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The bank had collected for Urethane Company $1,030 on a customer's note left for collection. The face of the note was $1,000.
The accountant recorded all the returns and allowances by decreasing the sales account and decreasing Cost of Merchandise Sold for $90,000.
After the amount due on a sale of $40,000, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return .
Merchandise is sold on account to a customer for $12,500, terms FOB shipping point, 1/10, n/30.
Milan Co., a women's clothing store, purchased $120,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30.
Should the sales tax be recorded at the time of sale or when payment is received?
Steritech Co., a furniture wholesaler, sells merchandise to Butler Co. on account, $86,000, terms 2/10, n/30.
Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Snipes Company.
Discuss whether Mary Jasper behaved in a professional manner by subtracting the discount, even though the discount period had expired.
Well, as you know, I'm applying for a bank loan to finance our new store in Clinton, and I noticed that the accounts payable are listed as $180,000.
Why should the responsibility for maintaining the accounting records be separated from the responsibility for operations? Explain.
What internal control weaknesses do you see in the return policy that make cash thefts easier?
An employee of JHT Holdings, Inc., a trucking company, was responsible for resolving roadway accident claims under $25,000.
The fraud was discovered when employees noticed an increase in delivery frequency from vendors and the use of unusual vendors.
Accrued salaries of $6,750 owed to employees for December 30 and 31 are not considered in preparing the financial statements for the year ended.
Indicate which items will be erroneously stated, because of failure to correct the initial error, on the income statement for January 2013.
If the cash basis rather than the accrual basis had been used, would an adjustment have been necessary?
The estimated amount of depreciation on equipment for the current year is $41,700.
At the balance sheet date, a business owes a five-year mortgage note payable of $480,000, the terms of which provide for monthly payments of $8,000.
Who bears the freight when the terms of sale are FOB shipping point, FOB destination?
Received proceeds from selling a portion of manufacturing operations for a gain on the sale.
Is the Land balance before the accounts have been adjusted the amount that should normally be reported on the balance sheet?
Record the adjusting entries at the end of February to record the insurance expense and supplies expense.
The prepaid insurance account had a balance of $14,400 at the beginning of the year.
The payment of utilities of $1,200 was recorded as a decrease in cash of $1,200 and a decrease in retained earnings of $2,100.