InstructionsWater Closet Co. wholesales bathroom fixtures. During the current year ending December 31, Water Closet received the following notes:DateFace AmountTermInterest Rate1.Mar. 6$75,00060 days4%Apr. 740,00045 days6%Aug. 1236,000120 days5%Oct. 2227,00030 days8%Nov. 1948,00090 days3%Dec. 1572,00045 days5%2.3.4.5.6. Required:1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number. Assume a 360-dayyear.2. Journalize the entry to record the dishonor of Note (3) on its due date. Refer to the Chart of Accounts for exact wording of account titles.3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Refer to the Chart of Accounts for exactwording of account titles. Assume a 360-day year.

Water Closet Co. wholesales bathroom fixtures. During the current year ending December 31, Water Closet received the following notes: Date Face Amount Term Interest Rate 1. Mar. 6 $75,000 60 days 4% 2. Apr. 7 40,000 45 days 6% 3. Aug. 12 36,000 120 days 5% 4. Oct. 22 27,000 30 days 8% 5. Nov. 19 48,000 90 days 3% 6. Dec. 15 72,000 45 days 5%

Water Closet Co. wholesales bathroom fixtures. During the current year ending December 31, Water Closet received the following notes: Date Face Amount Term Interest Rate 1. Mar. 6 $75,000 60 days 4% 2. Apr. 7 40,000 45 days 6% 3. Aug. 12 36,000 120 days 5% 4. Oct. 22 27,000 30 days 8% 5. Nov. 19 48,000 90 days 3% 6. Dec. 15 72,000 45 days 5%

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 1PB: Record journal entries for the following transactions of Furniture Warehouse. A. July 5: Purchased...

See similar textbooks

Similar questions

Cebu branch of Nimbus Company submitted the following data for 2021, its first year of operation: Sales 203, 500 Shipments from home office 186, 120 Operating expenses 18, 755 Home Office Current 48. 125 Shipments to the branch are billed at cost. The December 31 inventory of the branch was P25, 245. What is the correct balance on December 31, 2021 of the Branch Current account per home office books?
Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the following notes: Date Face Amount Interest Rate Term 1. Mar. 6 $75,300 5% 45 days 2. Apr. 23 24,500 9 60 days 3. July 20 41,600 5 120 days 4. Sept. 6 55,400 6 90 days 5. Nov. 29 24,100 7 60 days 6. Dec. 30 67,400 6 30 days Required: 4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round your answer to the nearest whole dollar.
Flush Mate Co. wholesales bathroom fixtures. During the current fiscal year, Flush Mate Co. received the following notes: Date Face Amount Interest Rate Term 1. Mar. 6 $75,300 5% 45 days 2. Apr. 23 24,500 9 60 days 3. July 20 41,600 5 120 days 4. Sept. 6 55,400 6 90 days 5. Nov. 29 24,100 7 60 days 6. Dec. 30 67,400 6 30 days Required: 1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number. Assume a 360-day year when calculating interest. (Note: Round each interest computation to the whole dollar.) 2. Journalize the entry to record the dishonor of Note (3) on its due date. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year when calculating interest. Round your answer to the nearest whole dollar. 3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31. Refer to the Chart of Accounts for…
Amanse Golf Club sells refreshments to it's members. Suppliers for refreshments were owed Ghc250 on 1 January and Ghc400 on 31 December. Payments to the suppliers during the year were Ghc7,200. The inventory at the end of the year was Ghc100 less than the inventory at the start of the year. What was the cost of sales of refreshments? c. Ghc 7,300
One Stop Electrical Shop are merchandisers of household fixtures & fittings. The business began thelast quarter of 2020 (October to December) with 25 Starburst Wall Clocks at a total cost of $153,000.The following transactions took place during the quarter.October 10 100 clocks were purchased on account at a cost of $6,225 each. In addition,One Stop paid $120 cash on each clock to have the inventory shipped fromthe vendor’s warehouse to their warehouseOctober 31 During the month 90 clocks were sold at a price of $8,300 each. (20 of theseclocks sold were on account to a long-standing customer of the business)November 1 A new batch of 60 clocks was purchased at a total cost of $406,500November 10 5 of the clocks purchased on November 1 were returned to the supplier, asthey were damagedNovember 30 The sales for November were 58 clocks which yielded total sales revenue of$498,800December 2 Owing to increased demand, a further 110 clocks were purchased at a cost of$7,400 each and these…
Amanse Golf Club sells refreshments to its members. Suppliers for refreshments were owed GH₵ 250 on 1 January and GH₵ 400 on 31 December. Payments to suppliers during the year were GHC7200. The inventory at the end of the year was GH₵ 100 less than the inventory at the start of the year. What was the cost of sales of refreshments? c . GH₵ 7,300
Tauros Company’s usual sales terms are net 60 days, FOB Shipping point. Sales, net of returns and allowances, totaled P2,300,000 for the year ended December 31, 2022, before year-end adjustments. Additional data are as follows: · On December 27, 2022, Taurus authorized a customer to return, for full credit, goods shipped and billed at P50,000 on December 15, 2022. The returned goods were received by Taurus on January 4, 2023, and a P50,000 credit memo was issued and recorded on the same date. · Goods with an invoice amount of P80,000 were billed and recorded on January 3, 2023. The goods were shipped on December 30, 2022. · Goods with an invoice amount of P100,000 were billed and recorded on December 30, 2022. The goods were shipped on January 3, 2023. The adjusted net sales for 2022 should be? a. 2,300,000b. 2,250,000c. 2,230,000d. 2,070,000
Oswego Clay Pipe Company sold $45,800 of pipe to Southeast Water District 45 on April 12 of the current year with terms 2/15./60. Oswego uses the gross method of accounting for sales discounts. What entry would Oswego make on June 10, assuming the customer made the correct payment on that date?
Eng Tat is a manufacturer. His trial balance as at 31 December 2020 is as follows: Particulars DebitRM CreditRMDelivery van expenses 1,760Lighting and heating:FactoryOffice 7,2201,490Manufacturing wages 72,100General expenses:FactoryOffice 8,1001,940Sales representatives : Commission 11,688Purchase of raw materials 57,210Rent:FactoryOffice 6,1002,700Machinery (Cost : RM40,000) 28,600Office equipment ( RM9,000) 8,200Office salaries 17,740Accounts receivables 34,200Account payables 9,400Bank 16,142Sales 194,800Van (cost RM6,800) 6,200Inventory at 31 December 2020:Raw materialsFinished goods 13,26041,300Drawings 24,200Capital 155,950TOTAL 360,150 360,150 Prepared by: Puan Siti Nor Junita Mohd Radzi Additional information:i. Inventory at 31 December 2020:a. Raw materials RM14,510b. Finished goods RM44,490ii. Depreciate machinery RM3,000; office equipment RM6,000; van RM1,200iii. Manufacturing wages due but unpaid at 31 December 2020 RM550; office rentprepaid RM140 Required: c) Prepare…
A home office ships merchandise to the branch at 30% above cost. The allowance for overvaluation at the beginning of the year was P24,000 and at the end of the year, the balance before adjustment was P264,000, and after the adjustment, the balance is P27,000. The reported net income of the branch was P800,000. How much is the adjusted branch net income? A. 1,037,000 B. 827,000 C. 1,040,000 D. 1,064,000
Long Corporation is a fabric manufacturing company. On January 20,Long made sales to Lyndsay's Lace in the amount of $15,000 with termsof 2/10, n/30. Lyndsay's paid Long on January 28. Long records accountsreceivable and sales using the gross price met od. Prepare the relatedjournal entries for Long.
Use the following information for the next two questions:Shipments received from the home office are billed at 120% above cost. During theyear, the branch received shipments billed at ₱480,000 and returned damaged goodswith billed price of ₱96,000. The branch has an ending inventory of ₱120,000, at billedprice. The branch reported loss of ₱40,000 in its individual financial statements. Q1: How much is the balance of the “allowance for markup” account before year-end adjustments? Q2: How much is the true profit of the branch to be taken up in the home officebooks?Problem #10:The home office bills shipments of merchandise to its branch at a markup of 20% basedon cost. At the beginning of the period, the “Allowance for markup” account has a creditbalance of ₱8,000. During the period, the home office made shipments of goods worth₱960,000, at cost. The branch reported an ending inventory of ₱480,000, at billed price.How much is the realized mark-up?