Answer:
a. $74
Explanation:
The computation in the change in cash for the year is shown below:
Net income $100
Less: Purchase of Debt Securities -$7
Less: Amortization of Premium on Bonds payable -$4
Less: Purchase of Treasury Stock -$5
Less: cash Dividends paid -$10 {($100 - $92) + $2}
Change in Cash $74
Hence, the correct option is A. $74
We simply deduct all the items from the net income so that the change in cash could come
Answer:
B) Objectives 2 and 3
Explanation:
Accounting controls are procedures that help a company ensure the validity and accuracy of its financial statements.
Therefore, one of the main priorities of accounting controls would be to make sure that accounting records are correct. By ensuring the validity of accounting records, the company's assets are safeguarded, since the possibility of something missing or being incorrectly recorded diminishes.
Answer:
Wei Company
Journal Entry:
Debit Allowance for Doubtful Accounts $7,800
Credit Accounts Receivable $7,800
To write-off accounts determined to be uncollectible.
Explanation:
a) Data and Calculations:
Allowance for Doubtful Accounts (Balance) = $35,000
Uncollectible accounts:
Oakley Co. $1,400
Brookes Co. $6,400
Total = $7,800
b) The amount of $7,800 considered to be uncollectible is written off against the Accounts Receivable. This reduces the Accounts Receivable while correspondingly increasing the Allowance for Doubtful Accounts.
