EquipmentCashSales Revenueta Depreciation expense on the building for the year was $60,000. Because the building was increasing in value durine uyear,InstructionsComment on the appropriateness of the accounting procedures followed by Cramer, inc.lowing entry is recorded.60,000Retained EarningsAccumulated Depreciation-Buildings60,000 (elgbnih1o(b) Materials were purchased on January 1, 2017, for $120,000 and this amount was entered in the Materials account. OnDecember 31, 2017, the materials would have cost $141,000, so the following entry is made.enoitouInventory21,000Gain on Inventories21,000(c) During the year, the company purchased equipment through the issuance of common stock. The stock had a valueof $135,000 and a fair value of $450,000. The fair value of the equipment was not easily determinable. The companyrecorded this transaction as follows.parEquipmentCommon StockupaP Edmbu bag135,000yanqmoo orfT slde135,000(d) During the year, the company sold certain equipment for $285,000, recognizing a gain of $69,000. Because the controllerbelieved that new equipment would be needed in the near future, she decided to defer the gain and amortize it over thelife of any new equipment purchased.obrm esw Concepts for Analysis 69(e) An order for $61,500 has been received from a customer for products on hand. This order was shipped on January 9,2018. The company made the following entry in 2017.Accounts Receivable61,500Sales Revenue61,500

Name: EquipmentCashSales Revenueta Depreciation expense on the building for
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Description: EquipmentCashSales Revenueta Depreciation expense on the building for the year was $60,000. Because the building was increasing in value durine uyear,InstructionsComment on the appropriateness of the accounting procedures followed by Cramer, inc.low

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2-10 (LO6) GROUPWORK (Accounting Principles- ustructions omment on the appropriateness of the accounting procedures followed by Cramer, Inc. ta) Depreciation expense on the building for the vear was $60,000. Because the building was in year, the controller decided to charge the depreciation expense to retained earnings instea. lowing entry is recorded. Retained Earnings Accumulated Depreciation-Buildings 60,000 60,000 (b) Materials were purchased on January 1, 2017, for $120,000 and this amount was entered in December 31, 2017, the materials would have cost $141,000, so the following entry is made.

2-10 (LO6) GROUPWORK (Accounting Principles- ustructions omment on the appropriateness of the accounting procedures followed by Cramer, Inc. ta) Depreciation expense on the building for the vear was $60,000. Because the building was in year, the controller decided to charge the depreciation expense to retained earnings instea. lowing entry is recorded. Retained Earnings Accumulated Depreciation-Buildings 60,000 60,000 (b) Materials were purchased on January 1, 2017, for $120,000 and this amount was entered in December 31, 2017, the materials would have cost $141,000, so the following entry is made.

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Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 6PA: Selected accounts and related amounts for Clairemont Co. for the fiscal year ended May 31, 2016, are...

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Selected accounts and related amounts for Clairemont Co. for the fiscal year ended May 31, 2016, are presented in Problem 6-5A. Instructions 1. Prepare a single-step income statement in the format shown in Exhibit 11. 2. Prepare a statement of owners equity. 3. Prepare an account form of balance sheet, assuming that the current portion of the note payable is 50,000. 4. Prepare closing entries as of May 31, 2016.
May I ask for an explanation and solution to the question for a better understanding. Thank you! Selected information for Cain Corp. for the year ended December 31, 2021 are as follows: Average days' sales in inventories = 124; Average days' sales in accounting receivable = 48. The average number of days in the operating cycle for 2021 was: a. 172 b. 124 c. 86 d. 76
17. The following data were taken from the records of Raysut Cement Factory for the year ended December 31, 2018. Jan2. Purchased merchandise on account from Yokum Co., $60,000 terms 2/10, n/30. Feb1. Issued a 8%, 2 month, $60,000 note in payment of account. Mar31 Accrued interest for 2 months on Yokum note. Apr1 Paid face value and interest on Yokum note. July1 Purchased Furnituret from Korsak Equipment paying $22,000 in cash and signing a 9%, 3 months, $80,000 note. Sept.30 Accrued interest for 2 months on Korsak note. Oct.1 Paid face value and interest on Korsak note. Dec.1 Borrowed $48,000 from the Otagon Bank by issuing a 3 month, 7% interest- bearing note with a face value of $48,000 Dec. 31 Recognized interest expense for 1 month on Otago Bank note. Instructions: a) Prepare journal entries for the above transactions and events. b) Show the Balance Sheet presentation of notes and interest payable at December 31.
17. The following data were taken from the records of Raysut Cement Factory for the year ended December 31, 2018. Jan2. Purchased merchandise on account from Yokum Co., $60,000 terms 2/10, n/30. Feb1. Issued a 8%, 2 month, $60,000 note in payment of account. Mar31 Accrued interest for 2 months on Yokum note. Apr1 Paid face value and interest on Yokum note. July1 Purchased Furnituret from Korsak Equipment paying $22,000 in cash and signing a 9%, 3 months, $80,000 note. Sept.30 Accrued interest for 2 months on Korsak note. Oct.1 Paid face value and interest on Korsak note. Dec.1 Borrowed $48,000 from the Otagon Bank by issuing a 3 month, 7% interest- bearing note with a face value of $48,000 Dec. 31 Recognized interest expense for 1 month on Otago Bank note. Instructions: Prepare journal entries for the above transactions and events. Show the Balance Sheet presentation of notes and interest payable at December 31.
3. The following was the trial balance extract from ABC Trading as at 31 March 2019.Particulars DEBIT (RM) CREDIT (RM)Purchases and Sales 22,800 41,000Inventory on 1 April 2018 5,100Capital 8,170Bank overdraft 4,300Cash 140Discount allowed and received 1,440Returns inwards and outwards 790Carriage outwards 2,180Office expenses 450Fixtures and fittings 1,210Delivery van 2,000Accounts receivables and account payables 11,900 6,720Rent and insurance 1,790Drawings 2,850Wages and salaries 8,980TOTAL 61,690 61,690Additional information as at 31 March 2019:a. Inventory on 31 March 2019 was RM4,250b. Wages and salaries accrued as at 31 march 2019 was RM210; outstanding office expenses was RM30c. Rent and insurance prepaid was RM150Required:i. Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31 March 2019ii. Prepare Statement of Financial Position as at 31 March 2019
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11. Prepare a post-closing trial balance. Required information The general ledger of Zips Storage at January 1, 2021, includes the following account balances: Accounts Debits Credit Cash 24,600 Accounts Receivable 15,400 Prepaid Insurance 12,000 Land 148,000 Accounts Payable 6,700 Deferred Revenue 5,800 Common Stock 143,000 Retained Earnings 44,500 Totals $200,000 $200,000 The following is a summary of the transactions for the year: 1. January 9 Provide storage services for cash, $134,100, and on account, $52,200. 2. February 12 Collect on accounts receivable, $51,500. 3. April 25 Receive cash in advance from customers, $12,900. 4. May 6 Purchase supplies on account, $9,200. 5. July 15 Pay property taxes, $8,500. 6. September 10 Pay on accounts payable, $11,400. 7. October 31 Pay salaries, $123,600. 8. November 20 Issue shares of common stock in exchange for $27,000 cash. 9. December 30 Pay $2,800 cash dividends to…
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