Slinky Company purchased inventory on June 10, 2024, at a price of $22,000, subject to credit terms of 2/10, 1/30. Slinky uses the net method for recording purchases and uses a perpetual inventory system. Required: 1. Prepare the journal entry to record the purchase. 2. & 3. Prepare the journal entries to record the appropriate payment if the entire invoice is paid on June 18, 2024 and July 8, 2024.
Q: ACC 201 TEXT HW CH13a EX13-1B Complete the following table by indicating whether a debit or credit…
A: DebitA debit is an accounting entry made on the account's left side. Debits are used in double-entry…
Q: Exercise 13-17 (Algo) Dropping or Retaining a Segment [LO13-2] Bed & Bath, a retailing company, has…
A: Lets understand the basics.When decision is required to make between whether to continue department…
Q: Almaden Hardware Store sells two product categories, tools and paint products. Information…
A: Net realizable value means the amount that could be received after deducting all incidental expenses…
Q: Pina Colada Corp. reported net income of $190,400 for 2022. Pina Colada also reported depreciation…
A: Cash flow statement :— It is one of the financial statements that shows change in cash and cash…
Q: Prepare a cash budget for Khloe Company for the month of November.
A: Cash budget-A cash budget is an estimation of the cash flow of a company over a particular period of…
Q: Zebra Company purchases Glow Inc. for $13,985,000 cash on January 1, 2023. The book value of Glow…
A: Goodwill is the premium that is paid during the acquisition of a business.If a business is purchased…
Q: Wendell's Donut Shoppe is investigating the purchase of a new $18,60 new machine would permit the…
A: An annual cash flow of positive indicates that a business has made more money than it has spent,…
Q: a. Compute the amount of the stock dividend. b. Show the effects of the stock dividend on the…
A: Stock dividend is the amount of dividend paid to the shareholders in the form of shares rather than…
Q: Prepare a CVP income statement for Ivanhoe Industries for the month of May. (Round per unit answers…
A: A CVP income statement is an income statement in which the details about the contribution margin per…
Q: Required information [The following information applies to the questions displayed below.] Cane…
A: SPECIAL ORDER ANALYSISUntil there is Any Information is Provided, There Shall be No Additional Fixed…
Q: Han Products manufactures 20,000 units of part 5-6 each year for use on its production line. At this…
A: MAKE OR BUY DECISIONSometimes a manufacturer has to decide as to whether a certain component or…
Q: Roll Board Inc. manufactures several models of high-quality skateboards. The company's ABC system…
A: Activity Rate :— It is the rate used to allocate manufacturing overhead cost to cost object under…
Q: Which of the concepts best describes your actions in the following scenario? 1. Imagine your friend…
A: The concept that best describes your actions in this scenario is "risk aversion." Risk aversion…
Q: Crowe AG purchased a heavy-duty truck on March 1, 2019, for €40,000. It was estimated that it would…
A: Depreciation is an expense that incurs on an asset over its useful life due to normal wear and tear,…
Q: The City of Wolfe issues its financial statements for Year 4 (assume that the city uses a calendar…
A: It is the total amount accumulated or deficit incurred from operating surpluses from the beginning…
Q: WRT, a calendar year S corporation, has 100 shares of outstanding stock. At the beginning of the…
A: Wallace owned all 100 shares.20 shares to his brother.35 shares to his daughter.
Q: Barbara sells vacant land that was held for investment in her business for $274,000. The land had an…
A: Realized gainRealized gain refers to the profit made from the sale of an asset once the transaction…
Q: Fogerty Company makes two products-titanium Hubs and Sprockets. Data regarding the two products…
A: Activity based cost system is a type of costing method in which the costs are determined according…
Q: Beacon Corporation issued a 6 percent stock dividend on 28,500 shares of its $7 par common stock. At…
A: Stock dividend is the amount of dividend paid to the shareholders in the form of shares rather than…
Q: QS 10-11 (Algo) Straight-Line: Premium bond computations LO P3 Enviro Company issues 11.00 %,…
A: The bonds are reported as the long-term liabilities in the balance sheet. The bonds are issued at…
Q: Firm x purchased $31,000 worth of inventory when they opened for business, adding to the $22,000…
A: The cost of goods sold includes the cost of goods that are sold during the period. The cost of goods…
Q: Zachary Airlines is a small airline that occasionally carries overload shipments for the overnight…
A: Direct costs are those directly associated with a particular product or project, while indirect…
Q: 7:27 < ession[1].docx - Word v QO References Mailings O 2¶ Paragraph Review cash collected: 5 One…
A: Accounts Receivable : Money that the business will be receiving from its clients who have utilized…
Q: Required inform [The following information applies to the questions displayed below.] Clinic's cash…
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: On September 1, the board of directors of Colorado Outfitters, Incorporated, declares and issues a…
A: Journal entry is the act of keeping records of transactions in an accounting journal. Accounting…
Q: Steinberg Corporation and Dietrich Corporation an more levered. Both companies will remain in…
A: Equity involves ownership in a company without a contractual obligation for repayment but may…
Q: Exercise 9-1 (Algo) Prepare a Flexible Budget [LO9-1] Puget Sound Divers is a company that provides…
A: FLEXIBLE BUDGETA flexible budget is a budget that is prepared for different levels of activity or…
Q: Kendra, Cogley, and Mel share income and loss in a 3:2:1 ratio (in ratio form: Kendra, 3/6; Cogley,…
A: Loss on sale of inventory incurs when cost of inventory exceeds proceeds from sale of…
Q: are $400,000, and variable costs are $9 per unit. The present selling price is $15 per unit. On July…
A: Differential analysis considers relevant revenue and cost and calcuates the difference between two…
Q: On January 1, 2019, MLW Company purchased a copyright for $1,000,000, having an estimated useful…
A: The Amortization expense is charged on intangible assets of the business. The intangible assets…
Q: A company purchased machinery on January 2, Year 1, for $980,000. A five-year life was estimated and…
A: Straight line method of depreciation is the most straightforward approach that implies that the…
Q: Costumes or Us sells 1,100 outfits per year at an average price of $145. The terms of the sale are…
A: Accounts receivables are those customer accounts to whom credit sales has been made in business, but…
Q: In its 2024 Income statement, what amount should Mifflin Include as a foreign exchange gain or loss…
A: Net gain / loss = Borrowed amount - Year end amountBorrowed amount on borrowing date (July 1, 2023)…
Q: QS 10-11 (Algo) Straight-Line: Premium bond computations LO P3 Enviro Company issues 11.00 %,…
A: Premium on bonds payable: Premium on bonds payable refers to the amount by which the issue price of…
Q: On June 8, Pharoah Ltd. was incorporated and issued 33,600 common shares for $336,000 On August 19,…
A: In business and accounting, a journal entry serves as documentation of a financial transaction. Each…
Q: Required Information [The following information applies to the questions displayed below.] Alexa…
A: AGI deductions refer to the deductions or adjustments that are made to the total gross income of an…
Q: Calculate the portion of the prepaid subscription expenses that should be expensed during the month…
A: Prepaid expenseA prepaid expense is an expense that has been paid for in advance but not yet…
Q: Zanatech's market for its remote control has changed significantly and Zanatech has had to drop the…
A: Decision making is one of the useful concept used in cost accounting. Under this, revenues and…
Q: Ortega Industries manufactures 20,250 components per year. The manufacturing cost of the components…
A: Decision-making to purchase supplies from outside refers to the process by which individuals or…
Q: Huron Company produces a cleaning compound known as Zoom. The direct materials and direct labor…
A: DIRECT MATERIALS COST VARIANCEDirect materials cost variance is the difference between the actual…
Q: Virtual Co. incurred research and development costs in 2023 as follows: Materials used in research…
A: R&D should either to be reported separately on the income statement or disclosed in the…
Q: Project Y requires a $333,000 investment for new machinery with a six-year life and no salvage…
A: The payback period is the time to recover the cost of the investment.
Q: Hrubec Products, Incorporated, operates a Pulp Division that manufactures wood pulp for use in the…
A: Internal transfers between two departments will boost overall business earnings as long as the…
Q: A family friend has asked your help in analyzing the operations of three anonymous companies…
A: RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…
Q: Talladega Tire and Rubber Company has capacity to produce 500,000 tires. Talladega presently…
A: Differential analysis is a management accounting technique in which we assess only the changes in…
Q: In recording the transactions of an estate, when are liabilities recorded? Choose the correct. a.…
A: Journal entry is an art of recording, classifying and summarizing business transactions into…
Q: High-Low Cost Estimation Assume the local DHL delivery service hub has the following information…
A: The cost estimation equation is a mathematical formula or model used to estimate the total cost of a…
Q: On December 31, 2023, Brisbane Company had 100,000 shares of common stock outstanding and 30.000…
A: Earnings per shareEarnings per share is a company's net profit divided by the number of common…
Q: XYZ Company purchased inventory worth $50,000 on credit terms of 2/10, n/30. Calculate the amount…
A: The discount period refers to a specific timeframe during which a buyer can avail themselves of a…
Q: annual variable production costs associated with the old machine are estimated to be $156,500 per…
A: Differential Analysis :— This analysis shows the comparison between two different alternatives. A…
Step by step
Solved in 3 steps
- Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2019 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section and place a check mark () in the Posting Reference column. Journalize the transactions for May, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owners equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. Insert the new balance in the owners capital account. 10. Prepare a post-closing trial balance.On June 30, 2019, the balances of the accounts appearing in the ledger of Simkins Company are as follows: Instructions 1. Does Simkins Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Simkins Company for the year ended June 30, 2019. The merchandise inventory as of June 30, 2019, was 508,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 33,000. 3. Prepare the closing entries for Simkins Company as of June 30, 2019. 4. What would the net income have been if the perpetual inventory system had been used?
- Use the same information in RE9-1 except that the note is not interest bearing. Assume that the note is discounted at a 15% rate. RE9-1 Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory system and a 360-day calendar fiscal year. Rescue Sequences LLC uses a perpetual inventory system.On December 31, 2019, the balances of the accounts appearing in the ledger of Wyman Company are as follows: Instructions 1. Does Wyman Company use a periodic or perpetual inventory system? Explain. 2. Prepare a multiple-step income statement for Wyman Company for the year ended December 31, 2019. The merchandise inventory as of December 31, 2019, was 305,000. The adjustment for estimated returns inventory for sales for the year ending December 31, 2019, was 30,000. 3. Prepare the closing entries for Wyman Company as of December 31, 2019. 4. What would the net income have been if the perpetual inventory system had been used?Sunrise Flowers sells flowers to a customer on credit for $130 on October 18, with a cost of sale to Sunrise of $50. What entry to recognize this sale is required if Sunrise Flowers uses a perpetual inventory system?
- RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.Mark Industries issues a note in the amount of $45,000 on August 1, 2018 in exchange for the sale of merchandise. Which of the following is the correct journal entry for this sale? A. B. C. D.On January 5, 2019, ShoeKing Corp. sells for cash 500 pairs of volleyball shoes to FootAction, a shoe retailer, for 70 each. FootAction has the right to return the shoes for any reason up to March 31, 2019, for a full refund. The cost of each pair of shoes is 32. ShoeKing predicts that it is probable that 40 pairs of the shoes will be returned. ShoeKing uses the perpetual method for inventory. Required: 1. Prepare ShoeKings journal entry on January 5, 2019, to account for this transaction. 2. Assume that FootAction returns 35 pairs of shoes on March 31, 2019. Prepare the journal entry to record this return.
- The balance in Ashwood Companys accounts payable account at December 31, 2019, was 1,200,000 before any necessary year-end adjustment relating to the following: Goods were in transit from a vendor to Ashwood on December 31, 2019. The invoice cost was 85,000, and the goods were shipped FOB shipping point on December 29, 2019. The goods were received on January 2, 2020. Goods shipped FOB shipping point on December 20, 2019, from a vendor to Ashwood were lost in transit. The invoice cost was 40,000. On January 5, 2020, Ashwood filed a 40,000 claim against the common carrier. Goods shipped FOB destination on December 22, 2019, from a vendor to Ashwood were received on January 6, 2020. The invoice cost was 20,000, What amount should Ashwood report as accounts payable on its December 31,2019, balance sheet? a. 1,260,000 b. 1,285,000 c. 1,325,000 d. 1,345,000Refer to the information provided in RE8-4. If Paul Corporations inventory at January 1, 2019, had a cost and net realizable value of 300,000, prepare the journal entry to record the reductions to NRV for Paul Corporation assuming that Paul uses a periodic inventory system and the allowance method. Paul Corporation uses FIFO and reports the following inventory information: Assuming Paul uses a perpetual inventory system and the direct method, prepare the journal entry to record the write-down of inventory.Palisade Creek Co. is a retail business that uses the perpetual inventory system. The account balances for Palisade Creek as of May 1, 20Y6 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: Record the following transactions on Page 21 of the journal: Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for May, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). 5. (Optional) Enter the unadjusted trial balance on a 10-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of stockholders equity, and a balance sheet. Assume that additional common stock of 10,000 was issued in January 20Y6. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the retained earnings account. 10. Prepare a post-closing trial balance.