The company quickly acquired $45,000 in inventory, 60% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash.CashDollar amount:18000Account:Account:InventoryDollar amount:45000Account:Accounts PayableDollar amount:-27000Account:Leave BlankDollar amount:Foil1=Leave%20BlankAccount:Leave BlankDollar amount:Foil 1=Leave%20BlankSubmit AnswerIncorrect. Tries 3/5 Previous Tries

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Description: The company quickly acquired $45,000 in inventory, 60% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash.CashDollar amount:18000Account:Account:InventoryDollar amount:45000Account:Accounts PayableD

The company has acquired inventory worth $45,000. 40% has been paid in cash and 60% will be paid…

Business

Accounting

The company quickly acquired $45,000 in inventory, 60% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash. Account: Cash Dollar amount: 18000 Inventory Dollar amount: 45000 Account: Accounts Payable Dollar amount: -27000 Account: Account: Leave Blank Dollar amount: Foil 1=Leave%20Blank Account: Leave Blank Dollar amount: Foil1=Leave%20Blank

The company quickly acquired $45,000 in inventory, 60% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash. Account: Cash Dollar amount: 18000 Inventory Dollar amount: 45000 Account: Accounts Payable Dollar amount: -27000 Account: Account: Leave Blank Dollar amount: Foil 1=Leave%20Blank Account: Leave Blank Dollar amount: Foil1=Leave%20Blank

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Dani Corporation signed a binding commitment on December 2 to purchase inventory for 300,000 cash on January 2. By December 31, the market price (replacement cost) of the inventory had declined to 280,000. Prepare Danis journal entries at year-end and at the date of purchase.
Mercado Ltd started its business with £21,000 in cash on 1 Jan 20X1, and immediately purchased 400 items of inventory at the price of £50 per item and put the remaining £1,000 in a bank account without any fees or interests. On 1 July 20X1, it sold all items at the price of £80 per item and received the payment in cash. The general price index during the year was as follows: 01-Jan 01-Jul 31-Dec General price index 100 120 150 What is the cash balance at the year end 31 Dec 20X1 under current purchasing power accounting? a. £33,000 b. £41,500 c. £40,000 d. £32,000 e. £1,000
A company using the perpetual inventory system purchased inventory worth $550,000 on account with credit terms of 3/15,n/45. Defective inventory of $50,000 was returned 3 days later, and the accounts were appropriately adjusted. If the company paid the invoice 25 days later, the journal entry to record the payment would be ________. A. $500,000 debit to Accounts Payable and $500,000 credit to Cash B. $515,000 debit to Accounts Payable, $15,000 credit to Merchandise Inventory, and $500,000 credit to Cash C. $550,000 debit to Accounts Payable and $550,000 credit to Cash D. $550,000 debit to Accounts Payable, $535,000 credit to Cash, and $15,000 credit to Merchandise Inventory
Luis began the period with P200,000 in inventory. The entity purchased an additional P200,000 of inventory and returned P20,000 for a full credit. A physical count of the inventory at year-end revealed an inventory on hand of P160,000. What was Luis’ costs of goods sold for the period?
Plum Corporation began the month of May with $1,300,000 of current assets, a current ratio of 1.80:1, and an acid-test ratio of 1.40:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purchased $75,000 of merchandise inventory on credit. May 8 Sold merchandise inventory that cost $45,000 for $150,000 cash. May 10 Collected $23,000 cash on an account receivable. May 15 Paid $31,500 cash to settle an account payable. May 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account. May 22 Declared a $1 per share cash dividend on its 58,000 shares of outstanding common stock. May 26 Paid the dividend declared on May 22. May 27 Borrowed $115,000 cash by giving the bank a 30-day, 10% note. May 28 Borrowed $130,000 cash by signing a long-term secured note. May 29 Used the $245,000 cash proceeds from the notes to buy new machinery. Required: Complete the table below showing Plum's…
Plum Corporation began the month of May with $700,000 of current assets, a current ratio of 2.50:1, andan acid-test ratio of 1.10:1. During the month, it completed the following transactions (the company usesa perpetual inventory system).May 2 Purchased $50,000 of merchandise inventory on credit.8 Sold merchandise inventory that cost $55,000 for $110,000 cash.10 Collected $20,000 cash on an account receivable.15 Paid $22,000 cash to settle an account payable.17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account.22 Declared a $1 per share cash dividend on its 50,000 shares of outstanding common stock.26 Paid the dividend declared on May 22.27 Borrowed $100,000 cash by giving the bank a 30-day, 10% note.28 Borrowed $80,000 cash by signing a long-term secured note.29 Used the $180,000 cash proceeds from the notes to buy new machinery. RequiredPrepare a table, showing Plum’s (1) current ratio, (2) acid-test ratio, and (3) workingcapital after each transaction.…
Winston started business on Jan. 1. During ghe year, the company purchased merchandise with an invoice of 5,000,000. Winston paid 200,000 freight on the merchandise. During the year, Winston returned 800,000 of the merchandise to the supplier. All ourchases were paid for in a timely manner and a 100,000 cash discount was taken. 4,180,000 of the merchandise was sold for 6,270,000. What was the Dec. 31 balance in the inventory account?
Hot Pepper Company had the following information in its accounting records at year end:Inventory Cost $4,000,000It estimates the net realizable value of this inventory is $3,500,000. As a result of this information Hot Pepper Co. would: Make a journal entry debiting a loss on inventory decline for $500,000 Make a journal entry debiting the allowance for inventory valuation for $500,000 Make a journal entry crediting the allowance for inventory valuation for $500,000 Make a journal entry debiting a gain on market appreciation for $500,000 Make no entry
Lindsey Corporation had the following account balances:Sales revenue $200,000Beginning inventory 40,000Purchases 80,000Purchase discounts 3,000Freight-in 1,000Ending inventory 30,000Purchases returns and allowances 2,000 If a firm’s beginning inventory is $70,000, goods purchased during the period cost $260,000, and the cost of goods sold is $300,000, what is the ending inventory?a. $40,000b. $90,000c. $30,000d. $50,000
During the year, Rex Store purchased goods worth P150,000. There were P40,000 unsold goods at the end of the year but old stock brought forward from last year's purchases was P10,000. Cost of sales was
Lindsey Corporation had the following account balances:Sales revenue $200,000Beginning inventory 40,000Purchases 80,000Purchase discounts 3,000Freight-in 1,000Ending inventory 30,000Purchases returns and allowances 2,000 With the perpetual inventory system, which of the following entries would be made when inventory costing $3,600 is sold for $5,000?a. Cost of goods sold 3,600Inventory 3,600b. Inventory 5,000Accounts payable 5,000c. Inventory 3,600Cost of goods sold 5,000Accounts payable 3,600Purchases 5,000d. Purchases 5,000