Assessment 1 Amerlllo Company experlenced the following.Amarlo Company experienced the following events during its first accounting perlod.) Purchased $5,000 of Inventory on account under terms 1/10in30.(2) Returned $1,000 of the Inventory purchased in Event 1.(3) Pald the remaining balance in account payable within the discount perlod for the inveritory purchased in Event 1.Based on this Information, which of the followMng shows how the recognition of the cash discount (Event 1) will affect the Company's financial statements? Amarlo Company experlenced the following events during its first accounting perlod.) Purchased $5.000 of inventory on account under terme 110/n30.2) Returned $1,000 of the tnventory purchased in Event 1.3) Pald the remaining balance in account payable within the discount period for the Inventory purchased in Event 1.Based on this information, which of the following shows how the recognition of the cash discount (Event 1) will affect the Company's financtal statements?Multiple CholceIncome StatenentStatenent ofCash Flows1NABalance SheetLiab.EquityExp.Net Inc.AssetsRev.(50)(50)NANANANABalance SheetIncone StatenentStatenent ofNet Tnc.Cash FlowsLiab.(40)AssetsEquityRev.Exp.(40)NANANANANAIncone StataeentExp.Balance SheetStatenent ofNet Inc.Liab.(50)AssetsEquityRev.Cash Flous(50)NANANANA(50)Balance SheetIncone StatenentStatent ofAssetsLiab.CquityRev.Exe.Net Inc.Cash Flows(40)(40)NA48(40)NA

The discount amount is : 40 As purchases of inventory value = 5000 Returned the purchase…

Answered: Amarillo Company experlenced the…

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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Prepare the necessary joumal entries for the following fiscal year 2022 transactions made by Airflowing Corp. Additional Information: 1 Ai rflowing Corp. year-end is 12/31. 2 Assume straight-line amortization of discounts. 3 Ai rflowing Corp. records all purchases and payables at gross. Description Date February 2, 2022 Aiflowing Corp. purchased goods from Vents Inc for $ 250,00 ( 3/ 10, n 30 terms were February 26, 2022 Airfbwing Corp. paid Vents inc. for the 2/2/22 purchase. June 1, 2022 Arfbwing Corp. purchased a truck for $ 85,000 from Ford Mator Company Fleet Sales Division. The sales agreement call for Airfbwing Corp. to pay 10,000 on purchase date and to sign a 1-year, 10% note forthe remaning balance of the purchase price. July 1, 2022 Arfbwing Corp. borrowed from St. Paul Nat ibnalBank $ 3500,0 by signing a $ 3,700,000 zero-interest be aring note due one year from July 1 Airflowing Corp.s CFO has concerns re bted to cash the frst quarter of 2023.
Presented below are transactions related to Bramble, Inc. May 10 (a) 11 19 24 Purchased goods billed at $15,200 subject to cash discount terms of 2/10, n/60. Purchased goods billed at $11,800 subject to terms of 1/15, n/30. Paid invoice of May 10. Purchased goods billed at $12,300 subject to cash discount terms of 2/10, n/30. Prepare general journal entries for the transactions above under the assumption that purchases are to be recorded at net amounts after cash discounts and that discounts lost are to be treated as financial expense. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.)
Assume the perpetual inventory method is used. • The company purchased $13,700 of merchandise on account under terms 3/10, n/30. • The company returned $3,200 of merchandise to the supplier before payment was made. • The liability was paid within the discount period. . All of the merchandise purchased was sold for $21,400 cash. What effect will the return of merchandise to the supplier have on the accounting equation? Multiple Choice O Assets and liabilities are decreased by $3,104. Assets and liabilities are decreased by $3,200. None. It is an asset exchange transaction. Assets and stockholders' equity are decreased by $3,200. Help
Record the following transactions for the month of October 2022 in the financial statements effects template below and record the journal entries. NOTE: 2 parts ot the question. Part 1: A) Paid for the purchase $3,000 of inventory. B and C) Sold inventory purchased in (A) for $8,000 on account. (Note: requires 2 entries) D) Received and paid electricity bill for $800 related to June E) Received $16,000 in cash for inventory to be delivered in November. Transaction A) B) C) D) E) Balance Sheet Cash Asset Noncash Assets = Liabilities + Contributed Earned Capital Capital Part 2: Record the journal entries for each transcation + Income Statement Rev. Exp. = Ne
Slinky Company purchased inventory on June 10, 2024, at a price of $22,000, subject to credit terms of 2/10, 1/30. Slinky uses the net method for recording purchases and uses a perpetual inventory system. Required: 1. Prepare the journal entry to record the purchase. 2. & 3. Prepare the journal entries to record the appropriate payment if the entire invoice is paid on June 18, 2024 and July 8, 2024. Complete this question by entering your answers in the tabs below. Req 1 Prepare the journal entries to record the appropriate payment if the entire invoice is paid on June 18, 2024 and July 8, 2024. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Req 2 and 3 View transaction list Journal entry worksheet
Slinky Company purchased inventory on June 10, 2024, at a price of $20,000, subject to credit terms of 2/10, 1/30. Slinky uses the net method for recording purchases and uses a perpetual inventory system. Required: 1. Prepare the journal entry to record the purchase. 2. & 3. Prepare the journal entries to record the appropriate payment if the entire invoice is paid on June 18, 2024 and July 8, 2024. Complete this question by entering your answers in the tabs below. Req 1 Req 2 and 3. Prepare the journal entry to record the purchase. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet < 1 Record the purchase of merchandise subject to credit terms 2/10, n/30. Note: Enter debits before credits. Date June 10, 2024 Record entry General Journal Clear entry Debit Credit View general journal
On November 1, 2025, Marin Inc. had the following account balances. The company uses the perpetual inventory method. Cash Accounts Receivable Supplies Equipment 22 25 27 28 29 29 10 29 11 12 During November, the following summary transactions were completed. 15 Debit 19 $27,000 20 6,720 2,580 75,000 $111,300 Accumulated Depreciation-Equipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Nov. 8 Paid $10,650 for salaries due employees, of which $5,550 is for November and $5,100 is for October. Received $5,700 cash from customers in payment of account. Purchased merchandise on account from Dimas Discount Supply for $24,000, terms 2/10, n/30. Sold merchandise on account for $16,500, terms 2/10, n/30. The cost of the merchandise sold was $12,000. Received credit from Dimas Discount Supply for merchandise returned $900. Received collections in full, less discounts, from customers billed on sales of $16,500 on November 12. Paid Dimas Discount Supply in…
Metlock's Market recorded the following events involving a recent purchase of inventory: Received goods for $78200, terms 2/9, n/30. Returned $1700 of the shipment for credit. Paid $700 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's inventory increased by $74970. increased by $75670. increased by $77200. O increased by $75656. O O
Complete the following by calculating the cash discount and net amount paid: (If more than one discount, assume date of last discount.) Date of Gross amount of invoice (freight charge already included) Freight charge Terms of invoice Date of payment invoice None 8/14 4/10, 3/15, n/30 8/26 700 Cash discount Net amount paid
On June 1, Calumet Corp. paid $25,000 for inventory previously purchased on account. Which of the following statements is correct with respect to how this transaction should be shown on the transaction worksheet? Select one: a. The cash account will decrease and the deferred revenue account will decrease. b. The inventory account will decrease and the cash account will decrease. c. The cash account will decrease and the accounts payable account will decrease. d. The cash account will decrease and the retained earnings account will decrease. e. The cash account will increase and the accounts payable account will increase.
c. On 9/12 Year 7 $2,000 of ACCOUNTS PAYABLE is paid after the discount period. Phrase 1st: 2nd: Phrase 1st: Account 2nd: Accounts Account Category AL SER E contra AL SER E contra + Accounts Debit Affect d. On 9/28 Year 7 INVENTORY originally purchased for $4,000 on 9/1 Year 7 and was paid for on 9/10 Year 7 is returned by the purchaser and a debit memorandum (a debit to A/P) is received from the seller. [Hint: the amount of cash involved in this transaction must take the 2% discount into account.] Debit + Category AL SE RE contra AL SE RE contra + - + Affect Dr. or Cr. Dr Cr Dr Cr Credit Dr. or Cr. Credit Dr Cr Dr Cr
shany market recorded the following events involving a recent purchase of inventory received goods for$30,000, terms 2/10, n/30 returned $600 of the shipment for credit paid $150 freight on the shipment paid the invoice within the discount period as a result of these events, the company's inventory: increased by

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