Homework Answers
| Solution: |
| 1. The answer would be adjusting and closing entries because purchase is recorded as purchase journal, sale is recorded as sales journal and payment is recorded on creditor ledger |
| 2. This has a special column to record the inventory irrespective of credit or cash purchase |
| 3. This is the ratio of debts to equity and it is important for cost of capital and also the returns to shareholders. The more the debts, it increases the cost of capital however may result into higher EPS due to lower equity |
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Which of the following will be recorded in the general journal when using a manual accounting...
an accounting information system. 4. What is a special journal? 5. What is the purpose of a subsidiary ledger? 6...
an accounting information system. 4. What is a special journal? 5. What is the purpose of a subsidiary ledger? 6. What is a control account? 7. List the four special journals often used in a manual accounting information system. What types of transactions are recorded in each of the special journals? 8. Explain the posting process of the sales journal. 9. Provide some examples of transactions that would be recorded in the Other Accounts CR column of the cash receipts...
Calculate the ratios below given the financial data presented to your left. Answers Measures of Short-term...
Calculate the ratios below given the financial data presented to your left. Answers Measures of Short-term Liquidity current assets / current liabilities quick assets / current liabilities net sales /accounts receivable 365 days/receivables turnover rate cost of goods sold/inventory current ratio quick ratico receivables turnover rate days to collect receivables inventory turnover rate Measures of Long-term Credit Risk total liabilities/total assets operating income /annual interest expense debt ratio Times Interest Earned Measures of Profitability net income / sales net income/total...
Blossom Company uses special journals and a general journal. The following transactions occurred during September 2020....
Blossom Company uses special journals and a general journal. The following transactions occurred during September 2020. Sept. Sold merchandise on account to H. Drew, invoice no. 101. $730, terms 1/30. The cost of the merchandise sold was $470. 10 Purchased merchandise on account from A. Pagan $570, terms 2/10, 1/30. 12 21 Purchased office equipment on account from R. Cairo $6,200. Sold merchandise on account to G. Holliday, invoice no. 102 for $790, terms 2/10, /30. The cost of the...
Exercise 7-06 a-b (Video) Ivanhoe Company uses special journals and a general journal. The following transactions...
Exercise 7-06 a-b (Video) Ivanhoe Company uses special journals and a general journal. The following transactions occurred during September 2020. Sept. 2 Sold merchandise on account to H. Drew, invoice no. 101, $755, terms n/30. The cost of the merchandise sold was $395. 10 Purchased merchandise on account from A. Pagan $565, terms 2/10, 1/30 12 Purchased office equipment on account from R. Cairo $6,900. 21 Sold merchandise on account to G. Holliday, invoice no. 102 for $750, terms 2/10,...
Exercise 7-6 Company uses special journals and a general journal. The following transactions occurred during September...
Exercise 7-6 Company uses special journals and a general journal. The following transactions occurred during September 2017. 2 Sold merchandise on account to H. Drew, invoice no. 101, s620, terms n/30. The cost of the merchandise sold was $420. 10 Purchased merchandise on account from A. Pagan $650, terms 2/10, n/30. 12 Purchased office equipment on account from R. Cairo $6,500. 21 Sold merchandise on account to G. Holliday, invoice no. 102 for $800, terms 2/10, n/30. The cost of...
On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances:...
On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (8%, due in 3 years) Common Stock Retained Earnings Totals Debit Credit $ 24,900 44,000 $ 3,300 45,000 84,100 27,700 45,000 71,000 51,000 $198,000 $198,000 The $45,000 beginning balance of inventory consists of 450 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January...
PROJECT: Select any bank / firm of your choice. Take out its financial statements. Calculate the...
PROJECT:
Select any bank / firm of your choice. Take out its financial
statements.
Calculate the following ratios according to the information
found in these statements.
(NOTE: Show your workings)
1. Operating Cycle. Inventory Number of days of inventory - Average day's cost of goods sold Inventory cost of goods sold / 305 Number of days of receivables = Accounts receivable Average day's sales on credit Accounts receivable Sales on credit / 365 Number of days of payables - Accounts...
PROJECT: Select any bank / firm of your choice. Take out its financial statements. Calculate the...
PROJECT:
Select any bank / firm of your choice. Take out its financial
statements.
Calculate the following ratios according to the information
found in these statements.
(NOTE: Show your workings)
1. Operating Cycle. Inventory Number of days of inventory - Average day's cost of goods sold Inventory cost of goods sold / 305 Number of days of receivables = Accounts receivable Average day's sales on credit Accounts receivable Sales on credit / 365 Number of days of payables - Accounts...
Appendix II Saved One difference in the Sales Journal between the perpetual and periodic systems is...
Appendix II Saved One difference in the Sales Journal between the perpetual and periodic systems is Multiple Choice The column to record cost of goods sold and inventory amounts sold The addition of a sales tax payable column The column to record cost of goods sold and inventory amounts sold and the deletion of a sales tax payable column The column to record cost of goods sold and inventory amounts sold and the addition of a sales tax payable column...
Purchases, sales and general journal. I can do the rest. Probiem: The chart of accounts of...
Purchases, sales and general journal. I can do the
rest.
Probiem: The chart of accounts of Lopez Company includes the following selected accounts. 112 Accounts Receivable 401 Sales 120 Merchandise Inventory 412 Sales Returns and Allowances 126 Supplies 505 Cost of Goods Sold 157 Equipment Accounts Payable 610 Advertising Expense 201 In July the following selected transactions were completed. All purchases and sales were on account. The cost of all merchandise sold was 70% of the sales price. Purchased merchandise...
an accounting information system. 4. What is a special journal? 5. What is the purpose of a subsidiary ledger? 6. What is a control account? 7. List the four special journals often used in a manual accounting information system. What types of transactions are recorded in each of the special journals? 8. Explain the posting process of the sales journal. 9. Provide some examples of transactions that would be recorded in the Other Accounts CR column of the cash receipts...
Calculate the ratios below given the financial data presented to your left. Answers Measures of Short-term Liquidity current assets / current liabilities quick assets / current liabilities net sales /accounts receivable 365 days/receivables turnover rate cost of goods sold/inventory current ratio quick ratico receivables turnover rate days to collect receivables inventory turnover rate Measures of Long-term Credit Risk total liabilities/total assets operating income /annual interest expense debt ratio Times Interest Earned Measures of Profitability net income / sales net income/total...
Blossom Company uses special journals and a general journal. The following transactions occurred during September 2020. Sept. Sold merchandise on account to H. Drew, invoice no. 101. $730, terms 1/30. The cost of the merchandise sold was $470. 10 Purchased merchandise on account from A. Pagan $570, terms 2/10, 1/30. 12 21 Purchased office equipment on account from R. Cairo $6,200. Sold merchandise on account to G. Holliday, invoice no. 102 for $790, terms 2/10, /30. The cost of the...
Exercise 7-06 a-b (Video) Ivanhoe Company uses special journals and a general journal. The following transactions occurred during September 2020. Sept. 2 Sold merchandise on account to H. Drew, invoice no. 101, $755, terms n/30. The cost of the merchandise sold was $395. 10 Purchased merchandise on account from A. Pagan $565, terms 2/10, 1/30 12 Purchased office equipment on account from R. Cairo $6,900. 21 Sold merchandise on account to G. Holliday, invoice no. 102 for $750, terms 2/10,...
Exercise 7-6 Company uses special journals and a general journal. The following transactions occurred during September 2017. 2 Sold merchandise on account to H. Drew, invoice no. 101, s620, terms n/30. The cost of the merchandise sold was $420. 10 Purchased merchandise on account from A. Pagan $650, terms 2/10, n/30. 12 Purchased office equipment on account from R. Cairo $6,500. 21 Sold merchandise on account to G. Holliday, invoice no. 102 for $800, terms 2/10, n/30. The cost of...
On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances: Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Land Accounts Payable Notes Payable (8%, due in 3 years) Common Stock Retained Earnings Totals Debit Credit $ 24,900 44,000 $ 3,300 45,000 84,100 27,700 45,000 71,000 51,000 $198,000 $198,000 The $45,000 beginning balance of inventory consists of 450 units, each costing $100. During January 2021, Big Blast Fireworks had the following inventory transactions: January...
PROJECT:
Select any bank / firm of your choice. Take out its financial
statements.
Calculate the following ratios according to the information
found in these statements.
(NOTE: Show your workings)
1. Operating Cycle. Inventory Number of days of inventory - Average day's cost of goods sold Inventory cost of goods sold / 305 Number of days of receivables = Accounts receivable Average day's sales on credit Accounts receivable Sales on credit / 365 Number of days of payables - Accounts...
PROJECT:
Select any bank / firm of your choice. Take out its financial
statements.
Calculate the following ratios according to the information
found in these statements.
(NOTE: Show your workings)
1. Operating Cycle. Inventory Number of days of inventory - Average day's cost of goods sold Inventory cost of goods sold / 305 Number of days of receivables = Accounts receivable Average day's sales on credit Accounts receivable Sales on credit / 365 Number of days of payables - Accounts...
Appendix II Saved One difference in the Sales Journal between the perpetual and periodic systems is Multiple Choice The column to record cost of goods sold and inventory amounts sold The addition of a sales tax payable column The column to record cost of goods sold and inventory amounts sold and the deletion of a sales tax payable column The column to record cost of goods sold and inventory amounts sold and the addition of a sales tax payable column...
Purchases, sales and general journal. I can do the
rest.
Probiem: The chart of accounts of Lopez Company includes the following selected accounts. 112 Accounts Receivable 401 Sales 120 Merchandise Inventory 412 Sales Returns and Allowances 126 Supplies 505 Cost of Goods Sold 157 Equipment Accounts Payable 610 Advertising Expense 201 In July the following selected transactions were completed. All purchases and sales were on account. The cost of all merchandise sold was 70% of the sales price. Purchased merchandise...
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