Selected account balances for Ramano Company at January 1, 2022, are presented below. Accounts Payable $19,000 Accounts
Question:
Selected account balances for Ramano Company at January 1, 2022, are presented below.
Accounts Payable | $19,000 |
Accounts Receivable | 22,000 |
Cash | 17,000 |
Inventory | 13,500 |
Ramano’s sales journal for January shows a total of $100,000 in the selling-price column, and its one-column purchases journal for January shows a total of $72,000.
The column totals in Ramano’s cash receipts journal are Cash Dr. $64,000; Sales Discounts Dr. $1,100; Accounts Receivable Cr. $48,000; Sales Revenue Cr. $6,000; and Other Accounts Cr. $11,100.
The column totals in Ramano’s cash payments journal for January are Cash Cr. $55,000; Inventory Cr. $1,000; Accounts Payable Dr. $46,000; and Other Accounts Dr. $10,000. Ramano’s total cost of goods sold for January is $63,600.
Accounts Payable, Accounts Receivable, Cash, Inventory, and Sales Revenue are not involved in the “Other Accounts” column in either the cash receipts or cash payments journal, and are not involved in any general journal entries.
Instructions
Compute the January 31 balance for Ramano in the following accounts.
a. Accounts Payable.
b. Accounts Receivable.
c. Cash.
d. Inventory.
e. Sales Revenue.
Accounts PayableAccounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
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...
Step by Step Answer:
a Accounts Payable Opening balance of Accounts payable on Jan 1 2022 19000 Add Purchases during Janu...View the full answer
Accounting Tools For Business Decision Making
ISBN: 9781119571056
7th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
