Foote Company was granted a purchase discount of $200 on merchandise the company had purchased a few days ago. Foote uses the perpetual inventory system. Which of the following reflects the effects of thisevent on the financial statements?A.B.C.D.Assetsn/an/a(200)(200)Multiple ChoiceOOO OOption COption DOption BOption ABalance Sheet= Liabilities +(200)(200)(200)(200)Stockholders'Equity200200n/an/aRevenue200200n/an/aIncome StatementExpensen/an/an/an/aNet Income200200n/an/aStatement of Cash Flows200 Operating Activityn/a(200) Operating Activityn/a

Purchase discount under perpetual system affects inventory accounts

Answered: 5+ Stockholders' Equity 200 200 n/a n/a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Note payable, 10% Total liabilities Stockholders' equity: Common stock, $ 78 par value Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 960,000 0 2,700,000 3,900,000 240,000 7,800,000 9,300,000 $ 17,100,000 $ 3,900,000 3,600,000 7,500,000 7,800,000 1,800,000 9,600,000 $ 17,100,000 $ 1,260,000 300,000 1,800,000 2,400,000 180,000 5,940,000 8,940,000 $ 14,880,000 $ 2,760,000 3,000,000 5,760,000 7,800,000 1,320,000 9,120,000 $ 14,880,000 Sales (all on account) Lydex Company Comparative Income Statement and Reconciliation This Year $ 15,750,000 12,600,000 3,150,000 1,590,000 Last Year $ 12,480,000 9,900,000 2,580,000 Cost of goods sold Gross margin Selling and…
suppose that the following information is related to X company for 2020 net cash flows from operating activities 12000 net cash flows from financing activities 18000 beginning cash balance 5000 Ending cash balance 10000 The net cash flows from investing activities is O a. (25000) O b. 10000 O c. 30000 O d. 8000
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Required information [The following information applies to the questions displayed below] Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit. (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash Accounts receivable. Inventory Total current assets GOLDEN CORPORATION Comparative Balance Sheets December 31 Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable. Income taxes payable. Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock Retained earnings Total liabilities and equity GOLDEN CORPORATION Income Statement For Current Year Ended…
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5+ Stockholders' Equity 200 200 n/a n/a Revenue 200 200 n/a n/a Expense n/a n/a n/a n/a Net Income 200 200 n/a n/a Statement of Cash Flows 200 Operating Activity n/a (200) Operating Activity n/a