Jax Recording Studio purchased $7,800 in electronic components from Music World. Jax signed a 60-day, 8% promissory note for $7,800. Music World's journal entry to record the sales transaction is
Q: During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $23,000. On the…
A: Interest on notes = Face value of notes x rate of interest x no. of months/12 = $17000 x 9% x 6/12 =…
Q: Sanchez Company is a wholesaler of bakery equipments. Beginning of the current year, the entity's…
A: Inventory is the raw materials used in production as well as the goods that are available for sale.…
Q: Jack Hammer Company completed the following transactions. The annual accounting period ends December…
A: Accounting Equation: It is also known as a basic accounting equation. It provides the foundation for…
Q: Prepare Indigo’s journal entry when cash is received.
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Hitzu Co. sold a copier (that costs $5,500) for $11,000 cash with a two-year parts warranty to a…
A: Warranty Expenses is expense on repair or replacement expected during the warranty period on goods…
Q: A lumber supplier delivered lumber supplies to J.K. Builders for future use. The lumber supplies…
A: The expenses should be recorded when they actually incurred. Journal entries are used to record…
Q: Required: 1. Indicate the effects of each transaction on the accounting equation. (Enter decreases…
A: An accounting equation is an equation representing that the total assets of the company are equal to…
Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…
A: Refund Liability account represents the amount of revenue that an organization does not expects to…
Q: On December 18, Intel receives $241,000 from a customer toward a cash sale of $2.41 million for…
A: Perpetual inventory methodology of accounting of inventory states that the update accounting records…
Q: Steve’s Outdoor Company purchased a new delivery van on January 1 for $58,000 plus $4,900 in sales…
A: Depreciation is the reduction in the value of a tangible fixed asset due to wear and tear occurring…
Q: On December 18, Intel receives $260,000 from a customer toward a cash sale of $2.6 million for…
A: When the advance is received from a customer, it shall be recorded as advance only and not as…
Q: On July 1, Lewis Co. acquired a new computer with a list price of $125,000. Lewis receivelr trade-in…
A: Trade in allowance is the value received by the buyer for exchanging one asset to purchase another…
Q: Ecco Company sold $145,000 of kitchen appliances with six-month warranties during September. The…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Clayco Company completes the following transactions during the year. July 14 Writes off a $750…
A: 1.
Q: Required information [The following information applies to the questions displayed below.] Hitzu…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…
Q: On March 1, Bates Board Shop sells 287 surfboards to a local lifeguard station at a sales price of…
A: Discount period is that when a customer paid within the prescribed period they will get a cash…
Q: iscuss whether Bauk Consumer Electrical Berhad can derecognize AM Supplier from company’s book on 31…
A: On 15 May 2021 - Purchase Order sent to AM Supplier requesting for some raw materials. On 3 June…
Q: Ecco Company sold $158,000 of kitchen appliances with six-month warranties during September. The…
A: The estimated warranty expense is $7,900 ($158,000*5%) and out of which $226 ($140 + $86) worth of…
Q: Reyes Company, a retail supplier of auto parts, purchased $30,000 of inventory on credit from Rock…
A: Discounts are given to promote sales and to encourage quick payments
Q: On May 12, Wilcox Company accepted delivery of $20,000 of merchandise and received an invoice dated…
A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…
Q: Required information (The following information applies to the questions displayed below.] Hitzu…
A: The accounting equation states that assets equals to sum of liabilities and shareholders equity.
Q: Indicate the effects (accounts, amounts, and + or −) of each transaction on the accounting equation.
A: Fundamental Accounting Equation; Assets equal the sum of liabilities and shareholder's equity is the…
Q: Marx Corp. purchases 135 fax machines on credit from a manufacturer on April 7 at a price of $290…
A: Journal entries refers to the process of recording the financial transactions of a company in its…
Q: On November 1, 2015, XYZ Farm entered into a contract to buy a $75,000 harvester from JCP Company.…
A: Contract is a composed or spoken arrangement, particularly one concerning work, deals, or tenure,…
Q: Giorgio Italian Market bought $5,000 worth of merchandise from Food Suppliers and signed a 90-day,…
A: Interest=Face value×Rate×Period=$5,000×10%×90360=$125
Q: Ecco Company sold $150,000 of kitchen appliances with six-month warranties during September. The…
A: Warranty Expense = Sales x estimated warranty expense percentage = $150,000*6% = $9,000
Q: Steve’s Outdoor Company purchased a new delivery van on January 1 for $58,000 plus $4,900 in sales…
A: An accounting equation represents that the assets of an organization are equal to the summation of…
Q: On May 11, Sharjah Co. accepts delivery of $40,000 of merchandise it purchases for resale from…
A: As the question provides that both the company follow the perpetual inventory system. The following…
Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…
A: SOLUTION- ADJUSTING ENTRY- THEY ARE JOURNAL ENTRIES THAT ARE MADE AT THE END OF THE ACCOUNTING…
Q: Bronkey Alazma Inc. manufactures thought glasses (a creepy device that records the thoughts of…
A: Warranty expense is defined as the expense or cost which the business expects or already has been…
Q: Valley Spa purchased $7,800 in plumbing components from Tubman Co. Valley Spa signed a 60-day, 10%…
A: Calculate interest revenue.
Q: October 29, Lobo Co. began operations by purchasing razors for resale. The razors have a 90-day…
A: Warranty expense refers to the expense which is linked with the repair of defective product, refund…
Q: During the month of December, Hexon steels made a 676,000 credit sale. The state sales tax rate is…
A: Journal entries was the process of recording various accounting transactions in a chronological…
Q: Fantastic Co. sold $150,000 of kitchen appliances during August under a six month warranty. The cost…
A: In an accounting cycle, journal entry can be defined as the process of systematically recording all…
Q: Steele Corp. purchases equipment for $20,000. Regarding the purchase, Steele recorded the following…
A: The acquisition cost of a fixed asset includes all those costs incurred to make it ready for action…
Q: Steele Corp. purchases equipment for $20,000. Regarding the purchase, Steele recorded the following…
A: Acquisition cost includes purchase price, shipping cost, and installation but it does not include…
Q: Oven Roasted sold $394,000 of consumer electronics during July under a two-year warranty. The cost…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Valley Spa purchased $11,200 in plumbing components from Tubman Company. Valley Spa signed a 90-day,…
A: Interest applicable on the note = $11,200 x 7% x 90/360 = $196
Q: Valley Spa purchased $11,200 in plumbing components from Tubman Co. Valley Spa Studios signed a…
A: Notes payable is a promise in writing issued by the borrower to the lender providing that the amount…
Q: During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $24,000. On the…
A: Depreciation as per straight line method = (Cost - salvage value)/Useful life
Q: Rapoo Inc. sells gift certificates. One-half of the gift certificates outstanding on January 1…
A: Unearned revenue from gift card on 1 JANUARY 1,80,000 Closing balance of unearned…
Q: On May 12, Wilcox Company accepted delivery of $20,000 of merchandise and received an invoice dated…
A: Following are the Journal entries recorded
Q: O’Connor Company ordered a machine on January 1 at a purchase price of $40,000. On the date…
A: 1. Indicate the effects (accounts, amounts, and 1 or 2 ) of each transaction (on January 1, 2, 3,and…
Q: Hitzu Co. sold a copier (that costs $4,800) for $6,000 cash with a two-year parts warranty to a…
A: STEP 1 Journal is the part of the book keeping
Q: Cobb Baseball Bats sold 45 bats for $50 each, plus an additional state sales tax of 6%. The customer…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: The business was started when the co Purchased equipment inventory of $17 Sold equipment for…
A: Financial Statements shows the financial position, income and cash flows of the entity.
Q: On March 1, Bates Board Shop sells 300 surfboards to a local lifeguard station at a sales price of…
A: Credit terms 3/15, n/30 means that customer will get a discount of 3% if payment is being made in 15…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Record the journal entry for each of the following transactions. Glow Industries purchases 750 strobe lights at $23 per light from a manufacturer on April 20. The terms of purchase are 10/15, n/40, invoice dated April 20. On April 22, Glow discovers 100 of the lights are the wrong model and is granted an allowance of $8 per light for the error. On April 30, Glow pays for the lights, less the allowance.Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.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. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.
- Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On December 10, Lands Inc. contracts with a supplier to purchase 450 plants for its merchandise inventory, on credit, for $12.50 each. Credit terms are 4/15, n/30 from the invoice date of December 10. B. On December 28, Lands pays the amount due in cash to the supplier.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.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
- Record journal entries for the following transactions of Mason Suppliers. A. Sep. 8: Purchased 50 deluxe hammers at a cost of $95 each from a manufacturer. Credit terms are 5/20, n/60, invoice date September 8. B. Sep. 12: Mason Suppliers returned 8 hammers for a full refund. C. Sep. 16: Mason Suppliers found 4 defective hammers, but kept the merchandise for an allowance of $250. D. Sep. 28: Mason Suppliers paid their account in full with cash.Laminate Express extended credit to customer Amal Sunderland in the amount of $244,650 for his January 4 purchase of flooring. Terms of the sale are 2/30, n/120. The cost of the purchase to Laminate Express is $88,440. On April 5, Laminate Express determined that Amal Sunderlands account was uncollectible and wrote off the debt. On June 22, Amal Sunderland unexpectedly paid 30% of the total amount due in cash on his account. Record each Laminate Express transaction with Amal Sunderland. In order to demonstrate the write-off and then subsequent collection of an account receivable, assume in this example that Laminate Express rarely extends credit directly, so this transaction is permitted to use the direct write-off method. Remember, though, that in most cases the direct write-off method is not allowed.On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of 15,000 and a maturity value (principal plus interest) of 15,400. The discount is calculated to be 385, and the accrued interest income is 100. The recourse liability is estimated to be 1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
- Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of $1,200, paid installation fees of $2,750, pays annual maintenance cost of $250, and received a 10% discount on sales price. Determine the acquisition cost of the equipment.Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions: Paid shipping of $1,000 Paid installation fees of $2,000 Pays annual maintenance cost of $200 Received a 5% discount on $25,000 sales price Determine the acquisition cost of the equipment.CustomTee Inc. contracts with various customers to sell T-shirts. In the case of sales, CustomTees normal accounting policy requires a written and signed sales agreement. On July 1, in response to a special last-minute phone call from a regular customer, CustomTee delivered 500 T-shirts for 5,000. Does CustomTee have an enforceable contract?
