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saul85 [17]
3 years ago
15

Jo's Market makes a credit sale for $1,000 with terms of 2/10,n/30. The cost of the merchandise is $400. The required journal en

try to record the sale and cost of the sale is: debit Accounts Receivable $1,000 and credit Sales 1,000 debit Accounts Receivable $1,000; credit Sales $1,000; debit Cost of Goods Sold $400; and credit Merchandise Inventory $400 debit Accounts Payable $1,000; and credit Sales $1,000 debit Accounts Receivable $600; credit Sales $600; debit Cost of Goods Sold $400; and credit Merchandise Inventory $400
Business
1 answer:
Westkost [7]3 years ago
7 0

Answer:

The answer is: debit Accounts Receivable $1,000; credit Sales $1,000; debit Cost of Goods Sold $400; and credit Merchandise Inventory $400

Explanation:

The journal records should be:

  • Dr Accounts receivable 1,000
  • Cr Sales revenue 1,000

  • Dr Cost of goods sold 400
  • Cr Merchandise inventory 400

Accounts receivable is an asset account, and when assets increase they are debited.

Sales revenue is a revenue account, and when revenue increases it is credited.

COGS is an expense account, and when expenses increase they are debited.

Merchandise inventory is an asset account, and when assets decrease they are credited.

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If individuals believe their income will decrease in the near future, they may _____________ their spending
Finger [1]
Decrease, cut, halt, slow down.
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3 years ago
Charlie's Chocolates' had stock issuances of $52,000 and dividends of $21,000. The company has revenues of $85,000 and expenses
cricket20 [7]

Answer: $20,000

Explanation:

Given that,

Charlie's Chocolates' had

Stock issuance = $52,000

Dividends = $21,000

Revenues = $85,000

Expenses = $65,000

Net income is calculated by subtracting expenses from revenues.

Net income = Revenues - Expenses

                   = $85,000 - $65,000

                   = $20,000

Charlie's Chocolates' net income is $20,000.

7 0
3 years ago
By investing in a John Deere PowerTech engine for $3,200, a pallet manufacturer was able to show a net savings of $500 in annual
Verizon [17]

Answer:

15.6%

Explanation:

Investment = $3200

Net savings = $500

Investment returns in % = Net savings/Investment × 100

= 500/3200 × 100

= 0.15625 × 100

= 15.6%

7 0
3 years ago
What is a real account?
ziro4ka [17]

Answer:

A real account is a publicly generalized account that does not close at the end of the considered year. Apparently, the balances in real accounts are carried over to become the start of balances of the next period. Real accounts are also permanent accounts.

4 0
2 years ago
Read 2 more answers
Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January 1, on January 1, 202
denis-greek [22]

Answer:

A. 1-Jan-21

Dr Investment in Bond Dr $80.00

Cr To Cash $66.00

Cr To Discount on bond investment $14.00

B.30-Jun-21

Dr Cash $3.20

Dr Discount on bond investment $0.10

Cr To Interest revenue $3.30

C. 31-Dec-21

Dr Cash $3.20

Dr Discount on bond investment Dr $0.11

Cr To Interest revenue $3.31

D. $70 million Due to the change in market conditions

E. CASH FLOW FROM OPERATING ACTIVITIES:

Interest received $7.40 INFLOW

CASH FLOW FROM INVESTING ACTIVITIES:

Cash paid for purchase of investment -$66.00 OUTFLOW

Explanation:

a. Preparation of the journal entry to record Fuzzy Monkey's investment on January 1, 2021.

1-Jan-21

Dr Investment in Bond Dr $80.00

Cr To Cash $66.00

Cr To Discount on bond investment $14.00

(80-66)

(Being to record investment in bond )

b. Preparation of the journal entry by Fuzzy Monkey to record interest on June 30, 2021 (at the effective rate).

30-Jun-21

Dr Cash $3.20

($80 *8% * 6/12)

Dr Discount on bond investment $0.10

($3.30-$3.20)

Cr To Interest revenue $3.30

($66*10%*6/12)

(Being to record revenue recognition for bond interest and discount amortized)

c. Preparation of the journal entries by Fuzzy Monkey to record interest on December 31, 2021 (at the effective rate)

31-Dec-21

Dr Cash $3.20

($80 *8% * 6/12)

Dr Discount on bond investment Dr $0.11

($3.31- $3.20)

Cr To Interest revenue $3.31

[ $66+.1*(10%*6/12) ]

(Being to record revenue recognition for bond interest and discount amortized)

d. Based on the information given Fuzzy monkey will report its investment on December 31, 2021 balance sheet at fair value of the amount of $70 million reason been that we were told that because of the change in the market conditions, the fair value of the bonds at December 31, 2021, was the amount of $70 million.

e. Calculation for How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment

STATEMENT OF CASH FLOW (PARTIAL)

For 2021

CASH FLOW FROM OPERATING ACTIVITIES:

Interest received $7.40 INFLOW

($3.20+$3.20)

CASH FLOW FROM INVESTING ACTIVITIES:

Cash paid for purchase of investment -$66.00 OUTFLOW

3 0
2 years ago
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