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lyudmila [28]
3 years ago
5

Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or

Access. Zisa deducts a 3% service charge for sales on its credit card and credits the bank account of Mayfair immediately when credit card receipts are deposited. Mayfair deposits the Zisa credit card receipts each business day. When customers use Access credit cards, Mayfair accumulates the receipts for several days before submitting them to Access for payment. Access deducts a 2% service charge and usually pays within one week of being billed. Mayfair completes the following transactions in June.
(The terms of all credit sales are 2/15, n/30, and all sales are recorded at the gross price.) June 4 Sold $650 of merchandise (that had cost $400) on credit to Natara Morris. 5 Sold $6,900 of merchandise (that had cost $4,200) to customers who used their Zisa cards. 6 Sold $5,850 of merchandise (that had cost $3,800) to customers who used their Access cards. 8 Sold $4,350 of merchandise (that had cost $2,900) to customers who used their Access cards. 10 Submitted Access card receipts accumulated since June 6 to the credit card company for payment. 13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $429 balance in McKee’s account stemmed from a credit sale in October of last year. 17 Received the amount due from Access. 18 Received Morris’s check in full payment for the purchase of June 4.
Required:
Prepare journal entries to record the preceding transactions and events. (The company uses the perpetual inventory system.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
alexandr402 [8]3 years ago
3 0

Answer:

June 4 Sold $650 of merchandise (that had cost $400) on credit to Natara Morris.

June 4

Dr Accounts receivable 650

    Cr Sales revenue 650

June 4

Dr Cost of goods sold 400

    Cr Inventory 400

5 Sold $6,900 of merchandise (that had cost $4,200) to customers who used their Zisa cards.

June 5

Dr Accounts receivable 6,693

Dr Credit card fees 207

    Cr Sales revenue 6,900

June 5

Dr Cost of goods sold 4,200

    Cr Inventory 4,200

June 5, after Zisa transfers the money

Dr Cash 6,693

    Cr Accounts receivable 6,693

6 Sold $5,850 of merchandise (that had cost $3,800) to customers who used their Access cards.

June 6

Dr Unbilled revenue 5,733

Dr Credit card fees 117

    Cr Sales revenue 5,850

June 6

Dr Cost of goods sold 3,800

    Cr Inventory 3,800

8 Sold $4,350 of merchandise (that had cost $2,900) to customers who used their Access cards.

June 8

Dr Unbilled revenue 4,263

Dr Credit card fees 187

    Cr Sales revenue 4,350

June 8

Dr Cost of goods sold 2,900

    Cr Inventory 2,900

10 Submitted Access card receipts accumulated since June 6 to the credit card company for payment.

June 10

Dr Accounts receivable 9,996

    Cr Unbilled revenue 9,996

13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $429 balance in McKee’s account stemmed from a credit sale in October of last year.

June 13

Dr Bad debt expense 429

    Cr Allowance for doubtful accounts 429

17 Received the amount due from Access.

June 17

Dr Cash 9,996

    Cr Accounts receivable 9,996

18 Received Morris’s check in full payment for the purchase of June 4.

June 18

Dr Cash 650

    Cr Accounts payable 650

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Answer:

Total number of equivalent units= 100,000

Explanation:

Giving the following information:

A total of 90,000 were finished during the period and 25,000 remaining in Work in Process inventory were 40% complete with respect to direct labor at the end of the period.

Weighted-average method:

Units completed= 90,000

Ending inventory= 25,000*0.4= 10,000

Total number of equivalent units= 100,000

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Suppose there are 75 million people in the labor force. The labor force participation rate is 60% and the unemployment rate is 8
max2010maxim [7]

Answer:

a). The number of people in the working age population=125 million

b). The number of people who are part of the working-age population but not part of the labor force=50 million

c). The number of unemployed workers=6 million

d). The number of unemployed workers=69 million

Explanation:

a).

The labor force is the total number of people who are employed and also the unemployed who are looking for work.

The labor participation rate is a percentage expressed as;

Labor participation rate=(total number of employed+unemployed looking for work)/Total number in working age population

where;

total number of employed and unemployed looking for work=75 million

labor participation rate=60%

total number in working age population=p

replacing;

(60/100)=75 million/p

60 p=75 million×100

p=75 million×100/60

p=125 million

The number of people in the working age population=125 million

b). Working age population but not labor force=Total working age population-labor force

=(125-75)=50 million

The number of people who are part of the working-age population but not part of the labor force=50 million

c). Unemployment rate=(number of unemployed persons/labor force)×100

where;

number of unemployed persons=x

Unemployment rate=8%

labor force=75 million

replacing;

8/100=x/75 million

x=75 million×8/100=6 million

The number of unemployed workers=6 million

d). Labor force=number of employed workers+number of unemployed workers

where;

labor force=75 million

number of employed workers=y

number of unemployed workers=6 million

replacing;

75 million=y+6 million

y=(75-6) million

y=69 million

The number of unemployed workers=69 million

5 0
3 years ago
What is owners’ equity for 2015 and 2016? b. What is the change in net working capital for 2016? c. In 2016, Cabo Wabo purchased
Pachacha [2.7K]

Answer:

The concluding part of this question is below:

Partial Balance Sheets as of December 31, 2015 and 2016

Current Assets 2015: $2,718 2016: $2,881 Current Liabilites 2015: $1,174 2016: $1,726

Net Fixed Assets 2015: $12,602 2016: $13,175 Long Term Debt 2015: $6,873 2016: $8,019

2016 Income Statement

Sales $40,664

Costs $20,393

Depreciation $3,434

Interest paid $938

a.Owner's is the balancing figure using the equation Assets=Capital+Liabilities

Which are $7273 and $6311 respectively

b.Change in net working capital=Ending NWC-Opening NWC

                                                      =($2881-$1726)-($2718-$1174)

                                                       =$-389

C.fixed asset sold==$12602+$7160-$3434-$13175=$3153

(beginning Net Fixed Asset+purchases-depreciation-ending Net Fixed asset)

Cash flow from assets for 2016: = Cash flow from operations - Capital spending - Change in NWC

Cash flow from operations = EBIT + depreciation-taxes = $16837+$3434-$6360 = $13912

Capital spending = Ending Fixed assets -Beginning Fixed assets + depreciation = $13175-$12602+$3434 = $4007

Change in NWC = - 389 (calculated under  above)

Therefore, cash flow from assets = $13912-$4007-(-)$

389 = $10,294

Total debt paid during the year = Opening debt - closing debt + new debt

=$6873-$8019+$2155 = $1009

Cash flow to creditors = Opening debt - closing debt + interest expense= $6873-$8019+$938 = -$208

Explanation:

BALANCE SHEETS 2015 2016 INCOME STATEMENT FOR 2016  

Current assets 2718 2881              Sales           40664  

Net fixed assets 12602 13175              Costs      20393  

                               15320  16056                  Depreciation 3434  

Current liabilities 1174 1726                  EBIT        16837  

LT debt 6873 8019                                Interest        938  

Owners' equity 7273 6311                   EBT     15899  

           (15320-1174-6873)(16056-1726-8019) Tax at 40% 6360

                              5320 16056             Net Income 9539

8 0
3 years ago
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