,000 $325,000 $216,000 120,000 390,000 216,000 140,000 455,000 216,000 During November the following jobs were completed: Job 77: side chairs Job 78: end tables
1. Calculate the predetermined overhead rate for the entire year.
2. Calculate the total cost of job 77.
3. Compute the amount of manufacturing overhead applied to job 79 during November.
4. What was the total amount of manufacturing overhead applied during November?
5. Compute the actual manufacturing overhead incurred during November.
6. Calculate the overapplied or underapplied overhead for November.

Click here for the solution: Tiana Shar, the controller for Bondi Furniture Company, is in the process of analyzing the overhead costs for the month of November

The stockholders’ equity section of the balance sheet for Atkins Company at December 31, 2011, is as follows

Problem 8-23 Analyzing the Stockholders’ Equity Section of the Balance Sheet

The stockholders’ equity section of the balance sheet for Atkins Company at December 31, 2011, is as follows:

AND SO ON

Note: The market value per share of the common stock is $25, and the market value per share of the preferred stock is $12.

Required

1. What is the par value per share of the preferred stock?
2. What is the dividend per share on the preferred stock?
3. What is the number of common stock shares outstanding?
4. What was the average issue price per share (price for which the stock was issued) of the common stock?
5. Explain the difference between the average issue price and the market price of the common stock.
6. If Atkins declared a 2-for-1 stock split on the common stock, how many shares would be outstanding after the split? What amount would be transferred from the retained earnings account because of the stock split? Theoretically, what would be the market price of the common stock immediately after the stock split?

Check:
a. Par Value per Share: $10
b. Dividend per Share $.60

Click here for the solution: The stockholders’ equity section of the balance sheet for Atkins Company at December 31, 2011, is as follows