CBS purchases 80 units of the 4-in-1 desktop printers at a cost of $100 each on credit. Terms of the purchase are 5/15, n/40, with an invoice date of June 1
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- EB9. 12.4 Airplanes Unlimited purchases airplane parts from a supplier on March 19 at a quantity of 4,800 parts at $12.50 per part. Terms of the purchase are 3/10, n/30. Airplanes pays one-third of the amount due in cash on March 30 but cannot pay the remaining balance due. The supplier renegotiates the terms on April 18 and allows Airplanes to convert its purchase payment into a short-term note, with an annual interest rate of 9%, payable in six months.Show the entries for the initial purchase, the partial payment, and the conversion. EB10. 12.4 Use information from EB9. Compute the interest expense due when Airplanes Unlimited honors the note. Show the journal entry to recognize payment of the short-term note on October 18EA10. LO 6.4Record the journal entries for the following sales transactions of Apache Industries. Nov. 7Sold 10 computers on credit for $870 per computer. Terms of the sale are 5/10, n/60, invoice dated November 7. The cost per computer to Apache is $560. Nov. 14The customer returned 2 computers for a full refund from Apache. Apache returns the computers to their inventory at full cost of $560 per computer. Nov. 21The customer paid their account in full from the November 7 sale.Marx Corp. purchases 135 fax machines on credit from a manufacturer on April 7 at a price of $250 per machine. Terms of the purchase are 4/10, n/20 with an invoice date of April 7. Marx Corp pays in full for the fax machines on April 17. Create the journal entries for Marx Corp. to record: A. the initial purchase B. the subsequent payment on April 17
- 8. Problem Solving. A promissory note which is dated January 1, 20A was received from a client for merchandise delivered by the ML Company for P220,000. Its term is 120 days and carries with it an 8% interest. On March 1 20A, due to financial turmoil, ML company immediately have it discounted to a GG Financial Provider even at 13% discount. Compute the amount proceeds if the discounting arrangement is a secured borrowing. Assume 30 days a month. Round off final answer to the nearest peso.ay 11 Sydney accepts delivery of $23,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $15,410. Sydney pays $640 cash to Express Shipping for delivery charges on the merchandise. May 12 Sydney returns $1,400 of the $23,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $938. May 20 Sydney pays Troy for the amount owed.Troy receives the cash immediately. (Both Sydney and Troy use a perpetual inventory system and the gross method.) 1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions. 2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions.28 Neakanie Industries sells specialized mountain bikes. Each specialized bike purchased includes free maintenance service for 12 months. The price of the specialized bike is $700. When sold separately, a maintenance contract is $200, and a comparable but non-specialized bike is $600. If Neakanie sold 3 bikes on December 1, how much total revenue would the company recognize on December 31? Multiple Choice $2,937.50. $2,250.00. $1,618.75. $250.00.
- PROBLEM 3: EXERCISE Publisher Co. delivers 1,000 books to Bookstore Co. under a consignment arrangement. The cost per book is P300. Publisher Co pays freight of P22 per book. Bookstore Co. is entitled to a 20% commission based on the Publisher's suggested retail price. However, Bookstore Co. marks up the Publisher's suggested retail price anyway for another 15%. Six (6) months after the end of the semester, Bookstore Co. remits P245,700 to the Publisher for the sale of 700 books, after deduction of P69,300 for the following: 2% withholding tax based on the publisher's suggested retail price. Bookstore's commission. Requirements: a Compute for the amounts to be presented in Publisher's statement of profit or loss? b. How much is the ending inventory to be presented in Publisher's statement of financial position? c. How much income is recognized by Bookstore?QUESTION SIX For six months ended 31st October, 2013, Luanshya Limited (LL), an importer and distributor of one type of printer’s machine has the following transactions in his records. There was an opening balance of 100 units which had a value of K3,900. Date Bought Quantity in Units Cost per Unit K May 100 41 June 200 50 August 400 51.875 The price of K51 875 each for the August receipt was K6.125 per unit less than the normal price because of the large quantity ordered. Date Sold Quantity in Units Price Each K July 250 64 September 350 70 October 100 74 Required: Prepare the stores ledger records…Chapter 4/Question 3: Mobiles Co sells goods with a one year warranty under which customers are covered for any defect that becomes apparent within a year of purchase. In calendar year 20X4, Mobiles Co sold 100,000 units. The company expects warranty claims for 5% of units sold. Half of these claims will be for a major defect, with an average claim value of $50. The other half of these claims will be for a minor defect, with an average claim value of $10. What amount should Mobiles Co include as a provision in the statement of financial position for the year ended 31 December 20X4?
- Week 2 Date Transaction description 8 Purchased 13 boxes of Sprearmint Gum from Gillard Wholesalers for $208 each, terms net 30. 10 Paid the full amount owing to Hershel's, Check No. 405. Payment fell outside discount period. 11 Sold 17 boxes of Hazelnut Toffee to Central Candy for $376 each, Invoice No. 870. 11 Paid sales staff wages of $2,031 for the week up to and including yesterday, Check No. 406. 12 Made cash sale of 30 boxes of Organic Chocolate for $992 each. 13 Paid the full amount owing to Restlay, Check No. 407. 13 Paid the full amount owing to Brennan Imports Group, Check No. 408. 13 Candy Man paid the full amount owing on their account. Since Candy Man has been a loyal customer from the day the business commenced, a 10% discount was given for this early repayment. SALES JOURNAL Date Account InvoiceNo. PostRef. Accounts Receivable Cost of Goods Sold Jun (select) Jun (select) Jun (select) Jun (select)…PB1. LO 6.1Record journal entries for the following transactions of Furniture Warehouse. July 5: Purchased 30 couches at a cost of $150 each from a manufacturer. Credit terms are 2/15, n/30, invoice date July 5. July 10: Furniture Warehouse returned 5 couches for a full refund. July 15: Furniture Warehouse found 6 defective couches, but kept the merchandise for an allowance of $500. July 20: Furniture Warehouse paid their account in full with cash.May 11 Sydney accepts delivery of $34,000 of merchandise it purchases for resale from Troy: invoice dated May 11; terms 3/10, n/90; FOB shipping point. The goods cost Troy $22,780. Sydney pays $515 cash to Express Shipping for delivery charges on the merchandise. 12 Sydney returns $1,300 of the $34,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $871. 20 Sydney pays Troy for the amount owed. Troy receives the cash immediately. (Both Sydney and Troy use a perpetual inventory system and the gross method.) 1. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions.2. Prepare journal entries that Troy Wholesalers (seller) records for these three transactions. 1.Record the merchandise sold on account. 2.Record the cost of goods sold. 3.Record the sales return. 4.Record the cost of sales return. 5.Record the cash collected for credit sales. l