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Concept explainers
a)
Statement of cash flows: This statement reports all the cash transactions which are responsible for inflow and outflow of cash, and result of these transactions is reported as ending balance of cash at the end of reported period.
Journal: Journal is the method of recording monetary business transactions in chronological order. It records the debit and credit aspects of each transaction to abide by the double-entry system
Rules of Debit and Credit:
Following rules are followed for debiting and crediting different accounts while they occur in business transactions:
- Debit, all increase in assets, expenses and dividends, all decrease in liabilities, revenues and
stockholders’ equities . - Credit, all increase in liabilities, revenues, and stockholders’ equities, all decrease in assets, expenses.
To Determine: The amount of cash paid to the suppliers during the reporting period.
b)
To Journalize: The amount of cash paid to the suppliers during the reporting period, under the given situations.
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Chapter 21 Solutions
GEN COMBO LOOSELEAF INTERMEDIATE ACCOUNTING; CONNECT ACCESS CARD
- C. P177.60 d. P29.60 P74.40 P300 P620 30% e. 4. Find the (a) cash discount and (b) net amount due if the following invoices are paid within the discoun period. Net invoice price P3,265 Net amount due Terms of payment 3 п Cash discount 10'30 P 1,342 15'60 2 n P985 5'15 5. Find the (a) deadline for discount period, (b) deadline for credit period, (c) cash discount and (d) amount due for the following cases. Deadline of discount Net Deadline of credit Invoice Terms of Cash Invoice date amount due amount payment discount period period 1 n P 1,675 Jan. 15 15'45 P645 Feb. 25 10'30 1n P 895 March 12 10'45 3 2 P785 April 22 . 15'20'90 6. The net invoice price of a wall clock is P287.00. If the discount granted was 18%, find: a. Net invoice price rate b. List price C. Discount 7. The net invoice price of a dining table is P6,187.50, representing 75% of the list price. Find: a. List price b. Discountarrow_forward24 - How are the total values received or to be received in return for goods and services sold abroad into which account?A) Other Discounts Account / DebtB) Foreign Sales Account / ReceivableC) To / Credit to Gross Sales AccountD) Other Sales will be credited to your accountE) Domestic Sales Account / Receivablearrow_forwardH6. 31 P XYZ Co. decided to create a petty cash fund. They estimated that $100 would be needed in the fund. Choc entry to create the account from the following. O Petty Cash is debited for $100. O Cash is debited for $100. O Petty Cash is credited for $100. O Miscellaneous Expense is debited for $100.arrow_forward
- 17 - THE CODE AND NAME OF THE ACCOUNT WILL BE DEBT 153 COMMERCIAL GOODS XXX 191 DEDUCTIBLE VAT XXX 103 CHECKS GIVEN XXX 100 CASE XXX Which account was used incorrectly in the purchase of goods?A) 191 Deductible VATB) 103 Checks Given and Payment OrdersC) 100 CratesD) All RightE) 153 Trade Goodsarrow_forward5 Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period. Merchandise (gross) Terms Payment a. $ 6,600 2/10, n/60 $ 6,476 b. $ 22,400 1/15, n/90 $ 21,582 C. $ 78,200 1/10, n/30 $ 76,626 d. $ 14,000 3/15, n/45 $ 12,610arrow_forwardQuestion 5 of 18 Receivables arising from sales to customers are best described as Select the correct response Notes Receivable OAccounts Receivables O Trade Receivables O Non-trade Receivables < Previousarrow_forward
- Which of the following credit terms allow for a cash discount/ n/30 n/3 eom n/60 1/10, n/30arrow_forward25 - On 12.12.20XX, the entity purchased goods worth $ 50,000 from entity B on credit. Exchange rate on the day of the transaction $ 1 = 2.5 TL (VAT is not taken into account)A) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 153 COMMERCIAL GOODS 50000 300 BANK CREDITS 50000 B) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 153 COMMERCIAL GOODS 125000 300 BANK CREDITS 125000C) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 153 COMMERCIAL GOODS 50000 320 SELLERS 50000 D) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 153 COMMERCIAL GOODS 125000 321 BORROWINGS 125000 E) CODE AND NAME OF THE ACCOUNT WILL RECEIVE DEBT 153 COMMERCIAL GOODS 125000 320 SELLERS 125000arrow_forwardCalculate the cash discount and the net amount due the transaction (in $). Amount ofInvoice Terms ofSale CashDiscount NetAmount Due $15,660.00 2/10, n/45 $ $arrow_forward
- What is the amount received by partially secured creditor? A. P40,000B. P60,000C. P70,000D. P65,000arrow_forward24 - How are the total values received or to be received in return for goods and services sold abroad, to which account?A) Other Discounts Account / DebtB) Foreign Sales Account / ReceivableC) To / Credit to Gross Sales AccountD) Other Sales To Be AccountedE) Domestic Sales Account / Receivablearrow_forwardLO 6-3 Exercise 6-8A Adjustments to the balance per books Required Identify which of the following items are added to or subtracted from the unadjusted book balance to arrive at the true cash balance. Distinguish the additions from the subtractions by placing a + beside the items that are added to the unadjusted book balance and a beside those subtracted from it. The first item is recorded as an example. Reconciling Items Credit memo Interest revenue Deposits in transit Debit memo Service charge Charge for printing checks NSF check from customer Note receivable collected by the bank Outstanding checks Book Balance Adjusted? Yes Added or Subtracted?arrow_forward
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
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