QUESTION 16 On, Jan. 1, 2018, ABC purchases a van for making deliveries to customers. Cash payments on that date are: $22,800 to the seller of the van; $1,020 in sales taxes; $1,100 for insurance coverage through June 30; and $650 for license plates to operate the truck through December 31. On Jan. 2, ABC pays $2,600 to a body shop to paint lettering on the van and install custom warming ovens. ABC expects to use the van for 12 years, and estimates its salvage value at the time will be $1,850. What amount should be capitalized as the acquisition cost of the van? O a. $26,420 O b. $28,170 O c. $24,570 O d. $26,320
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- Question 3 Coces, a furniture shop owner, buys a new set of cabinet worth $9,850. He receives an invoice dated 26 October 2019 with trade discounts of 8 percent, 4 percent and is offered cash discount terms 3/15, 2/30, n/60. (ii) Determine the total amount due if Coces pays the invoice on 17 November 2019.Problem 11-4 On March 1, 2020, Twin Cities Steak House purchased restaurant supplies in the amount of $2,500 from Heart of Illinois Restaurant Supply Corp. on account. In mid-March, the governor of Illinois ordered bars and restaurants closed due to COVID-19. Twin Cities Steak House knew that they wouldn’t be able to pay the amount due on 3/31, so they spoke to Restaurant Supply, who accepted a 3-month note payable for $2,500 at an interest rate of 6%. Prepare the following entries March 1, 2020 purchase of supplies on account March 31, 2020 conversion of accounts payable into a note payable July 1, 2020 repayment of note Problem 11-5 Jen Company borrowed $200,000 with a 15-month note payable to First City Bank on August 1, 2020. The interest rate on the note is 7%. The interest and principal are due Nov 1, 2021. Prepare the 3 journal entries Borrowing on August 1, 2020 Adjusting entry on December 31, 2020 Repayment on November 1, 2021. Problem 11-6 Alternative Treatments of Contingent…23 Mr Hamed having furniture manufacturing business in Ibri. Always he purchases wood (Raw materials) from Al Buraimi wood suppliers.On 1st May 2021 Mr Hamed purchased wood for OMR3000 on credit and paid OMR 1000 immediately. For the remaining amount Mr Hamed gave written promise to the supplier to pay that amount on 31st December 2021. The written promise given by Mr Hamed to the supplier is known as: a. Short-term notes receivables b. Invoice c. Receipt d. Short term notes payables
- Big Buy Appliances sells Mike and Katy a refrigerator for $1,200 in March. Big Buy paid $500 for the refrigerator in Feburary. Big Buy received a 900 payment from Mike and Katy in March and will receive an additional 300 in April. If Big Buy uses the Accrual Basis of Accounting then the gross profit rate for the month of March would bea. 500b. 800c. 900d. 70038) On December 1, 2019, Pinewood Company sold machinery to a customer for $2,000. Pinewood regularly sells machinery. The customer could not pay at the time of sale but agreed to pay 9 months later and signed a 9-month note at 12% interest. Prepare the journal entry to record the revenue at the time of sale. Ignore the entry for cost of goods sold. Omit explanation. 39) ABC Accepted a 90 day, 8%, $50,000 Note Receivable from from a customer to replace an Account Receivable. The note matured and ABC received $50,500 at maturity. Record the entry for the collection of the note receivable.Suppose Casey Title Company normally charges $400 for services related to selling a house. As part of a summer special, Casey offers customers a trade discount of 30%. On July 9, Linda Holmes uses the services of Casey and pays cash equal to the discounted price. Record the revenue recognized by Casey on July 9.
- 7. Johnstone Controls had the following situations on December 2021. On March 31, 2021, the company lent $59,000 to another company. A note was signed with principal and interest at 8% payable on March 31, 2022. On September 30, 2021, the company paid its landlord $14,800 representing rent for the period September 30, 2021, to September 30, 2022. Johnstone debited prepaid rent. Supplies on hand at the end of 2020 totaled $3,960. Additional supplies costing $7,160 were purchased during 2021 and debited to the supplies account. At the end of 2021, supplies costing $4,960 remain on hand. Vacation pay of $11,880 for the year that had been earned by employees was not paid or recorded. The company records vacation pay as salaries expense. Prepare the necessary adjusting entries for Johnstone Controls at the end of its December 31, 2021, fiscal year-end for each of the above situations. (If no entry is required for a transaction/event, select "No journal entry required" in the first…john began an Upholstery cleaning business on October 1,2020 and engaged in the following transactions during the month: Began business by depositing 12,000 in a Clean & Premium ltd bank oct 1 : account oct 2 :Ordered Cleaning supplies 3,000 oct 3: Purchased cleaning equipment for 2,800. oct 4 : Made two months' van lease payment in advance, 1,200 Received the cleaning supplies ordered on (Oct 2) oct 7: and agreed to pay half the amount in 10 days, and the rest in 30 days oct 9: Paid for repairs on the van with cash, 1,080 oct 12 : Received cash for cleaning upholstery, 960. oct 17: Paid half the amount owed on supplies purchased on Oct 7, 1,500. oct 21 : Billed customers for cleaning upholstery, 1,340 oct 24 :Paid cash for additional repairs on the van, RM80 oct 27 : Received 600 from the customers billed on October 21. oct 31 Made a cash withdrawal of 700. you are Required to A : Prepare the general journal based on the above transactions. B:…7) Our company operating in the food sector rented the van belonging to the business on 01.12.2021 for 2 months with a monthly rental price of 3.000 TL + 10% VAT. Total rental fee and VAT amount were collected in cash. Record the relevant journal (daily book).
- 6. Gingerbread, Corp purchased 1,000 gingerbread kits from a manufacturing company and paid $3 per kit. During the month of December the company sold 800 of these kits for $10 a piece. The customers all paid cash. Record the sale of the 800 kits and assume the company uses the Perpetual Method. (avoid using $ signs in your entries) 1. Debit xx and credit xxx 2. Debit xx. and Credit xxxNed's Sheds purchases building materials from Timbertown Lumber for $3,700 with terms of 4/15, n/30. The invoice is dated October 17. Ned's decides to send in a $2,000 partial payment. a) By what date must the partial payment be sent to take advantage of the cash discount? b) What is the net date? c) If partial payment was sent by the discount date, what is the balance still due on the order?Executive Lawn provides $100 of landscape maintenance to Peterson Law on April 10. Consider three scenarios: a. Peterson pays for the lawn service in advance on March 28. b. Peterson pays for the lawn service on April 10, the day of service. c. Peterson pays for the lawn service the following month on May 2. If Executive Lawn uses accrual-basis accounting, on which date would Executive Lawn record the $100 revenue for each scenario?