Question

Question 7 1.5 out of 1.5 points Nate Company experienced the following accounting events during 2019: 1. Started operations on January 1 when it acquired $10,900 cash by issuing common stock. 2. Earned $43,700 of revenue on account. 3. On April 1 collected $28,400 cash as an advance for services to be performed for a one-year period starting April 1. 4. Collected $33,900 cash from accounts receivable. s.On December 31, Year 2019, adjusted the books to recognize the revenue earned by providing services related to the advance described in Event 3 What amount of revenue would Nate report on the 2019 income statement? Question 8 O out of 1.5 points The following events affected Hadley Company during the 2019 accounting period: 1. Purchased merchandise on account that cost $6,079. 2. The goods in Event 1 were purchased FOB shipping point with freight cost of $91 cash. 3. Sold merchandise that cost $3,258 for $13,819 cash. 4. Delivered merchandise to customers in Event 3 under terms FOB destination with freight costs amounting to $229 cash. What is the net income generated by these transactions? Question 9 O out of 1.5 points During 2019, Hadley Merchandising Company purchased $33,648 of inventory on account. Hadley sold inventory on account that cost $14,943 for $43,617. Cash payments on accounts payable were $26,928. There was $23.499 cash collected from accounts receivable. What is the balance of accounts payable at the end of 2019?

Answer 1

7 Revenue to be reported Revenue earned on account Unearned revenue in April Total Revenue for 2019 $43,700 $21,300 $28,400/12*9 $65,000 Answer 8 Net Income Sales for cash Cost of goods sold Gross profit Freight outward Net Income $13,819 $3,258 cost of merchandise sold $10,561 $229 on FOB destination $10,332 Answer Note: Freight cost on FOB Shipping material purchase is part of material cost and not expensed 9 Balance of accounts payable at end of 2019 Material purchase on account $33,648 Cash payments on accounts payable $26,928 Balance of accounts payable $6,720 Answer