Reference no: EM131105851
Francis Equipment Co. closes its books regularly on December 31, but at the end of 2014 it held its cash book open so that a more favorable balance sheet could be prepared for credit purposes. Cash receipts and disbursements for the first 10 days of January were recorded as December transactions. The information is given below.
1. January cash receipts recorded in the December cash book totalled $45,640 of which $28,000 represents cash sales, and $17,640 represents collections on account for which cash discounts of $360 were given.
2. January cash disbursements recorded in the December check register liquidated accounts payable of $22,450 on which discounts of $250 were taken.
3. The ledger has not been closed for 2014.
4. The amount shown as inventory was determined by physical count on December 31, 2014.
The company uses the periodic method of inventory.
Instructions
(a) Prepare any entries you consider necessary to correct Francis's accounts at December 31.
(b) To what extent was Francis Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open? (Compute working capital and the current ratio.) ssume that the balance sheet that was prepared by the company showed the following amounts:
|
Find the average velocity of the object with respect
: The velocity v (in ft/s) an object falling under the influence of gravity as a function of time t (in s) is given by v = 32t What is the average velocity of the object with respect to time for the first 3.0 s? In this case, we want the average va..
|
|
Describe how trend can be used to develop business strategy
: Visit Fedscope (http://www.fedscope.opm.gov/) and identify and explain at least one interesting trend. This tool is an example of OLAP. Also, describe how this trend can be used to develop a business strategy.
|
|
Finger on the sharp metal edge
: A century ago, there was, of course, no such thing as KFC; automobiles were still a novelty; and if you cut your finger on the sharp metal edge of a table, you ran a real risk of dying from blood poisoning. The entire masterpiece gives?
|
|
Find the force on the floodgate if the upper edge
: A vertical rectangular floodgate of a dam is 5.00 ft wide and 4.00 ft high. Find the force on the floodgate if its upper edge is 3.00 ft below the surface of the water.
|
|
Prepare any entries you consider necessary to correct
: Prepare any entries you consider necessary to correct Francis's accounts at December 31. To what extent was Francis Equipment Co. able to show a more favorable balance sheet at December 31 by holding its cash book open?
|
|
Find the work done in winding up all the cable
: In Example 3, find the work done in winding up all the cable. EXAMPLE 3 Work done winding up cable
|
|
Find the work done in stretching the spring
: A spring of natural length 12 in. requires a force of 6.0 lb to stretch it 2.0 in. See Fig. 26.64. Find the work done in stretching it 6.0 in. From Hooke's law, we find the constant for the spring, and therefore f(x) as
|
|
What are the price elasticity of demand
: Define elasticity. What are the price elasticity of demand, price elasticity of supply, income elasticity of demand and cross elasticity of demand?
|
|
Compute contribution margin ratio and margin of safety ratio
: Prepare a CVP income statement for 2014 based on management's estimates. Compute the break-even point in (1) units and (2) dollars. Compute the contribution margin ratio and the margin of safety ratio.
|