Four events on the books of hampton construction

Assignment Help Accounting Basics
Reference no: EM131125113

On August 1, 2011, Hampton Construction received a 9 percent, six-month note receivable from Dusty Roads, one of Hampton Construction's problem credit customers. Roads had owed $36,000 on an outstanding account receivable. The note receivable was taken in settlement of this amount. Assume that Hampton Construction makes adjusting entries for accrued interest revenue once each year on December 31.

a. Journalize the following four events on the books of Hampton Construction.

1. Record the receipt of the note on August 1 in settlement of the account receivable.

2. Record accrued interest at December 31, 2011.

3. Assume that Dusty Roads pays the note plus accrued interest in full. Record the collec- tion of the principal and interest on January 31, 2012.

4. Assume that Dusty Roads did not make the necessary principal and interest payment on January 31, 2012. Rather, assume that he defaulted on his obligation. Record the default on January 31, 2012.

b. Indicate the effects of each of the four transactions journalized in part on the elements of the financial statement shown below. Use the code letters for increase, for decrease, and NE for no effect.

Transaction Revenue Expenses Net Income Assets Liabilities Equity 1

Reference no: EM131125113

Questions Cloud

How has the world become more interconnected : ‘One of the most noticeable processes that has taken place over the past 500 years is that globalisation has become increasingly intense. How has the world become more interconnected over the past 500 years?'
Identify the specific goals and challenges of the model : What is the general opinion that society seems to have with regard to this issue? Have any organizations opposed to the court decisions made progress with regard to prisoners' rights? How do you foresee the outcome of the debate regarding the issue?
Amount of time spent shopping in the bookstore : The following information is collected from students upon exiting the campus bookstore during the first week of classes.
How many distinct polypeptides must the structure have : A cellular structure is composed of 2 distinct gene products and a total of 8 polypeptides. How many distinct polypeptides must the structure have?
Four events on the books of hampton construction : On August 1, 2011, Hampton Construction received a 9 percent, six-month note receivable from Dusty Roads, one of Hampton Construction's problem credit customers. Roads had owed $36,000 on an outstanding account receivable. The note receivable was ..
Describe concepts and purpose of quality function deployment : Describe the concepts and purpose of Quality Function Deployment (QFD). Also, identify four of the 10 steps in the House of Quality (HOQ) and describe their importance and benefits. 2. Define the linkage between a firm’s mission, operations strategy,..
Write a class called reverse to reverse an unsigned integer : Write a class called reverse to reverse an unsigned integer. For example, 8602 should be written as 2068 • Write the program above, using only while statements • Rewrite the program using only for statements
Billed customers for fees earned : The following selected transactions were completed during August of the current year: 1. Billed customers for fees earned, $73,900.
What stocking level is appropriate : Demand for devil’s food whipped-cream layer cake at a local pastry shop can be approximated using a Poisson distribution with a mean of five per day. The manager estimates it costs $8 to prepare each cake. Fresh cakes sell for $14. Day-old cakes sell..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Schedule of noncash investing and financing activities

Prepare the statement of cash flows for the year ended December 31, 20X6, using the direct method, and include a schedule of noncash investing and financing activities if necessary.

  The wanless corporation provides internet consulting

the wanless corporation provides internet consulting services to a wide-range of customers. the companyrsquos fiscal

  Vietnam malaysian companies

Choose CSR reports of any three (3) Vietnam Malaysian Companies' from the same sector*.

  Factors involved in an investment decision

As an investor, you are considering purchasing stock in a chain of theaters. The annual reports of several companies are available for comparison.

  Describe the importance of process mapping in a supply

1.describe how you would identify bottlenecks in your value stream? how would you ensure sustained flow through those

  The ceo of star coffee is interested in reviewing the may

the ceo of star coffee is interested in reviewing the may 2014 performance report for cost center 7-11. prepare a brief

  Partial balance sheet showing investments account

Prepare journal entries for each of the above transactions. Prepare a partial balance sheet showing the Investments account at December 31, 2002 and 2003.

  What are the tax consequences of property contributions

What are the tax consequences of property contributions in exchange for ownership interests to the contributing party and to the entity for C Corporations and Trusts?

  Malard corporation was authorized to issue

Malard Corporation was authorized to issue 100,000 shares of $8 par common stock and 50,000 shares of $80 par, 4 percent, cumulative preferred stock.

  The enchantment company is considering an expansion of its

analysis of an expansion proposalthe enchantment company is considering an expansion of its present facilities to meet

  Accounting principles applicable in this situation

That's what it's worth. Or, at a minimum, at $106,000." Respond to this statement with specific reference to accounting principles applicable in this situation.

  Principal differences between activity-based costing

What are the principal differences between activity-based costing (ABC) and traditional product costing?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd