- record the purchase
Q: General entry purchase return
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: purchase discount
A: The purchase term "2/10, n/30" means that 2% discount will be available if the payment is made…
Q: A. What document is used to create the Purchase Order in the Expenditure Cycle and wheredoes it come…
A: Answer a: The purchase requisition document is used to create the Purchase Order. It comes from the…
Q: cost of purchase.
A: Purchase is the taking delivery of the ownership of goods in exchange of consideration paid by the…
Q: Journalizing Purchases Transactions
A: Above all purchase transactions are on Credit. journal entries will be as follows.
Q: How to journaalize entries from accounting for purchase with frieght transaction?
A: A journal entry is the first step to recording any transaction of monetary nature. Journalizing is…
Q: A form used to request the responsible person or department to purchase merchandise or other…
A: Person responsible to make purchase would require the details to the purchases required to be made.
Q: effect of purchase on account on current rattion
A: Current Ratio (CR): It is one of the liquidity ratios which measures the company’s ability to pay…
Q: How to journalize entries from accounting for purchase with frieght transaction?
A: On any purchase if freight charges paid it is called freight in charges and it is part of cost of…
Q: Required Prepare the SALES JOURNAL Prepare the PURCHASES JOURNAL
A: A journal is a record that records every one of the monetary exchanges of a business, to be utilized…
Q: initiate the purchase requisition for fre supplies of the material?
A: Option a is wrong because the maximum level is the maximum number of inventory that can be held by…
Q: 4. Which of the following accounts are used when recording a purchase?
A: 1. If Cash purchase: If the purchase is made out of cash, both cash and inventory accounts are used…
Q: book value
A: To understand book balue first you have to understand about Historical Cost Principle. Historical…
Q: Give an example and explain how to journalize depreciation entry.
A: Depreciation is a reduction of value of an asset over its useful life time. It is an accounting…
Q: the building and journalize the purchase.
A: Definition: Property, plant, and equipment: These assets are long-lived economic resources which are…
Q: recorded up to the date of sale. The entry to record the sale would include a
A: In the given case; Original cost of the asset = 20000 accumulated depreciation = 17000 Carrying…
Q: How do you find invoice
A: The question is based on the concept of Invoice and method to retrieve it. Invoice is a commercial…
Q: Net realizable val = purchases entory - Decembe
A: The theory of lesser of cost or net realizable value states that inventory must be recorded at the…
Q: D. Unearned gift certificates revenue
A: Revenue refers to the amount that is earned when the goods are sold or services are provided to…
Q: Why is a “blind” purchase order used as a receiving report document?
A: Blind Purchase Order: Blind purchase order contains all the information related to the purchase of…
Q: jorunalize the transactions
A: Journal entries recording is the first step in accounting cycle process, in which atleast one…
Q: Discuss the objects of the cut off on the sales and collection cycle.
A: The cash collection cycle is the number of days it takes to recover accounts receivable. The…
Q: Record the following purchase transactions of Money Office Supplies.
A: Journal: Journal is the book of original entry. Journal consists of the day today financial…
Q: Explain certificate of deposit (CD).
A: Money Market Instruments are short term financial instruments which helps in increasing financial…
Q: a. calculate the purchase consideration b. calculate the goodwill or bargain purchase for this…
A: When one company takes over another and establishes itself as the new owner, the purchase is called…
Q: Define Book value.
A: Asset Asset refers to an economic resource that an entity or an individual holds for gaining future…
Q: Prepare a journal entry to record the purchase.
A: The cost of land purchased would be split between intangible assets of surface rights and mineral…
Q: C.ompute the Purchase Journal
A: Purchase Journal is prepared as :- Purchase journal Date Purchaseinvoice…
Q: In the Invoice Lookup, when view
A: Answer: SAGE 50 is the accounting software that is used by many business to record their day to day…
Q: Summarize the process to determine whether you can afford a particular purchase
A: The process is a defined way that helps individuals to analyze the particular item for taking the…
Q: How do i adjust entries for a merchanting buisness
A: Adjusting entries are the journal entries passed at the end of the financial year to close all the…
Q: Appropriation account
A: Appropriation accounts keep aside money/ profits for various specific purposes. For example dividend…
Q: Explain how to record accrued interest.
A: Accrued interest: Accrued interest is the outstanding interest expense in the accounting period, as…
Q: Describe how accounts are used to record information about the effects oftransactions?
A: Firstly the transaction are recorded in the original books i.e. Journal, when the transactions are…
Q: What is the purpose of the blind copy of a purchase order?
A: Definition: Blind copy: The copy of purchase order (PO) which contains no information about the…
Q: Match the items
A: Answer: Deferred Tax Liabilities – are always presented as non-current liability in the statement of…
Q: describe the purposes, similarities, and differences among purchase requisitions, purchaseorders,…
A: Purchase requisition is a document which is used by the employee on the behalf of the company for…
Q: Define Gift card.
A: Cash sales These refer to sales made by companies in the form of liquid currency as cash. These are…
Q: What questions should be asked after a returned item hasbeen counted and recorded?
A: Returned items are goods that are returned to the manufacturer or secondary retailers.
Q: How do you journalize entries on FOB shipping and FOB destination?
A: FOB shipping point: Under FOB shipping point the possession of goods are with the seller until the…
Q: Write out the journal entries needed to record this sale.
A: Step 1 Journal is the Part of Book Keeping.
Q: Explain how to record the purchase of supplies.
A: Supplies are the consumable assets, which are ordinarily consumed in an organization. Supplies…
Q: Define the term book value.
A: Accumulated depreciation: The total amount of depreciation expense deducted, from the time asset…
Q: e purchases journal.
A: Purchases journal is an accounting record used to update every transactions of purchase made.
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- On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated service life of 5 years and zero residual value. Assume that the straight-line depreciation method is used. Required: Compute the depreciation expense for 2019 for each of the following four alternatives: 1. Horan computes depreciation expense to the nearest day. (Use 12 months of 30 days each and round the daily depreciation rate to 2 decimal places.) 2. Horan computes depreciation expense to the nearest month. Assets purchased in the first half of the month are considered owned for the whole month. 3. Horan computes depreciation expense to the nearest whole year. Assets purchased in the first half of the year are considered owned for the whole year. 4. Horan records one-half years depreciation expense on all assets purchased during the year.Dinnell Company owns the following assets: In the year of acquisition and retirement of an asset, Dinnell records depreciation expense for one-half year. During 2020, Asset A was sold for 7,000. Required: Prepare the journal entries to record depreciation on each asset for 2017 through 2020 and the sale of Asset A. Round all answers to the nearest dollar.Hathaway Company purchased a copying machine for 8,700 on October 1, 2019. The machines residual value was 500 and its expected service life was 5 years. Hathaway computes depreciation expense to the nearest whole month. Required: 1. Compute depredation expense (rounded to the nearest dollar) for 2019 and 2020 using the: a. straight-line method b. sum-of-the-years-digits method c. double-declining-balance method 2. Next Level Which method produces the highest book value at the end of 2020? 3. Next Level Which method produces the highest charge to income in 2020? 4. Next Level Over the life of the asset, which method produces the greatest amount of depreciation expense?
- At the beginning of 2020, Holden Companys controller asked you to prepare correcting entries for the following three situations: 1. Machine X was purchased for 100,000 on January 1, 2015. Straight-line depreciation has been recorded for 5 years, and the Accumulated Depreciation account has a balance of 45,000. The estimated residual value remains at 10,000, but the service life is now estimated to be 1 year longer than originally estimated. 2. Machine Y was purchased for 40,000 on January 1, 2018. It had an estimated residual value of 4,000 and an estimated service life of 8 years. It has been depreciated under the sum-of-the-years-digits method for 2 years. Now, the company has decided to change to the straight-line method. 3. Machine Z was purchased for 80,000 on January 1, 2019. Double-declining-balance depreciation has been recorded for 1 year. The estimated residual value is 8,000 and the estimated service life is 5 years. The computation of the depreciation erroneously included the estimated residual value. Required: Prepare any necessary correcting journal entries for each situation. Also prepare the journal entry for each situation to record the depreciation for 2020. Ignore income taxes.Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of 8 years and a residual value of 300. The double-declining-balance method of depreciation is used. Required: 1. Compute the depreciation expense for each year of the assets life and book value at the end of each year. 2. Assuming that the company has a policy of always changing to the straight-line method at the midpoint of the assets life, compute the depreciation expense for each year of the assets life. 3. Assuming that the company always changes to the straight-line method at the beginning of the year when the annual straight-line amount exceeds the double-declining-balance amount, compute the depreciation expense for each year of the assets life.On July 1, 2018, Mundo Corporation purchased factory equipment for 50,000. Residual value was estimated at 2,000. The equipment will be depreciated over 10 years using the double-declining balance method. Counting the year of acquisition as one-half year, Mundo should record 2019 depredation expense of: a. 7,680 b. 9,000 c. 9,600 d. 10,000
- Mystic Pizza Company purchased a patent from Prime Pizza Plus on January 1, 2019, for 72,000. The patent has a remaining legal life of 9 years. Prepare the journal entries to record the acquisition and the amortization for 2019, assuming Mystic Pizza amortizes its patents using the straight-line method over the life of the asset.Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used for deliveries, has the following characteristics: Estimated life: 5 years Estimated residual value: 3,000 Depreciation method for financial statements: straight-line method Depreciation for income tax purposes: MACRS (3-year life) From 2019 through 2023, each year, Hunter had sales of 100,000, cost of goods sold of 60,000, and operating expenses (excluding depreciation) of 15,000. The truck was disposed of on December 31, 2023, for 2,000. Required: 1. Prepare an income statement for financial reporting through pretax accounting income for each of the 5 years, 2019 through 2023. 2. Prepare, instead, an income statement for income tax purposes through taxable income for each of the 5 years, 2019 through 2023. 3. Compare the total income for all 5 years under Requirements 1 and 2.On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an estimated life of 20 years and an estimated residual value of 20,000. The company has been depreciating the building using straight-line depreciation. At the beginning of 2020, the following independent situations occur: a. The company estimates that the building has a remaining life of 10 years (for a total of 16 years). b. The company changes to the sum-of-the-years-digits method. c. The company discovers that it had ignored the estimated residual value in the computation of the annual depreciation each year. Required: For each of the independent situations, prepare all journal entries related to the building for 2020. Ignore income taxes.