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V125BC [204]
3 years ago
6

On March 1, Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $254,500, terms n/30. The cost of

the merchandise sold is $152,700. On March 5, Showcase Co. issues a credit memo for $30,000 for merchandise returned prior to Balboa Co. paying the original invoice on March 29. The cost of the merchandise returned is $17,500.
Journalize Balboa Co.’s entries for (a) the purchase, (b) the return of the merchandise for credit, and (c) the payment of the invoice. Refer to the Chart of Accounts for exact wording of account titles.
Business
1 answer:
Lisa [10]3 years ago
7 0

Explanation:

The journal entries are as follows

a.

Merchandise Inventory A/c $254,500

              To Accounts payable A/c $254,500

(Being merchandise purchased on credit)

b.

Account payable Dr $30,000

         To Merchandise inventory $30,000

(Being the merchandise returned is recorded)

c.

Account payable Dr $224,500       ($254,500 - $30,000)

        To Cash $224,500

(Being the payment of the invoice is recorded)

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Equipment was purchased for $68,000 on January 1, 2013. Freight charges amounted to $2,800 and there was a cost of $8,000 for bu
Dahasolnce [82]

Answer:

a. $26,720

Explanation:

Before computing the accumulated depreciation, first we have to compute the original cost of the equipment, after that the depreciation expense. The calculation is shown below:

Original cos t = Equipment purchase cost + freight charges + installment charges

= $68,000 + $2,800 + $8,000

= $78,800

Now the depreciation expense under the straight-line method is shown below:

= (Original cost - residual value) ÷ estimated life in years

= ($78,800 - $12,000) ÷ 5 years

= $13,360

Now the accumulated depreciation is

= Depreciation expense × number of years

= $13,360 × 2 years

= $26,720

5 0
3 years ago
The four career pathways in finance are?
kondaur [170]

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3 0
3 years ago
Assume that the market is perfectly competitive. If the cost function for John's Shoe Repair is �(�) = 100 + 10� − �) + 3 4 �4,
kirill [66]

Answer:

Explanation:

C(q) = 100+10q-q^2+(1/3)q^3

To find the firm marginal cost function:

Take the derivative with respect to q

MC = 10 - 2q + q^2

Assuming that the market price is p , then the profit maximising condition is:

MR = MC

p = 10 - 2q + q^2

The short-run supply curve is the marginal cost curve that lies above the average variable cost.

The average variable cost is:

AVC =VC/Q

AVC = (10q-q^2+(1/3)q^3)/Q

AVC = 10 - q + (1/3)*q^2

So, the short-run supply curve is:

SRS = 10 - 2q + q^2 if p > 10 - q + (1/3)*q^2

5 0
3 years ago
During the second year of the equipment’s life, $21,900 cash is paid for a new component expected to increase the equipment’s pr
Alona [7]

Answer:

   S/N              ACCOUNT                                 DEBIT                  CREDIT

      1             Equipment                                   $22,000

                        Cash                                                                     $22,000  

                    Being payment for new component expected to increase the

                    equipment’s productivity by 10% a year

      2.           Equipment Repairs expenses      $6,250

                       Cash                                                                          $6,250

                    Being payment for equipment repair

     3.            Equipment                                       $14,870

                       Cash                                                                          $14,870

                    Being payment for equipment repair to prolong the useful life

                    the asset

Explanation:

The initial cost incurred in acquiring an asset is debited to asset account, subsequently every other cost spent on the assets are either expenses against the earning of that period or expensed over many years over the useful life of the asset.

Capitalization is the recognition of an expense as an asset in the balance sheet rather than expenses in the income statement.

The payment of $22,000 paid for the equipment productivity must be capitalized, that is added to the cost of the asset because it is a cost that is  expected to increase the equipment’s productivity by 10% a year.

The  $6,250  paid for normal repair is a revenue items which is to be expensed against the earning of that period.

The $14,870 paid for repairs which will increase the useful life of the equipment from four to five years is a capital expenditure which should capitalized, that is added to the cost of the asset.

7 0
3 years ago
Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $396,000 of indirect co
Viktor [21]

Answer:

(A) $144,000.

Explanation:

For computing the indirect costs allocated to the Commercial Department first we have to compute the per unit cost which is shown below:

Per unit cost = (Allocated department overhead indirect cost) ÷ (total number of direct labor hours)

=  $396,000 ÷ 22,000

= $18

The total number of direct labor hours = Consumer + commercial

                                                                = 14,000 + 8,000

                                                                = 22,000

Now the indirect cost equal to

= Per unit cost × Commercial direct labor hours

= $18 × 8,000

= $144,000

4 0
3 years ago
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