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3 years ago

The following is the ending balances of accounts at December 31, 2021, for the Weismuller Publishing Company.

Business

1 answer:

luda_lava [24]3 years ago

3 0

Answer:

A balance sheet for Weismuller publishing for December 31 2021 was prepared and recorded in the explanation section below

Explanation:

Solution

COMPANY: WEISMULLER PUBLISHING Balance Sheet At December 31 2021 Assets

Current assets:

Cash and cash equivalents ($91,000 + $43000) $134000

Short term investments ($166,000 - $43000) $123000

The net accounts receivable ($186,000 =$29,000) $175,000

Inventory $298,000

Prepaid expense [174,000-(14600/2)] $101,000

The total current assets $813,000

Note: Kindly find an attached copy of the [art of the complete solution to this question below

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Answer with its Explanation:

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The Double entry would be:

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3 years ago

Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $49,0

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Answer:

a. Dr Bad debt expense $1,617

Cr Allowance for doubtful debt $1,617

b. Dr Bad debt expense $2,205

Cr Allowance for doubtful debt $2,205

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Estimated uncollectible amount

= 5% × $49,000

= $2,450

As such, if the allowance for doubtful;

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Additional allowance required

=$2450 - $833

= $1,617

Entries required are

Dr Bad debt expense $1,617

Cr Allowance for doubtful debt $1,617

b) a $245 debit balance before the adjustment.

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Adjusting entries required amounts to

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3 years ago

You are analyzing two companies that manufacture electronic toys – Like Games Inc. and Our Play Inc. Like Games was launched eig

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Answer:

A LOW days of sales outstanding represents an efficient credit and collection policy. Between the two companies, Like Games is collecting cash from its customers faster than Our Play, but both companies are collecting their receivables less quickly that the industry average. (5.51 days)

Our Play’s fixed assets turnover ratio is lower than that of Like Games. This could be because Our Play is a relatively new company, so the acquisition cost of its fixed assets is higher than the recorded cost of Like Games’s net fixed assets.

Like Games’s total assets turnover ratio is 1.05x, which is lower than the industry’s average total assets turnover ratio. In general, a higher total assets turnover ratio indicates greater efficiency.

Explanation:

DSO

Like Game 365 / (100,000 / 2,700) = 9.855

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Average 365 / (255,000/3,850) = 5.510

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Answer:

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