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Olin [163]
3 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 2018, deposits collected on containers shipped were $916,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2018, represented deposits of $546,000. In 2018, $804,000 was refunded and deposits forfeited were $43,750. Required: 1. Prepare the appropriate journal entries for the deposits received and returned during 2018. 2. Determine the liability for refundable deposits to be reported on the December 31, 2018, balance sheet.
Business
1 answer:
tekilochka [14]3 years ago
3 0

Answer: Please  see answer in the explanation column

Explanation:

a) To record  Deposit Collected

Account                          Debit                 Credit

Cash                             $916,000

Liability—refundable deposits              $916,000

b)  To record Deposit Returned

Account                                     Debit                 Credit

Liability—refundable deposits    $804,000

Cash                                                                    $804,000

c)  Deposits Forfeited-- To record forfeited deposits

Account                                     Debit                 Credit

Liability—refundable deposits $43,750.

Revenue—sale of containers                           $43,750.

d) To record adjustment of inventory on deposits forfeited  

Account                                     Debit                 Credit

Cost of goods sold              $43,750.

  Inventory of containers                               $43,750.

2)liability for refundable deposits to be reported on the December 31, 2018, balance sheet.

Balance on January 1          $546,000

Deposits received                   +$916,000

Deposits returned                  -$804,000

Deposits forfeited                 -  $43,750

Balance on December 31       $614,250

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You are trying to decide which of two automobiles to buy. The first is American-made, costs $3.0500 x 104, and travels 28.0 mile
siniylev [52]

Answer:

Both cars(American and European) must travel 8,060 kilo metres each during their lifetime for the total cost(purchase cost + fuel equivalent) to be equivalent

Explanation:

With regards to the above, the cost equation for both cars will be equated together.

Furthermore, we will convert gallons into litres while also converting miles into kilometers.

Since 1 gallon has 3.785 litres; 1 mile also has 1.609 kilo metre, hence milage of the first car in kilo metre per litre would be ;

Milage American made = [ 28 miles × 1.609 ] / 3.785

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= 0.79 per litre

Gas cost per kilo metre(American made) = 0.79 per litre / 11.90

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Gas cost per kilo metre(European made) = 0.79 per litre / 19.0

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We can sum up the equation of first car which is American made( Purchase price + Fuel cost)

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