All categories

2 years ago

When purchases of merchandise are made for cash, the transaction may be recorded with the following entry *

Business

1 answer:

Zepler [3.9K]2 years ago

3 0

Answer:

Dr Merchandise Inventory Cr Cash

Explanation:

Based on the information given in a situation where purchases of merchandise are made for cash the transaction will be recorded in the journal entry by debiting Merchandise Inventory and Crediting Cash reason been that MERCHANDISE are current asset and Secondly merchandise are anticipated to be either sold out, used or turn them into cash within a period of one year, although it sometimes depends on the method of payment in which the merchandise was been paid for , which is why we have to Debit Merchandise Inventory Account and Credit Cash Account.

Hence:

Journal entry

Dr Merchandise Inventory

Cr Cash

You might be interested in

2. Lereve Company has recorded the following information about the results of its operations for the fourth quarter: Sales reven

Pepsi [2]

Answer:

Lereve Company

Segmented Income Statement for the fourth quarter:

Total Company Western Division Eastern Division

Sales revenues $200,000 $80,000 $120,000

Variable cost of sales 60,000 30,000 30,000

Contribution $140,000 $50,000 $90,000

Fixed costs:

Common $100,000 $25,000 $75,000

Traceable 50,000 20,000 30,000

Net Income (Loss) ($10,000) $5,000 ($15,000)

The results show that the Eastern Division made a net loss of $15,000 and the Western Division raked in a net income of $5,000, which resulted in the company-wide net loss of $10,000. This loss could be traced to the allocated common fixed costs of the division, because its contribution to fixed costs was substantial and better than the Western Division's.

Explanation:

When the results of the operations of a divisional company like Lereve Company are prepared in segmental form, the performance pictures become clearer. Management is enabled to focus on the segments or the factors that are generating the loss to the company. Perhaps, as in this case, the problem may not be with the division, but the allocation of fixed costs to the divisions. It can still be traced to the company as a whole, since it is generating much more fixed costs than it could afford from its revenue.

3 0

2 years ago

The following information pertains to Crane Video Company:

Mashutka [201]

Answer:

Prepare Bank Reconciliation Statement

Balance at Bank as per Cash Book - Up to date $7,972

Less Lodgements not yet credited : ($1,300)

Add Unpresented Cheques $591

Balance as per Bank Statement $7,263

Adjusting Entries

Bank service charge $28 (debit)

Cash $28 (credit)

Cash $700 (debit)

Note - Receivable Crane $700 (credit)

Cash $36 (debit)

Interest Income $36 (credit)

Service Fee $20 (debit)

Cash $20 (credit)

Explanation:

First Update the Cash Book as follows:

<u>Debit :</u>

Cash balance $7,284

Crane $700

Interest $36

Totals $8,020

<u>Credit:</u>

Bank service charge $28

Crane : fee $20

Balance - Up to date $7,972

Totals $8,020

Then, Prepare Bank Reconciliation Statement

Balance at Bank as per Cash Book - Up to date $7,972

Less Lodgements not yet credited : ($1,300)

Add Unpresented Cheques $591

Balance as per Bank Statement $7,263

Adjusting Entries

Bank service charge $28 (debit)

Cash $28 (credit)

Cash $700 (debit)

Note - Receivable Crane $700 (credit)

Cash $36 (debit)

Interest Income $36 (credit)

Service Fee $20 (debit)

Cash $20 (credit)

7 0

2 years ago

Dée Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $36 per share. She borrows $4,500 from her b

meriva

Answer:

A) Dee´s Margin = 58.33%; B) Remaining Margin if price drops to $26 is 30.56% C) She won´t receive a margin call (but close...)

D) Rate of Return = - 32.36%

Explanation:

Hi, first let´s find out what the initial margin is, for that we have to use the following formula.

$Margin=\frac{Equity}{ValueStocks}$

Now, in order to find the equity, we have to find the total value of the stocks and substract the debt from it, since it was 300 shares at $30 per share, the total value of the investment is $7,800, therefore, its equity is $3,300 ($7,800-$4,500).

So everything should look like this

$Margin=\frac{6,300}{10,800} =0.5833$

So the initial margin was 58.33%

If the price drops to $26 by the end of the year, the remaining margin in her account is:

$Margin=\frac{3,300}{10,800} =0.3056$

So the remaining margin one year later, after the stock price dropped to $26 was 30.56%

Now, in order to find the rate of return on her investment, at the end of the year, we have to remember that the money loaned was at 11%, therefore, the best way to find out the return of this investment is to convert this into money, like such.

First (Gross Return of the stock)

$Gross Return=\frac{Final.P-Initial.P}{Initial.P} x100$

$Gross Return=\frac{26-36}{36} x100=-0.2778$

Ok, we have the gross return, which is -$27.78%

The interest expenses are just as follows.

$Interest Expense=4,500*0.11=-495$

To find the return on the investmen, we need to use the following formula.

$RateReturn=\frac{FinalInvestment-InitialInvestment}{InitialInvesment} x100$

The final investment is: Gross return($)+interest Expenses

$FinalInvest=\frac{300*(-10)+(-4,500*0.11)}{10,800} =-0.3236$

This means that, by the end of the year, her return on the investment was -32.36%. In money, this is - $3,495.

Best of luck.

5 0

3 years ago

Cynthia, requested a two-week leave from her employer to go on a religious pilgrimage. The pilgrimage was not a requirement of h

Volgvan

Answer: No. It does not violate Title VII if Cynthia's employer does not grant her the leave.

Explanation:

From the question, we are informed that Cynthia, requested a two-week leave from her employer to go on a religious pilgrimage and that the pilgrimage was not a requirement of her religion, but Cynthia felt it was a calling from God.

Based on the scenario, Title VII is not violated if Cynthia's employer does not grant her the leave. According to the court, when an employee says that based on his or her religious belief, he or she is required to go to a pilgrimage, the person has to prove beyond reasonable doubt.

In this case, her church which is the Roman Catholic didn't call for a pilgrimage as it was her personal choice. Therefore, Title VII is not violated if Cynthia's employer does not grant her the leave.

3 0

3 years ago

Which questions about risk should someone ask before making a big purchase? Check all that apply.

IceJOKER [234]

Answer:

Explanation:

If you need buy it, if it's a want not a need don't buy it

6 0

3 years ago