Presented below is information from Crane Computers Incorporated.July 1Sold $14,800 of computers to Cheyenne Company with terms 2/15, n/60. Crane uses the gross method to record cashdiscounts.10Crane received payment from Cheyenne for the full amount owed from the July 1 transaction.17Sold $111,900 in computers and peripherals to The Clark Store with terms of 2/10, n/30.30The Clark Store paid Crane for its purchase of July 17.Prepare the necessary journal entries for Crane Computers. (Credit account titles are automatically indented when the 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. List all debit entries beforecredit entries. Record journal entries in the order presented in the problem.)DateAccount Titles and ExplanationeTextbook and MediaDebitCredit

Step 1: July 1: Sale to Cheyenne CompanyCrane sold $14,800 of computers to Cheyenne Company with…

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College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 3PB

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Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Presented below is information from Metlock Computers Incorporated. July 1 10 Sold $19,600 of computers to Robertson Company with terms 3/15, n/60. Metlock uses the gross method to record cash discounts. Metlock estimates allowances of $1,274 will be honored on these sales. (Metlock records these estimates at point of sale.) Metlock received payment from Robertson for the full amount owed from the July transactions. 17 Sold $196,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Metlock for its purchase of July 17. Prepare the necessary journal entries for Metlock Computers. (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. Record journal entries in the order presented in the problem.) Date July 1 Account Titles and Explanation Accounts…
Presented below is information from Kingbird Computers Incorporated. July 1 Sold $24,000 of computers to Robertson Company with terms 3/15, n/60. Kingbird uses the gross method to record cash discounts. Kingbird estimates allowances of $1,560 will be honored on these sales. (Kingbird records these estimates at point of sale.) Kingbird received payment from Robertson for the full amount owed from the July transactions. Sold $240,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. The Clark Store paid Kingbird for its purchase of July 17. 10 17 30 Prepare the necessary journal entries for Kingbird Computers. (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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record sales…
Presented below is information from Culver Computers Incorporated. July 1 Sold $14,100 of computers to Larkspur Company with terms 3/15, n/60. Culver uses the gross method to record cash discounts. 10 Culver received payment from Larkspur for the full amount owed from the July 1 transaction. 17 Sold $108,100 in computers and peripherals to The Clark Store with terms of 3/10, n/30. 30 The Clark Store paid Culver for its purchase of July 17. Prepare the necessary journal entries for Culver Computers. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)
Presented below is information from Cullumber Computers Incorporated. July 1 Sold $18,400 of computers to Robertson Company with terms 3/15, n/60. Cullumber uses the gross method to record cash discounts. Cullumber estimates allowances of $1,196 will be honored on these sales. 10 Cullumber received payment from Robertson for the full amount owed from the July transactions. 17 Sold $184,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Cullumber for its purchase of July 17. Prepare the necessary journal entries for Cullumber Computers. (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.)
Presented below is information from Larkspur Computers Incorporated. July 1 Sold $19,200 of computers to Robertson Company with terms 3/15, n/60. Larkspur uses the gross method to record cash discounts. Larkspur estimates allowances of $1,248 will be honored on these sales. 10 Larkspur received payment from Robertson for the full amount owed from the July transactions. 17 Sold $192,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Larkspur for its purchase of July 17. Prepare the necessary journal entries for Larkspur Computers.
Presented below is information from Flint Computers Incorporated. July 1 Sold $12,700 of computers to Buffalo Company with terms 4/15, n/60. Flint uses the gross method to record cash discounts. 10 Flint received payment from Buffalo for the full amount owed from the July 1 transaction. 17 Sold $145,600 in computers and peripherals to The Clark Store with terms of 4/10, n/30. 30 The Clark Store paid Flint for its purchase of July 17. Prepare the necessary journal entries for Flint Computers. (Credit account titles are automatically indented when the amount is entered not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before c entries. Record journal entries in the order presented in the problem.)
Oswego Clay Pipe Company sold $46,000 of pipe to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. Oswego uses the gross method of accounting for sales discounts. What entry would Oswego make on June 10, assuming the customer made the correct payment on that date? Multiple Choice Cash Accounts receivable Discounts receivable Cash Accounts receivable Sales discounts forfeited Cash Accounts receivable Cash Accounts receivable Sales discounts forfeited
On March 12, jangles corporation received $20, 100 invoice dated March 9. Cash discount terms were 2/10, n/30. On March 16 jangles spent an $8,040 partial payment. What credit should jangles receive? What is jangles outstanding balance?
Hunt Company enters all cash payments in the cash payments journal. On February 21, the company issued Check No. 220 to Austin Company for merchandise purchased on January 29 for $6,000, terms 2/10, n/30. How would Hunt Company record this transaction in the cash payments journal?
Jangles Corporation received a $20,000 invoice dated March 3. The Cash discount terms were 3/10, n/30. On March 10, Jangles sent a $12,000 partial payment. What credit should Jangles receive for this partial payment?
Nieman Company purchased merchandise on account from Springhill Company for $12,100, terms 2/10, n/30. Nieman returned merchandise with an invoice amount of $2,800 and received full credit. a. If Nieman Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar. b. What account is debited by Nieman Company to record the return?

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