King Service Co. experienced the following transactions for 2012, its first year of operations: 1. Provided $66,000
Question:
King Service Co. experienced the following transactions for 2012, its first year of operations:
1. Provided $66,000 of services on account.
2. Collected $42,000 cash from accounts receivable.
3. Paid $26,000 of salaries expense for the year.
4. King adjusted the accounts using the following information from an accounts receivable aging schedule:
Required
a. Organize the information in accounts under an accounting equation.
b. Prepare the income statement for King Service Co. for 2012.
c. What is the net realizable value of the accounts receivable at December 31,2012?
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For
Survey of Accounting
ISBN: 978-0078110856
3rd Edition
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
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