Magenta Company received an invoice of $20,950 for catering services at their annual company picnic. The invoice was dated May 4, 2013 and had the following payment terms 8/10, 4/15, n/30. a. Calculate the amount required to settle the invoice on May 9, 2013

Magenta Company received an invoice of $20,950 for catering services at their annual company picnic. The invoice was dated May 4, 2013 and had the following payment terms 8/10, 4/15, n/30. a. Calculate the amount required to settle the invoice on May 9, 2013

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter18: Acquiring Capital For Growth And Development

Section: Chapter Questions

Problem 1AP

See similar textbooks

Related questions

Q: Using the weighted-average method, compute the equivalent units of production if the beginning inven...

A: Equivalent units = completed and transferred +Ending work in process units since materials are added...

Q: Question 1 of 8 -/6 View Policies Current Attempt in Progress Presented here are the components in C...

A: The cost of goods sold refers to the direct costs of manufacturing the commodities supplied by a fir...

Q: - production department within a company received materials of $10,000 and conversion costs of $11,0...

A: The unit cost seems to be the sum of money that costs a business to create one item.

Q: The Trial Balance of PAG Enterprises, a dealer in HR Software, as at 31st December, 2021. GHS G...

A: A trial balance is a backbone of accounting as it includes a list of all general ledger account. It ...

Q: How much is the cost of goods sold P105,000.00 P115,050.00 P110,250.00 P120,300.00

A: Answer to the above question is P 110,250 This can be calculated with the help of Cost sheet.

Q: ndel Company disciosed the foOllowing inr Its recent calendar year. Selected Year-End Balance Sheet ...

A: The cash flow statement is prepared to record the cash flow from various activities during the perio...

Q: Beto Company pays $3.50 per unit to buy a part for one of the products it manufactures. With excess ...

A: Making or buy analysis deciding if to manufacture the product in-house or to purchase it from a thir...

Q: Jordan Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company use...

A: Activity-based costing is a method of allocation of overheads among/between products or services. It...

Q: Question no. 01: A. According to the Turkish tax legislation, there are two main types of tax status...

A: Mathematical model is representation of mathematical figures, language and concepts. It uses equatio...

Q: In 2010 Casey made a taxable gift of $5.7 million to both Stephanie and Linda (a total of $11.4 mill...

A: Given, Casey made a taxable gift of $5.7 million in 2010, to both Stephanie and Linda. This year als...

Q: Required information [The following information applies to the questions displayed below.] Louis fil...

A: Tax is the amount charged by the government from the individual and organizations on the income earn...

Q: 1. Mr. Musfig is a Chartered Accountant (CA). He started a new consultancy firm on July 1,2021. Duri...

A: A journal entry is a form of accounting entry that is used to report a business transaction in a com...

Q: 1. Mr. Musfiq is a Chartered Accountant (CA). He started a new consultancy firm on July 1,2021. Duri...

A: Date Particulars Dr. $ Cr $ 01 July 2021 Cash dr 550000 to Musfiq capital 55...

Q: Tarheel Furniture Company is planning to establish a wholly-owned subsidiary to manufacture upholste...

A: The balance sheet is given as,

Q: Inflation AdjustmentsThe Rodriguez Company is considering an average-risk investment in amineral wat...

A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)

Q: Corporation IS company involve manuracturing mining hing equipm board of directors of the said compa...

A: Equity Formula states that the total value of the equity of the company is equal to the sum of the t...

Q: he following information, based on the 12/31/2021 Annual Report to Shareholders of Krafty Foods ($ i...

A: Krafty Foods Balance Sheet December'31, 2021 Assets Current Assets: (Millions) (Millions) ...

Q: Metlock, Inc. purchased an 18-month insurance policy on May 31, 2022 for $10080. The December 31, 20...

A: Prepaid insurance is the advance payment for the insurance expense. It is recognized at the end of t...

Q: A contingent liability whose payment is generally probable

A: Contingent liability is the liability that may or may not happen in the future based on an event. Th...

Q: A company has 1,400 units in ending work in process that are 20% complete after transferring out 11,...

A: Work-in-progress (WIP) is a term used in manufacturing and supply-chain management to describe parti...

Q: [The following information applies to the questions displayed below.] The following financial statem...

A: Answer - Cashflow Statement Using Indirect Method - The indirect method for a cash flow statement...

Q: Windsor Industries borrows $18800 at 8% annual interest for six months on October 1, 2022. Which is ...

A: Given, Principal amount = $18,800, Interest rate = 8% per annum, It is borrowed on Oct 1st 2022, Int...

Q: Susan Wilson earned a salary of $440 for the last week of October. She will be paid on November 1. T...

A: Adjusting entries are those entries that are prepared at the end of an accounting period to adjust t...

Q: Required information [The following information applies to the questions displayed below.] Clyde is ...

A: Answer for above are as follows

Q: Prepare the journal entry to record the sale of 1,700 units that cost $9 per unit and sold for $15 p...

A: Sales = 1700*$15 = $25,500 Cost of goods sold = 1700*$9 = $15,300

Q: 2. Notes to financial statements a. Must be quantifiable. b. Must qualify as an element.: c. Amplify...

A: 1. c) IFRS requires that all notes should be clear, simple to understand and non-technical in natur...

Q: At the end of the 2021 year, the accounting staff at Prestige Design Flooring Inc. (PDF) have the fo...

A: A balance sheet is a representation of an individual's personal or corporation's financial balances ...

Q: Diane Company has the following details for March. Cost of Direct Material used in production P31,00...

A: Prime cost means the addition of direct material and direct labor and other direct expenses. Manufac...

Q: Solve for the income and expense to be recognized for the month of December, January and February un...

A: Accrual accounting is a technique of accounting in which income and costs are documented at the time...

Q: On January 1 of this year, the carrying value of XYZ Inc's bonds was $750,590. The face value of the...

A: Carrying value of bonds = $ 750590 Face value of bonds = $ 760000 Gain or loss on redemption of bond...

Q: Assume that Ivanhoe Company uses a periodic inventory system and has these account balances: Purchas...

A: Net purchases refer to the purchase cost reduced by returns, allowances and discount availed on such...

Q: Mia works in both the jewelry department and the cosmetics department of a retail store. She assists...

A: Cost allocation refers to the process of recognizing, collecting, and assigning expenditures to cost...

Q: Cobe Company has manufactured 255 partially finished cabinets at a cost of $63,750. These can be sol...

A: Sell or further processing analysis is made with a view to ascertain if processing a product further...

Q: The following information (in $ millions) comes from the Annual Report of Saratoga Springs Co. for t...

A: Return on assets indicates the efficiency of the business entity for managing its assets for earning...

Q: Identify whether the following items are subject to regular income tax, final tax, or exempt from in...

A: As per the general provision Dividend received by a domestic company from another domestic company i...

Q: Problem a: Using the list of transactions below, provide all necessary journal entries for the Fund...

A: Fund accounting is an accounting that requires limited use of funds. The limitation on the use is im...

Q: Flexible Budget In an attempt to improve budgeting, the controller for Meliore, Inc., has developed...

A: Flexible Budget- A flexible budget is one that responds to changes in volume and activity. Because i...

Q: The following are excluded from gross income, except: a. Proceeds of life insurance policy received...

A: Gross Income Gross income refers to the income of an individual which comprises income from wages an...

Q: A $515,000 bond issue on which there is an unamortized discount of $36,000 is redeemed for $463,000....

A: There are three golden rules in accounting for recording the transaction : Debit what comes in , C...

Q: Adjusting Journal Entry: using accounts listed 12/31 - Estimated Allowance for Doubtful Accounts is...

A: Balance to be adjusted=Adjusted Balance of Allowance for Doubtful Accounts-Unadjusted Balance of All...

Q: The following information is available for the first year of operations of Creston Inc., a manufactu...

A: Direct material cost refers to the cost of the materials used in the production process that are in ...

Q: Colt Company owns a machine that can produce two specialized products. Production time for Product T...

A: Lets understand the basics. When there is any constrain to fulfill the needs of customer then manage...

Q: The following accounts are taken from a balance sheet. 1. Cash 2. Retained earnings 3. Equipment 4. ...

A: 1. Asset - These are the resources which are owned by the company from which it derives future econo...

Q: Tom sold a capital property on December 31, 2021 for $300,000. $280,000 is payable on December 31, 2...

A: A capital gain seems to be an increase within the worth of a capital asset that is realized whenever...

Q: Arabella Cunningham is 24 years old and single, lives in an apartment, and has no dependents. Last y...

A: The part of your gross income that is used to determine how much tax you owe in a given tax year is ...

Q: Taiju Company prepared an aging of accounts receivable on December 31, 2020 and determined that the ...

A: The solution for the above mentioned question is given in the following steps for your reference.

Q: The Oklahoma City Zoo has proposed adding to their Web site a major segment providing a virtual tour...

A: Benefit-Cost Ratio=Present Worth of BenefitsPresent Worth of Costs

Q: Data Recovery Services (DRS) specializesS in data recovery from crasned nard drives. The price charg...

A: The service revenue is the revenue earned by providing services to its customers. Any discount or al...

Q: My Home gagevevVv2 | Online teachin x O ) (29) Tory Lanez Feels (feat x+ w.com/ilrn/takeAssignment/t...

A: The question is related to Marginal Costing. The break even point is that level of sales at which th...

Q: On July 1, 2022, Sandhill Co. pays $23,000 to Blossom Company for a 1-year insurance contract. Both ...

A: In the books of sandbill company

Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

Magenta Company received an invoice of $20,950 for catering services at their annual
company picnic. The invoice was dated May 4, 2013 and had the following payment
terms 8/10, 4/15, n/30.
a. Calculate the amount required to settle the invoice on May 9, 2013
Round to the nearest cent
b. Calculate the amount required to settle the invoice on May 19, 2013
b. Calculate the amount required to settle the invoice on May 19, 2013
Round to the nearest cent
c. How much money would the company save by settling the invoice within the first
discount period rather than settling it within the second discount period?
Round to the nearest cent

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Cash and cash equivalents

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Mark Industries issues a note in the amount of $45,000 on August 1, 2018 in exchange for the sale of merchandise. Which of the following is the correct journal entry for this sale? A. B. C. D.
Refer to RE6-8. On April 23, 2020, McKinncy Co. receives a check, from Mangold Corporation for 8,500. Prepare the journal entry for McKinncy to record the collection of the account previously written off.
What amount must be remitted if invoices dated August 23 for $810, September 13 for $780 and September 22 for $905, all terms 2/10 E.O.M., are paid together on October 5? DCM Clocks received the following two invoices from its supplier: $25,000 on August 29, 2014 and $24,000 on September 8, 2014. If the payment terms on both the invoices were 2.5/10, 1/20, n/60, calculate the amount that must be paid by DCM Clocks to settle both of these invoices on September 18, 2014. David, the owner of a brewery in Toronto, receives a shipment of barley on August 1, 2014 with an invoice dated July 24, 2014 valued at $39,900 and cash discount payment terms 2/10, n/30, R.O.G. What cash discount would he receive if the invoice is settled on the following dates? August 4, August 11, August 24
A Scarlet Company received an invoice for $71,000.00 that had payment terms of 4/5 n/30. If it made a partial payment of $14,700.00 during the discount period, calculate the balance of the invoice. B Three invoices for the amounts of $34,800, $24,000, and $41,550 were received on August 25, 2014, September 24, 2014, and October 17, 2014, respectively. If the payment terms are 3/7, 2/30, n/60, calculate the amount that must be paid on October 24, 2014 to settle all three invoices.
On December 12, 2018, Pace Electronics received $24,000 from a customer toward a cash sale of $240,000 ofdiodes to be completed on January 16, 2019. What journal entries should Pace record on December 12 andJanuary 16?
Three invoices for the amounts of $34,800, $27,000, and $40,550 were received on July 7, 2014, August 6, 2014, and August 29, 2014, respectively. If the payment terms are 3/7, 2/30, n/60, calculate the amount that must be paid on September 5, 2014 to settle all three invoices. Round to the nearest cent
Three invoices for the amounts of $35,100, $26,000, and $40,250 were received on September 28, 2014, October 28, 2014, and November 20, 2014, respectively. If the payment terms are 3/7, 2/30, n/60, calculate the amount that must be paid on November 27, 2014 to settle all three invoices. $0.00 Round to the nearest cent.
the company received an invoice for $230,250 dated November 9, 2017 with payment terms 5/5, 1/20, n/45 for a truck-load of goods. Calculate the amount required to settle the invoice on the following dates: a. November 13, 2017 Round to the nearest cent b. December 24, 2017 Round to the nearest cent Round to two decimal place
Starlight, a Kingston based production company, shipped a truck-load of lighting equipment to a client in Halifax. The invoice of $185,000 for the equipment was dated August 2, 2014. The equipment was received by the client on September 10, 2014. If the payment terms were 2.50/10, n/45, R.O.G what cash discount would the client receive if the invoice is settled on the following dates: a. September 10? Round to the nearest cent b. September 25? Round to the nearest cent c. October 10?
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.
Three invoices for the amounts of $35,600, $28,000, and $40,550 were received on August 25, 2014, September 24, 2014, and October 17, 2014, respectively. If the payment terms are 3/7, 2/30, n/60, calculate the amount that must be paid on October 24, 2014 to settle all three invoices. b Calculate the missing values and express your answers rounded to two decimal places. Cost Amount ofMarkup SellingPrice Rate of Markupon Cost Rate of Markupon Selling Price a. $270.00 25.00% % b. $68.00 % 26.00%
The following facts relate to gift cards sold by Sunbru Coffee Company during 2018. Sunbru’s fiscal year ends on December 31. (a.) In October 2018, sold $3,100 of gift cards, and redeemed $510 of those gift cards. (b.) In November 2018, sold $4,100 of gift cards, and redeemed $1,410 of October gift cards and $710 of November gift cards. (c.) In December 2018, sold $3,100 of gift cards, and redeemed $210 of October gift cards, $2,100 of November gift cards, and $410 of December gift cards. (d.) Sunbru views a gift card to be “broken” (with a remote probability of redemption) two months after the end of the month in which it is sold. Thus, an unredeemed gift card sold at any time during July would be viewed as broken as of September 30. Required:1. Prepare all journal entries appropriate to be recorded only during the month of December 2018 relevant to gift card sales, gift card redemptions, and gift card breakage.2. Determine the balance of the deferred revenue liability to be…