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Rashid [163]
2 years ago
6

On June 3, Carla Company sold to Chester Company merchandise having a sale price of $3,800 with terms of 4/10, n/60, f.o.b. ship

ping point. An invoice totaling $91, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company.
Required:
Prepare journal entries on the Pronghorn Company books to record all the events noted above under each of the following bases.

a. Sales and receivables are entered at gross selling price.
b. Sales and receivables are entered at net of cash discounts.
Business
1 answer:
Svetllana [295]2 years ago
8 0

Answer:

A. June 3

Dr Accounts Receivable—Chester $3,800

Cr Sales Revenue $3,800

June 12

Dr Cash $3,648

Dr Sales Discounts $152

Cr Accounts Receivable—Chester $3,800

B. June 3

Dr Accounts Receivable—Chester $3,648

Cr Sales Revenue $3,648

June 12

Dr Cash $3,648

Cr Accounts Receivable—Chester $3,648

Explanation:

A. Preparation of the journal entries on the Pronghorn Company books to record Sales and receivables are entered at gross selling price.

June 3

Dr Accounts Receivable—Chester $3,800

Cr Sales Revenue $3,800

June 12

Dr Cash $3,648

($3,800-$152)

Dr Sales Discounts ($3,800 X 4%) $152

Cr Accounts Receivable—Chester $3,800

B. Preparation of the journal entries on the Pronghorn Company books to record Sales and receivables are entered at gross selling price Sales and receivables are entered at net of cash discounts.

June 3

Dr Accounts Receivable—Chester $3,648

Cr Sales Revenue ($3,800 X 96%) $3,648

June 12

Dr Cash $3,648

Cr Accounts Receivable—Chester $3,648

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Answer:

The value of total liabilities is $155.031 million and option c is the correct answer.

Explanation:

The basic accounting equation states that the total value of assets is always equal to the sum of the total value of liabilities and the total value of equity.

Thus, we can say that,

Total Assets = Total Liabilities + Total Equity

The equity part can contain various components. In the given question it has two components namely Common Stock and retained earnings.

205.498 = Total Liabilities + (6.350 + 44.117)

205.498 = Total Liabilities + 50.467

205.498 -  50.467 = Total Liabilities

Total Liabilities = $155.031

8 0
3 years ago
When merging REA diagrams from two different cycles, it is not necessary to change the minimum cardinality for _____ that appear
elixir [45]

Answer:

c. Events

Explanation:

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REA a technique used for documentation, and it represents a portion of an entity-relationship diagram.

During the different evaluation of business cycles, the minimum cardinalities of the event are usually the same. It is not altered, i.e., they remain 0 despite each business cycle component when REA diagrams are fused.

3 0
3 years ago
Read 2 more answers
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Answer:

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7 0
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Answer:

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c) Deferred tax asset change dr or (cr) for the year.         $800              $0

d) Deferred tax liability - balance at year-end.                      $0       -$1,800

e) Deferred tax liability change dr or (cr) for the year.          $0         -$800

f) Income tax expense for the year.                              $13,200     $30,800

Explanation:

Note: See the attached excel file for all the calculations of all the answers a to f above.

Download xlsx
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