An enterprise purchases inventory on account. Please a describe how this economic activity is reflected on...
An enterprise purchases inventory on account. Please a describe how this economic activity is reflected on the balance sheet/income statement.
Homework Answers
Income statement effect:
When the inventory is purchased on account, then there is no effect on the income statement until the inventory is sold. When the inventory is sold, then the purchase cost of inventory is treated as an expense and is deducted from the revenues as cost of goods sold.
Balance sheet effect:
When the inventory is purchased on account, then it will increase the accounts payables in the current liabilities section of the balance sheet. On the assets side, if the inventory is not sold yet, then it will increase the inventory in the current assets section.
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An enterprise purchases inventory on account. Please a describe
how this economic activity is reflected on...
An enterprise purchases short term equity investments with cash. Describe how would impact the Balance Sheet.
An enterprise purchases short term equity investments with cash. Describe how would impact the Balance Sheet.
Can you please show me the work? like how you find the plus: net purchases and...
Can
you please show me the work? like how you find the plus: net
purchases and all the calculations please?
Exercise 1 MASON'S INCORPORATED (in 000s of dollars) Inventory, March 31, 2019 Gross income (profit) Long-term notes payable Store fixtures, net Selling expenses Accounts payable Income tax expense Retained earnings, April 1, 2018 Cash General and administrative expenses Accrued expenses payable Accounts receivable Dividends Notes payable Inventory, April 1, 2018 Common stock Sales Depreciation expense Income tax payable Store fixtures,...
Question 3 4 pts A merchandising company has: no inventory account O an inventory account on...
Question 3 4 pts A merchandising company has: no inventory account O an inventory account on the balance sheet as a current asset O an inventory account on the balance sheet as equity an inventory account on the income statement as revenue Question 4 4 pts Which of the following would appear on the balance sheet of a merchandiser but not on the balance sheet of a service company? O cost of goods sold O merchandise inventory gross profit o...
Describe why you think different inventory cost flow assumptions affect the income statement and the balance...
Describe why you think different inventory cost flow assumptions affect the income statement and the balance sheet. Include in your answer a description of the matching concept that applies to the inventory cost flows and another description with an example about how the inventory flow assumptions affect the income statement and the balance sheet
If a company purchases goods which it sells to customers on account, what accounts would you...
If a company purchases goods which it sells to customers on account, what accounts would you expect to see on the balance sheet or income statement of this company? \Select one: a. Inventory b. Cash c. Accounts Receivable d. Cost of Goods Sold e. All of the above
Please briefly describe an income statement, statement of cash flows, and balance sheet. Please describe a...
Please briefly describe an income statement, statement of cash flows, and balance sheet. Please describe a hypothetical pro forma income statement.
1. What is the economic advantage to a trade secret? Please explain why. 2. Of the three valuation methods for an i...
1. What is the economic advantage to a trade secret? Please explain why. 2. Of the three valuation methods for an intangible asset discussed in the chapter, which one would you use and why? 3. Regarding Stock Price, explain how it is set at the time of company formation. Describe the key factors that influence stock price before IPC 4. Regarding Stock Price, explain what dominates stock price after IPO. 5. How are the changes in the market price of...
Rundle Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Rundle’s policy is to maintain an ending inventory balance...
Rundle Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Rundle’s policy is to maintain an ending inventory balance equal to 15 percent of the following month’s cost of goods sold. April’s budgeted cost of goods sold is $83,000. Required Complete the inventory purchases budget by filling in the missing amounts. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. Determine...
Purchasing inventory on account would be classified as what type of activity on the Statement of...
Purchasing inventory on account would be classified as what type of activity on the Statement of Cash Flows? Would not be on the Statement of Cash Flows Operating Investing Financing Question 9 Beginning Inventory + Purchases Gross Margin Ending Inventory Cost of Goods Available for Sale Cost of Goods Sold Question 10 Calculate Gross Margin: Ending Inventory: $12,000 Sales Revenue: $86,000 Cost of Goods Available for Sale: $64,000 Selling. General and Administrative Expenses: $18,000 Cost of Goods Sold: $52,000 Interest...
During 2018, Hardy Merchandising Company purchased $17,000 of inventory on account. Hardy sold inventory on account...
During 2018, Hardy Merchandising Company purchased $17,000 of inventory on account. Hardy sold inventory on account that cost $12,800 for $19,100. Cash payments on accounts payable were $10,600. There was $17,000 cash collected from accounts receivable. Hardy also paid $3,700 cash for operating expenses. Assume that Hardy started the accounting period with $23,500 in both cash and common stock. Required a. Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity,...
Can
you please show me the work? like how you find the plus: net
purchases and all the calculations please?
Exercise 1 MASON'S INCORPORATED (in 000s of dollars) Inventory, March 31, 2019 Gross income (profit) Long-term notes payable Store fixtures, net Selling expenses Accounts payable Income tax expense Retained earnings, April 1, 2018 Cash General and administrative expenses Accrued expenses payable Accounts receivable Dividends Notes payable Inventory, April 1, 2018 Common stock Sales Depreciation expense Income tax payable Store fixtures,...
Question 3 4 pts A merchandising company has: no inventory account O an inventory account on the balance sheet as a current asset O an inventory account on the balance sheet as equity an inventory account on the income statement as revenue Question 4 4 pts Which of the following would appear on the balance sheet of a merchandiser but not on the balance sheet of a service company? O cost of goods sold O merchandise inventory gross profit o...
1. What is the economic advantage to a trade secret? Please explain why. 2. Of the three valuation methods for an intangible asset discussed in the chapter, which one would you use and why? 3. Regarding Stock Price, explain how it is set at the time of company formation. Describe the key factors that influence stock price before IPC 4. Regarding Stock Price, explain what dominates stock price after IPO. 5. How are the changes in the market price of...
Purchasing inventory on account would be classified as what type of activity on the Statement of Cash Flows? Would not be on the Statement of Cash Flows Operating Investing Financing Question 9 Beginning Inventory + Purchases Gross Margin Ending Inventory Cost of Goods Available for Sale Cost of Goods Sold Question 10 Calculate Gross Margin: Ending Inventory: $12,000 Sales Revenue: $86,000 Cost of Goods Available for Sale: $64,000 Selling. General and Administrative Expenses: $18,000 Cost of Goods Sold: $52,000 Interest...
During 2018, Hardy Merchandising Company purchased $17,000 of inventory on account. Hardy sold inventory on account that cost $12,800 for $19,100. Cash payments on accounts payable were $10,600. There was $17,000 cash collected from accounts receivable. Hardy also paid $3,700 cash for operating expenses. Assume that Hardy started the accounting period with $23,500 in both cash and common stock. Required a. Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity,...
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