**Accounting Chapter 13 – Homework Problem**During the last week of August, Apache Arts Company’s owner approaches the bank for an $80,000 loan to be made on September 2 and repaid on November 30 with an annual interest of 12%, for an interest cost of $2,400. The owner plans to increase the store’s inventory by $60,000 during September and needs the loan to pay for inventory acquisitions. The bank’s loan officer needs more information about Apache Arts’ ability to repay the loan and asks the owner to forecast the store’s November 30 cash position. On September 1, Apache Arts is expected to have a $3,000 cash balance, $135,000 of accounts receivable, and $100,000 of accounts payable. Its budgeted sales, merchandise purchases, and various cash disbursements for the next three months follow:| Budgeted Figures | September | October | November ||----------------------|-----------|----------|-----------|| Sales | $220,000 | $300,000 | $380,000 || Mdse purchases | 210,000 | 180,000 | 220,000 || Cash disbursements: | | | || Payroll | 16,000 | 17,000 | 18,000 || Rent | 6,000 | 6,000 | 6,000 || Other cash expenses | 64,000 | 8,000 | 7,000 || Repayment of loan | | | 80,000 || Payment of interest | | | 2,400 |*Operations began in August; August sales were $180,000 and purchases were $100,000.*The budgeted September merchandise purchases include the inventory increase. All sales are on account. Company experience is that 25% of credit sales are collected in the month of the sale, 45% in the month following the sale, 20% in the second month, 9% in the third, and the remainder is uncollectible. All merchandise is purchased on credit. 80% of the balance is paid the month following a purchase, and the remaining 20% is paid in the second month. For example, of the $100,000

Cash budget consists of cash receipts and cash disbursements. The estimation of cash is shown in…

References Mailings Review View Help viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Accounting Chapter 13- Homework Problem During the last week of August, Apache Arts Company's owner approaches the ban- an $80,000 loan to be made on September 2 and repaid on Novemnber 30 with anne interest of 12%, for an interest cost of $2,400. The owner plans to increase the stor

References Mailings Review View Help viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Accounting Chapter 13- Homework Problem During the last week of August, Apache Arts Company's owner approaches the ban- an $80,000 loan to be made on September 2 and repaid on Novemnber 30 with anne interest of 12%, for an interest cost of $2,400. The owner plans to increase the stor

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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1. Chapter-9 Homework Question. Help
Credit card bills Assume you open a credit card at the beginning of the year January 1 with an open in balance of zero the annual interest rate on the card is 18% and your bill is due each month starting in January the following charges and credits occur on your account : Jan 5 -$ 45 gas charge Jan 9 - $115 clothes charge Jan 13 - groceries charge $85 Jan 14 - clothes CREDIT (return) $65 Jan 18 - lunch charge $11 Jan 25-$32 gas charge Jan 27- $127 boots charge Jan 29- $200 payment or credit feb 2- $38 gas charge feb 6- $58 groceries charge feb 9- $199 car insurance charge feb 14- $75 credit or payment feb 17- $28 gas charge feb 22 - $6 lunch charge feb 23- $35 dinner and movie charge feb 26- $78 groceries charge feb 28- $150 payment or credit Compare what your finance charge will be for the month of March using the average daily balance method in the unpaid balance method assume the year is not a leap year also assume the only things you charged and paid our listed…
9. Review the following transactions for April Anglers and record any required journal entries. Oct. 4 April Anglers purchases 82 fishing poles at $33 each with cash. Oct. 5 April Anglers purchases 116 fishing poles at $30 each on credit. Terms of the purchase are 3/15, n/30, invoice date October 5. Oct. 12 April discovers 18 of the fishing poles are damaged from the October 4 purchase and returns them to the supplier for a full refund. April also discovers that 32 of the fishing poles from the October 5 purchase are the wrong length but keeps them since the supplier granted an allowance of $15 per fishing pole. Oct. 24 April pays their account in full from the October 5 purchase, less any returns, allowances, and/or discounts. Solution Debit Credit Date Accounts and Explanation
An invoice for a laptop computer that costs $625.68 is dated September 15, with sales terms of 3/10 EOM. When must the invoice be paid to take advantage of the discount?
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Presented below are selected transactions of Pearl Restaurant for the month ending August 31, 2025. Pearl sells 80 gift cards at $78 per gift card and 55 of the gift cards are redeemed by year end. It is estimated that 10 of the gift cards will not be redeemed b. Pearl accepted a reservation for its private dining room for a rehearsal dinner in September. It received a security deposit of $300, which will be returned after the dinner is held. Prepare entries for the Pearl transactions. Of no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement. List oll debit entries before credit entries. Round Intermediate calculations to 2 decimal places, eg. 15.25% and final answers to O decimal places, eg. 5.125) Transaction Account Titles and Explanation Debit Date (To record the sale of 80 gift cards)…
Tom&Dick sells computer software. All credittransactions are done through credit cards, so there is a100% probability of receiving the money, but there is await of up to 10 days while the transaction is beingprocessed. When Tom&Dick prepares financialstatements at the end of its first business year, it should*a. exclude accounts receivable, because customersmay not pay b. include accounts receivable as an assetbecause of the matching principle c. exclude accountsreceivable as the amount is variable with interest ratesd. include accounts receivable as an asset because ofthe cost principle e. none of the above
Billing charges for Microsoft 365 Commercial licensing. When a customer purchases a subscription and changes the amount during the subscription period, a full refund is credited then prorated for what was used. For example, if a customer purchased 2 subscriptions for the month of June at $15 each, the total charge for the month would be $30. If they decide to return one subscription 5 days later, the full $30 would be credited then a prorated charge for what was used would be applied. Credit $30 Charge $15 Charge $0.5 * 5 = $2.50 $15/30 $0.5 p/day = Total Charge $17.50 Total Credit $12.50 If a customer purchases 10 Microsoft 365 Business Premium licenses at $22 each per month, for a full year then 6 months later decides they only need 5 licenses for the remainder of the year, what would be the total charge and credit for the year?