. During Year 2, Calico Company experienced the following accounting events: 1. Provided $144,000 of services on...

 

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During Year 2, Calico Company experienced the following accounting events: 1. Provided $144,000 of services on account. 2. Collected $95,000 cash from accounts receivable. 3. Wrote off $3,800 of accounts receivable that were uncollectible. 4. Loaned $5,100 to an individual, Emma Gardner, in exchange for a note receivable. 5. Paid $98,000 cash for operating expenses. 6. Estimated that uncollectible accounts expense would be 1 percent of revenue earned on account. Recorded the year-end adjusting entry. 7. Recorded the year-end adjusting entry for accrued interest on the note receivable (see Event 4). Calico made the loan on August 1. It had a six-month term and a 4 percent rate of interest. Required a. Record the Year 2 events in ledger accounts under an accounting equation. b. Determine net income for Year 2. c. Determine net cash flow from operating activities for Year 2. d. Determine the net realizable value of accounts receivable at December 31, Year 2. e. What amount of interest revenue will Calico recognize on its note receivable in Year 3? Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req B to E Record the Year 2 events in ledger accounts under an accounting equation. Calico's ledger balances on January 1, Year 2, were as follows: (Enter any decreases to account balances with a minus sign. Not all cells will require entry.) CALICO COMPANY Accounting Equation for the Year 2 Assets Equity Event No. NRV Accounts Receivable Liabilities Notes Receivable Interest Receivable Common Stock Retained Earnings Cash Bal. 32,000 17,800 40,000 + 9,800 %3D 1. 144,000 + + 144,000 2. 95,000 + (95,000) + 3. (3,800) + + %3D 4. (5,100) 5,100 + 5. (98,000) + + + (98,000) 6. (1,440) (1,440) %3D 7. 204 204 %3D Totals 23,900 + 61,560 5,100 + 204 40,000 + 54,564 During Year 2, Calico Company experienced the following accounting events: 1. Provided $144,000 of services on account. 2. Collected $95,000 cash from accounts receivable. 3. Wrote off $3,800 of accounts receivable that were uncollectible. 4. Loaned $5,100 to an individual, Emma Gardner, in exchange for a note receivable. 5. Paid $98,000 cash for operating expenses. 6. Estimated that uncollectible accounts expense would be 1 percent of revenue earned on account. Recorded the year-end adjusting entry. 7. Recorded the year-end adjusting entry for accrued interest on the note receivable (see Event 4). Calico made the loan on August 1. It had a six-month term and a 4 percent rate of interest. Required a. Record the Year 2 events in ledger accounts under an accounting equation. b. Determine net income for Year 2. c. Determine net cash flow from operating activities for Year 2. d. Determine the net realizable value of accounts receivable at December 31, Year 2. e. What amount of interest revenue will Calico recognize on its note receivable in Year 3? Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req B to E Record the Year 2 events in ledger accounts under an accounting equation. Calico's ledger balances on January 1, Year 2, were as follows: (Enter any decreases to account balances with a minus sign. Not all cells will require entry.) CALICO COMPANY Accounting Equation for the Year 2 Assets Equity Event No. NRV Accounts Receivable Liabilities Notes Receivable Interest Receivable Common Stock Retained Earnings Cash Bal. 32,000 17,800 40,000 + 9,800 %3D 1. 144,000 + + 144,000 2. 95,000 + (95,000) + 3. (3,800) + + %3D 4. (5,100) 5,100 + 5. (98,000) + + + (98,000) 6. (1,440) (1,440) %3D 7. 204 204 %3D Totals 23,900 + 61,560 5,100 + 204 40,000 + 54,564

Answer rating: 100% (QA)

Assets Liabilities Equity NRV Common Retained Event No Cash Acc Recv Notes Rec Int Recv S... View the full answer