Answer:
$1,200
Explanation:
Calculation to determine what the amount of ending inventory appearing on the balance sheet will be:
First step is to determine the units in ending inventory
Units in ending inventory=500 units + 600 units – 800 units sold
Units in ending inventory= 300
Now let determine the Ending inventory
Ending inventory=300 units x $4.00
Ending inventory = $1,200
Therefore the amount of ending inventory appearing on the balance sheet will be:$1,200
The provision of accounting information for internal users is known as
Answer:
managerial accounting
Explanation:
The three steps which will create triangular arbitrage profit are as follows: first step, convert ____; second step, convert _______, and third step, convert ______.
a) USD to GBP; CHF to GBP; CHF to USD
b) USD to GBP; GBP to CHF; CHF to USD
c) USD to CHF; GBP to CHF; GBP to USD
d) USD to CHF; CHF to GBP; GBP to USD
Answer:
The correct option is b) USD to GBP; GBP to CHF; CHF to USD.
Explanation:
A triangular arbitrage can be described as the act of taking advantage of a foreign exchange market arbitrage opportunity created by a pricing difference between three different currencies.
A triangle arbitrage method entails three deals, with the first currency being converted to a second, the second currency being converted to a third, and the third currency being converted to the first.
In the question, USD is the first currency, GBP is the second currency, and CHF is the third currency. Based on the explanation above, the three steps which will create triangular arbitrage profit are as follows: first step, convert USD to GBP; second step, convert GBP to CHF, and third step, convert CHF to USD.
Therefore, the correct option is b) USD to GBP; GBP to CHF; CHF to USD.
What is the difference between nominal price and real price?
Answer:
The nominal price of a good is its value in terms of money, such as dollars, French francs, or yen. The relative or real price is its value in terms of some other good, service, or bundle of goods. The term “relative price” is used to make comparisons of different goods at the same moment of time.
Hope it's help
Correct me if I'm wrong
Explanation:
-zacksecretman87
Make me brainlest
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Answer:
Definition: The nominal price of a good is its value in terms of money, such as dollars, French francs, or yen. The relative or real price is its value in terms of some other good, service, or bundle of goods. The term “relative price” is used to make comparisons of different goods at the same moment of time.
#Carry on learning
[tex] - heavengrace[/tex]Yale Corporation issued to Zap Corporation $48,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1, 2020. Assume that the company uses the effective interest amortization method. If the bonds were sold to yield 9%, provide journal entries to be made at each of the following dates.a. January 1, 2020, for issuance of bonds. b. June 30, 2020, for the interest payment. • Note: List multiple debits or credits (when applicable) in alphabetical order. • Note: Round your answers to the nearest whole dollar. Cr. Dr. 54,957 X X 0 Date Account Name a. Jan. 1, 2020 Cash Discount on Bonds Payable Bonds Payable b. June 30, 2020 Interest Expense Discount on Bonds Payable Cash 60,000 5,403 x 0 2,457 X 0 X 57 x 2,400 x
Answer:
Yale Corporation
Journal Entries:
a. January 1, 2020:
Debit Cash $44,878
Debit Premium on bonds $3,122
Credit 8% Bonds Payable $48,000
To record issuance of the bonds.
b. June 30, 2020:
Debit Interest Expense $2,020
Credit Bond Discounts $100
Credit Cash $1,920
To record the first payment of interest.
Explanation:
a) Data and Calculations:
January 1, 2020:
Face value of bonds = $48,000
Price of bonds = $44,878
Discounts on bonds = $3,122
Coupon interest rate = 8%
Interest payment = semiannually on June 30 and December 31
Maturity period = 10 years
Effective interest rate = 9%
June 30, 2020:
Interest Expense $2,020 ($44,878 * 4.5%)
Cash payment 1,920 ($48,000 * 4%)
Discount amortization $100
Value of Bonds = $44,978 ($44,878 + $100)
December 31, 2020:
Interest Expense $2,024 ($44,978 * 4.5%)
Cash payment 1,920 ($48,000 * 4%)
Discount amortization $104
Value of Bonds = $45,082 ($44,978 + $104)
N (# of periods) 20
I/Y (Interest per year) 9
PMT (Periodic Payment) 1920
FV (Future Value) 48000
Results
PV = $44,878.10
Sum of all periodic payments $38,400.00
Total Interest $41,521.90
If you have a derivative position where you might be obligated to sell Japanese yen, you are a: Group of answer choices Call option buyer/holder. Put option writer/seller. Put option buyer/holder. Call option writer/seller.
Answer:
The answer is B
Explanation:
The answer is B. Put option writer/seller. Put option writer has a right but not the obligation to sell an asset at a specified price while put option buyer is the reverse
Option A is wrong. Call option buyer/holder has the right but not the obligation to buy an asset at a specified price while call option writer/seller is the reverse.
Snack food vendors and beer distributors earn some monopoly profits in their local markets but see them slowly erode from various new substitutes. When California voted on legalizing marijuana, which side would you think that California beer distributors were on
Answer: Opposing side
Explanation:
Substitutes to the products offered by monopolies are frowned upon by monopolies because it means that they cannot raise prices whenever they want anymore because people could simply switch to the substitutes.
Substitutes therefore reduce the power of monopolies. Marijuana is a substitute to beer as a recreational product so beer companies would be opposed to it being legalized as it would pose a threat to whatever dominance they have in the recreational sector.
Maxwell Washington's weekly gross earnings for the week ending March 9 were $2,620, and her federal income tax withholding was $550.20. Assuming the social security tax rate is 6% and Medicare tax is 1.5% of all earnings, what is Washington's net pay?
Answer:
1 million
Explanation:
A ______ strategy aims at securing a competitive advantage by serving buyers in the target market niche at a lower cost and lower price than rivals. Multiple choice question. focused low-cost overall low-cost resource-based cost best-cost
Answer:
focused low-cost
Explanation:
Competitive advantage can be defined as conditions, factors or circumstances that allow a business firm (organization) to manufacture finished goods or services better and perhaps cheaper than other (rival) firms in the same industry. Thus, it's responsible for putting a business firm in a superior or more favorable position than rival firms.
This ultimately implies that, a competitive advantage has a significant impact on a business because it increases its level of sales, revenue generation and profit margin when compared to rival firms in the same industry.
A focused low-cost strategy is a strategic business model that's typically focused on a narrow or small customer base (segment) while providing low-cost goods and services to the customers. Thus, it is a business strategy that involves lowering the price of goods and services in order to generate more revenue and gain a competitive advantage over competitors or rivals in the same industry.
Hence, a focused low-cost strategy is typically aimed at securing a competitive advantage by means of serving buyers or consumers in the target market niche at a lower cost and lower price than rivals in the same industry.
Techniques for building employee empowerment include: building communication networks that include employees. developing open, supportive supervisors. moving responsibility from both managers and staff to production employees. building high-morale organizations. All of these are techniques for employee empowerment.
Answer:
All of these are techniques for employee empowerment.
Explanation:
An employee can be defined as an individual who is employed by an employer of labor to perform specific tasks, duties or functions in an organization.
Basically, an employee is saddled with the responsibility of providing specific services to the organization or company where he is currently employed while being paid a certain amount of money hourly, daily, weekly, or monthly depending on the contractual agreement between the two parties (employer and employee).
Generally, it's very important and necessary for employers or business owners to develop incentives for the empowerment of the employees.
Some of the techniques for building employee empowerment include the following:
I. An employer should build a strong communication networks that include employees and takes ideas from them.
II. An employer should groom his or her supervisors into being receptive, open, and supportive to their subordinates.
III. Moving responsibility from both managers and staff to production employees.
IV. High-morale should be stimulated or built around the employees working within organizations.
The Employee Retirement Income Security Act (ERISA) of 1974 states that employees must be told about their benefits: __________
a. In a way that clearly specifies advantages and disadvantages of various benefits programs.
b. According to state statutes on benefits dissemination.
c. In a way that the average employee can understand.
d. In a way that clearly lays out unexpected costs that might be associated with choosing certain benefits
Answer:
c. In a way that the average employee can understand.
Explanation:
The Employee Retirement Income Security Act of 1974 is a federal labor and tax law of the United States of America. It is also referred to as the Employee Benefit Security Act and it was originally published (effective) on the 2nd of September, 1974 and was mainly focused on providing pension reforms for the employees working in the United States of America.
Basically, the Employee Retirement Income Security Act (ERISA) of 1974 sets the minimum standards for the administration of retirement (pension) and healthcare plans in the private sector or industry.
Hence, the Employee Retirement Income Security Act (ERISA) of 1974 states that employees must be told about their benefits such as plan features and funding, in a way that the average employee can understand.
Pasadena Candle Inc. projected sales of 800,000 candles for January. The estimated January 1 inventory is 35,000 units, and the desired January 31 inventory is 20,000 units. What is the budgeted production (in units) for January?
Answer:
785,000
Explanation:
Calculation to determine the budgeted production (in units) for January
BUDGETED PRODUCTION (in units) FOR JANUARY
Expected units to be sold 800000
Add Desired ending inventory, Dec 31 20000
Total units available 820000
(800,000+20,000)
Less Estimated beginning inventory, Jan 1 (35000)
Total units to be produced 785000
(820,000-35,000)
Therefore the budgeted production (in units) for January is 785,000
A company needs 550,000 items per year. It costs the company $330 to prepare a production run of these items and $5 to produce each item. If it also costs the company $0.75 per year for each item stored, find the number of items that should be produced in each run so that total costs of production and storage are minimized. items/run
Answer:
Company A
The number of items that should be produced in each run to minimize total costs of production and storage is:
= 22,000 units
Explanation:
a) Data and Calculations:
Total annual demand = 550,000 units
Cost per production run = $330
Cost per unit = $5
Storage (holding) cost per item = $0.75
The number of items that should be produced in each run to minimize total costs of production and storage is given by Economic Order Quantity (EOQ) formula
= square root of (2 * 550,000 * $330)/$0.75
= square root of $363,000,000/$0.75
= square root of 484,000,000
= 22,000 units
Patty’s Pies has sells 900 pies in August for $20.00 each. At the end of August Patty advertises her pies in the local Valupak which will mail to 25,000 local houses. Statistics show that approximately .5% (one half of one percent) of Valupak recipients result in a sale. Based upon this information, compute the amount of sales Patty would budget for September.
Answer: $20,500
Explanation:
The amount of sales that Patty would budget for September will be calculated thus:
The expected increase in sales unit will be calculated as:
= 0.5% × 25,000
= 125
Therefore, the unit of sale in September will then be:
= 900 pies + 125 pies
= 1025 pies
Then, the total amount of sale will be:
= 1,025 × $20
= $20,500
Archer Inc. issued $4,000,000 par value, 7% convertible bonds at 99 for cash. If the bonds had not included the conversation feature, they would have sold for 95. Prepare the journal entry to record the issuance of the bonds.
Answer: Dr Cash $3,960,000
Dr Discount on bonds payable $40,000
Cr Bonds payable $4,000,000
Explanation:
The journal entry to record the issuance of the bonds will be prepared as follows:
Dr Cash = 4,000,000 × 99% = $3,960,000
Dr Discount on bonds payable = $40,000
Cr Bonds payable = $4,000,000
(To record bond issued on discount)
Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $13.00 per unit. The unit cost for the business to make the part is $22.00, including fixed costs and $11.00, excluding fixed costs. If 32,354 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it
Answer:
$64,708 cost decrease
Explanation:
Calculation to determine the amount of differential cost increase or decrease from making the part rather than purchasing it
First step
Purchase cost =$13
Manufacturing cost = $11 (variable)
Profit in manufacturing =$13-$11
Profit in manufacturing=$2
Now let determine the amount of differential cost increase or decrease
Cost decrease by =$2*32,354
Cost decrease by $64,708
Therefore the amount of differential cost DECREASE from making the part rather than purchasing it is $64,708
$1,000 par value zero-coupon bonds (ignore liquidity premiums) Bond Years to Maturity Yield to Maturity A 1 6.00% B 2 7.50% C 3 7.99% D 4 8.49% E 5 10.70% One year from now bond C should sell for ________ (to the nearest dollar).
Answer:
$842
Explanation:
The computation of the One year from now bond C should sell is shown below;
But before that we have to determined the expected yield to maturity for bond C in one year :
So,
1.0799^3 = 1.06 x (1 + r)^2
1.188 = (1 + r)^2
√1.188 = √(1 + r)^2
1.08999 = 1 + r
r = 0.08999
= 9%
Now
the yield to maturity = (future value ÷ present value)^0.5 - 1
0.09 + 1 = ($1,000 ÷ value in 1 year)^0.5
1.09 = ($1,000 ÷ value in 1 year)^0.5
1.09^2 = $1,000 ÷ value in 1 year
So,
value in 1 year is
= $1,000 ÷ 1.09^2
= $1,000 ÷ 1.1881
= $841.68
≈ $842
An individual works downtown and pays $600 per month in rent for an apartment located 10 miles from her office. She has calculated that she spends 30 minutes per day driving each way to the office and it costs her $4 per day in gas and lost productivity. Using the framework of the bid-rent model, how much would she be willing to pay for an apartment downtown, assuming a 20 workday month?
a. $440.
b. $680.
c. $520.
d. $80.
Answer:
b. $680
Explanation:
Calculation to determine how much would she be willing to pay for an apartment downtown, assuming a 20 workday month
First step to determine the Cost of commuting using this formula
Cost of commuting = Cost of gas and productivity × 20 workday month
Let plug in the formula
Cost of commuting =$4*20
Cost of commuting =$80
Now let determine how much would she be willing to pay for an apartment
Using this formula
Amount willing to pay= Total rent + Cost of commuting
Let plug in the formula
Amount willing to pay= $600 + $80
Amount willing to pay= $680
Therefore how much would she be willing to pay for an apartment downtown, assuming a 20 workday month is $680
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs.
Products Sales Revenue Traditional ABC
Product 540X 198,200 54,440 45,520
Product 137Y 158,700 49,090 39,290
Product 249S 83,190 11,290 30,010
Required:
a. For each product line, compute operating income using the traditional costing system.
b. For each product line, compute operating income using the activity-based costing system
Solution :
a). Operating the income using traditional costing system
Products Sales revenue($) Traditional($) Operating income($)
( A ) ( B ) ( A - B )
540X 198,200 54,440 143,760
137Y 158,700 49,090 109,610
249S 83,190 11,290 71,900
b). Operating income using the activity-based costing system
Products Sales revenue($) Traditional($) Operating income($)
( A ) ( B ) ( A - B )
540X 198,200 45,520 152,680
137Y 158,700 39,290 119,410
249S 83,190 30010 53,180
Consider a telephone call to London that currently would cost $5. If the real price of telephone calls does not change in the future, how much will it cost you to make a call to London in 50 years if the inflation rate is 5% (roughly its average over the past 30 years)? What if inflation is 10%.
Answer:
If inflation were 5%, the value of the call in 50 years would be $ 57.33; while if inflation were 10% the value of the call would be $ 586.95.
Explanation:
Given that a telephone call to London that currently would cost $ 5, to determine, if the real price of telephone calls does not change in the future, how much will it cost you to make a call to London in 50 years if the inflation rate is 5% and if inflation is 10%, the following calculations must be made:
5 x 1.05 ^ 50 = X
5 x 11.4674 = X
57.33 = X
5 x 1.1 ^ 50 = X
5 x 117.39 = X
586.95 = X
Therefore, if inflation were 5%, the value of the call in 50 years would be $ 57.33; while if inflation were 10% the value of the call would be $ 586.95.
10. Crowding out effect Suppose economists observe that an increase in government spending of $13 billion raises the total demand for goods and services by $52 billion. If these economists ignore the possibility of crowding out, they would estimate the marginal propensity to consume (MPC) to be . Now suppose the economists allow for crowding out. Their new estimate of the MPC would be than their initial one.
Answer:
Explanation:
Effect of crowding out:
The crowding out phenomena describes the economic phenomena in which an increase in government public spending leads to reduced or perhaps may eliminate of private investment.
Multiplier:
The multiplier represents the ratio of income to investment change.
Given that:
$13 billion increase in government spending will lead to a $52 billion
The rise in demand for goods & service will be the value of multiplier which is
= 52/13
= 4
To determine the multiplier using the formula:
Multiplier = 1 /( 1- MPC)
4 = 1/(1 - MPC)
4 (1 - MPC) = 1
(1- MPC) = 1/4
-MPC = 0.25 - 1
MPC = 0.75
Marginal propensity to consume = 0.75
Nash's Trading Post, LLC recorded the return of $150 of goods originally sold on credit to Discount Industries. Using the periodic inventory approach, Nash's would record this transaction as:
Accounts Payable 150
Sales Returns and Allowances 150
Sales Returns and Allowances 150
Accounts Receivable 150
Accounts Receivable 150
Sales Returns and Allowances 150
Inventory 150
Accounts Receivable 150
Answer:
Sales Returns and Allowances 150
Accounts Receivable 150
Explanation:
When goods are returned, the sales revenue decreases through Sales Returns and Allowances which is an expense. So, it is debited and the goods sold on account, the Accounts Receivable which is an asset decreases, so it is credited.
Account Titles and Explanations Debit Credit
Sales Returns and Allowances $150
Accounts Receivable $150
(To record sales returns)
what type of occupation do you prefer to do any why
Answer:
a hands on occupation
Explanation:
I dont like sitting around
Compute straight-line depreciation on the building at the end of one year, assuming an estimated 10-year useful life and a $16,000 estimated residual value. (Do not round intermediate calculations.)What should be the book value of (a) the land and (b) the building at the end of year 2
Answer:
Missing word "Bridge City Consulting bought a building and the land on which it is located for $120,000 cash. The land is estimated to represent 70 percent of the purchase price. The company paid $10,000 for building renovations before it was ready for use."
Total Cost of Land and Building (100%) = $120,000
Cost of Land (70%) = $84,000
Cost of Building (30%) = $36,000
Cost of Building Renovations = $10,000
Total Cost of Building = $36,000 + $10,000
Total Cost of Building = $46,000
1. Annual Depreciation(Year End Depreciation) = (Cost of Building - Residual Value)/ Number of Year
Annual Depreciation = $46,000 - $16,000 / 10
Annual Depreciation = $30,000 / 10
Annual Depreciation = $3,000
2. Book Value of Land at the end of two years = $84,000
Book Value of Building at the end of two years = $46,000 - ($3,000*2 year) = $46,000 - $6,000 = $40,000
Hence, Book Value of Land and Building at the end of two year is = $84,000 + $40,000 = $124,000
Trong kinh tế học, cụm từ "phân phối" đề cập đến ??
Câu trả lời:
Vui lòng kiểm tra giải thích
Giải trình:
Phân phối trong kinh tế học đề cập đến việc chia sẻ và giải ngân doanh thu, thu nhập hoặc đầu ra thương mại giữa các yếu tố sản xuất bao gồm đất đai, lao động, vốn và các bên liên quan có liên quan. Tương tự như vậy, hàng hóa được sản xuất ra sẽ phải được chia sẻ một cách chiến lược trong thị trường khác để đảm bảo rằng các địa điểm hoặc khu vực có nhu cầu hoặc nhu cầu cao được xác định và hàng hóa và dịch vụ được chia sẻ tương ứng. Phân phối là điều cần thiết trong kinh tế học vì nó nhằm mục đích đảm bảo phân bổ nguồn lực và phân bổ đầu ra một cách công bằng và hiệu quả, dẫn đến sự tham gia thị trường hiệu quả nhất.
Airline F leases all its aircraft under finance leases. Airline O leases all its aircraft under operating leases. Assuming that the two airlines report under US GAAP and are otherwise identical except for the mentioned lease classifications, which of the following comments is true?
a. Airline O has lower rent expense reported on its income statement
b. Airline F has a lower EBITDA margin
c. None of the listed answers
d. Airline O has more lease liabilities
e. Airline O has less lease assets at the inception of the lease
Answer: e. Airline O has less lease assets at the inception of the lease
Explanation:
With operating leases, the entity leasing the asset or the lessee, does not get the rights to ownership of the asset being leased but instead simply pay a fee or sort of rent for leasing the asset.
With a finance lease however, ownership is passed to the lessee for the lease period and the lessee would have to depreciate the asset and record it in its books.
Airline O will therefore not record any assets but Airline F will. This means that Airline F will have more assets than O because it had to record its assets but O did not.
Problem 2 (2 points): If the rate of net investment flow is given by I(t) = 200e0.2t, calculate:
a/ The capital formation from the end of the second year to the end of the sixth year;
b/ The number of years required before the capital stock exceeds $200 000.
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to the end of the sixth year;
b/ The number of years required before the capital stock exceeds $200 000.
Suppose that Canada can produce 15units of timber or 3 units of grain. Suppose that Mexico can produce 6 units of timber or 2 units of grain. Which of the following is CORRECT?
a. Canada has a comparative advantage in grain production.
b. Mexico has a comparative advantage in grain production.
c. The countries would find trade mutually beneficial at a trading ratio of 1 grain for 2 timber.
d. Mexico has an absolute advantage in timber production.
Answer: B. Mexico has a comparative advantage in grain production.
Explanation:
Comparative advantage simply means when an economy can produce a good at a lower opportunity cost than another economy.
From the information given, since Canada can produce 15units of timber or 3 units of grain. Therefore, 1 grain = 15/3 = 5 timber
On the other hand, Mexico can produce 6 units of timber or 2 units of grain. Therefore, 1 grain = 6/2 = 3 timber.
Therefore, Mexico haa a comparative advantage in grain based on the above.
A company intends to refinance a portion of its short-term debt in Year 2 and is negotiating a long-term financing agreement with a local bank. This agreement would be noncancelable and would extend for a period of 2 years. The amount of short-term debt that the company can exclude from its statement of financial position at December 31, Year 1.
a. May exceed the amount available for refinancing under the agreement.
b. Depends on the demonstrated ability to consummate the refinancing.
c. Must be adjusted by the difference between the present value and the market value of the current debt.
d. Is zero unless the refinancing has occurred by year end.
Answer:
Refinancing Short-term Debt
The amount of short-term debt that the company can exclude from its statement of financial position at December 31, Year 1:
b. Depends on the demonstrated ability to consummate the refinancing.
Explanation:
Demonstrating the ability to consummate the refinancing agreement of short-term obligations to long-term obligations enables the borrowing entity to exclude the obligations from its current liabilities and to classify the obligations as noncurrent. This ability is demonstrated when an entity issues post-balance-sheet-date long-term obligation or equity securities or enters into a financing agreement that meets some criteria. These criteria are that the agreement lasts more than 1 year, is noncancelable by the lender, no agreement violation exists at the balance sheet date, and the lender does not default on the agreement.
Voltanis Corp. has preferred stock outstanding that will pay an annual dividend of $4.29 every year in perpetuity. If the stock currently sells for $101.03 per share, what is the required return?a. 3.82%b. 3.97%c. 4.25%d. 2.36%e. 4.85%
Answer:
The appropriate choice is Option c (4.25%).
Explanation:
Given:
Annual dividend,
= $4.29
Price per share,
= $101.03
Now,
The required return will be:
= [tex]\frac{Annual \ dividend}{Price \ per \ share}[/tex]
= [tex]\frac{4.29}{101.03}[/tex]
= [tex]0.04246[/tex]
or,
= [tex]4.25[/tex] (%)
Sep. 3 Purchased merchandise inventory on account from Shallin Wholesalers, $7,000. Terms 1/15, n/EOM, FOB shipping point.
Sep. 4 Paid freight bill of $55 on September 3 purchase.
Sep. 4 Purchase merchandise inventory for cash of $2,100.
Sep. 6 Returned $1,000 of inventory from September 3 purchase.
Sep. 8 Sold merchandise inventory to Herenda Company, $5,500, on account. Terms 1/15, n/35. Cost of goods, $2,255.
Sep. 9 Purchased merchandise inventory on account from Tripp Wholesalers, $10,000. Terms 1/10, n/30, FOB destination.
Sep. 10 Made payment to Shallin Wholesalers for goods purchased on September 3, less return and discount.
Sep. 12 Received payment from Hilton Company, less discount.
13. After negotiations, I received a $100 allowance from Tristan Wholesalers.
15.Sold merchandise inventory to Jesper Company, $3,500, on the account. Terms n/EOM. Cost of goods, $1,610
22.Made payment, less allowance, to Tristan Wholesalers for goods purchased on September 9
23. Jesper Company returned $800 of the merchandise sold on September 15. Cost of goods, $368
25. Sold merchandise inventory to Smithson for $2,000 on account that cost $780 Terms of 3/10, n/30 was offered, FOB shipping point. As a courtesy to Smithson, $55 of freight was added to the invoice for which cash was paid by Oceanic
29. Received payment from Smithson, less discount.
30. Received payment from Jesper Company, less return.
Required:
Journalize the transaction.
Answer:
Sep. 3
Dr Merchandise Inventory $7,000
Cr Accounts Payable—Shallin Wholesalers $7,000
Sep. 4
Dr Merchandise Inventory $55
Cr Cash $55
Sep. 4
Dr Merchandise Inventory $2,100
Cr Cash $2,100
Sep. 6
Dr Accounts Payable—Shallin Wholesalers $1,000
Cr Inventory $1,000
Sep. 8
Dr Accounts Receivable— Herenda Company $5,445
Cr Sales Revenue $5,445
Sep. 8
Dr Cost of Goods Sold $2,255
Cr Merchandise Inventory $2,255
Sep. 9
Dr Merchandise Inventory $10,000
Cr Accounts Payable—Tripp Wholesalers $10,000
Sep. 10
Dr Accounts Payable—Shallin Wholesalers $6,000
Cr Merchandise Inventory $60
Cr Cash $5,940
Sep. 12
Dr Cash $5,445
Accounts Receivable—Herenda Company $5,445
Sep. 13
Dr Accounts Payable—Tristan Wholesalers $100
Cr Merchandise Inventory $100
Sep. 15
Dr Accounts Receivable—Jesper Company $3,500
Cr Sales Revenue $3,500
Sep. 15
Dr Cost of Goods Sold $1,610
Cr Merchandise Inventory $1,610
Sep. 22
Dr Accounts Payable—Tristan Wholesalers $9,900
Cr Cash $9,900
Sep. 23
Dr Refunds Payable $800
Cr Accounts Receivable—Jesper Company $800
Sep. 23
Dr Merchandise Inventory $368
Cr Estimated Returns Inventory $368
Sep. 25
Dr Accounts Receivable—Smithson $1,995
Cr Sales Revenue $1,940
Cr Cash $55
Sep. 25
Dr Cost of Goods Sold $780
Cr Merchandise Inventory $780
Sep. 29
Dr Cash $1,995
Cr Accounts Receivable— Smithson $1,995
Sep. 30
Dr Cash $2,100
Cr Accounts Receivable—Jesper Company $2,100
Explanation:
Preparation of the journal entries
Sep. 3
Dr Merchandise Inventory $7,000
Cr Accounts Payable—Shallin Wholesalers $7,000
Sep. 4
Dr Merchandise Inventory $55
Cr Cash $55
Sep. 4
Dr Merchandise Inventory $2,100
Cr Cash $2,100
Sep. 6
Dr Accounts Payable—Shallin Wholesalers $1,000
Cr Inventory $1,000
Sep. 8
Dr Accounts Receivable— Herenda Company $5,445
Cr Sales Revenue $5,445
[$5,500-(1%*$5,500)]
Sep. 8
Dr Cost of Goods Sold $2,255
Cr Merchandise Inventory $2,255
Sep. 9
Dr Merchandise Inventory $10,000
Cr Accounts Payable—Tripp Wholesalers $10,000
Sep. 10
Dr Accounts Payable—Shallin Wholesalers $6,000
($7,000-$1,000)
Cr Merchandise Inventory $60
(1%*$6,000)
Cr Cash $5,940
($6,000-$60)
Sep. 12
Dr Cash $5,445
[$5,500-(1%*$5,500)]
Accounts Receivable—Herenda Company $5,445
Sep. 13
Dr Accounts Payable—Tristan Wholesalers $100
Cr Merchandise Inventory $100
Sep. 15
Dr Accounts Receivable—Jesper Company $3,500
Cr Sales Revenue $3,500
Sep. 15
Dr Cost of Goods Sold $1,610
Cr Merchandise Inventory $1,610
Sep. 22
Dr Accounts Payable—Tristan Wholesalers $9,900
Cr Cash $9,900
($10,000-$100)
Sep. 23
Dr Refunds Payable $800
Cr Accounts Receivable—Jesper Company $800
Sep. 23
Dr Merchandise Inventory $368
Cr Estimated Returns Inventory $368
Sep. 25
Dr Accounts Receivable—Smithson $1,995
($1,940+$55)
Cr Sales Revenue $1,940
[$2,000-(3%*$2,000)]
Cr Cash $55
Sep. 25
Dr Cost of Goods Sold $780
Cr Merchandise Inventory $780
Sep. 29
Dr Cash $1,995
($1,940+$55)
Cr Accounts Receivable— Smithson $1,995
Sep. 30
Dr Cash $2,100
Cr Accounts Receivable—Jesper Company $2,100