najors? Yes Amount Account Amount Account Amount Account 87,466 Cash 5,750 Inventory 138,000 Equipment (1,150) Accumulated Depreciation $ 111,000 Notes Payable 555 Interest Payable $ 116,000 Stock 2,511 Retained Earnings Balance Sheet at April 30: $ Amounts in US$ Per Unit Total 34,500 3,450 161.00 46,368 20,700 1,130 1,554 555 111,555 118,511
Q: The following is the alphabetical adusted trial balance of Meadows Company on December 31, 2019: 1.…
A: Balance sheet is one of the financial statement which shows all assets, liabilities and equity of…
Q: Prepaid Expenses Equipment Accumulated Depreciation Accounts Payable Notes Payable Common Stock 693…
A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…
Q: Account Cash Accounts Receivable Inventory Supplies Equipment Accumulated Depreciation Accounts…
A: An income statement is a basic financial statement that reflects the income and costs of the firm.…
Q: Debits $ 38,000 82,000 107,000 Account Title Credits Cash Accounts receivable Inventory Interest…
A: Valley Pump Corporation Balance Sheet December 31, 2021 Assets Current Assets : Cash…
Q: The trial balance and information for year-end adjustments for Vilardi Company are as follows:…
A: Financial Statements are prepared by the management for reporting purposes. These are the essential…
Q: Lee Manufacturing Corporation was incorporated On January 3, 2018. The corporation’s financial…
A: The preparation of entries are given as,
Q: Fiex Md on Cash $16,450 Accounts payable 8.230 Unearned royalty fees 5.000 Selling expenses 45,000…
A: Income statement means the statement which shows the expenditure and revenue of the company and…
Q: H. The following information was obtained from the records of Diwata Traders: P 254,000 119,000…
A: Balance Sheet - The balance sheet is the financial statement that includes balances of assets and…
Q: X Company reports these account balances on March 31, 2021 Accounts Payable $7.000 Accounts…
A: The answer for the multiple choice question is given hereunder :
Q: P 52,500 14,500 12,500 ? Machinery Accrued expenses Unearned income Cash P 55,000 7,000 5,000 21,000…
A: Solution: Total Assets = Note receivables + Office equipment + Accrued income + Machinery + Cash =…
Q: Account Title Cash Accounts receivable Office supplies Trucks Accumulated depreciation-Trucks Land…
A: Cash = $9700 Accounts Receivables = 16500 Office Supplies = 2000 Current assets = Cash + Accounts…
Q: ASSETS LIABILITIES AND NET ASSETS Liabilities Net Assets Accounts Prepaid Plant & Acounts Wages…
A: First we need to prepare Profit & Loss a/c to complete the transaction
Q: Classifying transactions on the statement of cash flows—indirect method Consider the following…
A:
Q: Canaro $2,300 S 21e 51,200 GTO Torino Cash Short-term Investents 500 Current receivables Inventory…
A: Formula: Acid test ratio = ( Current Assets - Inventory - Prepaid expenses ) / Current liabilities
Q: Devlin Company has prepared following partially completed worksheet for the year ended December 31,…
A: Worksheet: A worksheet is a special type of working paper where the accountants organize data and…
Q: Strong Knot Inc Trial Balance December 31,2018 Dr Cr. Cash .27,800 Accounts Receivables Supplies…
A: Income statement is prepared to show the revenues and expenses and the resulting profit/loss during…
Q: Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 48,000 48,000 Accounts Receivable 18,000 18,000…
A: Account Title and Explanation Debit Credit Fees Revenue $155,000 C. Finley Capital…
Q: Question: 1 FK Itd disclosed some accounts as following. Cash 30,000 9,000 Equipment &Furniture…
A: Solution:- Computation of current assets as follows under:-
Q: $ 71,600 30,900 64,700 4,000 $ 18,000 38, 200 71,700 3,300 Cash Accounts receivable, net Inventory…
A: Cash Dividend - Cash Dividend is the amount paid to the shareholders of company. It is calculated by…
Q: Comparative For the years ended December 31 Year 2 Year 1 $53.2 44.3 254.1 243.9 $595.5 $84.5 Cash…
A: Balance sheet A balance sheet is an accounting report of a company which depicts its financial…
Q: Compute the current ratio and acid-test ratio for each of the following separate cases. (Round…
A: Current ratio = Current assets / Current liabilities Acid-test = (Current assets - Inventory -…
Q: Selected amounts from Kit Company's trial balance of 12/31/20 appear below: 1. Accounts Payable 2.…
A: A trail balance is the statement of debits credits that can only be prepared in case of double entry…
Q: Dř. Dř. Cash $ 11,000 $ 11,000 Accounts Receivable 20,000 23,500 Supplies Prepaid Insurance 8,400…
A: Financial Statement: Financial statement consists of financial report and company’s financial…
Q: Trial Balance Adjusted Trial Balance Debit Credit Debit Credit Cash $ 5,410 5,410 Accounts…
A: Journal Entry - It is record of every business transaction over day to day life whether it is…
Q: a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. b.…
A: The cash flows statement provides the movement of cash and cash equivalents. There are different…
Q: December 3T Cash 7,530 Accounts Receivable 2,100 Prepaid Expenses 700 Equipment 13,700 Accumulated…
A: Trial Balance: Trial balance is a statement in which the closing balance of all ledger accounts are…
Q: Account Cash 47,400 Supplies 300 Prepaid Rent 22,917 7,350 17,500 Accounts Receivable Equipment…
A: The closing entries are prepared to close the accounts which can not be transferred to balance…
Q: Question No.2 Details OMR Details OMR Cost of goods sold 385,000 Retained Earnings (Beginning)…
A: CLOSING ENTRIES - closing entries will be passed to close the revenues and expenses accounts by…
Q: Account Title Debit 8,100 19,500 6,958 181,000 Cradit Cash Accounts receivable Office supplies…
A: Income statement is prepared by the business organizations so as to know how much amount of Gross…
Q: Tripeaks Company used the accrual basis of accounting: January 1 9,000,000 50,000 December 31…
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…
Q: Lopez Sales Company had the followIng balances In Its accounts on January 1, Year 2 Cash $42,000…
A: For Gross margin = Sales - Cost of goods sold For Gain on sale of Land = Selling price - Cost of…
Q: Account Title Debit Credit Cash Accounts receivable office supplies Trucks $ 7, 200 19,500 6,160…
A: Income Statement Particulars Amount Trucking fees earned $126,000 Less: Expenses: Salaries…
Q: Cash 12.000 Accounts Receivable 7,800 Prepaid Rent 2.200 Equipment 23,200 Accumutated Depreciation…
A: Introduction: Balance sheet: All Assets and liabilities are shown in Balance sheet. It tells the net…
Q: The adjusted 2 Company at Decer resented below: Debit Credit Cash 10.500 Accounts receivable 150,000…
A: The balance sheet shows the financial position of the company by recording all the assets,…
Q: December 31 Cash 7,530 Accounts Receivable 2,100 Prepaid Expenses 700 Equipment 13,700 Accumulated…
A: Net Income will be equal to all revenues minus all expenses.
Q: If X Company has the following balances:Cash 10,000 Equipment 50,000 inventory 5,000 Long term…
A: Current assets: Current assets are all those assets which are expected to be sold or used as a…
Q: Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Cash $159 $51 Accounts receivable (net) 90 63…
A: Calculate the amount of gain on sales, cash purchase, depreciation expense, cash dividend paid, and…
Q: Dana Point Company Balance Sheet % Change Yr 2 Balance Sheet Common Size Yr 2 Yr 1 Balance Sheet…
A: A balance sheet is a representation of an individual's personal or corporation's financial balances…
Q: Statement of cash flows-indirect methodThe comparative balance sheet of Livers Inc. for December 31,…
A: Cash flow statement is a statement which shows all cash inflows and cash outflows related to…
Q: Question 2 The following information relates to Oswald Ltd for their fiscal year ended December 31,…
A: Cash Flow Statement - Under Cash Flow, there are three types of activities involved - Operating…
Q: Account Title Dr. Cr. Dr. Cr. Dr. Cr. Cash 16,090 16,090 Accounts Receivable 38,300 38,300 Supplies…
A: Stockholder's equity shows the excess amount of assets over liabilities during an accounting year.…
Q: At 31 October 20X6 Roger's trial balance included the following balances: $ 12,890 8,950 5,754…
A: Current assets: In accounting, a current asset is an asset which can be expected to be sold,…
Q: Jerry Corporation The following are the account balances of Jerry Corporation for 2X20 and 2X21.…
A: Balance sheet: It refers to a financial statement that shows all the liabilities, assets, and…
Q: Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago…
A: Calculation of accounts receivable turnover ratio Accounts receivable turnover ratio = Net Credit…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- Accounts Payable On May 18, Stanton Electronics purchased, on credit, 1,000 TV sets for $400 each. Stanton plans to resell these TVs in its store. Stanton paid the supplier on June 30. Required: Prepare the necessary journal entry (or entries) on May 18 and June 30.The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?
- On January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received payment on January 18. Which journal would the company use to record this transaction on the 18th? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journalAccounts 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.Review the following transactions, and prepare any necessary journal entries. A. On July 16, Arrow Corp. purchases 200 computers (Equipment) at $500 per computer from a supplier, on credit. Terms of the purchase are 4/10, n/50 from the invoice date of July 16. B. On August 10, Hondo Inc. receives advance cash payment from a client for legal services in the amount of $9,000. Hondo had yet to provide legal services as of August 10. C. On September 22, Jack Pies sells thirty pies for $25 cash per pie. The sales tax rate is 8%. D. On November 8, More Supplies paid a portion of their noncurrent note in the amount of $3,250 cash.
- The following transactions were completed by Yang Restaurant Equipment during January, the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Yang Restaurant Equipment does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to Tri-County Management Company for monthly rent, 850. 2L. Yang, the owner, invested an additional 4,500 in the business. 4Bought merchandise on account from Valentine and Company, invoice no. A694, 2,830; terms 2/10, n/30; dated January 2. 4Received check from Velez Appliance for 980 in payment of invoice for 1,000 less discount. 4Sold merchandise on account to L. Parrish, invoice no. 6483, 755. 6Received check from Peck, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Frost and Son, in payment of invoice no. C127 for 600 less discount. 7Bought supplies on account from Dudley Office Supply, invoice no. 190B, 93.54; terms net 30 days. 7Sold merchandise on account to Ewing and Charles, invoice no. 6484, 1,115. 9Issued credit memo no. 43 to L. Parrish, 47, for merchandise returned. 11Cash sales for January 1 through January 10, 4,454.87. 11Issued Ck. No. 6983, 2,773.40, to Valentine and Company, in payment of 2,830 invoice less discount. 14Sold merchandise on account to Velez Appliance, invoice no. 6485, 2,100. 14Received check from L. Parrish, 693.84, in payment of 755 invoice, less return of 47 and less discount. Jan. 19Bought merchandise on account from Crawford Products, invoice no. 7281, 3,700; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to invoice, 142 (total 3,842). 21Issued Ck. No. 6984, 245, to A. Bautista for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 3,689. 23Received credit memo no. 163, 87, from Crawford Products for merchandise returned. 29Sold merchandise on account to Bradford Supply, invoice no. 6486, 1,697.20. 29Issued Ck. No. 6985 to Western Freight, 64, for freight charges on merchandise purchased January 4. 31Cash sales for January 21 through January 31, 3,862. 31Issued Ck. No. 6986, 65, to M. Pineda for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 5,899.95; employees federal income tax withheld, 795; FICA Social Security tax withheld, 365.80, FICA Medicare tax withheld, 85.50. 31Recorded the payroll taxes: FICA Social Security tax, 365.80; FICA Medicare tax, 85.50; state unemployment tax, 318.60; federal unemployment tax, 35.40. 31Issued Ck. No. 6987, 4,653.65, for salaries for the month. 31L. Yang, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Yang Restaurant Equipment during January, the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Yang Restaurant Equipment does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to Tri-County Management Company for monthly rent, 850. 2L. Yang, the owner, invested an additional 4,500 in the business. 4Bought merchandise on account from Valentine and Company, invoice no. A694, 2,830; terms 2/10, n/30; dated January 2. 4Received check from Velez Appliance for 980 in payment of invoice for 1,000 less discount. 4Sold merchandise on account to L. Parrish, invoice no. 6483, 755. 6Received check from Peck, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Frost and Son, in payment of invoice no. C127 for 600 less discount. 7Bought supplies on account from Dudley Office Supply, invoice no. 190B, 93.54; terms net 30 days. 7Sold merchandise on account to Ewing and Charles, invoice no. 6484, 1,115. 9Issued credit memo no. 43 to L. Parrish, 47, for merchandise returned. 11Cash sales for January 1 through January 10, 4,454.87. 11Issued Ck. No. 6983, 2,773.40, to Valentine and Company, in payment of 2,830 invoice less discount. 14Sold merchandise on account to Velez Appliance, invoice no. 6485, 2,100. 14Received check from L. Parrish, 693.84, in payment of 755 invoice, less return of 47 and less discount. Jan. 19Bought merchandise on account from Crawford Products, invoice no. 7281, 3,700; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to invoice, 142 (total 3,842). 21Issued Ck. No. 6984, 245, to A. Bautista for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 3,689. 23Received credit memo no. 163, 87, from Crawford Products for merchandise returned. 29Sold merchandise on account to Bradford Supply, invoice no. 6486, 1,697.20. 29Issued Ck. No. 6985 to Western Freight, 64, for freight charges on merchandise purchased January 4. 31Cash sales for January 21 through January 31, 3,862. 31Issued Ck. No. 6986, 65, to M. Pineda for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 5,899.95; employees federal income tax withheld, 795; FICA Social Security tax withheld, 365.80, FICA Medicare tax withheld, 85.50. 31Recorded the payroll taxes: FICA Social Security tax, 365.80; FICA Medicare tax, 85.50; state unemployment tax, 318.60; federal unemployment tax, 35.40. 31Issued Ck. No. 6987, 4,653.65, for salaries for the month. 31L. Yang, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 91; a purchases journal, page 74; a cash receipts journal, page 56; a cash payments journal, page 63; and a general journal, page 119. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?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.
- Transaction Analysis Pollys Cards $ Gifts Shop had the following transactions during the year: Pollys purchased inventory on account from a supplier for $8,000. Assume that Pollys uses a periodic inventory system. On May 1, land was purchased for $44,500. A 20% down payment was made, and an 18-month, 8% note was signed for the remainder. Pollys returned $450 worth of inventory purchased in (a), which was found broken when the inventory was received. Pollys paid the balance due on the purchase of inventory. On June 1, Polly signed a one-year, $15,000 note to First State Bank and received $13,800. Pollys sold 200 gift certificates for $25 each for cash. Sales of gift certificates are recorded as a liability. At year-end, 35% of the gift certificates had been redeemed. Sales for the year were $120,000, of which 90% were for cash. State sales tax of 6% applied to all sales must be remitted to the state by January 31. Required Record all necessary journal entries relating to these transactions. Assume that Pollys accounting year ends on December 31. Prepare any necessary adjusting journal entries. What is the total of the current liabilities at the end of the year?On June 1, Lupita Candy Supplies sells 1,250 candy buckets to a local school at a sales price of $10 per bucket. The cost to Lolita is $2 per bucket. The terms of the sale are 2/10, n/60, with an invoice date of June 1. Create the journal entries for Lupita to recognize the following transactions. A. the initial sale B. the subsequent customer payment on July 12Record journal entries for the following transactions of Furniture Warehouse. A. 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. B. July 10: Furniture Warehouse returned 5 couches for a full refund. C. July 15: Furniture Warehouse found 6 defective couches, but kept the merchandise for an allowance of $500. D. July 20: Furniture Warehouse paid their account in full with cash.