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laiz [17]
3 years ago
14

The following transactions are for Crane Company. 1. On December 3, Crane Company sold $513, 500 of merchandise to Sheridan Co.,

terms 3/10, n/30. The cost of the merchandise sold was $318, 300. 2. On December 8, Sheridan Co. was granted an allowance of $24, 700 for merchandise purchased on December 3. 3. On December 13, Crane Company received the balance due from Sheridan Co.
(a) Prepare the journal entries to record these transactions on the books of Crane Company. Crane Company uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(b) Assume that Crane Company received the balance due from Sheridan Co. on January 2 of the following year instead of December 13, Prepare the journal entry to record the receipt of payment on January 2. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Business
1 answer:
serg [7]3 years ago
3 0

Answer:

a) December 3, 202x, merchandise sold to Sheridan Co., terms 3/10, n/30

Dr Accounts receivable 513,500

    Cr Sales revenue 513,500

Dr Cost of goods sold 318,300

    Cr Merchandise inventory 318,300

December 8, merchandise allowance

Dr Sales returns and allowances 24,700

    Cr Accounts receivable 24,700

December 13, invoice collected from Sheridan Co.

Dr Cash 474,136

Dr Sales discounts 14,664

    Cr Accounts receivable 488,800

b) January 2, invoice collected from Sheridan Co.

Dr Cash 488,800

    Cr Accounts receivable 488,800

You might be interested in
The following summarized data (amounts in millions) are taken from the September 27, 2014, and September 28, 2013, comparative f
Anarel [89]

Answer:

Apple Inc.

a. Calculate Apple Inc.'s working capital, current ratio, and acid-test ratio at September 27, 2014, and September 28, 2013. (Round your ratio answers to 1 decimal place. Enter "Working capital" in million of dollars.)

September 2014:

a) Working Capital = Current Assets - Current Liabilities

= $45,660,000 - $34,978,000 = $10,682,000

b) Current Ratio = Current Assets / Current Liabilities

= $45,660 / $34,978 = 1.3 : 1

c) Acid-Test Ratio = Current Assets - Inventory / Current Liabilities

= $45,660 - 930 / $34,978 = 1.3 : 1

September 2013:

a) Working Capital = Current Assets - Current Liabilities

= $41,940,000 - $21,160,000 = $20,780,000

b) Current Ratio  = Current Assets / Current Liabilities

= $41,940 / $21,160 = 2 : 1

c) Acid-Test Ratio Current Assets - Inventory / Current Liabilities

= $41,940 -1,200 / $21,160 = 1.9 : 1

b. Calculate Apple's ROE for the years ended September 27, 2014, and September 28, 2013. (Round your answers to 1 decimal place.)

September 2014

ROE = Net Income/Equity x 100 = $26,050/$77,290 x 100 = 33.7%

September 2013

ROE = Net Income/Equity x 100 = $14,160/$48,050 x 100 = 29.5%

c. Calculate Apple's ROI, showing margin and turnover, for the years ended September 27, 2014, and September 28, 2013. (Round "Turnover" answers to 2 decimal places. Round your percentage answers to 1 decimal place.)

September 2014

ROI = Margin x Turnover = Net Operating Income/Sales x Sales/Average Assets

= ($33,950/$108,400) x ($108,400/$120,880)

= 0.31 x 0.90

= 0.279 = 27.9%

Average Assets = $120,880 ($147,820 + 93,940) /2

September 2013

ROI = margin = turnover = Net Operating Income/Sales x Sales/Average Assets

= ($18,530/$65,370) x ($65,370/$70,880)

= 0.28 x 0.92

= 0.258 = 25.8%

Average Assets = $70,880 ($93,940 + 47,820) /2

Explanation:

<h3>Apple Inc. </h3><h3>Income Statement</h3>

For the Fiscal Years Ended September 27 and September 28, respectively:

                                                             2014                2013

Net sales                                           $108,400            $65,370

Costs of sales                                      64,580              39,690

Operating income                               33,950               18,530

Net income                                       $26,050              $14,160

Balance Sheet:

Assets

Current assets:

Cash and cash equivalents                                            $9,580      $10,630

Short-term marketable securities                                   16,280         14,510

Accounts receivable, less allowances of $84 & $99     5,520          5,670

Inventories                                                                           930           1,200

Deferred tax assets                                                          2,170            1,780

Vendor non-trade receivables                                       6,500           4,560

Other current assets                                                      4,680           3,590

Total current assets                                                     45,660          41,940

Long-term marketable securities                               85,770          25,540

Property, plant, and equipment, net                            7,930          22,670

Goodwill                                                                         1,060               890

Acquired intangible assets, net                                   3,690               490

Other assets                                                                  3,710              2,410

Total assets                                                             $147,820        $93,940

Liabilities and Shareholders Equity

Current liabilities:

Accounts payable                                                     $14,780          $12,160

Accrued expenses                                                      9,400             5,870

Deferred revenue                                                       4,250              3,130

Commercial paper                                                      6,548             0

Total current liabilities                                              34,978             21,160

Deferred revenue: noncurrent                                   1,840              1,290

Long-term debt                                                        23,452            17,760

Other noncurrent liabilities                                      10,260             5,680

Total liabilities                                                          70,530           45,890

Shareholders' Equity:

Common stock and additional paid-in capital,$0.00001

par value, 1,900,000 shares authorized; 929,430 & 916,130

shares issued & outstanding, respectively            13,490             10,810

Retained earnings                                                  63,200           37,320

Accumulated other comprehensive income (loss)    600                (-80)

Total shareholders' equity                                     77,290           48,050

Total liabilities & shareholders' equity              $147,820        $ 93,940

At September 29, 2012, total assets were $47,820 and total shareholders' equity was $31,800.

b) Working Capital is the excess of current assets over current liabilities.  It shows the amount of finance needed for meeting day-to-day operations of an entity.  Working capital measures a company's liquidity, operational efficiency, and its short-term financial health.  A healthy entity has some excess of current assets over current liabilities in order to continue to run the business operations in the short-run.  Working capital can also be measured in relative terms with the use of ratios, especially the current ratio and the acid-test ratio.

c) ROE means Return on equity.  It is a financial performance measure calculated by dividing net income by shareholders' equity.   Since shareholders' equity is equal to a company's assets minus its debt, ROE is considered as the return on net assets.  As with return on capital, a ROE measures management's ability to generate income from the equity available to it.

d) Return on Investment (ROI) is a financial performance measure which evaluates the efficiency of an investment or compares the efficiency of a number of different investments.  ROI tries to directly measure the amount of return on a particular investment, relative to the investment's cost.  As a financial metric, it measures the probability of gaining a return from an investment.

6 0
3 years ago
During 2019, Revitup, Inc., an exercise video retailer, sold $24,000 of videos to its customers. Revitup collected $22,000 and e
Oksanka [162]

Answer:

$24,000

Explanation:

Since in the question it is provided that there is a sale value of the videos to its customers i.e. $24,000 also the collection is of $22,000 and the remaining balance i.e. $2,000 is expected to collect in Jan 2020

Based on the above information, the revenue should be reported on the income statement at the $24,000 as this amount represent the sale value of the videos to its customers and hence, the same is to be considered

Hence, 24,000 would be reported as a revenue in the income statement

4 0
3 years ago
Fatima is struggling in her job and is experiencing increased dissatisfaction. She related to you that her manager has been unfa
oee [108]

Answer:

Cognitive dissonance

Explanation:

Cognitive dissonance is a psychological notion when an individual experiences thoughts and emotions that are not consistent (no matter the environment). In this example, it was expected from Fatima to quit her job (since she hated the manager). In spite of that, she continued to work. That caused the cognitive dissonance in her behavior, as she changed her attitude.

6 0
3 years ago
You invested $5,000 in the Cog corporation and $5,000 in the Gear corporation. Both of these corporations have $100 million in t
elena-14-01-66 [18.8K]

Answer:

(d) Gear is more efficient than Cog.

Explanation:

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3 years ago
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