204 Chapter Entity A SALES ORDER #123 Igid, T. Karayan, Baguio City, Philippines #2102395 (074) 442 3664 Dec. 31, 2071 Ship to: Andres Company #21 Jay Adayu, Green Valley City, Philippines Unit price Item description Qty. Amount 1 16,314.23 Uggot Sayote #499893 16,314.23 Total 16,314.23 Make all checks payable to Entity A. Total due in 30 days. You found the following note attached to SO #2102395: 12.31. 20 x1 Out of Stock My. Rose 4Accounts Receivable 203 BLES Entity A. You Entity A SALES ORDER w for the pa #123 igid, T. Karayan, Baguio City, Philippines (074) 442 3664 #2102394 ompany's on Dec. 31, 20x1 e document Ship to: Max Company #8 Jay Lang, Bangir, Buyagan City, Philippines Item description Qty. Unit price Amount Ukis Ti Saba #410134 2 10,000.00 20,000.00 Total 20,000.00 Make all checks payable to EntityABERIPPED Total due in 30 days. Balance 6,123 415 31229 Your inquiry with the shipping department confirmed that Sales 1,237 95 Order (SO) #2102394 has in fact been shipped on December 31, (341 28 20x1 under FOB Shipping Point term. However, the related sales 3,126 068 invoice was not yet recorded because Ms. Rose, your accounting 76, 68 staff, left early for a date with her BF. For a moment there, you felt a little bit jealous and lonely. But you said to yourself, "Oh well, I 10,537,08 love accounting and accounting loves me. We will be BFFs for life. Yahoo!"@Chapter Accounts Receivable 207 missory note proceeds on Requirements: a. How much is the adjusted accounts receivable as of December 31, 20x1? b. How much is the total receivables to be presented in the current assets section of Entity A's December 31, 20x1 statement of financial position? c. Provide the adjusting entries. ACTIVITY #2: JOURNAL ENTRIES Instruction: You are the accountant of Face Hardware Store. YouAn Wilson, one of your co-en in exchange for a loan. Mr. Wilson received the loan proceeds 31 December 31, 20x1. H b. Luigi Company Cu st #39 Dakkel A. Bidg. Asideg, Laeng City, Philippines Contact # (0987) 654 3210 P C. Ms. Angie L. Gaspi Corporate Secretary ACT Entity A Inst #123 Igid, T. Karayan, Baguio City, Philippines are state RE: NOTICE OF DIVIDENDS pos Dear Ma'am: This is to inform you that, on December 31, 20x1, the Board of Directors has declared a FIVE PESO (P5) PER SHARE CASH DIVIDENDS. The dividends are due for payment on January 20, 20x2. Please update your registration starting on January 12, 20x2. Registration ends on January 16, 20x2. Truly yours, Ms. Gemma R. Boledo Corporate Secretary Luigi Company Your securities count on December 31, 20x1 revealed that your company holds 10,000 shares of Luigi Company representing 2% ownership interest. Your company's right to receive the dividends was established on this date. Hint: Entity A's Chart of Accounts includes a "Dividend income" account.Accounts Receivable 205 The following documents were also not yet recorded as of December 31, 20x1: Promissory Note: NO: 351615 ................. This Promissory NOTE was issued at: #123 lgid, T. Karayan, AMOUNT: P 35,000 (In numbers) Baguio City, Philippines AMOUNT Thirty - five Thousand Date: 12.31.20x1 Pesos (written) This certifies that Wilson B. Inder Hereby promise to pay - Entity A (HOLDER) the full amount specified, on this NOTE, for value recieved. Terms & Conditions The payment is due in full on March 31, 20x2. Dec. 31, 20x1 Date Signarure 16,314.73 Unit plica Total Valley Caty Philsizes e attached to SO :210235 aty. itity A202 Chapter 4 PROBLEM 5: CLASSROOM ACTIVITIES ACTIVITY #1: TOTAL CURRENT RECEIVABLES Instruction: Imagine you are the accountant of Entity A. You have been provided with the documents shown below for the purpose of determining the correct balance of your company's current receivables as of December 31, 20x1. Analyze the documents and answer the requirements. A B 1 Entity A 2 Schedule of Accounts Receivable 3 December 31, 20x1 A 5 Customer Balance 6 Tritan Trading Corp. 6,123,418 7 Star Paper Corp. 312,250 8 Kyle John Bookstore 1,237,965 DEF Co. (341,236) 10 NFCPAR, Inc. 3,126,003 11 Alex Store 78,689 12 Total 10,537,089 The following were not included in the schedule above