P6-3 Understanding the Statement of Earnings Based on the Gross Profit Percentage LO6-3 The following data...

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P6-3 Understanding the Statement of Earnings Based on the Gross Profit Percentage LO6-3 The following data were taken from the year-end records of Nomura Export Company: Required: Fill in all of the missing amounts. (Round "Earnings per share" to 2 decimal places.) Statement of Earnings Items Gross sales revenue Sales returns and allowances Net sales revenue Cost of sales Gross profit Operating expenses Earnings before income taxes Income tax expense (20%) Net earnings Year 1 Year 2 $ 166,000 $ 238,000 18,600 50% 30% 18,600 20.600 Earnings per share (20,000 shares outstanding) 2.46 P6-6 Determining Bad Debt Expense Based on Aging Analysis and Interpreting Ratios LO6-4 IceKreme Inc. makes ice cream machines for sale to ice cream parlours. The following events occurred between April 1 and June 30, 2020: April 10: Received an order from Peter's Appliances, a wholesaler, for 14 machines. April 30: Sold 21 machines to Yuri Inc. on credit. May May May May May 1: The purchasing manager of Peter's Appliances visited IceKreme's factory and purchased 17 machines on credit, instead of the 14 machines that were previously ordered. 5: Yuri Inc. paid for the machines purchased on April 30. 7: Sold 10 machines to Cheng Ltd. on credit. 10: Wrote off $14,000 of accounts receivable that were considered uncollectible. These receivables relate to sales made prior to April 1, 2020. 15: Peter's Appliances returned two defective machines and paid the amount due. June 1: Received $80,000 from Cheng Ltd. on account. June 30: Recovered $2,600 from the receivables that were written off on May 10. Additional information is as follows: IceKreme sold all machines at $10,000 per unit. All of IceKreme's sales were on credit with terms 2/10, n/30. IceKreme's records included the following items and their balances as at March 31, 2020: Accounts receivable $ 52,000 Allowance of doubtful accounts (credit balance) Net sales 16,200 520,000 Required: 1. Prepare the journal entries to record the transactions that occurred from April 1 to June 30, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 Record the receipt of order from Peter's Appliance. Note: Enter debits before credits. Date April 10 General Journal Debit Credit View general journal Record entry Clear entry > 2. The company uses the aging of accounts receivable method to determine the amount of bad debt expense. The estimated uncollectible rates for the various age groups are as follows: (Hint: Use a timeline to keep track of accounts receivable in order to determine the age of these receivables.) Estimated uncollectible Aging of accounts receivable Not yet due 5% 1-30 days 31-60 days Over 60 days past due past due past due 10% 15% 20% a. Determine the amount of receivables that may not be collectible in the future as on June 30, 2020. Amount of uncollectible b. Prepare the journal entry to record bad debt expense at June 30, 2020, the company's fiscal year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the bad debt expenses estimated for the period. Note: Enter debits before credits. Date June 30 General Journal Debit Credit No journal entry required Accounts payable Accounts receivable Record View general journal Allowance for doubtful accounts 3. IceKreme's net accounts receivable were $80,000 at June 30, 2019. Calculate IceKreme's average collection period for fiscal year 2020. (Use 365 days a year. Round intermediate calculations to 2 decimal places. Round the final answer to 1 decimal place.) Average collection period days P6-12 Preparing a Bank Reconciliation and Related Journal Entries LO6-7 The bookkeeper at Hopkins Company has not reconciled the bank statement with the cash account, saying instead, "I don't have time." You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, 2021, bank statement and the April ledger accounts for cash showed the following (summarized): Bank Statement Cheques Deposits Balance Balance, April 1, 2021 Deposits during April $31,400 $ 36,300 67,700 Notes collected for company (including $72 interest) Cheques cleared during April 1,200 68,900 $44,700 24,200 NSF cheque-A. B. Wright Bank service charges Balance, April 30, 2021 162 72 24,038 23,966 23,966 Apr. 1 Balance Apr. Deposits Apr. 30 Balance Cash in Bank 23,700 41,800 Apr. Cheques written Cash on Hand 120 41,300 A comparison of cheques written before and during April with the cheques cleared through the bank showed that cheques of $4,300 are still outstanding at April 30. No deposits in transit were carried over from March, but a deposit was in transit at April 30. Required: 1. Prepare a detailed bank reconciliation at April 30, 2021. Company's Books Additions: Deductions: HOPKINS COMPANY Bank Reconciliation, April 30, 2021 Bank Statement Additions: Deductions: Ending correct cash balance Ending correct cash balance 2. Prepare any required journal entries as a result of the reconciliation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A B C Record note receivable plus interest collected. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal 3. What were the balances in the cash accounts in the ledger on May 1, 2021? Balance in cash in bank account Balance in cash on hand account > 4. What total amount of cash should be reported on the statement of financial position at April 30, 2021? Statement of financial position (April 30, 2021): Current assets: Cash P6-3 Understanding the Statement of Earnings Based on the Gross Profit Percentage LO6-3 The following data were taken from the year-end records of Nomura Export Company: Required: Fill in all of the missing amounts. (Round "Earnings per share" to 2 decimal places.) Statement of Earnings Items Gross sales revenue Sales returns and allowances Net sales revenue Cost of sales Gross profit Operating expenses Earnings before income taxes Income tax expense (20%) Net earnings Year 1 Year 2 $ 166,000 $ 238,000 18,600 50% 30% 18,600 20.600 Earnings per share (20,000 shares outstanding) 2.46 P6-6 Determining Bad Debt Expense Based on Aging Analysis and Interpreting Ratios LO6-4 IceKreme Inc. makes ice cream machines for sale to ice cream parlours. The following events occurred between April 1 and June 30, 2020: April 10: Received an order from Peter's Appliances, a wholesaler, for 14 machines. April 30: Sold 21 machines to Yuri Inc. on credit. May May May May May 1: The purchasing manager of Peter's Appliances visited IceKreme's factory and purchased 17 machines on credit, instead of the 14 machines that were previously ordered. 5: Yuri Inc. paid for the machines purchased on April 30. 7: Sold 10 machines to Cheng Ltd. on credit. 10: Wrote off $14,000 of accounts receivable that were considered uncollectible. These receivables relate to sales made prior to April 1, 2020. 15: Peter's Appliances returned two defective machines and paid the amount due. June 1: Received $80,000 from Cheng Ltd. on account. June 30: Recovered $2,600 from the receivables that were written off on May 10. Additional information is as follows: IceKreme sold all machines at $10,000 per unit. All of IceKreme's sales were on credit with terms 2/10, n/30. IceKreme's records included the following items and their balances as at March 31, 2020: Accounts receivable $ 52,000 Allowance of doubtful accounts (credit balance) Net sales 16,200 520,000 Required: 1. Prepare the journal entries to record the transactions that occurred from April 1 to June 30, 2020. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 Record the receipt of order from Peter's Appliance. Note: Enter debits before credits. Date April 10 General Journal Debit Credit View general journal Record entry Clear entry > 2. The company uses the aging of accounts receivable method to determine the amount of bad debt expense. The estimated uncollectible rates for the various age groups are as follows: (Hint: Use a timeline to keep track of accounts receivable in order to determine the age of these receivables.) Estimated uncollectible Aging of accounts receivable Not yet due 5% 1-30 days 31-60 days Over 60 days past due past due past due 10% 15% 20% a. Determine the amount of receivables that may not be collectible in the future as on June 30, 2020. Amount of uncollectible b. Prepare the journal entry to record bad debt expense at June 30, 2020, the company's fiscal year-end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record the bad debt expenses estimated for the period. Note: Enter debits before credits. Date June 30 General Journal Debit Credit No journal entry required Accounts payable Accounts receivable Record View general journal Allowance for doubtful accounts 3. IceKreme's net accounts receivable were $80,000 at June 30, 2019. Calculate IceKreme's average collection period for fiscal year 2020. (Use 365 days a year. Round intermediate calculations to 2 decimal places. Round the final answer to 1 decimal place.) Average collection period days P6-12 Preparing a Bank Reconciliation and Related Journal Entries LO6-7 The bookkeeper at Hopkins Company has not reconciled the bank statement with the cash account, saying instead, "I don't have time." You have been asked to prepare a reconciliation and review the procedures with the bookkeeper. The April 30, 2021, bank statement and the April ledger accounts for cash showed the following (summarized): Bank Statement Cheques Deposits Balance Balance, April 1, 2021 Deposits during April $31,400 $ 36,300 67,700 Notes collected for company (including $72 interest) Cheques cleared during April 1,200 68,900 $44,700 24,200 NSF cheque-A. B. Wright Bank service charges Balance, April 30, 2021 162 72 24,038 23,966 23,966 Apr. 1 Balance Apr. Deposits Apr. 30 Balance Cash in Bank 23,700 41,800 Apr. Cheques written Cash on Hand 120 41,300 A comparison of cheques written before and during April with the cheques cleared through the bank showed that cheques of $4,300 are still outstanding at April 30. No deposits in transit were carried over from March, but a deposit was in transit at April 30. Required: 1. Prepare a detailed bank reconciliation at April 30, 2021. Company's Books Additions: Deductions: HOPKINS COMPANY Bank Reconciliation, April 30, 2021 Bank Statement Additions: Deductions: Ending correct cash balance Ending correct cash balance 2. Prepare any required journal entries as a result of the reconciliation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet A B C Record note receivable plus interest collected. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal 3. What were the balances in the cash accounts in the ledger on May 1, 2021? Balance in cash in bank account Balance in cash on hand account > 4. What total amount of cash should be reported on the statement of financial position at April 30, 2021? Statement of financial position (April 30, 2021): Current assets: Cash