When did banks of deposit first arise?

On October 1, Robertson Company sold inventory in the amount of $5,800 to Alberta, Inc. with credit terms of 2/10, n/30. The cos

NeTakaya

Answer:

Option (d) is correct.

Explanation:

Given that,

Inventory sold to Alberta, Inc. on account = $5,800

Cost of goods sold = $4,000

The journal entries are as follows:

(i) On October 1,

Accounts receivable A/c Dr. $5,800

To sales A/c $5,800

(To record the credit sale of inventory)

(ii) On October 1,

Cost of goods sold A/c Dr. $4,000

To Merchandise inventory A/c $4,000

(To record the cost of goods sold)

4 0

3 years ago

The following account appears in the ledger prior to recognizing the jobs completed in January: Work in ProcessBalance, January

exis [7]

Answer:

Year-end WIP 62,200

jounral entry for completed jobs:

-------------------------------------

Finished Good Inventory 1,149,800 DEBIT

WIP inventory 1,149,800 CREDIT

-------------------------------------

Explanation:

WIP

Beginning $ 72,000

Materials $ 390,000

Labor $ 500,000

Overhead $ 250,000

Total WIP $ 1,212,000

Finished Jobs:

Job 210 $ 200,000

Job 224 $ 225,000

Job 216 $ 288,000

Job 230 $ 436,800

Total $ 1,149,800

the jobs complete will move to finished good and credit WIP inventory

WIP year-end:

1,212,000 - 1,149,800 = 62,200

7 0

3 years ago

On January 1, 2018, Brussels Enterprises issues bonds at par dated January 1, 2018, that have a $3,400,000 par value, mature in

pashok25 [27]

Answer:

a. Record the entry for the issuance of bonds for cash on January 1, 2018.

January 1, 2018, bonds are issued

Dr Cash 3,400,000

Cr Bonds payable 3,400,000

b. Record the entry for the first semiannual interest payment on June 30, 2018.

June 30, 2018, first coupon payment

Dr Interest expense 153,000

Cr Cash 153,000

c. Record the entry for the second semiannual interest payment on December 31, 2018.

December 31, 2018, second coupon payment

Dr Interest expense 153,000

Cr Cash 153,000

d. Record the entry for the maturity of the bonds on December 31, 2021 (assume semiannual interest is already recorded).

December 31, 2021, payment of bonds payable

Dr Bonds payable 3,400,000

Cr Cash 3,400,000

6 0

2 years ago

AP Kelly Jones and Tami Crawford borrowed $15,000 on a 7-month, 8% note from Gem State Bank to open their business, JC's Coffee

Gnom [1K]

Answer:JC Coffee house journal$

Date

a. June 1 2022

Bank Dr. 15,000

Gem state bank Cr. 15,000

Narration. Acquisitions of $15,000, 8%, 7c months loan.

b. June 30, 2022

Interest Dr 1200

Gem bank Cr. 1200

Interest on loan for the month of June

C. Interest as at December 31 2022

8% * $15,000*7

=$8400

Jan 1 2023

Gem state bank Dr 23,400

Bank. Cr. 23,400

Narration. Payment of $15,000, at 8% , 7 months and associated interest on maturity.

3 0

3 years ago

Steve owns Barb, Inc. and has grown the business over the last 15 years and is the sole owner. He decides to sell 40 percent of

Mamont248 [21]

Answer:

a. Steve will not have a capital gain in Year 1 for tax purposes.

Explanation:

Since Steve (the owner of Barb) sold his stocks to an ESOP (employee stock ownership plan), then he will be able to avoid capital gains taxes at least for the first year. ESOPs are qualified retirement plans and when they invest in stocks of the same sponsoring company, the transaction is not taxed if the seller reinvests (buys other stocks). As long as ESOP holds at least 30% of the company's stocks, then Steve can defer his taxes.

3 0

2 years ago