ZuoTi.Pro
Question

Question 13 (5 points) On 3/1/20, the Larson Company, a large retailer, purchases merchandise from a supplier for $40,000, de please answer and explain jn detail
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Ans. Larson bought merchandise of $40000 on 3/1/20. It paid 4000 on same day. Since Larson has purchased the merchandise on 3/1/20, merchandise should be recorded in books for the whole amount following the principal of Accrual accounting. Hence income statement shall be debited with $40000 on 3/1/20.

0 0
Add a comment
Know the answer?
Add Answer to:
please answer and explain jn detail Question 13 (5 points) On 3/1/20, the Larson Company, a...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • need first picture answered and thus one answered (continued from the previous question) The journal entries...

    need first picture answered and thus one answered (continued from the previous question) The journal entries recorded by Larson on 4/30/20.... Increase both assets and liabilities Reduce both assets and liabilities Do not change the total balance of Larson's assets Cause a change in Larson' net income for the year 2020 Cause a change in Larson's inventory balance On 3/1/20, the Larson Company, a large retailer, purchases merchandise from a supplier for $40,000, delivered the same day. At the time...

  • I just need help on July 3, 7, 13, and 15. If you wouldn't mind. I...

    I just need help on July 3, 7, 13, and 15. If you wouldn't mind. I have found this answered already, but the responses were incorrect. Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions completed by Essex Company during July of the current year: July 3. Purchased merchandise on account from Hamling Co., list price $72,000, trade discount 15%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,450 added to...

  • Facts: Dec 1 2 3 4 10 15 20 24 26 28 31 31 Issued common...

    Facts: Dec 1 2 3 4 10 15 20 24 26 28 31 31 Issued common stock in exchange for $1,000,000 cash. Purchased inventory on account for $80,000 (the perpetual inventory system is used). Purchased $500,000 in equipment for cash. Paid the company’s landlord $12,000 for rent for twelve months, debiting Prepaid Rent Expense. Sold merchandise on account for $130,000. The cost of the merchandise was $75,000. Borrowed $60,000 from a local bank and signed a note. Principal and interest...

  • Halogen Laminated Products Company began business on January 1, 2021. During January, the following transactions occurred:...

    Halogen Laminated Products Company began business on January 1, 2021. During January, the following transactions occurred: Jan. 1 Issued common stock in exchange for $105,000 cash. 2 Purchased inventory on account for $40,000 (the perpetual inventory system is used). 4 Paid an insurance company $3,000 for a one-year insurance policy. Prepaid insurance was debited for the entire amount. 10 Sold merchandise on account for $12,500. The cost of the merchandise was $7,500. 15 Borrowed $35,000 from a local bank and...

  • Multiple Choice What did we learn about COGS & Merchandise Inventory accounts? Question 3 options: We...

    Multiple Choice What did we learn about COGS & Merchandise Inventory accounts? Question 3 options: We record COGS in a journal entry when we sell inventory, and that's for moving the cost of inventory from assets to income statement which will result in reducing the net income. In perpetual inventory system, COGS & Merchandise Inventory accounts are both income statement accounts, and they both decrease the net income once recorded in journal entries. When we sell, we will record COGS...

  • Exercise 3-6 Effect of purchase returns and allowances and freight costs on the financial statements: perpetual...

    Exercise 3-6 Effect of purchase returns and allowances and freight costs on the financial statements: perpetual system The beginning account balances for Jerry's Auto Shop as of January 1, 2012 follows: Account Titles Cash Inventory Common stock Retained earnings Total Beginning Balances $28,000 14,000 36,000 6,000 $42,000 The following events affected the company during the 2012 accounting period: 1. Purchased merchandise on account that cost $18,000. 2. The goods in Event 1 were purchased FOB shipping point with freight cost...

  • 1) 2) 3) 4) 5) 3 BBM205/03 Answer ALL questions below. Question 1 Below was the...

    1) 2) 3) 4) 5) 3 BBM205/03 Answer ALL questions below. Question 1 Below was the transactions worksheet of Selna Enterprise on April 1, 2020. + ASSETS Cash + + Account Receivables 3,600 Prepaid expenses 1,000 Supplies on hand 350 EQUITY Share capital 7,350 Retained earnings LIABILITY Account payable 4,400 2,000 The following transactions occurred during April: April 1 Collected RM2,000 cash in satisfaction of an amount owed by a customer. April 3 Billed RM3,000 to customers for chairs rented...

  • 4 At the beginning of Year 2, the Redd Company had the following balances in its...

    4 At the beginning of Year 2, the Redd Company had the following balances in its accounts: Part 4 of 5 Cash Inventory Land Common stock Retained earnings $ 6,900 15,880 7,800 15, eee 13,900 10 points During Year 2. the company experienced the following events: eBook Ask 1. Purchased inventory that cost $5,200 on account from Ross Company under terms 1/10. n/30. The merchandise was delivered FOB shipping point. Freight costs of $190 were paid in cash. 2. Returned...

  • 1 Transactions for April 2018 2 3 1 On April 1. 2018, Redmond Company, an information...

    1 Transactions for April 2018 2 3 1 On April 1. 2018, Redmond Company, an information technology (IT) consulting company received $650 000 cash from the owner, Ron Larson 4 5 2 On April 3, Redmond paid $225,000 cash for land 6 7 3 Redmond purchased $1250 of office supplies on account on April 5. 8 9 4 On April 6, Redmond provided IT consulting services for a client and collected $12,000 cash, 10 11 5 Redmond provided IT consulting...

  • 289 SHOW ME HOW Obj. 2 Chapter 5 Accounting for Retail Business PR 5-3B Sales and...

    289 SHOW ME HOW Obj. 2 Chapter 5 Accounting for Retail Business PR 5-3B Sales and purchase-related transactions using perpetual inventory system The following were selected from among the transactions completed by Essex Company during July of the current year: July 3. Purchased merchandise on account from Hamling Co., list price $72,000, trade discount 15%, terms FOB ship- ping point, 2/10, n/30, with prepaid freight of $1.450 added to the invoice. 5. Purchased merchandise on account from Kester Co., $33,450,...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT