INTERMEDIATE ACCOUNTING (LCPO)
10th Edition
ISBN: 9781264473441
Author: SPICELAND
Publisher: MCG
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Chapter 2, Problem 2.1BE
Transaction analysis
• LO2–1
The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $165,000 (assume Marchetti uses a perpetual inventory system); (2) paid $40,000 in salaries to employees for work performed during the month; (3) sold merchandise that cost $120,000 to credit customers for $200,000; (4) collected $180,000 in cash from credit customers; and (5) paid suppliers of inventory $145,000. Analyze each transaction and show the effect of each on the
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Students have asked these similar questions
Problem 14-16 (PHILCPA Adapted)
Calapan Company provided the following data:
January 1 December 31
1,200,000
1,600,000
5,500,000
Inventory
Cost of goods sold
Accounts receivable
Accounts payable
1,200,000
1,350,000
1,500,000
1,850,000
During the current year, accounts written off amounted to
P100,000. Sales returns with credit memo totaled P250,000.
Cash refund to customers for returned goods of P50,000 was
debited to accounts receivable.
Cash receipts from customers after P500,000 sales discounts
amounted to P8,000,000.
Cash payments to trade creditors totaled P5,000,000 after
purchase discounts of P200,000. Purchase returns with debit
memo amounted to P400,000.
1. Under accrual basis, what amount should be reported
as gross sales?
a. 8,900,000
b. 8,950,000
c. 8,250,000
d. 8,850,000
2. Under accrual basis, what amount should be reported
as gross purchases?
a. 5,250,000
b. 5,950,000
c. 5,750,000
d. 5,650,000
3. What amount should be reported as cost of goods sold
under accrual basis?…
Question 4 The New EV Truck Company has an operating cycle of 48 days, an accounts receivable period of 30 days and an accounts payable period of 17 days.
The inventory period is [Select] ✓ days and the cash cycle is [Select] V [Select] days. Given a Cost of Goods sold expense of $227, 500 and Credit sales of $
650,000, the average Accounts Payable balance is $ [Select] and the average inventory balance is $ 16 pts The New EV Truck Company has an operating cycle
of 48 days, an accounts receivable period of 30 days and an accounts payable period of 17 days. The inventory period is days and the cash cycle is days. Given a
Cost of Goods sold expense of \(\$ 227, 500 \) and Credit sales of \( \$ 650,000 \), the average Accounts Payable balance is \S and the average inventory
balance is \(\$ \)
Problem 19
The following data were taken from the records of Zhubair Company for the year ended December 31, 2021:
Sales on account P 7,200,000
Notes received to settle accounts 800,000
Provision for doubtful accounts 180,000
Accounts determined to be worthless 50,000
Purchases on account 7,800,000
Payments to creditors 6,400,000
Discounts allowed by creditors 520,000
Merchandise returned by customer 30,000
Collections received to settle accounts 4,900,000
Notes given to creditors to settle
accounts 500,000
Merchandise returned to suppliers 140,000
Payments on notes payable 200,000
Discounts taken by customers 80,000
Collections received in settlement of
notes 360,000
What is the outstanding balance of the notes receivable account at December 31, 2021?
What is the net realizable value of the accounts receivable?
Chapter 2 Solutions
INTERMEDIATE ACCOUNTING (LCPO)
Ch. 2 - Explain the difference between external events and...Ch. 2 - Each economic event or transaction will have a...Ch. 2 - What is the purpose of a journal? What is the...Ch. 2 - Explain the difference between permanent accounts...Ch. 2 - Describe how debits and credits affect assets,...Ch. 2 - Describe how debits and credits affect temporary...Ch. 2 - What is the first step in the accounting...Ch. 2 - Prob. 2.8QCh. 2 - Prob. 2.9QCh. 2 - Prob. 2.10Q
Ch. 2 - What is an unadjusted trial balance? An adjusted...Ch. 2 - Define adjusting entries and discuss their...Ch. 2 - Define closing entries and their purpose.Ch. 2 - Define prepaid expenses and provide at least two...Ch. 2 - Deferred revenues represent liabilities recorded...Ch. 2 - Define accrued liabilities. What adjusting journal...Ch. 2 - Prob. 2.17QCh. 2 - [Based on Appendix A] What is the purpose of a...Ch. 2 - [Based on Appendix B] Define reversing entries and...Ch. 2 - [Based on Appendix C] What is the purpose of...Ch. 2 - Prob. 2.21QCh. 2 - Transaction analysis LO21 The Marchetti Soup...Ch. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Prob. 2.3BECh. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; income determination LO24,...Ch. 2 - Prob. 2.12BECh. 2 - Journal entries LO22 Prepare journal entries to...Ch. 2 - T-accounts and trial balance LO23 Post the...Ch. 2 - Prob. 2.5ECh. 2 - Debits and credits LO22 Indicate whether a debit...Ch. 2 - Prob. 2.7ECh. 2 - Prob. 2.8ECh. 2 - Reversing entries Appendix 2B The employees of...Ch. 2 - Special journals Appendix 2C The White Companys...Ch. 2 - Prob. 2.24ECh. 2 - Prob. 2.3PCh. 2 - Prob. 2.4PCh. 2 - Prob. 2.8PCh. 2 - Prob. 2.12PCh. 2 - Judgment Case 21 Cash versus accrual accounting;...Ch. 2 - Communication Case 23 Adjusting entries LO24 I...Ch. 2 - Prob. 2.1DA
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