What is the balance sheet amount for trading securities

Assignment Help Accounting Basics
Reference no: EM132234200

Questions -

Q1) Alpha Company sells goods to customers who use Worldwide Express nonbank credit cards. Credit card sales on July 15, 2016 amounted to $25,000 and were subject to a 3.5% credit card company collection fee. Alpha Company collected payment from Worldwide Express on July 21. What amounts should be recorded for the following accounts for the July 21 collection?

1. Cash

2. Sales

3. Service Charge

4. Accounts Receivable

Q2) Alpha Company uses the direct write-off method of recording uncollectible accounts. On August 15, 2016, Yankee Zulu filed for bankruptcy and informed Alpha that he would be unable to pay $550 owed to Alpha. Alpha is certain that it will be unable to collect the $550. Use this information to prepare the General Journal entry (without explanation) for August 15. If no entry is required then write "No Entry Required."

Q3) For the fiscal year ended December 31, 2016, Alpha Company had credits sales that amounted to $300,000. Historically, 2.5% of credit sales are uncollectible. Alpha Company uses the percentage of sales method to determine its uncollectible accounts. The balance before any end of the year adjusting entry in the Allowance for Uncollectable Accounts is a credit value of $1,575. Use this information to prepare the adjusting General Journal entry (without explanation) for the fiscal year. If no entry is required then write "No Entry Required."

Q4) Alpha Company uses an allowance method for recording bad debts. On July 15, 2016 Alpha Company was advised of the bankruptcy of the Broken Corporation and wrote off their $7,000 of accounts receivable. Suddenly, on August 25, 2016 Broken won the Maryland State Mega Millions. Without warning, on August 26, Alpha Company received in full the payment for Broken's past debt. Use this information to prepare the General Journal entries (without explanation) for the August 26, 2016 event. If no entry is required then write "No Entry Required."

Q5) On December 21, 2016, Alpha Company accepted from Bravo a $10,000, 90-day, 8% note in lieu of an existing $10,000 account receivable. Alpha Company's fiscal year-end is December 31. Use this information to prepare for the Alpha Company the General Journal entries (without explanation) for December 21, 2016. If no entry is required then write "No Entry Required."

Q6) On 1/2/20X6, ALPHA acquired 100 shares of CHARLIE Corporation stock at $20 per share, 200 shares of DELTA Corporation stock at $40 per share, and 100 shares of ECHO Corporation stock at $30 per share.  All of these shares were purchased as trading securities.  The market price per share of these securities at the end of 20X6 and 20X7, respectively, are:

Company 12/31/x6 12/31/x7

CHARLIE $8 $22

DELTA $38 $34

ECHO $34 $30

What is the balance sheet amount for trading securities at the end of 20X7?

Reference no: EM132234200

Cash for the total amount was transferred to the fiscal

The fund liabilities for interest in the amount of $ 37,500 and principal in the amount of $ 50,000 were recorded, and cash for the total amount was transferred to the fisca

Balance sheet and income statement for the year

Indicate the affect of the misstatement on Gentry Supplies Company's balance sheet and income statement for the year ended December 31, 2009.

Explain what changes should be made to sarbanes-oxley act

ACC 564- Evaluate what changes should be made to both the Sarbanes-Oxley Act of 2002 and other current laws in order to make them more effective in deterring compani

Balance in retained earnings equals

A company had a beginning balance in retained earnings of $43,000. It had net income of $6,000 and paid out cash dividends of $5,625 in the current period. The ending balanc

American insulation exercised its call privilege and retired

American Insulation exercised its call privilege and retired the bonds for $790,000. The corporation uses the straight-line method both to determine interest and to amortize d

Determining the free cash flow

Suppose that Drake Corporation produced and sold 5,000 laptop computers during 2010. It reported $270,000 cash provided by operating activities. In order to maintain product

Any other solar panel currently on the market

Assume that it is now January 1, 2009. Wayne-Martin Electric Inc. (WME) has developed a solar panel capable of generating 200% more electricity than any other solar panel cu

Critical analysis of accounting research case

Critical analysis of accounting research case - You are also required to review the literature that highlighted the factors that impede students from choosing accounting as

Reviews

Write a Review

 
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