1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
natulia [17]
2 years ago
12

Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective contai

ners. Customers pay a deposit for each container received. The deposit is equal to the container’s cost. They receive a refund when the container is returned. During 2021, deposits collected on containers shipped were $948,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2021, represented deposits of $623,000. In 2021, $873,000 was refunded and deposits forfeited were $42,750. Required: 1. Prepare the appropriate journal entries for the deposits received, returned, and forfeited during 2021. 2. Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet.
Business
1 answer:
Dennis_Churaev [7]2 years ago
4 0

Answer:

1.

a. Dr Cash $948,000

Cr Liability for refundable deposits $948,000

b. Dr Liability for refundable deposits $873,000

Cr Cash $873,000

c. Dr Liability for refundable deposits $42,750

Cr Sale of containers $42,750

d. Dr Cost of goods sold $42,750

Cr Inventory of containers $42,750

2. $655,250

Explanation:

1. Preparation of Journal entries

Based on the information given we were told that the deposits collected on containers that were shipped was the amount of $948,000 which means that the Journal entry will be:

a. Dr Cash $948,000

Cr Liability for refundable deposits $948,000

b. Based on the information given we were told that the amount of $873,000 was refunded which means that the Journal entry will be :

Dr Liability for refundable deposits $873,000

Cr Cash $873,000

c. Based on the information given we were told that the deposits forfeited were the amount of $42,750 which means that the Journal entry will be :

Dr Liability for refundable deposits $42,750

Cr Sale of containers $42,750

Dr Cost of goods sold $42,750

Cr Inventory of containers $42,750

2. Calculation to Determine the liability for refundable deposits to be reported on the December 31, 2021, balance sheet.

Liability for refundable deposits, January 1, 2021 $623,000

Add: Deposits received during 2021 $948,000

Less: Deposits returned during 2021 ($873,000)

Less:Deposits forfeited during 2021 ($42,750)

Balance, December 31, 2021 $655,250

Therefore the liability for refundable deposits to be reported on the December 31, 2021, balance sheet will be $655,250

You might be interested in
4. Part of delivering an effective slide presentation is making sure you present your material in a logical order. Before you be
grandymaker [24]

Answer: Arranging them in an orderly manner, easy to understand by the audience and when presented

Explanation:

When arranging your slide for presentation, it's necessary that they are arranged in a logical manner, one of the things to have in mind is your objectives, when this is understood, you begin the arrangement of your presentation with your with table of contents, introduction, abstract, would be followed by the chapters, your conclusion and references, all tailored in an orderly manner driving your point home to your audience.

5 0
3 years ago
On May 3, 2020, Cheyenne Company consigned 90 freezers, costing $480 each, to Remmers Company. The cost of shipping the freezers
Viktor [21]

Answer and Explanation:

The computation is shown below;

a.

Inventory Unsold in Hand (90-45) 45

Unit cost Unsold (45 × 480) $21,600.00

Shipping cost on Unit Unsold (850 ÷ 90 × 45) $425.00

Value of Inventory (21600 + 425) $22,025.00

b.  

Sale value (45 × 780) $35,100.00

Less: Cost  

Unit cost Sold (21600+425) -$22,025.00

Comission of Consignee (35,100 × 6%) -$2,106.00

Advertising cost -$210.00

Installation cost -$330.00

Net Profit $10,429.00

c.  

Sale value (45 × 780) $35,100.00

Less: deduction made by consignee  

Comission of Consignee (35100 × 6%) -$2,106.00

Advertising cost -$210.00

Installation cost -$330.00

Net Remittance made by consignee $32,454.00

5 0
3 years ago
What is meant by allocative efficiency? Allocative efficiency is when every good or service A. is produced up to the point where
Alborosie

Answer:

Option (E) is correct.

Explanation:

Allocative efficiency is created when the gap between marginal benefit and marginal cost is maximum. The marginal benefit is the benefit that a consumer can get by consuming an additional unit of a commodity and the marginal cost is the cost that a producer incurred by producing an additional unit.

Hence, the allocative efficiency is achieved where the difference between these two terms is maximized.

5 0
3 years ago
If you wish to have $60,000 in 8 years, how much do you need to deposit in the bank today if the account pays an interest rate o
liberstina [14]

Answer:

PV= $30,111.98

Explanation:

Giving the following information:

Future value= $60,000

Number of periods= 8

Interest rate= 9%

<u>To calculate the initial investment, we need to use the following formula:</u>

FV= PV*(1+i)^n

<u>Isolating PV:</u>

PV= FV/(1+i)^n

PV= 60,000 / 1.09^8

PV= 30,111.98

5 0
3 years ago
Edwards Electronics recently reported $11,250 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreci
PIT_PIT [208]

Answer:

$3,210.94

Explanation:

The NOPAT of the Edwards electronics can be determined through the following mentioned method.

Sales:                                 $11,250

Operating costs:               ($5,500)

Depreciation:                    ($1,250)

Interest payment              ($218.75)

($3,500*6.25%)

Profit before tax               $4,281.25

Taxes(25%)                       ($1,070.31)

NOPAT                              $3,210.94

7 0
3 years ago
Other questions:
  • Graph shows values along the horizontal axis and vertical axis. Coordinates are plotted to indicate two upward-sloping diagonal
    11·1 answer
  • Adriana has borrowed $30,000 from her IRA in order to fund her startup costs. How long does she have to replace the money withou
    8·2 answers
  • A student believes that less than 50% of students at his college receive financial aid. A random sample of 120 students was take
    7·1 answer
  • Assume that the risk-free rate of interest is 3% and the expected rate of return on the market is 15%. A share of stock sells fo
    7·1 answer
  • In a market economy, a. the allocation of scarce resources determines prices and prices, in turn, determine supply and demand. b
    9·1 answer
  • Silicon Valley in Northern California is famous as the home to many businesses that produce high-tech products or serve high-tec
    10·1 answer
  • Culver Co. purchased land as a factory site for $440,000. The process of tearing down two old buildings on the site and construc
    14·1 answer
  • Jennifer took a video recording of Jack and Alice fighting in an alley. Jack and Alice disclose multiple private facts about eac
    9·1 answer
  • Why does Staples participate in Anti-Money Laundering Compliance?
    9·1 answer
  • The value proposition for the AARP brand is seen in what kinds of benefits for the members?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!