Answer:
The correct journal entry to record the payment on July 12 is:
Debit Accounts Payable $1,700
Credit Merchandise $34
Credit Cash $1,666
Explanation:
Credit terms of 2/10, n/30 means that 2% discount for the payment within 10 days and the full amount to be paid within 30 days.
On July 5:
Debit Merchandise $2,000
Credit Accounts payable $2,000
On July 7:
Debit Accounts payable $300
Credit Merchandise $300
On July 12, the company pays and takes the appropriate discount:
2% x ($2,000 - $300) = $34
The company uses a perpetual inventory system, and records purchases using the gross method.
The journal entry to record the payment:
Debit Accounts Payable $1,700
Credit Merchandise $34
Credit Cash $1,666
Answer:
a. revenue (R), affecting owner's investment (I)
b. not affecting owner's equity (NOE)
c. expense (E) and affecting owner's investment (I)
Explanation:
Revenues and Expense form Profits which are included in the statement of changes in equity through the Retained Income line item, thus these two also affect owners investment.
Answer:
Credit; $100
Explanation:
When the shares are authorized there is no specific entry,
When the authorized shares are issued then proceeds are debited to the cash account and the common stock account is credited by that amount.
In this case,
Common Stock will be credited by 100 * 1 =$100
Hope that helps.
Answer:
Industrial Finance Corporation of India (IFCI)
State Financial Corporations (SFC)
Industrial investment bank of India Ltd
<h3><u>O</u><u>bjectives</u><u>:</u></h3>
- Objectives of IFCI provide medium and long-term financial assistance to large scale industrial undertakings, particularly when ordinary bank accommodation does not suit the undertaking or finance cannot be profitably raised by the concerned issue of shares.
- Objectives of SFC to maintain and promote fairness, efficiency, competitiveness, and transparency in the securities and futures markets; promote public understanding of investing and corporate finance policy; protect investors by enforcing regulations; reduce crime and misconduct
- Objectives of Industrial Bank of India Ltd To provide financial assistance as well as to revive and revitalise sick industrial units in public/private sectors, an institution called the Industrial Reconstruction Corporation of India (IRCI) was set up in 1971 with a share capital of Rs. 10 crores.