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3 years ago

8

Collecting the principal on a loan to another company would be reported on the investing activities section of the statement of

cash flows.
a. True
b. False

1 answer:

Komok [63]3 years ago

8 0

Answer
It’s true
Hope it helps
Sorry if wrong

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Information related to Kerber Co. is presented below.1. On April 5, purchased merchandise from Wilkes Company for $23,000, terms

diamong [38]

Answer: please refer to the explanation section for journals and notes

Explanation:

1 April

DR Inventory 23000

CR Trade Payable 23000

inventory is purchased on Free on Board Shipping terms, risks and Ownership of inventory transfers to Kerber Co the moment Wilkes company ships the inventory. inventory must be recognised

6 April

DR Freight costs 900

CR Bank 900

DR Inventory 900

CR Freight costs 900

Kerber Co Paid Freight costs of $900. There are two events happening in this transaction being the payment of freight costs and the capitalisation of freight costs. Freight costs are capitalised (included in the value of inventory) as they are costs necessary to get the inventory in to the premises of the customer (Kerber Co).

7 April

DR Equipment 26000

CR Creditor/Liability 26000

Kerber Co purchase inventory on credit. equipment is debited because Equipment is an asset and liability is credited.

8 April

DR Trade Payable 3000

CR inventory 3000

Damaged inventory returned will decrease inventory balance and also decrease the amount owed to the creditor (Wilkes Company) . Trade Payable account is Debited and inventory account is credited to record the decrease in inventory and amount payable

15 April

DR Trade Payable 20000

CR Bank 20000

23000 - 3000 = 20 000

recording payment made to the Creditor for inventory purchased or settlement of the trade payable account

5 0

3 years ago

On February 12, Goal Publishing, Inc., purchased the copyright to a book for $15,000 and agreed to pay royalties equal to 10% of

Ugo [173]

Answer:

option 2 $75,000

Explanation:

Data provided in the question:

Amount for which the copyright to a book purchased = $15,000

Agreed royalty = 10% of the book sales

Minimum royalty to be paid= $60,000

Total book sales = $750,000

Now,

The Amount of royalty according to the agreement

= 10% of Total book sales

= 10% of $750,000

= $75,000

Since,

The amount the greater than the minimum royalty

Hence,

the agreement amount will be paid

i.e

option 2 $75,000

3 0

3 years ago

People of all backgrounds, occupations, and income levels wear watches but rolex focuses only on the high-income portion of the

maks197457 [2]

Rolex uses a <u>"single-segment"</u> strategy.

The single segment strategy includes the utilization of just a single marketing mix for one market segment.

The single segment strategy in advertising guarantees that a producer chooses one section of the market and just supplies that segment.One or every one of the products created by an advertiser are sold to just who meet the attributes of that single segment.

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3 years ago

Stuart Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that

andrey2020 [161]

Answer:

Explanation:

The preparation of sales budget for the first quarter of year

Sales budget for the first quarter

Jan Feb March

Sales $260,000 $312,000 $374,400

Working Note

For Feb Sales = $260,000 × (100 + 20%)

= $260,000 × 120%

= $312,000

For March Sales = $312,000 × 120%

= $374,400

The amount of sales revenue Stuart will report on the year 1 first quarterly pro forma income statement is shown below:-

Jan Sales = $260,000

Feb Sales = $260,000 × (100 + 20%)

= $260,000 × 120%

= $312,000

March Sales = $312,000 × 120%

= $374,400

Total Sales = $260,000 + $312,000 + $374,400

= $946,400

The preparation of cash receipts schedule for the first quarter of year is shown below:-

Jan Feb March

Jan Sales collection $182,000 $54,600 $23,400

($260,000 × 70%) ($260,000 × 21%) ($260,000 × 9%)

Feb Sales collection $218,400 $65,520

($312,000 × 70%) ($312,000 × 21%)

March Sales collection $262,080

($374,400 × 70%)

Total cash collections $182,000 $273,000 $351,000

The amount of accounts receivable is given below:-

Receivables

Out of Feb Sales $28,080

($312,000 × 9%)

Out of March Sales $112,320

($374,400 × (21% + 9%))

Total receivables $140,400

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MAVERICK [17]

Answer:

Explanation highest paying

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