Suppose Casey Title Company normally charges $400 for services related to selling a house. As part of a summer special, Casey offers customers a trade discount of 30%. On July 9, Linda Holmes uses the services of Casey and pays cash equal to the discounted price. Record the revenue recognized by Casey on July 9.
Q: Review each of the transactions, and prepare any necessary journal entries for each situation.
A: Journal entry: It is a systematic record of a financial transaction of an organization recorded in…
Q: Oswego Clay Pipe Company sold $45,800 of pipe to Southeast Water District 45 on April 12 of the…
A: The journal entries are prepared to record the transactions on regular basis. The purchase and sales…
Q: Arrow Manufacturing allows its customers to return merchandise for any reason up to 90 days after…
A: Arrow Manufacturing A Opening refund liability $400,000 B Less: Returns prior to 2021…
Q: During December Far West Services makes a $3,000 credit sale. The state sales tax rate is 6% and the…
A: Formula: Total sales tax = State sales tax + Local sales tax where. State sales tax = Sales x State…
Q: Beth uses the net invoice method to record sales on account. Beth made sales of $40,000 with terms…
A: Receivables: Receivables refer to an amount to be received in future. General classifications of…
Q: on June 1, Lupita Candy Supplies sells 1,250 candy buckets to a local school at a sales price of $10…
A: Total sales value = No. of buckets sold x sales price per bucket = 1250 x $10 = $12,500
Q: Target Shoppers Inc. reported cash sales of $28,800 for the month of June. Sales taxes payable are…
A: A journal entry is the act of keeping or making records of any transactions either economic or…
Q: Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is…
A: A Journal entry is a primary entry that records the financial transaction initially. The…
Q: On December 1, Home Store sells a mower (that costs $280) for $580 cash with a one-year warranty…
A: The journal entries are prepared to record the transactions on regular basis. The warranty expense…
Q: Sue Needam Accounting Inc. takes advantage of a well-known office furnishings store's…
A: When an asset is acquired by issuing a long-term notes payable then, the asset is initially recorded…
Q: Emperor Pool Services provides pool cleaning and maintenance services to residential clients. It…
A: The official record for the business is a journal that includes every transaction in reverse…
Q: Seacost Magazine sells subscriptions for $36 for 18 issues. The company collects cash in advance and…
A: Under the Accrual Basis of Accounting, revenue is accounted for when it is earned, and expense is…
Q: Sage sells its specialty combination gas/wood-fired grills to local restaurants. Each grill is sold…
A: Financial transactions are initially recorded in the form of journal entries by the company.
Q: Required: 1. Prepare journal entries for each of these transactions. 2. Prepare the adjusting…
A: Journal is a book used to record the daily transactions of a business entity.In journal, the…
Q: During December, Far West Services makes a $5,000 credit sale. The state sales tax rate is 6% and…
A: Debit what comes in and credit what goes out Debit the receiver and credit the giver Debit all the…
Q: On December 1, Home Store sells a mower (that costs $160) for $460 cash with a one-year warranty…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: On December 1, Home Store sells a mower (that costs $220) for $520 cash with a one-year warranty…
A: Cash received on sale of mower = $520 Estimated Warranty liability = Sales × 8% =$520×8% =$41.60
Q: On June 11 of the current year, a retailer sells a trimmer for $400 with a one-year warranty that…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: a. Show the effects of these transactions on the financial statements using a horizontal statements…
A: Horizontal Statement Model Financial statement elements is arranged horizontally across a page in…
Q: 1 Loaned $84,000 to a cashier of the company and received back a one-year, 10 percent note. b.…
A: a) Date General Journal Debit Credit Jan 1 Note Receivable $84,000 To Cash…
Q: On March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some recent…
A: A liability known as notes payable is a formal commitment to pay a specified sum of money at a later…
Q: Luna Company accepted credit cards in payment for $7,100 of services performed during July Year 1.…
A: A journal entry is a record of a business transaction in double- entry secretary. It's the first…
Q: Hitzu Co. sold a copier (that costs $6,500) for $13,000 cash with a two-year parts warranty to a…
A: Warranty liability is a type of liability account that shows the expected value for the replacement…
Q: Lake View Magazine sells subscriptions for $72 for 18 issues. The company collects cash in advance…
A: Answer:- As per the principal of revenue recognition, revenue should be recognized/recorded when it…
Q: During 2018, LeBron Corporation accepts the following notes receivable. a. On April 1, LeBron…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Notes Receivable Crowne Cleaning provides cleaning services for Amber Inc., a business with four…
A: Notes Receivable is an instrument issued by the payer and accepted by the receiver. It acts as a…
Q: Jack Hammer Company completed the following transactions. The annual accounting period ends December…
A: Accounting equation is the fundamental element of the statement of financial position. It describes…
Q: Marx Corp. purchases 135 fax machines on credit from a manufacturer on April 7 at a price of $250…
A: Credit terms 4/10, n/20 means that customer will get a discount of 4% if payment is being made in 10…
Q: Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions…
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: Chocolate Corner Company had the following transactions during the current year: Apr. 8. Received a…
A: Formula : Interest = (Amount of Note x rate) x number of days / 360 days
Q: A plumbing supply company has a discount policy which states that, if a customer pays within 15 days…
A: Discount: Discount is the interest value included in the face value of discount note.
Q: n March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some recent…
A: Journal entries are used for recording the transactions of business. For each and every entry there…
Q: On november 10 if the curret year, Flores Mills sold carpet to a customer for $7,700 with credit…
A: The journal entries are prepared to record the transactions of the business on regular basis. Using…
Q: The following were selected from among the transactions completed by Caldemeyer Co. during the…
A: Journal entries are a record of financial transactions. This is very first step in accounting cycle,…
Q: On August 1, Costco Lubbock collects sells 150,000 one-year family memberships to customers for $45.…
A: Given, Number of memberships = 150,000 Selling price of one year membership = $45
Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…
A: Estimated Sales return are deducted from the sales of the year to arrive at the net sales as per the…
Q: Please help. The Chair Company provides a 120-day parts-and-labor warranty on all merchandise it…
A: The company that sells goods to its customers with warranty are required to record the warranty…
Q: TJ made a loan of $16,000 to one of the company's employees on April 1, year 1. The one year note…
A: The answer is option (A.) [i.e, $720] Refer Step 2 for Explanation.
Q: On March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some…
A: Interest received on Notes = Face value of Notes x rate of interest x time = $11,000 x 9% x 6/12 =…
Q: Bally Manufacturing sent Intel Corporation an invoice for machinery with a $13,800 list price. Bally…
A: In a business-to-business arrangement often referred to as trade credit, a customer can buy products…
Q: A business sells $100,000 of products to a customer on account and collects 6% sales tax. Cost of…
A: a. Date Account Titles and Explanation Debit Credit Accounts receivable $106,000…
Q: Campbell Inc. accepted a customer's $80,000 zero-interest-bearing six-month note payable in a sales…
A: Interest Revenue is the amount of interest earned on interest-bearing assets during the period. It…
Q: During December, Far West Services makes a $3,600 credit sale. The state sales tax rate is 6% and…
A: Total Sales tax payable = Sales revenue x sales tax rate = 3600 x (6+2.5)% = $306
Q: Emperor Pool Services provides pool cleaning and maintenance services to residential clients. It…
A: ANSWER:- JOURNAL ENTRIES DATE…
Q: Feb. 26 The company paid cash to Lyn Addie for eight days’ work at $125 per day. Mar. 25 The company…
A: Payroll of a company consists of the wages, salaries, and employee benefits and taxes deductions.…
Q: A credit card company determines a card holder's minimum monthly payment by adding all new interest…
A: The total outstanding balance as of November 10th is $1,376 (van repairs ($654) + equipment…
Suppose Casey Title Company normally charges $400 for services related to selling a house. As part of a summer special, Casey offers customers a trade discount of 30%. On July 9, Linda Holmes uses the services of Casey and pays cash equal to the discounted price.
Record the revenue recognized by Casey on July 9.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
- The annual accounting period ends December 31 Apr. 30 Received $465,000 from Commerce Bank after signing a 12-month, 7 percent, promissory note. June 6 Purchased merchandise on account at a cost of $66,000. (Assume a perpetual inventory system.) July 15 Paid for the June 6 purchase. Aug. 31 Signed a contract to provide security service to a small apartment complex and collected six months' fees in advance amounting to $18,600. (Use an account called Unearned Revenue.) Dec. 31 Determined salary and wages of $31,000 were earned but not yet paid as of December 31 (ignore payroll taxes) Dec. 31 Adjusted the accounts at year- end, relating to interest. Dec. 31 Adjusted the accounts at year-end, relating to security service. Required: 1&2. Complete the required journal entries for each of the above transactions.Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2021, the following transactions related to receivables occurred: Feb. 28 Sold merchandise to Lennox, Inc., for $20,000 and accepted a 6%, 7-month note. 6% is an appropriate rate for this type of note. Mar. 31 Sold merchandise to Maddox Co. that had a fair value of $15,040, and accepted a noninterest-bearing note for which $16,000 payment is due on March 31, 2022. Apr. 3 Sold merchandise to Carr Co. for $14,000 with terms 2/10, n/30. Evergreen uses the gross method to account for cash discounts. 11 Collected the entire amount due from Carr Co. 17 A customer returned merchandise costing $4,800. Evergreen reduced the customer’s receivable balance by $6,600, the sales price of the merchandise. Sales returns are recorded by the company as they occur. 30 Transferred receivables of $66,000 to a factor without recourse. The…On July 18, 2021, Philly Furniture Factory sold 20 reclining rockers to Dave's Discount Furniture for $8,000, subject to terms 2/10, n/30. Philly uses the net method of accounting for sales discounts. Required: 1. Prepare the journal entry to record the sale. 2 & 3. Prepare the journal entries to record receipt of the payment, assuming the correct amount was received on July 26, 2021 and August 15, 2021.
- On August 2, Jun Co. receives a $7,300, 90-day, 12% note from customer Ryan Albany as payment on his $7,300 account. 1. Compute the maturity date for the above note. multiple choice October 29 October 30 October 31 November 1 November 2 2. Prepare Jun’s journal entry for August 2. 1 Record receipt of note on account.Dextra Computing sells merchandise for $16,000 cash on September 30 (cost of merchandise is $11,200). Dextra collects 7% sales tax. Record the entry for the $16,000 sale and its sales tax. Also record the entry that shows Dextra sending the sales tax on this sale to the government on October 15. View transaction list Journal entry worksheet 1 2 3 Record the cash sales and 7% sales tax. Date September 30 Note: Enter debits before credits. General Journal Debit Credit >Use the five transactions below for Hennigan Rentals to answer the questions that follow. Dec. 1 Hennigan purchases two new saws on credit at $375 each. The saws are added to Hennigan's rental inventory. Payment is due in 30 days. 8 Hennigan accepts advance deposits for tool rentals of $75. 15 Hennigan receives a bill from Farmer's Electric Company for $150. Payment is due in 30 days. 20 Customers are charged $750 by Hennigan for tool rentals. Payment is due from the customers in 30 days. 31 Hennigan receives $500 in payments from the customers that were billed for rentals on December 20. Refer to the transactions for Hennigan Rentals.Based on the above transactions, how much is still owed to Hennigan on December 31 from its customers? a.$500 b.$750 c.$250 d.$0. Please answer properly
- On March 1, Terrell & Associates provides legal services to Whole Grain Bakery regarding some recent food poisoning complaints. Legal services total $9,900. In payment for the services, Whole Grain Bakery signs a 8% note requiring the payment of the face amount and interest to Terrell & Associates on September 1. Required: For Whole Grain Bakery, record the issuance of the note payable on March 1 and the cash payment on September 1. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)On July 10, 2020, Cheyenne Music sold CDs to retailers on account and recorded sales revenue of $658,000 (cost $506, 660). Cheyenne grants the right to return CDs that do not sell in 3 months following delivery. Past experience indicates that the normal return rate is 15%. By October 11, 2020, retailers returned CDs to Cheyenne and were granted credit of $80,000. Prepare Cheyenne's journal entries to record (a) the sale on July 10, 2020, and (b) $80,000 of returns on October 11, 2020, and on October 31, 2020. Assume that Cheyenne prepares financial statement on October 31, 2020. (To record sales) (To record cost of goods) (To record sales returns) (To record cost of goods returned)Ainsley Emporium sells gift cards to customers. In December, customers purchased $10,000 of gift cards. During December, the gift card recipients used gift cards to purchase $3,000 of goods. Prepare Ainsley’s entry for (1) the sale of the gift cards and (2) the year-end adjusting entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To record cash received for goods to be provided at a later date) (To record the sale of merchandise using a gift card)
- Emperor Pool Services provides pool cleaning and maintenance services to residential clients. It offers a one-year warranty on all services. Review each of the transactions: A. March 31: Emperor provides cleaning services for 25 pools during the month of March at a sales price per pool of $610 cash. Emperor records warranty estimates when sales are recognized and bases warranty estimates on 1 percent of sales. B. April 5: A customer files a warranty claim that Emperor honors in the amount of $130 cash. C. April 13: Another customer, J. Jones, files a warranty claim that Emperor does not honor due to customer negligence. D. June 8: J. Jones files a lawsuit requesting damages related to the dishonored warranty in the amount of $2,100. Emperor determines that the lawsuit is likely to end in the plaintiff's favor and the $2,100 is a reasonable estimate for damages. Prepare any necessary journal entries for each situation. If an amount box does not require an entry, leave it blank. If no…Evergreen Company sells lawn and garden products to wholesalers. The company’s fiscal year-end is December 31. During 2021, the following transactions related to receivables occurred: Feb. 28 Sold merchandise to Lennox, Inc., for $10,000 and accepted a 10%, 7-month note. 10% is an appropriate rate for this type of note. Mar. 31 Sold merchandise to Maddox Co. that had a fair value of $7,200, and accepted a noninterest-bearing note for which $8,000 payment is due on March 31, 2022. Apr. 3 Sold merchandise to Carr Co. for $7,000 with terms 2/10, n/30. Evergreen uses the gross method to account for cash discounts. 11 Collected the entire amount due from Carr Co. 17 A customer returned merchandise costing $3,200. Evergreen reduced the customer’s receivable balance by $5,000, the sales price of the merchandise. Sales returns are recorded by the company as they occur. 30 Transferred receivables of $50,000 to a factor without recourse. The factor…On September 15, Jas Motor Service Center issued a 90-day, 18% note amounting to P10,000 for a loan from a friend. The service center uses the fiscal accounting period ending September 30.Required: Entries on date of issue and end of September.