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On March 19, Snell Company recorded the receipt of $2,000 on account as a new sale....
Lacey Company recorded sales of $2,000,000 on account on December 1, 2020. The company recorded actual...
Lacey Company recorded sales of $2,000,000 on account on December 1, 2020. The company recorded actual returns of $25,000 on December 15, 2020. Lacey estimates sales returns at 3% of sales. Cost of goods sold is 50% of sales revenue. All sales are made on credit. a. Show the journal entry to record the sale on December 1, 2020. b. Show the journal entry to record actual returns on December 15, 2020 c. Prepare the adjusting entry, if any, related...
On March 26, Ranger Company placed an order to purchase inventory on account from Park Company...
On March 26, Ranger Company placed an order to purchase inventory on account from Park Company The inventory had a list price of $80,000 in Park's sales catalog and was carried on Park's Balance Sheet at a historical cost of $50,000. Ranger is a regular customer and was able to negotiate a 15% trade discount as well as payment t March 30 with $2,000 of freight pre-paid The goods arrived at Ranger's facility on April 2. On April 3 erms...
42. Booth Company purchased a new machine on May 1, 2008 for $38,000. At the time...
42. Booth Company purchased a new machine on May 1, 2008 for $38,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated residual value of $2,000. The company had recorded monthly depreciation using the straight-line method. On March 1, 2017, the machine was sold for $6,000. What should be the loss recognized from the sale of the machine? a. b. c. d. $0 $200 $2,000 $2,200
On March 1, 2020, Freeze Company hires a new employee who will start to work on...
On March 1, 2020, Freeze Company hires a new employee who will start to work on March 6. The employee will be paid on the last day of each month. Should a journal entry be made on March 6? Why or why not? O No, hiring an employee is an important event; however it is not an economic event that should be recorded. Yes, the company is now obligated to pay the employee, thus that event must be recorded. O...
6. In preparing a common-size (vertical) analysis of two income statements, what account or category would...
6. In preparing a common-size (vertical) analysis of two income statements, what account or category would represent 100%? E T 7. Which of the following is not a good internal control procedure for cash? 000,02 a. The number of persons who have access to cash should be limited b. Surprise audits of cash on hand should be made occasionally c. The functions of recordkeeping and keeping custody of cash should be combined d. All cash receipts should be recorded promptly...
On March 31, Blue Spruce Corporation showed a cash balance on their books of $12,600. The bank statement from the compan...
On March 31, Blue Spruce Corporation showed a cash balance on
their books of $12,600. The bank statement from the company’s bank
showed a month end balance of $16,791. On reviewing the bank
statement, the following items were discovered:
1.
A deposit made on March 29 for $3,850 did not appear on the
bank statement.
2.
Cheques written in the month of March but that did not appear
on the bank statement were as follows:
Cheque # 6341
$4,410
Cheque...
The original sale of the $50 par value common shares of Gray Company was recorded as...
The original sale of the $50 par value common shares of Gray Company was recorded as follows: 256,500 Cash Common Stock 225,000 Paid-in Capital in Excess of Par 31,500 Transactions: (a) Bought 380 shares of common stock as treasury shares at $61. Sold 100 shares of treasury stock at $59. (b) (c) Sold 50 treasury shares at $67. Record the treasury stock transactions (given above) under the cost method. (Credit account titles are automatically indented when amount is entered. Do...
You have been asked by Simmons Company to reconcile the cash account balance of $34,754 at...
You have been asked by Simmons Company to reconcile the cash account balance of $34,754 at 12/31/19. You have obtained the following information: • The 12/31/19 bank statement shows a beginning balance of $38,783, receipts of $229,832, disbursements of $226,625, and an ending balance of $41,990. • There were deposits of $11,450 on 11/30/19 that did not reach the bank until December. On 12/31/19, deposits of $10,900 were mailed to the bank. • The list of outstanding...
Recording Impairment Loss on Asset Held for Sale Down Manufacturing Company has a small facility called...
Recording Impairment Loss on Asset Held for Sale Down Manufacturing Company has a small facility called Plant XT that has not been used for several years because of low product demand. The company does not expect to use the facility in the foreseeable future. Efforts are being made to sell the plant for $700,000, but a realistic recovery amount is $400,000 (net of disposal costs). The accounting records show cost, $2,900,000; accumulated depreciation, $1,600,000. Required a. Provide the entry that...
Question 19 (10 points) Rolston Music Company is considering the sale of a new sound board...
Question 19 (10 points) Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $25,000, and the company expects to sell 1,700 per year. The company currently sells 2,000 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,500 units per year. The old board retails for $24,000. Variable costs are 60 percent of sales, depreciation...
Lacey Company recorded sales of $2,000,000 on account on December 1, 2020. The company recorded actual returns of $25,000 on December 15, 2020. Lacey estimates sales returns at 3% of sales. Cost of goods sold is 50% of sales revenue. All sales are made on credit. a. Show the journal entry to record the sale on December 1, 2020. b. Show the journal entry to record actual returns on December 15, 2020 c. Prepare the adjusting entry, if any, related...
On March 26, Ranger Company placed an order to purchase inventory on account from Park Company The inventory had a list price of $80,000 in Park's sales catalog and was carried on Park's Balance Sheet at a historical cost of $50,000. Ranger is a regular customer and was able to negotiate a 15% trade discount as well as payment t March 30 with $2,000 of freight pre-paid The goods arrived at Ranger's facility on April 2. On April 3 erms...
42. Booth Company purchased a new machine on May 1, 2008 for $38,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated residual value of $2,000. The company had recorded monthly depreciation using the straight-line method. On March 1, 2017, the machine was sold for $6,000. What should be the loss recognized from the sale of the machine? a. b. c. d. $0 $200 $2,000 $2,200
On March 1, 2020, Freeze Company hires a new employee who will start to work on March 6. The employee will be paid on the last day of each month. Should a journal entry be made on March 6? Why or why not? O No, hiring an employee is an important event; however it is not an economic event that should be recorded. Yes, the company is now obligated to pay the employee, thus that event must be recorded. O...
6. In preparing a common-size (vertical) analysis of two income statements, what account or category would represent 100%? E T 7. Which of the following is not a good internal control procedure for cash? 000,02 a. The number of persons who have access to cash should be limited b. Surprise audits of cash on hand should be made occasionally c. The functions of recordkeeping and keeping custody of cash should be combined d. All cash receipts should be recorded promptly...
On March 31, Blue Spruce Corporation showed a cash balance on
their books of $12,600. The bank statement from the company’s bank
showed a month end balance of $16,791. On reviewing the bank
statement, the following items were discovered:
1.
A deposit made on March 29 for $3,850 did not appear on the
bank statement.
2.
Cheques written in the month of March but that did not appear
on the bank statement were as follows:
Cheque # 6341
$4,410
Cheque...
The original sale of the $50 par value common shares of Gray Company was recorded as follows: 256,500 Cash Common Stock 225,000 Paid-in Capital in Excess of Par 31,500 Transactions: (a) Bought 380 shares of common stock as treasury shares at $61. Sold 100 shares of treasury stock at $59. (b) (c) Sold 50 treasury shares at $67. Record the treasury stock transactions (given above) under the cost method. (Credit account titles are automatically indented when amount is entered. Do...
Recording Impairment Loss on Asset Held for Sale Down Manufacturing Company has a small facility called Plant XT that has not been used for several years because of low product demand. The company does not expect to use the facility in the foreseeable future. Efforts are being made to sell the plant for $700,000, but a realistic recovery amount is $400,000 (net of disposal costs). The accounting records show cost, $2,900,000; accumulated depreciation, $1,600,000. Required a. Provide the entry that...
Question 19 (10 points) Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $25,000, and the company expects to sell 1,700 per year. The company currently sells 2,000 units of its existing model per year. If the new model is introduced, sales of the existing model will fall to 1,500 units per year. The old board retails for $24,000. Variable costs are 60 percent of sales, depreciation...
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