The following information is available for ABC Co. Budgeted sales Gross profit as a percentage of sales Closing trade payables as a percentage of cost of sales Opening inventory Closing inventory May 30,000 30% 50% nil nil June 40,000 30% 50% nil nil

The following information is available for ABC Co. Budgeted sales Gross profit as a percentage of sales Closing trade payables as a percentage of cost of sales Opening inventory Closing inventory May 30,000 30% 50% nil nil June 40,000 30% 50% nil nil

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The following were extracted from the books of Nairobi Exports Limited. Compile debtor’s ledger and…

A: Ledgers are the set of accounts for the financial transactions made during the period. First of all,…

Q: what is the cash receipts for July if the cash balance is 26,590 and the totaled cash payment is…

A: Cash Budget is prepared to analyze the cash transaction or cash flow of business.Non-cash items do…

Q: In April 2018, the China-US exchange rate was 6.37 C/Y. In October, it was 6.93 C/Y. What is the…

A: In April, $1 = 6.37 CNY (Spot Rate) In Oct $1 = 6.93 CNY (Forward Rate) Therefore, change in percent…

Q: On November 30, P Corporation purchased inventory from a Chinese supplier. The Chinese company…

A: Accounts payable is an obligation which is to paid off by the entity to its creditors or suppliers…

Q: If a trade payable has a credit term of 2/10, what day is the best day to settle it?

A: Generally businesses offer discount for its creditors to encourage early payments. Credit term of…

Q: a. How much is the ForEx gain or loss on December 31, 2016? b. How much is the ForEx gain or Loss…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. Foreign…

Q: Journal entries for an accounts receivable denominated in Swiss Francs (SUS strengthens and weakens)…

A: Accounts receivable = CHF 250,000 ×$1.12 = CHF 280,000

Q: Use this table to answer the next two questions. The following table shows the number of euros…

Q: On September 1, 2020, Creed Co. sold merchandise to a foreign entity for 250,000 francs. Terms of…

A: The recording of transactions in the form of currencies outside the functional currency is known as…

Q: assume the direct quote on the euro is 2.14 and the indirect quote on the Swiss franc is 0.76. what…

A: Direct quote on the euro = 2.14Indirect quote on the Swiss franc = 0.76

Q: Calculate the Accounts Receivable Turnover for 2021 using the following information: Net Sales…

A: The ratio analysis helps to analyze the financial statements of the business on the basis of…

Q: Voltac Corporation (a U.S. company located in Charlotte, North Carolina) has the following import/…

A: a. Calculate inventory amount: Inventory = 100,000 peso * 40% * $0.10 Inventory = $4,000 b.…

Q: For a purchase of goods on destination, input tax of €665 is booked. How high are the trade…

A: Input taxes are added to the cost of purchase. Thus increasing the amount by such tax amount. Goods…

Q: On 1 December 2019, Company EX, with a functional currency and presentation currency in HKD, sold…

A: Exposure= EUR 10,000 (Receivable) The exchange rate of EUR/HKD was 8.79 and 8.96 respectively on 1…

Q: Calculate the nominal annual cost of trade credit under each of the following terms. Assume a…

A: Annual nominal cost of trade credit = Discount %/(100-Discount %) x (360/Allowed payment days –…

Q: The following table shows hypothetical monthly exchange rates for the Canadian dollar and the euro,…

A: Check the detailed answer below:Explanation:Part 1:Answer:The percentage change in the Canadian…

Q: Calculate the nominal annual cost of trade credit under each of the following terms. Assume a…

A: Given:

Q: On May 20, 2019, when the spot rate is $1.08/€, a U.S. company buys merchandise from a supplier in…

Q: At 30 June 2021 Trade payables and Accrued expenses in respect of advertising were £2,539 and £215…

A: Trade Payables: These include the amount that is supposed to be paid by the business for the product…

Q: Please confirm and provide calculations for average trade accounts receivable net for 2009 with…

A: Average trade Account receivables is calculated as sum of beginning and ending Account receivables…

Q: A company has an account payable to a U.S. company, a supplier of inventory, in the amount of US$…

A: Exchange rate means the number of units of domestic currency given to get one unit of foreign…

Q: Required: i. Prepare the following accounts for years 2016, 2017 and 2018, showing the transfer to…

A: Allowance for Doubtful Debt Allowance of Doubtful debt which are used to adjust the debtors balance…

Q: Accounts payable turnover days (Use 365 days. Round your answer to nearest whole number.)

A: Cost of good sold=3865.20Account payable=$442 and $461.50Assume=365 days

Q: How should the payment of PAYE of $600 of a New Zealand resident company be recorded in the…

A: (1) PAYE - Pay as You Earn (a) Employees who are earning wages will be taxed directly from their…

Q: At what rates should the following balance sheet accounts in foreign statements be translated (using…

A: By using the current rate method the balance sheet accounts in the foreign statements are…

Q: Based on the information given below, what is the "Days Revenue in Accounts Receivable" for the…

A: Formula…

Q: ss for 3rd quarter

A: The answer has been mentioned below.

Q: Partial payments are made on the dates indicated. Use the United States rule to determine the…

A: An amount borrowed is partly compensated by two intermittent payments. The balance to be paid on the…

Q: 1. On November 1, 2020, an entity acquired on account goods from a foreign supplier at a cost of…

A: Carrying amount of monetary asset means carrying amount of accounts receivable.

Q: Compute for each year the accounts receivable turnover. (Raunda

A: Ratio: It is a number expressed in terms of another to establish relationship among them. They…

Q: alculate the cost of trade credit when payment is made on the net due date using the APR

A: Cost of Trade Credit is a method of interest rate calculation based on accounts payable. It is…

Q: A company has an account payable to a U.S. company, a supplier of inventory, in the amourit df…

A: Foreign Currency Transactions: A business doing international transaction enters into the foreign…

Q: Calculate the nominal annual cost of trade credit under each of the following terms. Assume a…

A: Cost of Trade Credit: The cost of trade credit is calculated using the following formula: Cost of…

Q: %

A: rnom = [Discount % / 1 - Discount % ] * [ 365 days/ Days credit is outstanding - Discount Period]…

Q: 18 - In the form of payment with acceptance credit, which is the journal entry to be made if the…

A: Rules for accounting are : Debit what comes in credit what goes out Debit the receiver and credit…

Q: How should the payment of GST of $100 of a New Zealand resident company be recorded in the company’s…

A: Imputation tax credit is mechanism to avoid double taxation and facilitate the company to pass…

Q: a company signs a contract with another party to transaction at a specific rate for 180 days into…

A: The objective of the question is to identify the type of exchange rate used when a company signs a…

Q: The financial statements of the Sunland Company report net sales of $384000 and accounts receivable…

A: Accounts receivable turnover ratio = Net credit sales / Average Accounts Receivables where, Average…

Q: Explain how to calculate day’s sales in receivable.

A: Average collection period: Average collection period indicates the number of days taken by a…

Question

What is the amount of trade payables paid in June?

The following information is available for ABC Co.
Budgeted sales
Gross profit as a percentage of sales
Closing trade payables as a percentage of cost of sales
Opening inventory
Closing inventory
May
30,000
30%
50%
nil
nil
June
40,000
30%
50%
nil
nil

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Calculation and Conclusion

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Turbo Corporation (a U.S.-based company) acquired merchandise on account from a foreign supplier on November 1, 2017, for 100,000 markkas. It paid the foreign currency account payable on January 17, 2018. The following exchange rates for 1 markka are known:a. How does the fluctuation in exchange rates affect Turbo’s 2017 income statement?b. How does the fluctuation in exchange rates affect Turbo’s 2018 income statement?
How should the payment of FBT of $500 of a New Zealand resident company be recorded in the company’s imputation credit account.
Q17
Journal entries for an account payable denominated in Mexican Pesos ($US weakens and strengthens) Assume that your company purchases inventories from a Mexican supplier on December 15. The invoice specifies that payment is to be made on March 15 in Mexican Pesos (Peso) in the amount of 350,000 Pesos. Your company operates on a calendar year basis. Assume the following exchange rates: December 15 $0.046:1 Peso December 31 $0.053:1 Peso March 15 $0.050:1 Peso Prepare the journal entries to record the purchase (assume perpetual inventory accounting), the required adjusting entry at December 31, and the payment on March 15. General Journal Date Description Debit Credit Accounts payable Accounts payable Dec 15 Inventory Dec 31 Foreign currency transaction loss Mar 15 Accounts payable ÷ 16,100 0 0 16,100 2,450 0 0 2,450 28,000 × 0 Foreign currency transaction gain 0 10,500 x Cash 0 17,500
The following table shows hypothetical monthly exchange rates for the Canadian dollar and the euro, as well as the standard deviation of the percentage changes for each currency. Use the table to select the percent change from May 1 to June 1 in the Canadian dollar exchange rate and the euro exchange rate. Month January 1 February 1 March 1 April 1 May 1 June 1 July 1 Standard Deviation Value of the Canadian Dollar (US Dollars per Canadian Dollar) $0.62 0.63 0.64 0.66 0.67 0.65 0.66 Monthly Percent Change in Canadian Dollar Value 1.61% 1.59% 3.13% 1.52% -2.99% 1.54% 2.08% Value of Euro (US Dollars per euro) $1.14 1.18 1.22 1.19 1.18 1.21 1.25 The percentage change in the Canadian dollar from May 1 to June 1 represents a depreciation In this example, the value of the Canadian dollar was more volatile over the entire time period. Monthly Percent Change in Euro Value 3.51% 3.39% -2.46% -0.84% 2.79% 3.31% 2.57% in the value of the Canadian dollar.
25 - The registered value of foreign currency holdings is increased or reduced to the value of the balance sheet day based on the exchange rate at the end of the period. What is this process called?A) EqualizationB) FixingC) IncreaseD) Don't payE) Valuation
Determine the Direct and Indirect exchange rates of any two currencies on the two dates and show the impact of changes in exchange rates on Imports and Exports. (Note: You can assume any two currencies and any two dates)
Initially, a foreign currency transaction shall be recorded by applying The spot exchange rate at the date of settlement of the transaction The closing rate at the end of the period The spot exchange rate at the date of transaction The average exchange rate during the year
Short bio on the Colombian Peso (COP) and its importance to global trade.
In the beginning of January of 1994, what was the repo rate in the United States? 3.25 3.00 2.80 3.00 Was this rate higher or lower compared to previous years? lower higher O unchanged How is the repo rate determined? The repo rate is determined by an act of Congress. The U.S. Treasury sets the repo rate. MooBook Pro
2 XYZ Company sells goods to a foreign customer on June 8. Payment of 3,000,000 foreign currency units (FC) is due in one month. June 30 is XYZ Company’s fiscal year-end. The following exchange rates were in effect during the period: June 8 Spot rate $1.10 June 8 30 day forward rate $1.15 June 30 Spot rate $1.14 July 8 Spot rate $1.20 A For what amount should XYZ Accounts Receivable be debited on June 8 B How much foreign exchange gain or loss should XYZ record on June 30
Cassowary Corporation’s balance sheet at December 31, 2016 included a $20,400 account receivable from Quail Corporation of Australia. The account receivable is denominated as 30,000 Australian dollars (A$). Assuming no entries have been made since 12/31/2016, what single entry should Cassowary make on January 16, 2017 when the account receivable is collected and the exchange rate for A$ is $.67? Select one: a. Cash (fc) 20,100 Accounts Receivable (fc) 20,100 b. Cash (fc) 20,100 Exchange Loss 300 Accounts Receivable (fc) 20,400 c. Cash (fc) 20,400 Accounts Receivable (fc) 20,400 d. Cash (fc) 20,700 Accounts Receivable (fc) 20,400 Exchange Gain 300