Marco Chemical Ltd. supply their products in returnable drums which are charged at $ 20 each. Customers returning the drums with in a month are credited with $ 18. The company's procedure is to retain of the drums. Following particulars are available from the books : 18 in deposit account till the date of expiry of the option period for return $ 8,000 Drums returned by customers 16,000 Returnable drums as on 1-4-2014 Drums in stock as on 1-4-2014 Drums purchased during 2014-15 at $ 15 per drum Drums sent to customers during 2014-15 All drums as on 31-3-2014 and 31-3-2015 are to be valued at $ 10 each. All the amount due in respect of drums have been collected from the customers. 2,88,000 15,000 in 2014-15 Drums returnable on 31-3-2015 20,000 Drums scrapped in 2014-15-sold for $ 10,000 2,000 00,000 You are asked to show the Ledger Accounts for the year 2014-15 : (a) Drums A/c (b) Drums Debtors A/c.

Marco Chemical Ltd. supply their products in returnable drums which are charged at $ 20 each. Customers returning the drums with in a month are credited with $ 18. The company's procedure is to retain of the drums. Following particulars are available from the books : 18 in deposit account till the date of expiry of the option period for return $ 8,000 Drums returned by customers 16,000 Returnable drums as on 1-4-2014 Drums in stock as on 1-4-2014 Drums purchased during 2014-15 at $ 15 per drum Drums sent to customers during 2014-15 All drums as on 31-3-2014 and 31-3-2015 are to be valued at $ 10 each. All the amount due in respect of drums have been collected from the customers. 2,88,000 15,000 in 2014-15 Drums returnable on 31-3-2015 20,000 Drums scrapped in 2014-15-sold for $ 10,000 2,000 00,000 You are asked to show the Ledger Accounts for the year 2014-15 : (a) Drums A/c (b) Drums Debtors A/c.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On June 8, Williams Company issued an $74,068, 8%, 120-day note payable to Brown Industries. Assuming a 360-day year for your calculations, what is the maturity value of the note? When required, round your answer to the nearest dollar. a.$79,993 b.$76,043 c.$74,068 d.$5,925
HANDOUT PROBLEM for CURRENT LIABILITIES I. Prepare journal entries for the following transactions which took place in 2021. Sold various products for $180,000 on account. The products cost $85,000. Sales a. tax in your area is 8%. Your company uses a periodic inventory system. Your sales in part "a" included an offer for cash rebates of 2% of the $180,000 total sales price if the customer answers a short five-question internet survey. b. с. On November 1, 2021, your company collected $12,000 of rent on your extra office. The rent covers the six-month period from November 1, 2021 through April 30, 2022. Recorded $62,000 of wages earned by employees including $9,000 of d. withholding taxes, $4,000 of FICA taxes, and $2,800 of health insurance benefits. There were no other deductions from the employees' paychecks. e. Recorded EMPLOYER taxes on the wages in "a." Unemployment is a total of 3% of the gross earnings. f. On December 1, 2021, your company received notice that you were being…
Bramble Corp. lends Sheffield Corp. $50400 on April 1, accepting a four-month, 9% interest note. Bramble Corp. prepares financial statements on April 30. What adjusting entry should be made before the financial statements can be prepared? O Interest Receivable 378 Interest Revenue 378 Interest Revenue 80 Cash Note Receivable Cash Interest Receivable Interest Revenue Type here to search 378 50400 1134 S 378 50400 1134 17
On January 1, 2025, Coronado Co. borrowed and received $150,000 from a major customer evidenced by a zero-interest-bearing note due in 4 years. As consideration for the zero-interest-bearing feature, Coronado agrees to supply the customer's inventory needs for the loan period at lower than the market price. The appropriate rate at which to impute interest is 9%. Prepare the journal entry to record the initial transaction on January 1, 2025. Prepare the journal entry to record any adjusting entries needed at December 31, 2025. Assume that the sales of Coronado's product to this customer occur evenly over the 4-year period and that the effective-interest method is used.
On April 1 of Year 1, Mountain Company sold merchandise and received a $34,800, three-year, noninterest-bearing note. The market rate is 10% . Mountain Company has a March 31 year-end. Use the effective interest method to amortize any discount. Required Prepare entries for Mountain Company on April 1 of Year 1, and March 31 of Year 2, Year 3, and Year 4. Note: Round answers to the nearest whole dollar. Date April 1, Year 1 Mar. 31, Year 2 Mar. 31, Year 3 Mar. 31, Year 4 Mar. 31, Year 4 Account Name To record sale of merchandise. To record interest on note. To record interest on note To record interest on note To record settlement of note << < < < < C Dr. Cr.
Adams Acrobats lent $17,147 to Donaldson, Inc., accepting Donaldson's 2-year, $20,000, zero-interest-bearing note. The implied interest rate is 8%. Prepare Adams's journal entries for the initial transaction, recognition of interest each year, and the collection of $20,000 at maturity. (Round answers to O decimal places, e.g. 5,275. 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 the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation (To record the initial transations) (To record the recognition of interest in year one) (To recognize the interest in year 2) (To record the collection of the note) Debit Credit INT
West County Bank agrees to lend Wildhorse Co. $472000 on January 1. Wildhorse Co. signs a $472000, 6%, 6-month note. What entry will Wildhorse Co. make to pay off the note and interest at maturity assuming that interest has been accrued to June 30? Notes Payable 486160 Cash 486160 Interest Payable 7080 Notes Payable 472000 Interest Expense 7080 Cash 486160 Notes Payable 472000 Interest Payable 14160 Cash 486160 Interest Expense 14160 Notes Payable 472000 Cash 486160
A noninterest-bearing note is issued on February 12 of a non-leap year in the amount of $14,250. It has a term of 10 months. It is sold on September 22 with a negotiated interest rate of 2%. Determine the proceeds of the sale. Add 3 days grace period. Select one: a. $14184.71 b. $12193.87 c. none d. $13189.29 Check
Blossom Wholesalers accepts from Gates Stores a $8,000, 4-month, 9% note dated May 31 in settlement of Gates' overdue account. The maturity date of the note is September 30. (a1) Your answer is correct. Calculate the interest payable at maturity. Interest payable at maturity $ eTextbook and Media List of Accounts (a2) 240 Account Titles and Explanation What entry does Blossom make at the maturity date, assuming Gates pays the note and interest in full at that time? (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Attempts: 1 of 3 used Credit
Bennett Enterprises isues a $480,000, 45-day, 9%, note to Spectrum Industries for merchandise inventory. Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank. a. Journalize Bennett Enterprises' entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. 1. 2. b. Journalize Spectrum Industries' entries to record: 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. 1. 2. 00
On June 8, Alton Co. issued an $75,537, 7%, 120-day note payable to Seller Co. Assuming a 360-day year for your calculations, what is the maturity value of the note? When required, round your answer to the nearest dollar. Select the correct answer. $5,288$75,537$80,825$77,300
Autumn Designs & Decorators issued a 120-day, 7% note for $65,400, dated April 13 to Zebra Furniture Company on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume a 360-day year when calculating interest. Do not round your intermediate calculations and round your final answer to the nearest dollar. c. Journalize the entries to record the following: (1) receipt of the note by Zebra Furniture and (2) receipt of payment of the note at maturity. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.