Category: Uncategorized

Why is it important for businesses to classify assets and liabilities as current or non-current in the statement of financial position? What are the potential consequences of misclassifying these items?

ESTIMATED UNCOLLECTIBLE ACCOUNT JOURNAL ENTRY Evergreen Office Supplies Ltd. sells office furniture, technology accessories, and stationery products to business customers on account. At the end of the fiscal year, the company reviews its outstanding accounts receivable balances to determine whether all customer balances are likely to be collected. After reviewing past collection experience, customer payment history, and current economic conditions, Evergreen Office Supplies Ltd. estimates that $36,500 of its accounts receivable may not be collectible. The company uses the allowance method to account for expected credit losses. What accounts would be debited and credited when preparing the year-end adjusting entry for expected credit losses?

An aging schedule shows that the Allowance for Expected Credit Losses should have an ending credit balance of $30,200. Before adjustment, the allowance account has a credit balance of $4,800. What is the required adjusting entry amount?

Instructions:    1. Review the Income Statement, Statement of Changes in Equity, and Statement of Financial Position above.    2. Identify at least 10 errors in the financial statements.    3. For each error found, describe what is wrong and provide the correct treatment or amount.    4. Errors may include: calculation mistakes, classification errors, presentation errors, or conceptual errors.    5. Each correctly identified and explained error is worth 2 marks (20 marks total for 10 errors).    

A retail store manager counts the daily cash, prepares the bank deposit, records the sales journal entry, and later compares the deposit slip to the bank statement. Which improvement provides the strongest independent check?

An aging schedule shows that the Allowance for Expected Credit Losses should have an ending credit balance of $19,250. Before adjustment, the allowance account has a debit balance of $4,800. What is the required adjusting entry amount?

A cheque for office supplies cleared the bank for $999.90 but was recorded in the company cash payments journal as $2,499.90. What adjustment is needed in the bank reconciliation?

September 8: Summit Wellness Clubs Ltd. declared total cash dividends of $650,000. Which journal entry should be recorded on the declaration date?

RECEIVABLES TURNOVER PeakFit Co. and ActiveTrail Co. are two companies in the athletic apparel and sporting goods industry. The following selected financial information is available for the year. Account PeakFit Co. ActiveTrail Co. Sales $72,480 $38,760 Allowance for expected credit losses, beginning of year 520 310 Allowance for expected credit losses, end of year 610 285 Accounts receivable, gross, beginning of year 5,900 3,850 Accounts receivable, gross, end of year 7,340 4,410 What is the receivables turnover for PeakFit Co.? Enter your answer with two decimal places. Do not enter your answer as a percent. For example, enter: 1.00 Do not add percent signs, words, or other details. _______ RECEIVABLES TURNOVER What is the receivables turnover for ActiveTrail Co.? Enter your answer with two decimal places. Do not enter your answer as a percent. For example, enter: 1.00 Do not add percent signs, words, or other details. _______ AVERAGE COLLECTION PERIOD What is the average collection period for PeakFit Co.? Enter your answer with two decimal places. Do not enter your answer as a percent. For example, enter: 1.00 Do not add percent signs, words, or other details. _______ AVERAGE COLLECTION PERIOD What is the average collection period for ActiveTrail Co.? Enter your answer with two decimal places. Do not enter your answer as a percent. For example, enter: 1.00 Do not add percent signs, words, or other details. _______

What is the ending balance in Retained Earnings to be reported in the statement of changes in equity?