On March 15, Maxwell Plush sold and shipped merchandise on account for $6,000 to Kittson Amusement Park, terms FOB shipping point, n/30. Maxwell’s cost of goods sold is40% of sales. How is Maxwell impacted by this sale on March 15?a. Its assets will increase, while its equity remains the same.b. Its assets will increase, as will its equity.c. Its assets will remain the same, while its equity increases.d. Its assets will remain the same, while its equity decreases.

Q: A cellular company purchased $27,800 in cell phones on June 25. The terms of sale were 4/20, 3/30,…

A: The terms of sale are written in a business language and hence we should read accordingly Net Amount…

Q: For the year ended December​ 31, 2025, Davidson Mart had sales of $250,000 and cost of goods sold of…

A: Merchandise refers to the stock that the company held for resale purpose or the goods that is not…

Q: Statz Company had sales of $1,600,000 and related cost of goods sold of $1,150,000 for its first…

A: Customer refunds payable=Sale×1.5%=$1,600,000×1.5%=$24,000

Q: Presented below is information related to Emilie Co.  On April 5, purchased merchandise from De…

A: Inventory is the combination of all the goods which are ready for sale, goods which are in process,…

Q: From the following balances extracted from the books of paul and Dell. Calculate the amount of: (a)…

A: Labor, salary, and benefits of employees who generate billable hours are factored into the cost of…

Q: During May, 2020, Samoul’s Supply Store generated revenues of $180,000. The company’s expenses were…

A: Income from operation is the income that is generated from the operating activities of the company.…

Q: The following information appeared in the accounting records of a retail store for the year ended…

A: Answer) Calculation of Gross Margin Gross Margin = Sales – Cost of Goods sold – Sales Commission…

Q: Compute for the following: a. Cost of sales b. Gross profit c. Operating Expenses

A: Cost of Sales: It represents the cost of manufacturing the service or goods sold. It is also known…

Q: A cellular company purchased $27,800 in cell phones on June 25. The terms of sale were 4/20, 3/30,…

A: Part (a) Purchase Price of Cellular Company = $27,800   Date of Purchase = June 25 Purchase Return /…

Q: On April 1, a company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what…

A: Formula: Sales discount = Net sales x Discount rate

Q: Raven Company started business in March 2019. Sales for the first year totaled P4,000,000. The…

A: Sales return is the items which are returned by the purchaser on not satisfying with the quality or…

Q: Plum Corporation began the month of May with $900,000 of current assets, a current ratio of 2.60:1,…

A: A Current Ratio is a liquidity ratio i.e asset that can be converted into cash. A strong liquidity…

Q: Calculate the amount of: (a)Cost of goods available for sale (b)Cost of goods sold during the year…

A: Introduction: The cost of goods sold refers to the direct costs of manufacturing the commodities…

Q: at cost $70,000 for $118,000.  15 Collected a $30,000 account receivable.  17 Paid a $32,000 account…

A: The schedule is calculated as,

Q: B. Last year, Nikkola Company had net sales of P2,299,500, and cost of goods sold of P1,755,000.…

A: Lets understand the basics. Account receivable turnover ratio indicates how efficiently company is…

Q: Mario’s Home System has sale of $2,820, costs of goods sold of $2,160, inventory of $504, and…

A: The term inventory refers to both raw materials used in manufacturing and completed goods that are…

Q: During the month of March 2022, Turaco sole trader purchased goods to the value of N$12 000, of…

A: Cost of sales is the total purchase  value of goods sold

Q: For the goods purchased by the business, the Availability of Goods at the Beginning of the Period is…

A: Cost of goods sold means actual cost of goods that are being sold to the customers.

Q: On April 6, Year 1, Home Furnishings purchased $43,000 of merchandise from Una Imports, terms 2/10…

A: The discount is provided on purchase if payment is made within the discount period.

Q: Flint’s Fabrics sold merchandise for $185000 cash during the month of July. Returns that month…

A: Formula: Net Sales = Total sales - sales returns. Deduction of sales returns from total sales…

Q: On August 5, Oriole Ltd. sells goods for $1530 and the cost to Oriole was $700. Oriole expects a…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Wanna Make An A, Inc. sells all its merchandise on credit.  It has a profit margin of 4%, AR period…

A: Information Provided: Profit margin = 4% Day sales outstanding = 60 days Accounts receivables =…

Q: Darlington Company experienced the following business events during its first month of operations.…

A: Net cash flow is the difference of total cash inflow and total cash outflow. Cash flow from…

Q: Catt sells goods at a margin of 50%. During the year to 31 March 20X3 the business made purchases…

A: We have the following information:  Goods are sold at a margin of 50% Purchases: $134,025 Sales:…

Q: The trading results of a Merchandise trader is as follows: Net Sales OMR 100,000, Cost of Goods sold…

A: Formula: Gross profit = Sales revenue - cost of Good sold. Deduction of cost of goods sold from…

Q: Paid for advertising for the month of February, P6,000. Sold merchandise for cash, P250,000. Paid…

A: Ledgers - After recording transactions in the journal next step is to transfer them into ledgers.…

Q: Wheels & Deals Limited uses 60,000 batteries each year in its production of motorcycles at a cost of…

A: Question of Wheels & Deals Limited is talking about the cost of inventory as per the current…

Q: On December 31st, Baxtor, Inc. has cost of goods sold of $400,000, ending inventory is $14,000,…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: Elaine Company, a clothing store, sells clothing for a total selling price of $50,000 with a related…

A: The cost of goods sold is given at $35,000. 10% of the goods sold can be returned for which there…

Q: Last year, Harley-Davidson sold $14,200 in bikes for a total of $48,900 in account. This transaction…

A: Sales  - A sale is an exchange of money for goods, services, or other property. Net sales refer to…

Q: A cellular company purchased $27,800 in cell phones on June 25. The terms of sale were 4/20, 3/30,…

A: Freight charge is the amount paid for the transportation of goods from one place to another. These…

Q: In August, Joplin Designs sold $510,000 of merchandise; all sales were in cash.The cost of sales for…

A: Record the journal entries for the monthly sales, cost of sales:

Q: ount. On June 20, it returned $2,400 of that merchandise. On June 24, it paid the balance owed for…

A: FOB shipping point is an agreement between the seller and the buyer that the risk of damage is on…

Q: On Nov 3, Ali Mercadejas sold merchandise for $180,000 less 15-10 on terms 3/10 2/20 n/30. Two days…

A: Gross sales = sales x (1- trade discount rate) x (1 - trade discount rate)  = 180000*(1-0.15)…

Q: Minnie Co. does business in three segments: Theme Parks, Movie Production, and Merchandise. The…

A: Vertical analysis: The comparison of an item of a financial statement against the total amount of…

Q: During August, 2022, Sheffield's Supply Store generated revenues of $60100. The company's expenses…

A: Net income: The bottom line of income statement which is the result of excess of earnings from…

Q: Merchandise purchases are paid in two steps - half at the time of purchase and the reminder during…

A: Cash Budget Cash is considered to be one of the important part in the organisation which is needed…

Q: The Flower Shoppe has accounts receivable of $3,506, inventory of $4,407, sales of $218,640 and cost…

A: Given Accounts Receivable = 3506

Q: During the month of March 2022, Turaco sole trader purchased goods to the value of N$12 000, of…

A: Net purchases is calculated after subtracting the purchase discounts, purchase returns, and…

Q: In August 1, 2012, Mr. Al Fabet put up a trading business, ABC Design Enterprises, with an initial…

A: The journal entries are prepared to record daily transactions of the business.

Q: Raven Company started business in March 2019. Sales for the first year totaled P4,000,000. The…

A: Bookkeeping is the recording of financial transactions on a regular basis. It involves four basic…

Q: Keiasia Coates Company sold merchandise for $2,000. The cost of the merchandise was $1,500. Five…

A: Balance sheet: A statement shows the status of all assets, liabilities and shareholder’s equity of…

Q: Purple Company had sales of P4,000,000 during December of the current year. Experience has shown…

A: Introduction:- The following basic information as follows under:- Purple Company had sales of…

Q: The following were selected from among the transactions completed during the current year by Danix…

A: Journalize the entries to record the transactions:

Q: On December 31, Jack Photography Supplies estimated that approximately 2% of merchandise sold will…

A: Estimated Returns = sales x 2% = $80,000 × 0.02 = $1,600

Q: ated below is information for Ramadan Sweets for the year ended 31 March 2022. articular Cost of…

A: The income statement is prepared to record the revenues and expenses of the current period. The net…

Q: Supposing EQR Trading has completed the following transactions for the month of October, 2020. 1.…

A: solution : given  Sale of goods to company A on credit P200,000 Purchase of goods of from…

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is