Sales-Related Transactions
Steritech Co., a furniture wholesaler, sells merchandise to Butler Co. on account, $86,000, terms 2/10, n/30. The cost of the merchandise sold is $51,600. Steritech Co. issues a credit memorandum for $5,000 ($4,900 net of the 2% discount) for merchandise that was damaged in shipment. Butler Co. agreed to keep the damaged merchandiise. Illustrate the effects on the accounts and financial statements of Steritech Co.
If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank.
a. The sale, including the cost of the merchandise sold. Enter account decreases, cash outflows, and the cost of merchandise sold as negative amounts.
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b. The credit memorandum. Enter account decreases as negative amounts. When entering the income statement effects, enter amounts that decrease net income as negative values.
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c. The receipt of the check for the amount due from Butler Co. Enter account decreases as negative amounts. When entering the income statement effects, enter amounts that decrease net income as negative values.
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Steritech Co. | ||||||||||
Balance sheet | Liabilities | |||||||||
Assets = | Liabilities + | Stockholder's equity | Income Statement | Cash flow | ||||||
Accounts receivable + | Inventory | Cash | Retained earnings | Sales | Cost of goods sold | Net income | ||||
a. | 86,000 | (51,600) | - | 34,400 | 86,000 | (51,600) | 34,400 | No effect | ||
b | (5,000) | - | - | (5,000) | (5,000) | - | (5,000) | No effect | ||
c. | (81,000) | - | 79,380 | - | (1,620) | - | (1,620) | (1,620) | Cash inflow- Operating Activity |
Sales-Related Transactions Steritech Co., a furniture wholesaler, sells merchandise to Butler Co. on account, $86,000, terms...
Sales-Related Transactions Steritech Co., a furniture wholesaler, sells merchandise to Butler Co. on account, $86,000, terms 2/10, n/30. The cost of the merchandise sold is $51,600. Steritech Co. issues a credit memorandum for $5,000 ($4,900 net of the 2% discount) for merchandise that was damaged in shipment. Butler Co. agreed to keep the damaged merchandiise. Illustrate the effects on the accounts and financial statements of Steritech Co. If no account or activity is affected, select "No effect" from the dropdown...
Purchase-Related Transactions Milan Co., a women's clothing store, purchased $120,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. Milan Co. returned $16,000 of the merchandise, receiving a credit memorandum, and then paid the amount due within the discount period. Illustrate the effects on the accounts and financial statements of Milan Co. to record the following transactions. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box...
Purchase-Related Transactions Milan Co., a women's clothing
store, purchased $120,000 of merchandise from a supplier on
account, terms FOB destination, 2/10, n/30. Milan Co. returned
$16,000 of the merchandise, receiving a credit memorandum, and then
paid the amount due within the discount period. Illustrate the
effects on the accounts and financial statements of Milan Co. to
record the following transactions. If no account or activity is
affected, select "No effect" from the dropdown and leave the
corresponding number entry box...
Purchase-Related Transactions Illustrate the effects on the accounts and financial statements of the following related transactions of Bowen Inc. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts a. Purchased $400,000 of merchandise from Swanson Co. on account, terms 1/10, n/30. Balance Sheet Statement of Income Assets Liabilities + Stockholders' Equity Cash Flows Statement No Effect + Inventory...
Sales Tax Transactions Illustrate the effects on the accounts and financial statements of recording the following selected transactions. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases, cash outflows, and the cost of merchandise sold as negative amounts. a. Sold $11,250 of merchandise on account, subject to a sales tax of 6%. The cost of the merchandise sold was $6,750. Statement of Cash...
Sales-Related Transactions, Including the Use of Credit Cards Illustrate the effects on the accounts and financial statements of recording the following transactions. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. a. Sold merchandise for cash, $70,000. The cost of the goods sold was $35,000. Reflect negative numbers with a minus sign. Balance Sheet Assets = Liabilities + Stockholders' Equity + Statement of Cash Flows Income Statement dropdown...
Cash Dividends The date of declaration, date of record, and date of payment in connection with a cash dividend of $1,200,000 on a corporation’s common stock are June 1, July 15, and August 14, respectively. Illustrate the effects on the accounts and financial statements for June 1. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Statement of...
Illustrate the effect on the accounts and financial statements of the following transactions. If no account or activity is affected, select "No affect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Established a petty cash fund of $750. Balance Sheet Assets Liabilities + Stockholders' Equity Statement of Cash Flows Income Statement b. The amount of cash in the petty cash fund is now $140. Replenished the fund,...
Notes Payable A business issued a 180-day, 8% note for $52,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Illustrate the effects on...
Recording Petty Cash Fund Transactions Illustrate the effect on the accounts and financial statements of the following transactions. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Established a petty cash fund of $825. Balance Sheet Assets Liabilities + Stockholders' Equity Statement of Cash Flows Income Statement b. The amount of cash in the petty cash fund is...