Question #2

Harwell Company manufactures automobile tires. On July 15, 2021, the company sold 1,400 tires to the Nixon Car Company for $55 e

Lunna [17]

Answer:

Dr Accounts receivable $77,000

Cr Sales $77,000

Payment within discount period:

Dr Cash $75,460

Dr Discount allowed $1540

Cr Accounts receivable $77,000

When payment is not made within discount period, the necessary entries would be:

Dr Accounts receivable $77,000

Cr Sales $77,000

Payment within discount period:

Dr Cash $77,000

Cr Accounts receivable $77,000

Explanation:

Upon sales on July 15 ,2021 the total sales value of $77,000 ($55*1400) is credited sales account and debited to account receivables.

Collection of cash on July 23 ,2021 implies that the payment was collected within the discount period,hence the amount received is selling price less 2% discount, and as a result cash collected is $75460 ($77000*98%)

When payment is made on August 15, no discount is given has discount period has lapsed.

3 0

3 years ago

The 100-room fantastic Florida motor lodge accepts only cash for its guests. On Saturday evening 90 of its rooms occupied and to

Anon25 [30]

<h2>Answer:</h2><h2>The motor lodges average daily rate for the particular evening = $1000 per room</h2>

Explanation:

The total number of rooms in fantastic Florida motor lodge = 100

On Saturday evening, the number of rooms occupied = 90

Total cash receipts for the evening = $90000

The daily rate for the evening = ?

To calculate the average daily rate for that particular evening,

Average daily rate = $\frac{90000}{90}$ = $1000 per room

The motor lodges average daily rate for the particular evening = $1000 per room

3 0

3 years ago

A machine costs $270,000 and has a life of 12 years. The machine will be under total warranty for 3 years. In the 4th year the m

salantis [7]

Answer:

C) Around $56,100

Explanation:

total maintenance costs should be:

1 $0

2 $0

3 $0

4 $3,500

5 $5,250

6 $7,000

7 $8,750

8 $10,500

9 $12,250

10 $14,000

11 $15,750

12 $17,500

to determine the present value of the 12 year annuity we can use an excel spreadsheet and the present value function:

=PV (6%,select the 12 cells) = $56,099.39 ≈ $56,100

8 0

3 years ago

Merger Co. has 10 employees, each of whom earns $1,700 per month and has been employed since January 1. FICA Social Security tax

andriy [413]

Answer:

Date Description Debit Credit

March, 31 Payroll Tax expense $‭2,320.5‬0

FICA Social Security taxes $1,054

FICA Medicare taxes $ 246.50

FUTA taxes $ 102

SUTA taxes $ 918

<u>Working </u>

FICA Social Security taxes = 1,700 * 10 * 6.2% = $‭1,054‬

FICA Medicare taxes = 1,700 * 10 * 1.45% = $‭246.5‬0

FUTA Taxes = 1,700 * 10 * 0.6% = $‭102‬

SUTA Taxes = 1,700 * 10 * 5.4% = $‭918‬

Payroll Tax expense = 1,054 + 246.50 + 102 + 918 = $‭2,320.5‬0

7 0

3 years ago

Following are selected transactions for Vitalo Company. Nov. 1 Accepted a $6,000, 180-day, 8% note dated November 1 from Kelly W

umka21 [38]

Answer:

<u>As at April 30</u>

Dr. Account Receivable (120 days / 180 days x 6000 x 0.08) ..$320

Cr. Interest Income......................................................................................$320

Being accrued interest Income for current year to date on note receivable

Dr. Bank..............................................................................................$6,483

Cr. Accounts Receivable ($6000 note receivable + $163 + $320)...$6,483

Being settlement of note receivable with total accrued interest Income

Explanation:

Following are selected transactions for Vitalo Company.

Nov. 1 Accepted a $6,000, 180-day, 8% note dated November 1 from Kelly White in granting a time extension on her past-due account receivable.

<u>As at November 1</u>

Account receivable = $6,000 and Note Receivable = $6000

Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the White note.

<u>As at December 31</u>

Dr. Account Receivable (61 days /180 days x 6000 x 0.08) ..$163

Cr. Interest Income......................................................................................$163

Apr. 30 White honored her note when presented for payment; February has 28 days for the current year.

<u>As at April 30</u>

Dr. Account Receivable (120 days / 180 days x 6000 x 0.08) ..$320

Cr. Interest Income......................................................................................$320

Being accrued interest Income for current year to date on note receivable

Dr. Bank..............................................................................................$6,483

Cr. Accounts Receivable ($6000 note receivable + $163 + $320)...$6,483

Being settlement of note receivable with total accrued interest Income

4 0

3 years ago

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