On July 10th, 2020X1, a purchase contract for pallet and heavy-duty shelving worth EUR 12,000 (plus VAT) is concluded with the supplier Superregal. Superregal grants TK a discount of 3% on the above value. On 08/01/20X1, TK makes a down payment in cash of EUR 1,547 including VAT. The shelves will be delivered and assembled on 10/15/20X1, with assembly costs of EUR 900 plus VAT incurred, which will be paid by bank on 10/17/20X1. The remaining purchase price will not be transferred until the new year. The shelves have a useful life of 15 years and are depreciated using the declining balance method at a rate of 12%. Which of the following statements regarding business transactions in 20X1 is/are correct? O The payouts total EUR 2,252. O On 10/15/20X1 at least one active stock account is posted as a debit and at least two other active stock accounts are posted as a credit. O The shelves are activated with 12,540 EUR. O The payoff and the effort are equal.

On July 10th, 2020X1, a purchase contract for pallet and heavy-duty shelving worth EUR 12,000 (plus VAT) is concluded with the supplier Superregal. Superregal grants TK a discount of 3% on the above value. On 08/01/20X1, TK makes a down payment in cash of EUR 1,547 including VAT. The shelves will be delivered and assembled on 10/15/20X1, with assembly costs of EUR 900 plus VAT incurred, which will be paid by bank on 10/17/20X1. The remaining purchase price will not be transferred until the new year. The shelves have a useful life of 15 years and are depreciated using the declining balance method at a rate of 12%. Which of the following statements regarding business transactions in 20X1 is/are correct? O The payouts total EUR 2,252. O On 10/15/20X1 at least one active stock account is posted as a debit and at least two other active stock accounts are posted as a credit. O The shelves are activated with 12,540 EUR. O The payoff and the effort are equal.

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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