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3 years ago

13

Sheffield Co. uses the gross method to record sales made on credit. On July 1, 2020, it made sales of 83,000 with terms 2/10 n/3

0. On July 9, 2020, Sheffield received full payment for the July 1 sale. Prepare the required journal entries for Sheffield Co. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

1 answer:

dezoksy [38]3 years ago

8 0

Answer:

July 1

Dr r Accounts Receivable $83,000

Cr Sales Revenue $83,000

July 9

Dr Cash $81,340

Dr Sales Discount $1,660

Cr Accounts Receivable $83,000

Explanation:

Preparation of the required journal entries for Sheffield Co.

July 1

Dr r Accounts Receivable $83,000

Cr Sales Revenue $83,000

July 9

Dr Cash $81,340

[($83,000 -($83,000 *.02)]

Dr Sales Discount $1,660

($83,000-$81,340)

Cr Accounts Receivable $83,000

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Adcock Company issued $600,000, 9%, 20-year bonds on January 1, 2020, at 103. Interest is payable annually on January 1. Adcock

FromTheMoon [43]

Answer: Please find answers in explanation column.

Explanation:

a. Journal to record The issuance of the bond

Date Account Titles Debit Credit

Jan. 1 Cash $618,000

9% Bonds payable $600,000

Premium on Bonds payable $18,000

Calculation

Cash = 600,000 x 103% =$618,000

b. The accrual of interest and the premium amortization on December 31, 2020

Date Account Titles Debit Credit

Dec. 31 Interest expense $53,100

Premium on Bonds payable $900

Interest payable $54,000

Calculation

Interest = 600,000 x 9% = $54,000

Premium on bonds = 18,000 /20 = $900

Interest expense=$54,000- $900=$53,100

c.Journal to record The payment of interest on January 1, 2021. Date Account Titles Debit Credit

Jan. 1 Interest payable 54000

Cash 54000

d) Journal to record The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded.

Date Account Titles and Explanation Debit Credit

Jan. 1, 2 Bonds payable $600,000

Cash $600,000

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3 years ago

Which one of these is NOT collaboration?

Mazyrski [523]

Of all the items relating to collaboration, Independent practice is the odd one out as it is not one of the methods of collaboration.

See the explanation bellow

<h3>What is collaboration?</h3>

In simple terms, collaboration is a way of working with one or more persons on a project or a task, in essence, it reflects team work and team spirit encourages efficiency and good work output.

When a team consists of team members who collaborate effectively, one member can cover up for the shortcoming or the other.

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2 years ago

Lois Bragg owns a small restaurant in Boston. Ms. Bragg provided her accountant with the following summary information regarding

loris [4]

Answer:

Compute the amount of funds Ms. Bragg needs to borrow for June.

$162,850

Determine the amount of interest expense the restaurant will report on the June pro forma income statement.

$0, money is borrowed on June 30th there is no interest expense during June

What amount will the restaurant report as interest expense on the July pro forma income statement

$1,357

Explanation:

accounts receivable May 31 is $56,000.

budgeted cash sales for June $145,000

credit sales for June $591,000

65% of credit sales are collected in current month, 35% collected next month

suppliers are paid on the last day of the month

budgeted cash payments for June 30th = $710,000

cash balance $38,000

how much money does Ms. Bragg need to borrow on June 30?

total cash collections in June = $56,000 (from previous month) + $145,000 (cash sales) + $384,150 (65% of $591,000) = $585,150

payments - cash collected = $710,000 - $585,150 = $124,850

money borrowed on June 30 = $124,850 + $38,000 (desired cash balance) = $162,850

interest expense during July = $162,850 x 10% x 1/12 = $1,357

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3 years ago

Describe the relationship between supply and demand in your own words

Tanzania [10]

Answer:

Supply: In economic terms, supply is the amount of resources or products that are provided by the company or an organization to the public or the targeted marketed. For example a toy making company would be providing toys to people with children, who are in need of toys.

Demand: It is an economic concept that states the need of a product or service. People or organizations have needs which are fulfilled by products and services. For example, the need for toys of people with children is known to be their demand which is then fulfilled by companies.

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3 years ago

Emerson Inc.'s would like to undertake a policy of paying out 45% of its income. Its latest net income was $1,250,000, and it ha

AfilCa [17]

Answer:

$2.50

Explanation:

Given that,

Dividend Paying out under a policy = 45% of its income

Net income = $1,250,000

Number of shares outstanding = 225,000

Total dividends:

= 45% of its income

= $ 1,250,000 × 45%

= $562,500

Dividend per share:

= Total dividends ÷ Number of shares outstanding

= $562,500 ÷ 225,000

= $2.50

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3 years ago