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INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
9th Edition
ISBN: 9781260216141
Author: SPICELAND
Publisher: MCG CUSTOM
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Textbook Question
Chapter 2, Problem 2.7E
Transaction analysis; debits and credits
• LO2–2
Some of the ledger accounts for the Sanderson Hardware Company are numbered and listed below. For each of the October 2018 transactions numbered 1 through 12 below, indicate by account number which accounts should be debited and which should be credited. The company uses the perpetual inventory system. Assume that appropriate
- (1) Accounts payable
- (2) Equipment
- (3) Inventory
- (4) Accounts receivable
- (5) Cash
- (6) Supplies
- (7) Supplies expense
- (8) Prepaid rent
- (9) Sales revenue
- (10)
Retained earnings - (11) Note payable
- (12) Common stock
- (13) Deferred revenue
- (14) Rent expense
- (15) Salaries and wages payable
- (16) Cost of goods sold
- (17) Salaries and wages expense
- (18) Interest expense
Account(s) Debited | Account(s) Credited | |
Example: Purchased inventory for cash | 3 | 5 |
- 1. Paid a cash dividend.
- 2. Paid rent for the next three months.
- 3. Sold goods to customers on account.
- 4. Purchased inventory on account.
- 5. Purchased supplies for cash.
- 6. Paid employee salaries and wages for September.
- 7. Issued common stock in exchange for cash.
- 8. Collected cash from customers for goods sold in 3.
- 9. Borrowed cash from a bank and signed a note.
- 10. At the end of October, recorded the amount of supplies that had been used during the month.
- 11. Received cash for advance payment from customer.
- 12. Accrued employee salaries and wages for October.
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Ayayai Mowers Ltd. agreed to sell the City of Halifax four riding mowers and 20 push lawn mowers. The contract price was $72,000.
Ayayai normally sells its riding mowers for $14,400 and its push lawn mowers for $960. The contract required the City of Halifax to
pay Ayayai once all of the merchandise has been delivered to the city's public works yard. Ayayai's management does not expect any
returns or any issues with payment.
Ayayai delivered all four of the riding mowers and 14 of the push mowers on April 26. The remaining six push mowers were delivered
on May 5. Ayayai received payment from the city on May 18. Ayayai's cost for each riding mower is $9,960, while the push mowers
cost the company $620 each.
(a)
V Your answer is correct.…
Question 5.4
Determine the inventory period of MS Manufacturer's from the information provided on the attached picture
5.4
Determine the inventory period of MS Manufacturers from the information provided below.
Touch here to edit
(2 marks text
INFORMATION
The debtors collection period of MS Manufacturers is 45 days. The creditors payment period is 30 days. The cash
conversion cycle is 73 days.
!
Required information
Problem 6-3B Record transactions and prepare a partial income statement using a perpetual inventory
system (LO6-2, 6-5)
[The following information applies to the questions displayed below.]
At the beginning of June, Circuit Country has a balance in inventory of $2,450. The following transactions occur during the
month of June.
2 Purchase radios on account from Radio World for $2,150, terms 2/15, n/45.
4 Pay cash for freight charges related to the June 2 purchase from Radio World, $290.
8 Return defective radios to Radio World and receive credit, $300.
June
June
June
June 10 Pay Radio World in full.
June 11 Sell radios to customers on account, $3,900, that had a cost of $2,650.
June 18 Receive payment on account from customers, $2,900.
June 20 Purchase radios on account from Sound Unlimited for $3,250, terms 2/10, n/30.
June 23 Sell radios to customers for cash, $4,750, that had a cost of $3,050.
June 26 Return damaged radios to Sound Unlimited and receive credit…
Chapter 2 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
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 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Income determination LO24 If none of the...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Financial statements LO26 The following account...Ch. 2 - Financial statements LO26 The following account...Ch. 2 - Closing entries LO27 The year-end adjusted trial...Ch. 2 - Prob. 2.13BECh. 2 - Transaction analysis LO21 The following...Ch. 2 - Journal entries LO22 Prepare journal entries to...Ch. 2 - T-accounts and trial balance LO23 Post the...Ch. 2 - Journal entries LO22 The following transactions...Ch. 2 - Prob. 2.5ECh. 2 - Debits and credits LO22 Indicate whether a debit...Ch. 2 - Transaction analysis; debits and credits LO22...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; solving for unknowns LO24,...Ch. 2 - Adjusting entries LO25 The Mazzanti Wholesale...Ch. 2 - Financial statements and closing entries LO26,...Ch. 2 - Closing entries LO27 American Chip Corporations...Ch. 2 - Prob. 2.14ECh. 2 - Cash versus accrual accounting; adjusting entries ...Ch. 2 - External transactions and adjusting entries LO22,...Ch. 2 - Accrual accounting income determination LO24,...Ch. 2 - Cash versus accrual accounting LO28 Stanley and...Ch. 2 - Prob. 2.19ECh. 2 - Worksheet Appendix 2A The December 31, 2018,...Ch. 2 - Reversing entries Appendix 2B The employees of...Ch. 2 - Reversing entries Appendix 2B Refer to E 29 and...Ch. 2 - Reversing entries Appendix 2B Refer to E 29 and...Ch. 2 - Special journals Appendix 2C The White Companys...Ch. 2 - Prob. 2.25ECh. 2 - Accounting cycle through unadjusted trial balance ...Ch. 2 - Accounting cycle through unadjusted trial balance ...Ch. 2 - Adjusting entries LO25 Pastina Company sells...Ch. 2 - Accounting cycle; adjusting entries through...Ch. 2 - Adjusting entries LO25 Howarth Companys fiscal...Ch. 2 - Accounting cycle LO22 through LO27 The general...Ch. 2 - Adjusting entries and income effects LO22, LO25...Ch. 2 - Adjusting entries LO25 Excalibur Corporation...Ch. 2 - Accounting cycle; unadjusted trial balance through...Ch. 2 - Prob. 2.10PCh. 2 - Prob. 2.11PCh. 2 - Cash versus accrual accounting LO28 Zambrano...Ch. 2 - Worksheet Appendix 2A Using the information from...Ch. 2 - Judgment Case 21 Cash versus accrual accounting;...Ch. 2 - Prob. 2.2BYPCh. 2 - Communication Case 23 Adjusting entries LO24 I...Ch. 2 - Continuing Cases Target Case LO24, LO28 Target...
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