Question 6 of 9Magenta Company received an invoice of $18,450 for catering services at their annual company picnic. The invoicewas dated May 6, 2013 and had the following payment terms 9/10, 5/15, n/30.a. Calculate the amount required to settle the invoice on May 13, 2013Round to the nearest contb. Calculate the amount required to settle the invoice on May 20, 2013Round to the nearest centc. How much money would the company save by settling the invoice within the first discount period rather thansettling it within the second discount period?Round to the nearest cent

Many times suppliers provides the discount so that early payment can be received, its also called as…

Answered: a. Calculate the amount required to…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 54BE

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Unearned Revenue Jennifers Landscaping Services signed a $400-per-month contract on November 1, 2019, to provide plant watering services for Lola Inc.s office buildings. Jennifers received 4 months' service fees in advance on signing the contract. Required: 1. Prepare Jennifers journal entry to record the cash receipt for the first 4 months. 2. Prepare Jennifers adjusting entry at December 31, 2019. 3. CONCEPTUAL CONNECTION How would the advance payment (account(s) and amounts(s)] be reported in Jennifers December 31, 2019, balance sheet? How would the advance payment [account(s) and amount(s)] be reported in Lolas December 31, 2019, balance sheet?
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.
Accounts Payable Sleek Ride, a company providing limo services, has a December 31 year-end date. For Sleek Ride, the following transactions occurred during the first 10 days of June: a. Purchased, on credit, space for classified advertisements in the New York Times for $1,950. The advertising was run the day the space was purchased. b. Purchased office supplies from Office Max on credit in the amount of $475. c. One of Sleek Rides sales staff signed a $20,000 contract to provide exclusive limo services for a large company for the remainder of the month. The salespersons commission is 10% of service revenue. The commission will be paid July 10. ( Note: Concern yourself only with the commission.) d. Received electric bill for May. The bill is $4,200 and is due June 15. e. Received a bill for $970 from Harrys Auto. Harrys repaired 10 limos for Sleek Ride in late May. Payment is due June 18. Required: Prepare journal entries for the above transactions.
The Rice Company made the transactions during the month of December 2022. Journalize the transactions: Dec 3rd: the Rice Company received a bill for utilities in the amount of $658 Dec 11th: There was $368 paid in advance for services to be performed on Jan 1st 2023 Dec 18th: An invoice was sent to a client of $500 for services performed on Dec 2nd 2022 Dec 22nd: Prepaid $3,700 of Insurance for the year starting January 1st 2023
Classic Customs began operations on December 1, 2020. In setting up the bookkeeping procedures, the company decided to debit expense accounts when the company prepays its expenses and to credit revenue accounts when customers pay for services in advance. Supplies were purchased on December 1 for $8,000. The company prepaid insurance premiums of $3,200 on December 2. On December 15, the company received an advance payment of $16,100 from one customer for re-modeling work. By counting the supplies on December 31, Classic Customs determined that $1,450 was on hand. An analysis of the insurance policies in effect on December 31 showed that $800 of insurance coverage had expired. As of December 31, it was determined that $8,500 of the amount received in advance on December 15 had been earned. Prepare journal entries for items (a) through (c) and adjusting entries as of December 31, 2020, for items (d) through (f).
Kibitz Fitness received $30,000 from customers on August 1, 2013. These payments were advance payments of yearly membership dues. Required: At December 31, 2013, calculate what the balances in the Unearned Service Revenue and Service Revenue accounts will be. Unearned Service Revenue $ Service Revenue $
Journalizing Transactions Remington Communications has been providing cellular phone service for several years. During November and December 2013, the following transactions occurred: Nov. 2 Remington received $2,400 for November phone service from Enrico Company. 6 Remington purchased $4,750 of supplies from Technology Associates on account. 10 Remington paid $5,250 to its hourly employees for their weekly wages. 15 Remington paid $4,750 to Technology Associates in full settlement of its account payable. 28 Remington paid $2,150 for utilities used during November. 30 Remington received a bill from Monticello Construction for $1,230 for repairs made to Remington's loading dock on November 15. Remington plans to pay the bill in early December. Dec. 10 Remington paid $1,230 to Monticello Construction to settle the repair bill received on November 30.
Service Revenue Kibitz Fitness received $24,000 from customers on August 1, 2022. These payments were advance payments of yearly membership dues. Required: At December 31, 2022, calculate what the balances in the Unearned Service Revenue and Service Revenue accounts will be.
An invoice for RO 65,000 and dated February 20th with the terms 7/13, EOM is received. The bill is paid on March 2nd. Calculate the amount paid.
An invoice of RO 50,000 with the terms 7/18, n/30, ROG is dated on May 10th. The goods are received on May 15th. The bill is paid on June 1st. Calculate the amount paid.
7. Johnstone Controls had the following situations on December 2021. On March 31, 2021, the company lent $59,000 to another company. A note was signed with principal and interest at 8% payable on March 31, 2022. On September 30, 2021, the company paid its landlord $14,800 representing rent for the period September 30, 2021, to September 30, 2022. Johnstone debited prepaid rent. Supplies on hand at the end of 2020 totaled $3,960. Additional supplies costing $7,160 were purchased during 2021 and debited to the supplies account. At the end of 2021, supplies costing $4,960 remain on hand. Vacation pay of $11,880 for the year that had been earned by employees was not paid or recorded. The company records vacation pay as salaries expense. Prepare the necessary adjusting entries for Johnstone Controls at the end of its December 31, 2021, fiscal year-end for each of the above situations. (If no entry is required for a transaction/event, select "No journal entry required" in the first…
The Gloria Dimen Company present the following information pertaining to accounts that will need adjustment for its November 30, 20121. On October 1, 2012, Gloria Dimen Company paid P10,800 for 6-monts insurance premiums2. The balance in the ledger account Office Supplies amounted to P32,000. A count of the office supplies on November 30, 2012 totaled P12,8003. Gloria Dimen Company received P22, 800 on November 1, 2012 from customer for service to be rendered during the months of November, December, January, and February.4. Gloria Dimen acquired Office Equipment costing P352, 800 on April 1, 2012. The equipment is expected to last 5 years which it will be worthless.5. Assume that November 30, 2012 is a Friday and that Gloria Dimen pays it's employees a total of P87, 500 on Saturday.Required:A. Prepare the adjusting entries.B. Prepare the December 1, 2012 entry to record payment of the salaries.

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