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3 years ago

Journalize the following transactions assuming a perpetual inventory system:

Business

1 answer:

natulia [17]3 years ago

5 0

Answer:

May 5

Merchandise Inventory $6,000 (debit)

Freight Charges $100 (debit)

Accounts Payable : Archie Co. $6,000 (credit)

Cash $100 (credit)

May 12

Accounts Payable : Archie Co. $2,500 (debit)

Merchandise Inventory $2,500 (credit))

May 14

Accounts Payable : Archie Co. $3,500 (debit)

Discount Received $70 (credit)

Cash $3,430 (credit)

Explanation:

May 5

Recognize the Assets of Merchandise and a Liability : Accounts Payable : Archie Co. as a result of purchase.

Also Recognize the Freight Expenses since this is a F.O.B delivery

May 12

De-recognize the Liability : Accounts Payable - Archie Co. and the Merchandise Inventory asset to the extend of Merchandise returned to Archie Co.

May 14

De-recognize the Liability : Accounts Payable : Archie Co. of $3,500 and the Cash assets to the extend of Payment made to Archie Co less cash discount of $3,430 .

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pantera1 [17]

Answer:

The answer is $61,000

Explanation:

An impairment loss is recognized when the carrying amount of an asset is less than its fair value(prevailing market price).

The difference between the carrying value and fair value is written off. Carrying amount is the cost of acquiring an asset minus any subsequent depreciation and impairment charges.

Impairment Loss = Book Value – Market Value

Impairment Loss = $177,500 - $116,500

Impairment loss is $61,000

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3 years ago

An investor purchases a stock for $38 and a put for $.50 with a strike price of $35. The investor sells a call for $.50 with a s

Nuetrik [128]

Answer: $2

Explanation:

From the question, we are informed that an investor purchases a stock for $38 and a put for $.50 with a strike price of $35 and that the investor sells a call for $.50 with a strike price of $40.

The maximum profit for this position will be the purchase price of the stock deducted from the strike price of call option. This will be:

= $40 - $38

= $2

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3 years ago

Two categories of expenses in merchandising companies are a. cost of goods sold and financing expenses. b. operating expenses an

expeople1 [14]

Answer:

Two categories of expenses in merchandising companies are c. cost of goods sold and operating expenses

Explanation:

Merchandising Companies will incur direct expenses related to their trading activities in relation to each of their sales and these are known as cost of goods sold. Cost of Goods Sold is an expense in the Trading Account.

However, the Merchandising Company will also incur other indirect expenses to maintain its trading and are not directly related to each sale of their merchandise. For example the cost of Administration Work and Depreciation of its equipment. These are known as Operating Expenses. Operating Expenses are expenses in the Profit and loss Account

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4 years ago

Read 2 more answers

Advertisers can determine how effective their media mix has been in reaching their target audience by calculating ________ of th

Viefleur [7K]

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3 years ago

If the one-year discount factor is 0.8333, what is the discount rate (interest rate) per year?

yan [13]

Answer:

20%

Explanation:

The computation of the discount rate per year is shown below:

As we know that

Discount factor = 1 ÷ (1 + Interest rate)^number of years

0.8333 = 1 ÷ (1 + Interest rate)^1

1 + Interest rate = 1 ÷ 0.8333

Interest rate = 1.20 - 1

Interest rate = 0.20 or 20%

Hence, the interest rate is 20% by applying the discount factor formula which is shown above

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3 years ago