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padilas [110]
2 years ago
12

Prepare journal entries to record each of the following sales transactions of EcoMart Merchandising. EcoMart uses a perpetual in

ventory system and the gross method. Oct. 1 Sold fair trade merchandise for $2, 600, with credit teres n/30; invoice dated October 1. The cost of the nerchandise is $1,450 which had cost $145, is returned to inventory of the merchandise is $890 6 The customer in the October 1 sale returned $260 of fair trade merchandise for full credit. The merchandise, 9 Sold recycled leather merchandise for $1, 250, with credit terms of 1/10, n/30; invoice dated October 11 Received payment for the amount due from the October 1 sale less the return on 0ctober 6.
Business
1 answer:
Rudik [331]2 years ago
8 0

Answer:

Oct 1

Debit  : Accounts Receivable $2,600

Debit : Cost of Sales $1,450

Credit : Sales Revenue $2,600

Credit : Merchandise $1,450

Oct 6

Debit : Sales Revenue $260

Debit : Merchandise $145

Credit : Accounts Receivable $260

Credit : Cost of Sales $145

Oct 9

Debit  : Accounts Receivable $1, 250

Debit : Cost of Sales $1,450

Credit : Sales Revenue $1, 250

Credit : Merchandise $1,450

Oct 11

Debit  : Cash $2,340

Credit : Accounts Payable $2,340

Explanation:

The perpetual method ensures that the cost of sales and inventory values are calculated after every transaction made.

Therefore, remember to show the cost of sale journal and the resulting decrease in inventory after every sale.

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The 2014 balance sheet of Jordan’s Golf Shop, Inc., showed long-term debt of $2.7 million, and the 2015 balance sheet showed lon
Gwar [14]

Answer:

$1,311,000

Explanation:

The computation of the operating cash flow is shown below:

As we know that

Operating cash flow = Cash flow from assets + capital spending - change in net working capital

where,

Cashflow from Assets = Cashflow to Creditors + Cashflow to Stakeholders

Cashflow to Creditors = Interest paid - Change in long term debt

=  $140,000 - ($2,950,000 - $2,700,000)

=  -$110,000

Now  

Cashflow to Stakeholders

= Dividends paid - New issuance of the equity

= $500,000 - (($500,000 + $3,500,000) - ($460,000 + $3,200,000))

= $160,000

So,  

Cashflow from Assets is

= -$110,000 + $160,000

= $50,000

Now  

Operating cashflow is

= $50,000 + $1,320,000 + (-$59,000)

= $1,311,000

7 0
3 years ago
If a target was purchased for $1,500.0m with an equity contribution of $500.0m, what is the enterprise value of the target if it
posledela

Answer: a. $1,000.0m

Explanation:

Even though the company's enterprise value has no growth, the equity investment of the sponsor will rise from $500.0m when purchased to $1,000.0m when the target for the value of the enterprise is sold for $1500.0m.

The debt was $1000m at year 0 while the remaining $500m was for equity. It should be noted that at the fifth year, equity will be $1,000.0m while the debt will be $500m.

8 0
2 years ago
Ralph pays his workers $ 100 each, and labor is the only variable cost. At a quantity of 5000 chickens, how many workers does he
Flura [38]

Answer:

He hires 8 workers

Explanation:

The total cost is $1600 for 5,000 chickens minus the fixed cost of  $800, which equals $800. The total cost is total of fixed cost and variable cost as in absence of production the total variable cost is zero so from this we can conclude that total fixed cost is zero.

Then divide the total variable cost ($800) buy what Ralph pays his workers ($100), which comes to 8.

6 0
3 years ago
Creating a …………………… is a basic building block in a/an ………………… that assists business executives understand the risks associated w
Aleonysh [2.5K]

Answer:

The correct answer is letter "B": Risk profile; Enterprise Risk Management.

Explanation:

One of the many good practices for Information Governance (IG) relies on developing a risk profile in Enterprise Risk Management to safeguard data. The risk profile should include the likelihood of threats, its impact and how the risk could be mitigated after it takes place. Risks profiles can be created in multiple ways in multiple frequencies.

7 0
3 years ago
On january 1, a company issued and sold a $460,000, 3%, 10-year bond payable, and received proceeds of $456,000. interest is pay
Bad White [126]

To find the carrying value of the bonds after the first interest payments, we need to do the calculations to find the interest ..

Calculation of Interest:-

Cash interest payment of $ 6,900 ( 1.5% x $ 460,000) at the end of each semiannual period during the bonds life of 10 years… ( 3% / 2 = 1.5%)

That is $ 6,900 is paid for every six months say from Jan 30th to June 30 and June 30 to Dec 31……

So, every year we will pay $ 13,800 ( $ 6,900 + $ 6,900 ) for 20 periods ( two payments are made for every year, so for 10 years , we need to make the interest payment for 20 periods…)

Now lets amortize a bond discount.. (Amortizing is nothing but paying back

Straight Line Method… This method allocates an equal portion of the total bond interest expense to each interest period .

We divide the total bond interest expense of $ 142,000 by 20

This gives the interest expense of $ 7,100 per period. ( $ 6,900 interest + $ 200 Discount)

Interest Computation

Amount repaid to bondholders

20 interest payments of $ 6,900 = $ 138,000

Par value at maturity =$ 460,000

_________

Total repaid to bondholders = $ 598,000

Less:- Amount borrowed from bondholders = $ 456,000

__________

Total bond interest expenses = $ 142,000

__________

The following table shows the decrease in Discount on bonds payable account and the increase in the bonds carrying value ( Straight line method)

This is the summarization of Discount bond Straight Line amortization..

Semiannual period –end Unammortized Discount Carrying Value

(0) 1 / 30 $ 4,000 $ 456,00

(1) 6 / 30 $ 3,800 $ 456,200

(4,000 -200) ( 456,00+200)

The carrying value of the bonds after the first interest payment is $ 456,200

8 0
3 years ago
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