80.2K

Verified Solution

Link Copied!

1.	Recognized $66,000 of service revenue earned on account.
2.	Collected $58,800 from accounts receivable.
3.	Adjusted accounts to recognize uncollectible accounts expense. Sharp uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account.

The following transactions apply to Sharp Consulting for 2013:

1.	Recognized $73,500 of service revenue on account.
2.	Collected $66,800 from accounts receivable.
3.	Determined that $920 of the accounts receivable were uncollectible and wrote them off.
4.	Collected $300 of an account that had been previously written off.
5.	Paid $48,700 cash for operating expenses.
6.	Adjusted accounts to recognize uncollectible accounts expense for 2012. Sharp estimates that uncollectible accounts expense will be 1 percent of sales on account.

Required:

Complete all the following requirements for 2012 and 2013. Complete all requirements for 2012 prior to beginning the requirements for 2013. (d) Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for the year 2012. (Be sure to list the expenses on the income statement in order of their magnitude. Negative amounts and amounts to be deducted should be indicated with a minus sign. Be sure to list the assets and liabilities in order of their liquidity. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Sharp Consulting Income Statement For the Year Ended 2012 (Click to select)Service revenueSalaries expenseUncollectible accounts expenseCost of goods soldOperating expenses $ (Click to select)Sales revenueSalaries expenseCost of goods soldOperating expensesUncollectible accounts expense (Click to select)Net incomeNet loss $ Sharp Consulting Statement of Changes in Stockholders Equity For the Year Ended 2012 (Click to select)Stock issuedEnding retained earningsBeginning common stockBeginning retained earningsEnding common stock $ (Click to select)AddLess : (Click to select)Stock issuedRetained earningsNet incomeCommon stockCash (Click to select)Stock issuedBeginning common stockEnding common stockEnding retained earningsBeginning retained earnings $ (Click to select)Beginning common stockEnding retained earningsEnding common stockStock issuedBeginning retained earnings (Click to select)AddLess : (Click to select)Retained earningsNet incomeCommon stockNet lossStock issued (Click to select)Stock issuedBeginning common stockEnding common stockBeginning retained earningsEnding retained earnings Total Stockholders Equity $ Sharp Consulting Balance Sheet As of December 31, 2012 Assets (Click to select)Accounts receivableCommon stockMerchandise inventoryCashAccounts payable $ (Click to select)Common stockCashAccounts receivableMerchandise inventoryAccounts payable $ (Click to select)Accounts payableCashAllowance for doubtful accountsAccounts receivableMerchandise inventory Total Assets $ Liabilities $ Stockholders Equity (Click to select)CashCommon stockAccounts payableAccounts receivableRetained earnings $ (Click to select)Accounts payableCommon stockCashRetained earningsAccounts receivable Total Stockholders Equity Total Liabilities and Stockholders Equity $ Sharp Consulting Statement of Cash Flows For the Year Ended 2012 Cash Flows From Operating Activities: (Click to select)Outflow for expensesInflow from customersOutflow for rentOutflow from inventoryCash inflow from stock issued $ Net Cash Flow from Operating Activities $ Cash Flows From Investing Activities Cash Flows From Financing Activities Net change in cash (Click to select)Cash inflow from stock issuedInflow from customersLess: Beginning cash balanceOutflow from inventoryAdd: Beginning cash balance Ending cash balance $ rev: 02_20_2013_QC_26731 References eBook & Resources WorksheetDifficulty: HardLearning Objective: 05-02 Determine uncollectible accounts expense using the percent of revenue method. Check my work 17. value: 4.00 points Required information (c-1) Organize 2013 the transaction data in accounts under an accounting equation. (Leave no cells blank - be certain to select "0" and "NA" wherever required. Negative amounts and amounts to be deducted should be indicated with a minus sign except individual expenses which should be entered as positive values. Omit the "$" sign in your response.) Sharp Consulting Horizontal Statements Model - 2013 Event Assets = Liab. + Equity Acct. Title/RE Cash + A. Rec. Allow. = + Ret. Earn. Bal. (Click to select)+58,800NA-58,800 (Click to select)+7,200-7,200NA (Click to select)-1,320+1,320NA (Click to select)-64,680NA+64,680 (Click to select)+64,680NA-64,680 1. (Click to select)NA+73,500-73,500 (Click to select)-73,500NA+73,500 (Click to select)+73,500-73,500NA (Click to select)NA-73,500+73,500 (Click to select)+73,500-73,500NA (Click to select)NARev.Op. Exp.Uncoll. Exp. 2. (Click to select)+66,800-66,800NA (Click to select)NA-66,800+66,800 (Click to select)+66,800NA-66,800 (Click to select)NA+66,800-66,800 (Click to select)+66,800-66,800NA (Click to select)Uncoll. Exp.NAOp. Exp.Rev. 3. (Click to select)NA-920+920 (Click to select)NA+920-920 (Click to select)NA+920-920 (Click to select)+920-920NA (Click to select)-920+920NA (Click to select)Rev.Uncoll. Exp.NAOp. Exp. 4a. (Click to select)+300NA-300 (Click to select)NA+300-300 (Click to select)NA-300+300 (Click to select)+300NA-300 (Click to select)+300NA-300 (Click to select)Rev.NAOp. Exp.Uncoll. Exp. 4b. (Click to select)NA+300-300 (Click to select)NA-300+300 (Click to select)NA-300+300 (Click to select)+300-300NA (Click to select)+300-300NA (Click to select)Op. Exp.Uncoll. Exp.NARev. 5. (Click to select)NA-48,700+48,700 (Click to select)-48,700+48,700NA (Click to select)NA-48,700+48,700 (Click to select)NA-48,700+48,700 (Click to select)NA+48,700-48,700 (Click to select)Rev.NAOp. Exp.Uncoll. Exp. 6. (Click to select)-735+735NA (Click to select)NA+735-735 (Click to select)-735NA+735 (Click to select)NA-735+735 (Click to select)-735NA+735 (Click to select)Rev.Uncoll. Exp.NAOp. Exp. Bal. (Click to select)+77,2000-77,200 + (Click to select)0+12,980-12,980 (Click to select)0+1,435-1,435 = (Click to select)-64,6800+64,680 + (Click to select)-88,745+88,7450 References eBook & Resources WorksheetDifficulty: HardLearning Objective: 05-02 Determine uncollectible accounts expense using the percent of revenue method. Check my work 18. value: 4.00 points Required information (d-1) Prepare the income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for the year 2013. (Negative amounts and amounts to be deducted should be indicated with a minus sign. Be sure to list the assets and liabilities in order of their liquidity. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Sharp Consulting Income Statement For the Year Ended 2013 (Click to select)Cost of goods soldService revenueSalaries expenseUncollectible accounts expenseOperating expenses $ Expenses (Click to select)Operating expensesUncollectible accounts expenseInterest expenseRent expenseSalaries expense $ (Click to select)Uncollectible accounts expenseInterest expenseRent expenseSalaries expenseOperating expenses Total Expenses (Click to select)Net incomeNet loss $ Sharp Consulting Statement of Changes in Stockholders Equity For the Year Ended 2013 (Click to select)Ending common stockEnding retained earningsBeginning retained earningsBeginning common stockStock issued $ (Click to select)AddLess : (Click to select)CashCommon stockNet incomeRetained earningsStock issued (Click to select)Beginning retained earningsEnding common stockBeginning retained earningsEnding retained earningsBeginning common stock $ (Click to select)Ending retained earningsBeginning retained earningsStock issuedEnding common stockBeginning common stock $ (Click to select)LessAdd : (Click to select)Stock issuedRetained earningsCommon stockNet lossNet income (Click to select)Ending common stockStock issuedEnding retained earningsBeginning common stockBeginning retained earnings Total Stockholders Equity $ Sharp Consulting Balance Sheet As of December 31, 2013 Assets (Click to select)Merchandise inventoryCommon stockAccounts payableCashAccounts receivable $ (Click to select)Common stockAccounts receivableMerchandise inventoryCashAccounts payable $ (Click to select)CashAccounts receivableAccounts payableMerchandise inventoryAllowance for doubtful accounts Total Assets $ Liabilities $ Stockholders Equity (Click to select)Accounts payableAccounts receivableCashCommon stockRetained earnings $ (Click to select)Accounts payableCommon stockCashRetained earningsAccounts receivable Total Stockholders Equity Total Liabilities and Stockholders Equity $ Sharp Consulting Statement of Cash Flows For the Year Ended 2013 Cash Flows From Operating Activities: (Click to select)Outflow for dividendsOutflow from inventoryInflow from stock issuedOutflow for expensesInflow from customers $ (Click to select)Outflow for expensesInflow from stock issuedOutflow for dividendsInflow from customersOutflow from inventory Net Cash Flow from Operating Activities $ Cash Flows From Investing Activities Cash Flows From Financing Activities Net change in cash (Click to select)Outflow for inventoryLess: Beginning cash balanceAdd: Beginning cash balanceInflow from customersOutflow for expenses Ending cash balance $

Answer & Explanation Solved by verified expert

See Answer