OLPROFE06 Activity 2

1. How much is the Accounts Receivable (gross) balance at December 31?

Ans. 1,131,000
Solution:
(1) Claims Receivable 22,500
Accounts receivable 22,500
(2) Sales 30,000
Accounts receivable 30,000
(3) Advances to affiliates 150,000
Accounts receivable 150,000
(4) Receivables - officers/employee 13,500
Accounts receivable 13,500
(5) Deposits for contracts bidding 67,500
Accounts receivable 67,500
(6) Subscription receivable 60,000
Accounts receivable 60,000
(7) Advances to suppliers 24,000
Accounts receivable 24,000
(8) Advances to officers/employee 4,500
Accounts receivable 4,500
(9) Accounts receivable 30,000
Allowance for bad debts 30,000
(10) Accounts receivable 6,000
Customers with credit balance 6,000
(11)
OE: Cash 237,000
Notes payable 237,000
CE: Cash 237,000
Commission expense 3,000
Notes payable 300,000
Adj: Commission expense 3,000
Notes payable 3,000

Unadjusted AR 1,147,000
(1) (22,500)
(2) (30,000)
(3) (150,000)
(4) (13,500)
(5) (67,500)
(6) (60,000)
(7) (24,000)
(8) (4,500)
(9) (30,000)
(10) (6,000)
Adjusted balance 1,131,000

2. Based on Question 1 problem, The total current non-trade receivable balance at

December 31 is:
Ans. 64,500
Solution:
Current non-trade AR
Claims receivable 22,500
Advances to off/employee
( 13,500 + 4,500) 18,000
Advances to suppliers 24,000
Total 64,500

3. Based on Question 1 problem, The liability for the accounts receivable – assigned is:
Ans. 240,000 Notes Payable

4. Based on Question 1 problem, The total non-trade receivable balance at December

31is:
Ans. 342,000
Solution:
Non-trade AR
Claims receivable 22,500
Advances to affiliates 150,000
Advances to off/employee
 ( 13,500 + 4,500) 18,000
Deposit for contracts 67,500
Subscription receivable 60,000
Advances to suppliers 24,000
Total 342,000