X Company purchased Supplies for $12,000. It paid $7,000 in cash and agreed to pay the remaining balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $12,000, a credit to a liability account for $5,000. Which of the following would be the correct way to complete the recording of the transaction? * O Credit an asset account for $7,000 Credit an asset account for $5,000 Credit another liability account for $7,000 O None of the above

X Company purchased Supplies for $12,000. It paid $7,000 in cash and agreed to pay the remaining balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $12,000, a credit to a liability account for $5,000. Which of the following would be the correct way to complete the recording of the transaction? * O Credit an asset account for $7,000 Credit an asset account for $5,000 Credit another liability account for $7,000 O None of the above

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Question: The following transactions apply to Ozark Sales for Year 1: 1. The business was started when the company received $48,500 from the issue of common stock. 2. Purchased equipment inventory of $175,000 on account. 3. Sold equipment for $204,500 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $129,500. 4. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. 5. Paid the sales tax to the state agency on $154,500 of the sales. 6. On September 1, Year 1, borrowed $21,500 from the local bank. The note had a 6 percent interest rate and matured on March 1, Year 2. 7. Paid $5,700 for warranty repairs during the year. 8. Paid operating expenses of $56,000 for the year. 9. Paid $124,100 of accounts payable. 10. Recorded accrued interest on the note issued in transaction no. 6. 1. Prepare the income statement for Year 1. 2.…
(A) How much should be recorded as the purchase price of the individual PPE items: 1. Equipment has an invoice price of P1,000,000, and a credit term of 2/30, n/60. Cash discount was not taken. 2. Paid cash of P200,000 and issued a note for the purchase of a machinery. The note has a face value of P1,000,000 due after three years and an effective interest rate of 7%. 3. Five units of equipment was purchased through the issuance of 1,000 pieces of P1,000 par-value shares. Each equipment has a fair value of P300,000 while a share is valued at P1400. 4. Issued bonds with face value of P5,000,000 and fair value of P5,100,000 to purchase equipment with a fair value of P4,900,000. 5. The old equipment has an original cost of P1,500,000, accumulated depreciation of P600,000, and fair value of P1,000,000. The new equipment obtained through exchange has a fair value of P1,200,000. The balance was
please help answer
Required information [The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash. July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. Paid the amount due on the note to Locust at the maturity date. Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 88, $42,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 ? Paid the amount due on the note to Fargo Bank at the maturity date. 4. Determine the interest expense recorded in Year 2. Note: Do not round your Intermediate calculations. Use 360 days a…
s
A loan of $17,504 was repaid at the end of 16 months. What size repayment check (principal and interest) was written, if a 7.9% annual rate of interest was charged? Question content area bottom Part 1 The amount of the repayment check was $ enter your response here. (Round to two
Please provide the following journal entries for these transactions, you can draw the T- Accounts or journal entries; A) Mortgage Company funded a loan for $100,000 and the company only advance 98% of the loan through financing (Warehouse Line). Remaining 2% is gathered from Companys funds. B) The same loan was sold to investor at 102 % 15 days later, please prepare the journal entries. C) The Company has expenses at the end of the month in the amount of $20,000 but has not paid until 30 days later. Please prepare journal entries at the end of the month and 30 days payment. D) The company received funds and has a trust liability account for borrowers in the amount of $10,000. 30 days later the trust liability is being transferred to the final investors. E) Company Prepaid Insurance for 12 months and paid in January for $1,200. You are now in the March 31 st of the year.
On February 25, 2014, Holden Corp. purchased automobiles and trucks for a total price of $530,000, by borrowing the full balance from the bank to be repaid within 8 years. The bank appraised the automobiles at S196,000 and the trucks at $294,000. Enter an appropriate description, and enter the date in the format dd/mmm (i.e., 15/Jan). General Journal Page GJ2 F Debit Credit Date Account/Explanation
Tucker Technology has current asset of $350,000 and current ratio of 2.0. Compute Tucker's current ratio after the following 4 transactions are all finished. Borrow $20,000 in a short-term note. Purchase $75,000 inventory on credit. Collect $30,000 of accounts receivable. Pay $20,000 of account payable.
Solve in digital format 1. A company requested a bank loan of $ 100,000 agreed for a two-year term, at an interest rate of 18%, with a monthly capitalization clause. What is the future amount or value of the operation?
! Required information [The following information applies to the questions displayed below.] During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $28,000. On the date of delivery, January 2, the company paid $7,000 on the machine, with the balance on credit at 9 percent interest due in six months. On January 3, it paid $1,500 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,700. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $3,400. Required: 1. Indicate the effects of each transaction on the accounting equation. Note: Enter decreases to account categories as negative amounts. If the transaction does not impact the accounting equation choose "No effect" in the…
Arevalo Machinery Company sold a custom production mill for $480,000, receiving a $60,000 down payment and a 12% note for the balance. The journal entry to record this sale would include a: Group of answer choices Debit to note receivable. Credit to note receivable. Credit to cash. Debit to cash discount.