On August 2, Jun Company receives a $6,800, 90-day, 10.5% note from customer Ryan Albany as payment on his $6,800 account receivable. Prepare Jun's journal entry assuming the note is honored by the customer on October 31 of that same year. Note: Do not round intermediate calculations. Round your answers to nearest whole dollar value. Use 360 days a year.
Q: Under variable costing, which of the following costs would be included in finished goods inventory?…
A: The objective of the question is to identify which of the given costs would be included in finished…
Q: Caldwell Supply, a wholesaler, has determined that its operations have three primary activities:…
A: Target cost is the cost the company can incur for the respective expenses to earn the target…
Q: Using the following graduated income tax rates, find the tax withheld per pay period. State Tax Rate…
A: Tax withheld is the amount of federal or state income tax that is withheld or deducted from the…
Q: Complete the remaining sub-parts
A: Adjusted journal entries made at the end of an accounting period to adjust some accounts to ensure…
Q: a. Compute Martin's basis in Property 1 and in Property 2 as of January 7, 2022. b. Compute Martin's…
A: The "basis" of an asset is what a person has paid for an asset together with money invested in an…
Q: Required information [The following information applies to the questions displayed below.] Henrich…
A: The Internal Revenue Service (IRS) is the U.S. agency that administers federal tax laws and collects…
Q: The DAC-28155 company's total overhead cost at various levels of activity is presented below: Month…
A: Fixed cost is the cost that remains constant (in total). Total fixed cost does not change with…
Q: In 2023, Ivanna, who has three children under age 13, worked full-time while her spouse, Sergio, was…
A: The Child and Dependent Care Credit is a tax credit provided by the U.S. government to help offset…
Q: The 2020 balance sheet of Osaka's Tennis Shop, Incorporated, showed long-term debt of $5.7 million,…
A: Cash flow refers to the difference between the money that comes in and goes out of the firm. The…
Q: The section of Waterways that produces controllers for the company provided the following…
A: Break even point :— It is the point of production where total cost is equal to total revenue. At…
Q: swer is partially June transactions: (1) purchase of raw materials, factory labor costs incurred,…
A: The objective of the question is to record the accounting entries for the transactions that occurred…
Q: PA6-1 (Algo) Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1,…
A: Fixed costs are expenses a company that are set over a specified period and do not change with…
Q: True or False? Regardless of the rating scale used for an audit report, the audit rating will…
A: An audit is a methodical disquisition, review, or evaluation of an association's processes,…
Q: 3 Antonio's Car Services provides maintenance services for motorized vehicles. In March 2024, Rick…
A: Revenue Recognition means the recording of revenues of an entity in its books. It is an accrual…
Q: company's total overhead cost at various levels of activity is presented below: Month March April…
A: Fixed cost is the cost that remains the same at all levels of activity.Variable cost is the cost…
Q: [The following information applies to the questions displayed below] Sound Investments,…
A: The account receivables represents the amount due from the customers. The cash receipts schedule is…
Q: Prepare journal entries to record these transactions: (Round your answers to 2 decimal places.) Oct.…
A: Notes receivable are a variation of accounts receivable, in which a business essentially makes a…
Q: MSI's information related to the ToddleTown Tours collection follows: Sales revenue Variable costs…
A: A company sells multiple products and thus, there might be some products that might bring losses to…
Q: Teal Mountain Company sells discounted shoes to the fashion-oriented consumer. The following…
A: First-in First-Out Method - Under the First-in First-Out Method the company uses inventory in the…
Q: On January 1, 2024, Joel Park established an advertising agency called Sunrise Agency. During March…
A: The objective of the question is to understand the financial transactions of Sunrise Agency and how…
Q: On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common…
A: Stockholders’ equity refers to the ownership interest in the business. It is the claim of the owners…
Q: How much was the cost of goods manufactured for the year?
A: The cost of goods manufactured involves all the costs incurred in producing the product.It involves…
Q: FDC-37968 Incorporated, manufactures and sells two products: Product Z1 and Product Z8. The company…
A: Activity rate is the rate determined by the entity for the purpose of allocating the costs over…
Q: Q3. Explain the recording of transactions in the double-entry system. Discuss the principles of…
A: The objective of this question is to understand the double-entry system of accounting, the…
Q: The trial balance of Kroeger Incorporated included the following accounts as of December 31, 2024:…
A: Statement of comprehensive income A statement of comprehensive income is a financial statement that…
Q: Beavis Construction Company was the low bidder on a construction project to build an earthen dam for…
A: Answer:- Revenue is recognized according to the degree of progress made towards completion when…
Q: Cost of Units Completed and in Process The charges to Work in Process-Assembly Department for a…
A: Instead of recording expenses for each individual item, organizations that use process costing…
Q: Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the…
A: In order to compute financial advantage (Disadvantage) of accepting special order we should compare…
Q: Required information [The following information applies to the questions displayed below.] Carlberg…
A: An equivalent unit of production is used to express the percentage of work done by a manufacturer of…
Q: Spencer Company has a $230 petty cash fund. At the end of the first month the accumulated receipts…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: Compute the additional Medicare tax for the following taxpayers. If required, round your answers to…
A: It is the federal payroll tax that helps the employees and employers to pay for the medical…
Q: On January 2, 2020, Sage Corporation issued $1,250,000 of 10% bonds at 97 due December 31, 2029.…
A: The issuer of the bond is required to make the payment of the face value of the bond at the end of…
Q: Sheridan Home Improvement Company installs replacement siding, windows, and louvered glass doors for…
A: Solution:-The question involves computing the inventory write-down for Sheridan Home Improvement…
Q: Sheridan Company had the following transactions for the month of June: Purchases Sales June 1…
A: Perpetual inventory system:Perpetual inventory The system refers to the computerized system of…
Q: Which of the following ratios indicates the percentage of each sales dollar that is available to…
A: The objective of the question is to identify the correct ratio that indicates the percentage of each…
Q: Prepare the journal entries for both the date of declaration and the date of distribution.
A: Stock Dividend : A stock dividend, also known as a bonus share issue, is a distribution of…
Q: Witt Recreation Company (WRC) makes e-bikes. The company currently manufactures two models, the…
A: Depreciation is the decrement in the value of tangible assets by the wear and tear during the…
Q: Wardell Company purchased a minicomputer on January 1, 2022, at a cost of $56,000. The computer was…
A: Depreciation:Depreciation means reducing the value of tangible value over its useful life.…
Q: The Sirius Ltd. purchased a piece of equipment at the very beginning of a fiscal year of 1999. The…
A: To find the present worth of the company's savings due to the Capital Cost Allowance (CCA) over the…
Q: Blossom Tar and Gravel Ltd. operates a road construction business. In its first year of operations,…
A: A Interodudeferred tax asset is an item on the balance sheet that results from the overpayment or…
Q: Novak Computer Concepts has three operational units and two support units. Information on the…
A: Factory overhead means the cost which is incurred in factory but not directly linked with…
Q: Q1) A Zero-Coupon Bond with maturity in 15 years produces a gross yield of 2.5% p.a. effective and…
A: Q1)Zero-Coupon Bond's price₹ 69.05Q2)Yield to maturity3.54%Explanation:The above answer can be…
Q: Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct…
A: The variance analysis refers to the comparison of actual performance with the standard sets, to find…
Q: Select the primary financial statements prepared for a business organized as a sole proprietorship.…
A: The question is asking to identify the primary financial statements that are prepared for a business…
Q: calculate cost of goods sold, gross margin and ending inventory using i) FIFO and ii) Weighted -…
A: The objective of this question is to calculate the cost of goods sold (COGS), gross margin, and…
Q: At January 1, Seacoast Company, an 80% - owned subsidiary of Plantation Corporation, had $1 million…
A: 1. Bond Interest Expense:This relates to the recognition of interest expense incurred on bonds…
Q: The following table presents selected 2020 annual income statement items and balance sheet items for…
A: Operating cycle is the time taken by the business from buying the inventory until cash received in…
Q: The following three identical units of Item Alpha are purchased during April: Cost Flow Methods Item…
A: FIFO (First-in-first-out):FIFO (“First-In, First-Out”) refers to the method used to calculate…
Q: During the beginning of 2024 one of Zain's customers Erika Rogers was experiencing cash flow…
A: A journal entry is a formal accounting record that documents a financial transaction by recording…
Q: Question 7 of 10. Stig purchased a house in 2020 and rented it out the entire time he owned it. His…
A: Income tax refers to a charge that is levied on all types of income of an individual and…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
- On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.Whole Leaves wants to upgrade their equipment, and on January 24 the company takes out a loan from the bank in the amount of $310,000. The terms of the loan are 6.5% annual interest rate, payable in three months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on February 24, and the entry for payment of the short-term note and final interest payment on April 24. Round to the nearest cent if required.If a customer owed your company $100 on the first day of the month, then purchased $200 of goods on credit on the fifth and paid you $50 on fifteenth, the customers ending balance for the month would show a (debit or credit) of how much?
- Window World extended credit to customer Nile Jenkins in the amount of $130,900 for his purchase of window treatments on April 2. Terms of the sale are 2/60, n/150. The cost of the purchase to Window World is $56,200. On September 4, Window World determined that Nile Jenkinss account was uncollectible and wrote off the debt. On December 3, Mr. Jenkins unexpectedly paid in full on his account. Record each Window World transaction with Nile Jenkins. In order to demonstrate the write-off and then subsequent collection of an account receivable, assume in this example that Window World rarely extends credit directly, so this transaction is permitted to use the direct write-off method. Remember, however, that in most cases the direct write-off method is not allowed.Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $500,000. The terms of the loan are 2.9% annual interest rate and payable in 8 months. Interest is due in equal payments each month. Compute the interest expense due each month. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. Round to the nearest cent if required.Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet Co. purchases 350 aprons (Supplies) at $25 per apron from a supplier, on credit. Terms of the purchase are 3/10, n/30 from the invoice date of January 5. B. On February 18, Melon Construction receives advance cash payment from a client for construction services in the amount of $20,000. Melon had yet to provide construction services as of February 18. C. On March 21, Noonan Smoothies sells 875 smoothies for $4 cash per smoothie. The sales tax rate is 6.5%. D. On June 7, Organic Methods paid a portion of their noncurrent note in the amount of $9,340 cash.
- On January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received payment on January 18. Which journal would the company use to record this transaction on the 18th? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journalThe following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?