Answer:
$1,050,000
Explanation:
Calculation to determine what the company should report as a liability for unredeemed coupons
Liability for unredeemed coupons =($800,000 x 0.70 ) - $350,000 ) x $5.00
Liability for unredeemed coupons=($560,000-$350,000)×$5.00
Liability for unredeemed coupons=$210,000x $5.00
Liability for unredeemed coupons=$1,050,000
Therefore At December 31, 2021, the company should report a liability for unredeemed coupons of:$1,050,000
Answer:
14-Jan
Dr Trade Receivable $1,125
Cr Sales
14-jan
Dr Cost of sales 625
Cr Inventory 625
9-Apr
Dr Inventory 375
Cr Trade Payable 375
2-Sep
Dr Trade Receivable $2,500
Cr Sales $2,500
2 sep
Dr Cost of sales $1,375
Cr Inventory $1,375
Dec 31 No journal entry
Explanation:
Preparation to Records the month-end journal entries noted below, assuming the company uses a periodic inventory system
14-Jan
Dr Trade Receivable $1,125
Cr Sales (45*25)
14-jan
Dr Cost of sales[25*25] 625
Cr Inventory 625
9-Apr
Dr Inventory (25*$15) 375
Cr Trade Payable 375
2-Sep
Dr Trade Receivable $2,500
Cr Sales (50*50) $2,500
2 Sep
Dr Cost of sales $1,375
Cr Inventory $1,375
($2,500-$1,125)
Dec 31 No journal entry
Answer:
January 1
Cash 614000 Dr
Notes Payable 614000 Cr
Explanation:
The Sheffield Brick Company has borrowed from the Admire county bank which means the note payable is a liability in the books of the Sheffield Brick company. As liability is increased or recorded, it is credited. The amount of liability is $614000 on the day of the issuance of note. Thus, Sheffield will credit Note payable by $614000.
The Sheffield company has received cash by signing note. As cash is an asset and it is increasing, the Sheffield company will debit cash by 614000 against the notes payable.
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