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OverLord2011 [107]
4 years ago
12

Exercise 4-2A Effect of inventory transactions on journals, ledgers, and financial statements: Perpetual system LO 4-1 Dan Watso

n started a small merchandising business in Year 1. The business experienced the following events during its first year of operation. Assume that Watson uses the perpetual inventory system. Acquired $27,500 cash from the issue of common stock.Purchased inventory for $22,000 cash.Sold inventory costing $15,600 for $30,500 cash. Required. Record the events in general journal format.b. Post the entries to T-accounts.c. Determine the amount of gross margin.d. What is the amount of net cash flow from operating activities for Year 1
Business
1 answer:
rodikova [14]4 years ago
3 0

Answer:

Explanation:

a. General Journal    

1

Dr Cash $27,500

Cr Common Stock  $27,500

2

Dr Merchandise Inventory $22,000

Cr Cash  $22,000  

3

Dr Cash $ 30,500

Sales  $ 30,500

4

Dr Cost of goods sold $ 15,600

Merchandise Inventory  $ 15,600

c)

Income Statement    

For the year ended December 31,Year 1    

Sales $ 30,500

Cost of good sold $ 15,600

Gross Margin $ 14,900

d)

Cash Flow from Operating Activities:    

Purchase of Inventory ($22,000)    

Cash Sales made $ 30,500

Cash Flow from Operating Activities $8,500

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Answer:

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3 years ago
McFarlane, Inc. reports the following information:
alukav5142 [94]
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6 0
3 years ago
Installing an automated production system costing $278,000 is initially expected to save Zia Corporation $52,000 in expenses ann
rusak2 [61]

Answer:

11.63%

Explanation:

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

Cash flow in year 0 = $-278,000

Cash flow each year from year 1 to 9 = $52,000 - $5, 000 = $47,000

Cash flow in year 10 = $47,000 + $25,000 = $72,000

IRR = 11.63%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

8 0
3 years ago
nabors nagamatsu deposited a check for 299.45 and a check for 229.52 he received 42 on cash what was his total deposit
PIT_PIT [208]

299.45 im pretty sure its that one cause it the deposit

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Before ending the meeting, John Noble informed Howie that he would be sending out an e-mail to all employees asking for suggesti
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Answer:

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The other options are not right because employees won't be giving their opinions thinking on equity and ways to simplify job tasks are not the only suggestions that employees can provide.

4 0
3 years ago
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