Identify each statement as true or false.

Prepare the journal entries to record the following transactions on Sunland Company's books using a perpetual inventory system.

Volgvan

Answer:

a. March 2, 202x, merchandise purchased on account from Splish Brothers, credit terms 2/10, n/30

Dr Merchandise inventory 885,600

Cr Accounts payable 885,600

b. March 6, 202x, defective/wrong merchandise returned to Splish Brothers

Dr Accounts payable 110,200

Cr Merchandise inventory 110,200

c. March 12, 202x, paid invoice to Splish Brothers within discount term

Dr Accounts payable 775,400

Cr Cash 759,892

Cr Purchase discounts 15,508

purchase discount = purchase balance x 2% = $775,400 x 2% = $15,508

8 0

3 years ago

Dawson is saving for a down payment to buy a house. He has opened a bank account that earns 2.5% interest compounded monthly. Ho

Anika [276]

Answer:

Present Value of the Investment is $17246.

Explanation:

The Discounting formula would be used to discount the future value $20,000 at the required rate of 2.5% for 6 number of years. So the formula is as under:

Present Value = Future Value / (1+r)^n

By putting values, we have:

Present Value = $20,000 / (1+2.5%)^6 = $20000 / 1.120 = $17246

Dawson must invest now $17246 to receive $20000 after 6 number of years.

5 0

3 years ago

Why would term life insurance costs be different for two people who are the same age

geniusboy [140]

Answer:

There are different factors that play into the costs.

Explanation:

For example, if you are a male, you tend to be more reckless. It also depends on the job you would be working at.

3 0

4 years ago

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7. Identifying costs of inflation Bob manages a grocery store in a country experiencing a high rate of inflation. He is paid in

stiks02 [169]

Answer:

Shoe-leather Costs.

Explanation:

In this scenario, Bob manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash twice per month. On payday, he immediately goes out and buys all the goods he will need over the next two weeks in order to prevent the money in his wallet from losing value.

What he can't spend, he converts into a more stable foreign currency for a steep fee. This is an example of the Shoes-leather costs of inflation.

A Shoe-leather costs refers to the costs of time, energy and effort people expend to mitigate the effect of high inflation on the depreciative purchasing power of money by frequently visiting depository financial institutions in order to minimize inflation tax they pay on holding cash.

Metaphorically, it ultimately implies that in order to protect the value of money or assets, some people wear out the sole of their shoes by going to financial institutions more frequently to make deposits.

Hence, Bob is practicing a shoe-leather cost of inflation so as to reduce the nominal interest rates.

5 0

4 years ago

Identify the examples of abilities. Check all that apply. Kelvin is good at giving speeches. Elaine knows how to drive a car. Wi

viktelen [127]

Answer:

Examples of abilities:

- Kelvin is good at giving speeches.

- Elaine knows how to drive a car.

- Cam can run for long distances.

Explanation:

8 0

4 years ago

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