Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2022. All watches are sold for $600 each. Jul. 17 Purchased 65 watches for $9,750 ($150 per watch) on account. Jul. 31 Sold 50 watches for $30,000 cash. Aug. 12 Purchased 50 watches for $8,000 ($160 per watch) cash. Aug. 22 Sold 40 watches for $24,000 on account. Sep. 19 Paid for watches purchased on July 17. Sep. 27 Receive cash of $14,400 for watches sold on account on August 22. Oct. 27 Purchased 105 watches for $17,850 ($170 per watch) cash. Nov. 20 Sold 100 watches for $60,000 cash. 4 Purchased 110 watches for $19,800 ($180 per watch) on account. 8 Sold 50 watches for $30,000 on account. Dec. Dec. Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the MU watch, the MU II watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videos off the Internet. The demand for the original MU watches is greatly reduced. As of December 31, the estimated net realizable value of MU watches is only $100 per watch.
Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2022. All watches are sold for $600 each. Jul. 17 Purchased 65 watches for $9,750 ($150 per watch) on account. Jul. 31 Sold 50 watches for $30,000 cash. Aug. 12 Purchased 50 watches for $8,000 ($160 per watch) cash. Aug. 22 Sold 40 watches for $24,000 on account. Sep. 19 Paid for watches purchased on July 17. Sep. 27 Receive cash of $14,400 for watches sold on account on August 22. Oct. 27 Purchased 105 watches for $17,850 ($170 per watch) cash. Nov. 20 Sold 100 watches for $60,000 cash. 4 Purchased 110 watches for $19,800 ($180 per watch) on account. 8 Sold 50 watches for $30,000 on account. Dec. Dec. Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the MU watch, the MU II watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videos off the Internet. The demand for the original MU watches is greatly reduced. As of December 31, the estimated net realizable value of MU watches is only $100 per watch.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![[The following information applies to the questions displayed below.]
Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for
business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal
timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure.
MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them.
Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to
purchases and sales of watches during the second half of 2022. All watches are sold for $600 each.
Jul. 17 Purchased 65 watches for $9,750 ($150 per watch) on account.
Jul. 31 Sold 50 watches for $30,000 cash.
Aug. 12 Purchased 50 watches for $8,000 ($160 per watch) cash.
Aug. 22 Sold 40 watches for $24,000 on account.
Sep. 19 Paid for watches purchased on July 17.
Sep. 27 Receive cash of $14,400 for watches sold on account on August 22.
Oct. 27 Purchased 105 watches for $17,850 ($170 per watch) cash.
Nov. 20 Sold 100 watches for $60, 000 cash.
4 Purchased 110 watches for $19,800 ($180 per watch) on account.
8 Sold 50 watches for $30,000 on account.
Dec.
Dec.
Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the
MU watch, the MU Il watches are equipped with a global positioning system (GPS) and have the ability to download and
play songs and videos off the Internet. The demand for the original MU watches is greatly reduced. As of December 31,
the estimated net realizable value of MU watches is only $100 per watch.
General
General
Income
Requirement
Trial Balance
Balance Sheet
Journal
Ledger
Statement
Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required"
in the first account field.)
View transaction list
Journal entry worksheet
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Transcribed Image Text:[The following information applies to the questions displayed below.]
Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for
business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal
timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure.
MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them.
Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to
purchases and sales of watches during the second half of 2022. All watches are sold for $600 each.
Jul. 17 Purchased 65 watches for $9,750 ($150 per watch) on account.
Jul. 31 Sold 50 watches for $30,000 cash.
Aug. 12 Purchased 50 watches for $8,000 ($160 per watch) cash.
Aug. 22 Sold 40 watches for $24,000 on account.
Sep. 19 Paid for watches purchased on July 17.
Sep. 27 Receive cash of $14,400 for watches sold on account on August 22.
Oct. 27 Purchased 105 watches for $17,850 ($170 per watch) cash.
Nov. 20 Sold 100 watches for $60, 000 cash.
4 Purchased 110 watches for $19,800 ($180 per watch) on account.
8 Sold 50 watches for $30,000 on account.
Dec.
Dec.
Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the
MU watch, the MU Il watches are equipped with a global positioning system (GPS) and have the ability to download and
play songs and videos off the Internet. The demand for the original MU watches is greatly reduced. As of December 31,
the estimated net realizable value of MU watches is only $100 per watch.
General
General
Income
Requirement
Trial Balance
Balance Sheet
Journal
Ledger
Statement
Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required"
in the first account field.)
View transaction list
Journal entry worksheet
< Prev
1 of 1
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