Answer:
The correct journal entry to record the payment on July 12 is:
Debit Accounts Payable $1,700
Credit Merchandise $34
Credit Cash $1,666
Explanation:
Credit terms of 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.
On July 5:
Debit Merchandise $2,000
Credit Accounts payable $2,000
On July 7:
Debit Accounts payable $300
Credit Merchandise $300
On July 12, the company pays and takes the appropriate discount:
2% x ($2,000 - $300) = $34
The company uses a perpetual inventory system, and records purchases using the gross method.
The journal entry to record the payment:
Debit Accounts Payable $1,700
Credit Merchandise $34
Credit Cash $1,666
Answer:
The correct answer is letter "E": A secondary market transaction.
Explanation:
The secondary market refers to all transactions of securities that happen after the stock's initial offering. It can also refer to the exchanges themselves where these transactions take place. The New York Stock Exchange (<em>NYSE</em>) and the National Association of Securities Dealers Automated Quotation (<em>NASDAQ</em>) are examples of secondary market exchanges.
<u>Given:</u>
Beginning retained earnings = $217,000
Revenues = $417,000
Expenses = $358,500
Dividends = $12,700
<u>To find:</u>
Ending retained earnings
<u>Solution:</u>
To calculate the ending retained earnings first we have to calculate the net income of the company. The formula to calculate the net income is as follows,
On plugging in the values in the above formula we get,
The formula to calculate the ending retained earnings is as follows,
Therefore, the retained earnings on the balance sheet as of December 31, 2016 will be $262,800 that is option c.
Answer:
C : accept the offer because it will produce net income of $12,600.
Explanation:
In this question we have to compare the cost which is presented below:
In the first case
The variable cost would be
= Number of units buys × variable cost per unit
= 4,200 units × $67
= $281,400
And, the selling cost would be
= Number of units sold × selling price per unit
= 4,200 units × $70
= $294,000
So, the difference would be
= $294,000 - $281,400
= $12,600
