Munabhai NightWoundsTime Brewing Co. distributes its products in an aluminum keg. Customers are charged a deposit of $100 perkeg; deposits are recorded in the Keg Deposits account.d. Use the horizontal model, demonstrate accounting that would be appropriate for the cost of the kegs that are purchased and usedby NightWoundsTime Brewing Company, including how to account for unreturned kegs? Indicate the financial statement effect. (Enterdecreases with a minus sign to indicate a negative financial statement effect.)Balance SheetIncome StatementAssetsLiabilitiesStockholders' EquityNet IncomeRevenues

The company organization may better understand changes in different financial statements, such as…

Answered: NightWounds Time Brewing Co.…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 7PB: Review the select information for Liquor Plaza and Beer Buddies (industry competitors) and complete...

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Cracker & Company sold merchandise to a customer on credit. The sale price was $8,000. What would be the effect of this transaction on the accounting equation? Select the correct option form screenshot.
Required: Record all transactions in appropriate T-accounts (costs by nature), close all accounts and prepare an Income Statement.a) The company recorded an invoice for rubbish disposal in the current month; value 400.b) The company recorded bank fees; value 50.c) The company sold goods worth 2 000 for 3 500 on deferred payment.d) Goods were delivered to a customer – transport cost 500 and additional insurance cost of 200, both paid by bank money transfer..
Review the select information for Liquor Plaza and Beer Buddies (industry competitors) and complete the following. A. Compute the accounts receivable turnover ratios for each company for 2018 and 2019. B. Compute the number of days sales in receivables ratios for each company for 2018 and 2019. C. Determine which company is the better investment and why. Round answers to two decimal places.
Your roommate says, “Sales taxes are reported as an expense in the income statement.” Do you agree? Agree or Disagree Jensen Company has cash proceeds from sales of $8,400. This amount includes $400 of sales taxes. Give the entry to record the proceeds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Required: record a journal entry whenever applicable. Indicate whether or not the following events would result in recording revenue. If revenue is recorded, indicate the amount recognized. 1.Courtesy Chevrolet sells a Blazer with a "sticker price" of $23,000 for 21,000 cash. (Hint: use actual sales price.)
Review the following transactions. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 330 water bottles for their merchandise inventory, on credit, for $14 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier. Prepare any necessary journal entries for Tolbert Enterprises. If an amount box does not require an entry, leave it blank. Apr. 7 Apr. 15
Assuming that Muscat Trading LLC is trading Electronics business in Nizwa. The business wants to raise a Debit note. Which of the following statement is correct in regards to a debit note? a. It will be raised by Muscat Trading LLC after making payment to various suppliers b. It will be raised by Muscat Trading LLC at the time of Purchase of Merchandise from Suppliers under the credit terms of 2/10 n/60 c. It will be raised by Muscat Trading LLC at the time of selling the goods to customers under the credit terms of 3/20, n/30. d. It will be raised by Muscat Trading LLC to the Suppliers at the time returning the goods due to damage of goods
Consider the following account starting balances and transactions involving these accounts. Use T-accounts to record the starting balances and the offsetting entries for the transactions. The starting balance of Accounts Receivable is $3,200 The starting balance of Cash is $13,700 The starting balance of Inventory is $5,100 1. Buy $14 worth of manufacturing supplies for cash 2. Sell product for $35 in cash with historical cost of $35 3. Receive payment of $13 owed by a customer What is the final amount in Inventory? Note: No unit adjustments are necessary.
Barans Company purchased merchandise on account from a supplier for $13,000, terms 2/10, n/30. Barans Company returned $2,600 of the merchandise and received full credit. a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment? b. What account is credited by Barans Company to record the return?
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Halibut Company purchased merchandise on account from a supplier for $18,600, terms 2/10, n/30. Halibut Company returned $5,000 of the merchandise and received full credit.a. If Halibut Company pays the invoice within the discount period, what is the amount of cash required for the payment?b. What account is credited by Halibut Company to record the return?
The following information was taken directly from the footnotes to the financial statements ofBest Buy:1. “We recognize revenue at the time the customer takes possession of the merchandise.”2. “We sell gift cards to customers and initially establish an Unredeemed Gift Card Liability forthe cash value of the gift card.”3. “Advertising costs are recorded as expenses the fi rst time the advertisement runs.”4. “We compute depreciation using the straight-line method.”a. Discuss what is meant by each of the above footnote items.b. As noted, Best Buy uses a Unredeemed Gift Card Liability account to record the sale of giftcards. Assume that you purchase a $500 gift card from Best Buy as a birthday present for afriend. Prepare the journal entries made by Best Buy to record (1) your purchase of the giftcard and (2) the use of the gift card by your friend to purchase a $500 television.c. Discuss how the matching principle relates to Best Buy ’s treatment of advertisingexpenditures.

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