Mercado Ltd started its business with £21,000 in cash on 1 Jan 20X1, and immediatelypurchased 400 items of inventory at the price of £50 per item and put the remaining £1,000in a bank account without any fees or interests.On 1 July 20X1, it sold all items at the price of £80 per item and received the payment incash.The general price index during the year was as follows:01-Jan 01-Jul 31-DecGeneral priceindex100120150What is the cash balance at the year end 31 Dec 20X1 under current purchasing poweraccounting?Select one:a. £41,500b. £40,000c. £32,000d. £33,000e. £1,000

Comparative purchasing power accounting is a technique utilized to assess metrics, between nations…

Answered: Mercado Ltd started its business with…

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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K Agnes Ltd commenced business on 1 January Year 9. During the year ending on 31 December Year 9, they bought a quantity of leather briefcases at a uniform cost and sold 6,000 of them at £50 each. An inventories check on 31 December Year 9 established that they hold 650 unsold briefcases. The gross profit for the year was £114,000. How much was the cost of each briefcase? OA. £27.97 B. £17.14 OC. £31.00 O D. £19.00
You sold $8,000 of inventory for $10,000 on terms 2/10,n/30. If your customer pays the bill on day five, which of the following are true statements relating to just the day five transaction? Remember that the larger number in a transaction will be the revenue and the smaller one will be the cost of goods sold. A. You will debit cash for $10,000 B. You will credit inventory for $200 C. You will debit discounts for $200 D. You will debit cash for $9,800 E. You will label this transaction as paid bill F. You will label this transaction as a cash entry Select all that apply.
Yui Sum Ltd commenced business on 1 January Year 9. During the year ending on 31 December Year 9, they bought a quantity of leather briefcases at a uniform cost and sold 5,800 of them at £60 each. An inventories check on 31 December Year 9 established that they hold 650 unsold briefcases. The gross profit for the year was £116,000. How much was the cost of each briefcase? O A. £17.85 OB. £40.00 O C. £35.69 O D. £20.00
Yui Sum Ltd commenced business on 1 January Year 9. During the year ending on 31 December Year 9, they bought a quantity of leather briefcases at a uniform cost and sold 5,800 of them at £60 each. An inventories check on 31 December Year 9 established that they hold 650 unsold briefcases. The gross profit for the year was £116,000. How much was the cost of each briefcase? O A. £17.85 OB. £40.00 O C. £35.69 O D. £20.00
On average, your firm sells $32,300 of items on credit each day. The average inventory period is 27 days and your operating cycle is 47 days. What is the average accounts receivable balance? $872,100 $1.292.000 $904,400 $646,000 $1,518,100
9. 測 3. ABC Co. had the following purchases on account: September August 65% of the month's purchases are paid in the month of purchase. The remainder is paid in the month following purchase, How much will the cash payments for purchases be in August? July 000'008$ 43°F SU prt sc 144 114 fg *- V. 0. 5. 6.
Landis Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $95,000; beginning inventory of $9,500 and purchases of $66,500. What is the estimated amount of ending inventory at the end of the period? Multiple Choice ο ο ο ο $30,400 $57,000 $38,000 $19,000
Keep Calm Company provided the following information for the current year: Accounts receivable, January 1 2,100,000 Accounts receivable, December 31 2,700,000 Collections of accounts during the year 9,000,000 Inventory, January 1 4,500,000 Purchases during the year 5,800,000 All sales are made on account. The mark up on cost is 20% What is the estimated inventory at December 317
A company uses periodic system for stock/inventory valuation. At the beginning of the period there was opening inventory amounted to N$30 000. During the year, a firm bought goods costing N$190 000. The value of closing inventory was N$25 000. What was the amount of the cost of sales? Answer:

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