Date	Debit		Credit	Db	Cr
Enter date here	Write all your account titles for debit journal entries here. You can have more than 1 entry			Enter number for you debit entry(ies)	Leave empty
	Leave empty	Write all your account titles for credit journal entries here. You can have more than 1 entry		Leave empty	Enter number for you crecit entry(ies)

 

You are buying a building for $36000 and paying $6000 in cash and signing a notes payable for

$3000

 

Date	Debit		Credit	Db	Cr
June 1, 2020	Building			36000
		Cash Notes Payable			6000 30000

 

 

1.a)  You are buying   1000 shares of Facebook on January 1, 2021.  You paid $320 per share plus a brokerage commission of $84.  (20 points)

Calculations:

 

Date	Debit		Credit	Db	Cr

 

b) You sell   150 shares of Facebook stock on   30 May, 2021 for $315 per share, less a $55 brokerage commission.

 

Calculations:

 

Date	Debit		Credit	Db	Cr

2.a)  Assume that on January 1, 2021, a six-month, 12% note receivable is acquired from a customer in settlement of an existing account receivable of $50000.   (20 points)

 

Date	Debit		Credit	Db	Cr

 

 

b) On July 1, 2021 (6 months after the date of the note), the note matures.  Customer pays in cash

 

Calculations:

 

Date	Debit		Credit	Db	Cr

 

3. Facebook uses the balance sheet approacy to estimate uncollectible accounts expense.  At year-end an aging of the accounts receivable produced the following five grouping:    (25 points)

 

Groups	Accounts receivable by age	Age group total	Estimated Uncollectible accounts
a.	Not yet due	$400,000
b.	1-30 days	90,000
c.	31-60 days	40,000
d.	61-90 days	20,000
e.	Over 90 days past due	50,000
	Total	$600000

 

On the basis of past experience, the company estimated the percentage probability uncollectible for the above five age groups to be as follows:  a, 1%;  Group b, 2%;  Group c, 9%;  Group d, 15%; and Group e, 40%.

 

a) Compute the estimated amount of uncollectible accounts based on the above classification by age group.  Show your calculation in the table provided above. Please also show the total estimated uncollectible accounts.

 

b) The allowance for doubtful accounts before adjustments at December 31,2020 showed a credit balance of $2500.  Prepare the adjusting entry needed to bring the Allowance Accounts to the proper amount on December 31,2020.

 

Date	Debit		Credit	Db	Cr

 

4.  On January 1, 2020, European University of Lefke purchased a new bus for the students at a cost of $30000.  The useful life of this bus was estimated at 4 years, with a residual value of $6000. Fill the table assuming that EUL uses straight line depreciation.  Show calculatins in the table  (25 points)

 

Year	Computation	Straight-Line Depreciation Expense	Accumulated Depreciation	Book Value
				$ 30000
1
2
3
4
Total

 

 

5. European University of Lefke has an old bus that originally cost $20000 and has an accumulated depreciation of $17000.  EUL trades in this old bus for a new one with a fair market value of $26000.

The bus dealership grants EUL a trade-in allowance of $2000 for the old bus and EUL pays the remaining $24000 cost of the new bus in cash.   (20 points)

Calculations:

 

 

Date	Debit		Credit	Db	Cr

Answer rating: 100% (QA)

Solution 1 a Date Debit Credit Db Cr 1 Jan 2021 Equity Share 320000 To Bank 320000 Being Purchased 1... View the full answer