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olga2289 [7]
2 years ago
11

Forever Jewelers uses the perpetual inventory system. On April​ 2, Forever sold merchandise with a cost of $ 1 comma 500$1,500

for $ 9 comma 000$9,000 to a customer on account with terms of 22​/15, ​n/30. Which of the following journal entries correctly records the sales​ revenue?
a. Accounts Receivable 6,720
Sales Revenue 6,720
b. Sales Revenue 6,720
Accounts Receivable 6,720
c. Sales Revenue 6,720
Cost of Goods Sold 6,720
d. Accounts Receivable 1,500
Sales Revenue 1,500
Business
1 answer:
Tema [17]2 years ago
6 0

Answer:

Accounts Receivable $8,820

                   To Sales Revenue $8,820

Explanation:

The journal entry to record the sales revenue is shown below:

Accounts receivable A/c Dr $8,820

      To Sales revenue A/c $8,820

(Being merchandise sold on credit basis)

For recording this we debited the account receivable as it increased the assets and credited the sales revenue as it also increased the revenue

The computation of sales revenue is shown below:

= Sales revenue - discount

= $9,000 - $9,000 × 2%

= $9,000 - $180

= $8,820

This is the answer but the same is not provided in the given options

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The accounting equation is assets = liabilities + owner’s equity.
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Answer:

A. Why must this equation always balance?

It must balance because all the assets that firm controls have been acquired either by external funding (liabilities), or by internal funding (owner's equity).

This also explains the relationship between economic resources and claims to economic resources. Economic resources (assets) are either the claim of an external agent that has to be paid in the future (liability), or the claim of one of the company's owners who could in theory dissolve the company and take possession of the company's assets (equity).

B. What transactions increase or decrease owner’s equity?

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C. How does net income or loss affect owner’s equity?

A net income profit increases owner's equity, while a net income loss decreases owner's equity.

D. Please give an example of a transaction, applied to the accounting equation.

ABC corporation issues 1,000 common stocks with par value of $5, and a price per stock of $7. The journal entry is:

Account                                    Debit                Credit

Cash                                        $7,000

Common Stock                                                 $5,000

Additional Paid-In Capital                                $2,000

In this transaction, cash is an asset and common stock and additional paid-in capital are part of the stockholder's equity. The corporation does not have any liabilities yet.

ABC Corp accounting equation = Assets = Liabilities + Stockholder's equity

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As can be seen, the accounting equation is true even in the earliest stages of the corporation.

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3 years ago
The following section is taken from Blossom's balance sheet at December 31, 2021. Current liabilities Interest payable $ 40,500
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Answer:

(a) Journalize the payment of the bond interest on January 1, 2022.

Dr Interest payable - bonds payable 40,400

    Cr Cash 40,400

The interest expense on the bonds payable should have been accrued on the 2021 balance sheet, that is why we debit interest payable and not interest expense.

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(c) Prepare the adjusting entry on December 31, 2022, to accrue the interest on the remaining bonds.

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3 years ago
The local bank just invested a lot of money into hiring a professional decorator to redo the lobby area to make it more inviting
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I feel like the answer is D
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