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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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Neporo4naja [7]
When people take money out of the bank, they have to pay them back with a little more and interest is why.<span />
7 0
3 years ago
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Brickhouse is expected to pay a dividend of $2.60 and $2.24 over the next two years, respectively. After that, the company is ex
Sholpan [36]

Answer:

$29.83

Explanation:

This question requires application of dividend discount model, according to which current value of share is present value of dividends expected in future.

P0=\frac{Div1}{(1+r)^{1} }+\frac{Div2}{(1+r)^{2} }+\frac{V2}{(1+r)^{2} }

where V2 is the terminal value, present value of dividends growing at constant growth rate,

V2 = Div3 ÷ (r - g)

Div3 = $2.24 × (1 + 2.8%)

        = $2.30272

V2 = $2.30272 ÷ (0.102 - 0.028)

    = $2.30272 ÷ 0.074

    = $31.12

P0=\frac{2.60}{(1+0.102)^{1} }+\frac{2.24}{(1+0.102)^{2} }+\frac{31.12}{(1+0.102)^{2} }

P0=\frac{2.60}{1.102}+\frac{2.24}{1.214404}+\frac{31.12}{1.214404}

          = 2.36 + 1.84 + 25.63

= $29.83

6 0
2 years ago
On November 1, Year 1, Black Lion Company forecasts the purchase of raw materials from an Argentinian supplier on February 1, Ye
Alchen [17]

Answer:

Option B: 70,900 decrease in net income

Explanation:

Net impact on black lion company's year 2 net income as a result of this hedge of a forecast foreign currency purchase can be calculated by summing up the Option expense, cost of goods sold and adjustment to net income in year 2 .

NET IMPACT ON YEAR NET INCOME

Option expenses                    (900)

Cost of goods sold               (72,000)

Adjustment to Net Income     2000

Decrease in Net Income       (70,900)

Working

                                                                                   DEBIT     CREDIT

Option expense                                                         900

Foreign currency Option                                           1100

(0.35 - 0.36) x 200,000 = 2000

2000 - 900 = 1100

Accumulated other comprehensive income                                2000

                                                              DEBIT           CREDIT

Foreign currency                                  72,000

(200,000x0.36)

Cash                                                                             70,000

(200,000x0.35)

Foreign currency option                                             2,000

                                                 DEBIT        CREDIT

Cost of goods sold                 72,000

Foreign currency                                       72,000

                                                                                 DEBIT     CREDIT

Accumulated other comprehensive income          2000

Adjustment to Net Income                                                     2000

7 0
3 years ago
For Pronghorn Corporation, year-end plan assets were $2,035,000. At the beginning of the year, plan assets were $1,770,000. Duri
Anni [7]

Answer:

The answer is: $367,000

Explanation:

To determine Pronghorn Corporation's actual return on plan assets we can use the following formula:

return on plan assets = (year-end plan assets - beginning of the year plan assets) - (contribution to the pension fund - benefits paid)

return on plan assets = ($2,035,000 - $1,770,000) - ($116,000 - $218,000)

return on plan assets = $265,000 - (-$102,000) = $265,000 + $102,000

return on plan assets = $367,000

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3 years ago
Competition is to be expected in capitalist economies.<br><br> True<br> False
kow [346]

Answer:

True

Explanation:

Capitalism works because it encourages competition

8 0
2 years ago
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