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kramer
3 years ago
9

Prepare journal entries to record the following transactions entered into by the Merando Company: 2016 June 1 Received a $10,000

, 6%, 1-year note from Dan Gore as full payment on his account. Nov. 1 Sold merchandise on account to Barlow, Inc., for $14,000, terms 2/10, n/30. Nov. 5Barlow, Inc., returned merchandise worth $1,000. Nov. 9 Received payment in full from Barlow, Inc. Dec.31 Accrued interest on Gore's note. 2017 June 1 Dan Gore honored his promissory note by sending the face amount plus interest.Date Account Title and Explanation Debit Credit
Business
1 answer:
ankoles [38]3 years ago
5 0

Answer and Explanation:

The Journal entries are prepared below:-

1. Notes Receivable Dr $10,000  

   To dan Gore $10,000

(Being notes receivable is recorded)

2. Barlow Dr $14,000  

    To Inventories $14,000

(Being inventory is recorded)

3. Inventories Dr, $1,000  

   To Barlow $1,000

(Being inventory is recorded)

4. Cash Dr, $12,740 ($13,000 × 98%)

Discount Dr, 260

      To Barlow $13,000

(Being cash received is recorded)

5. Interest receivable Dr, $350  ($10,000 × 6% × 7 ÷ 12)

            To Interest revenue $350

(Being interest revenue is recorded)

6. Cash Dr, $10,600

           To Interest receivable $350

            To Interest revenue $250 ($10,000 × 6% × 5 ÷ 12)

            To Notes receivable $10,000

(Being cash received is recorded)

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Travelers to Europe usually exchange dollars for euros. Assuming that the euro supply is static, how does this currency exchange
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Answer:

Increase demand for euros and Increase US dollar price of the Euro

Explanation:

The U.S travelers to Europe will require euros while in Europe. However, since the supply of euros is static i.e does not change with change in demand, there will be more people demanding for the euro resulting into increased demand for the euro. As a result, people will have to pay more US dollars to obtain euros thus increasing the US dollar price of the euro.

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3 years ago
The incentive to improve material well-being by seeking to gain from economic activities is called
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Profit Motive

Explanation:

Profit is the monetary gain or commercial reward for engaging in business. Profits increase the wealth of the entrepreneur.

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2 years ago
Preferred stock has a par (face) value of $80. The annual dividend is $6.00 per share. Investors in this preferred stock have a
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7 0
2 years ago
If a family spends its entire budget in a given time frame, the family can afford either 14 outings or 24 household items. Assum
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Answer:

1.71 household items

Explanation:

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Maggie’s Skunk Removal Corp.’s 2018 income statement listed net sales of $14.1 million, gross profit of $9.00 million, EBIT of $
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Answer:

The answer is shown below:

Explanation:

The computations are shown below:

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= $9 million ÷  $14.1 million

= 63.83%

2. Net Profit margin percentage

= Net income available to common stockholders  ÷ Net sales × 100

= $4.8 million ÷ $14.1 million

= 34.04%

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= EBIT ÷ Net sales × 100

= $7.2 million ÷ $14.1 million

= 51.06%

Basic Earning Power in percentage

= EBIT ÷ Total Assets

= $7.2 million ÷ $54.1 million

= 13.31%

Return on assets is

= Net Income ÷ Average Assets

= $4.8 million ÷ $54.1 million

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Return on Equity is

= Net income ÷ common stockholders' equity

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And,

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= 58.33%      

6 0
3 years ago
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