Question

In: Accounting

On April 6, 2018, Home Furnishings purchased $41,000 of merchandise from Una's Imports, terms 3/10 n/45....

On April 6, 2018, Home Furnishings purchased $41,000 of merchandise from Una's Imports, terms 3/10 n/45. On April 8, Home Furnishings returned $8,600 of the merchandise to Una's Imports for credit. Home Furnishings paid cash for the merchandise on April 15, 2018.

Required

  1. What is the amount that Home Furnishings must pay Una's Imports on April 15?

    Net amount due.   
       

  2. Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank
    HOME FURNISHINGS
    Effect of Events on the Financial Statements
    Events Balance Sheet Income Statement Statement of Cash Flows
    Assets = Liabilities + Stockholders’ Equity Revenue – Expenses = Net Income
    Cash + Merchandise Inventory = Accounts Payable + Common Stock + Retained Earnings
    Purchase inventory + = + + – =
    Return inventory + = + + – =
    Discount percentage + = + + – =
    Paid accounts payable + = + + – =
  3. How much must Home Furnishings pay for the merchandise purchased if the payment is not made until April 20, 2018?
  1. Payment

  2. Record the payment of the merchandise in Requirement (c) in a horizontal statements. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event.

    HOME FURNISHINGS
    Effect of Events on the Financial Statements
    Events Balance Sheet Income Statement Statement of Cash Flows
    Assets = Liabilities + Stockholders’ Equity Revenue – Expenses = Net Income
    Cash + Merchandise Inventory = Accounts Payable + Common Stock + Retained Earnings
    Paid accounts payable + = + + – =

Solutions

Expert Solution

Net Amount Due , if Paid on 15 April will be $31428

b. Horizontal Statement Model- Home Furnishing, if Paid on April-15
Assets = Liabilities Stockholders’ Equity Income Statement Statement of Cash Flows
+ Common Retained Revenue - Expense = Net
S. No. Event Cash + Inventory Account Payable Stock Earnings Income
a. Purchase Inventory $41,000.00 = $41,000.00 +
b. Purchase Return -$8,600.00 -$8,600.00
c. Discount (41000-8600)*3% -$972.00 -$972.00
c. Payment made -$31,428.00 $31,428.00 -24541

Net amount payable if not paid with in 15 April will be $32400

Horizontal Statement Model- Home Furnishing, If not paid on April15
Assets = Liabilities Stockholders’ Equity Income Statement Statement of Cash Flows
+ Common Retained Revenue - Expense = Net
S. No. Event Cash + Inventory Account Payable Stock Earnings Income
a. Purchase Inventory $41,000.00 = $41,000.00 +
b. Purchase Return -$8,600.00 -$8,600.00
c. Payment made -$32,400.00 $32,400.00 -32400

ekkarill92 answered 2 months ago
Next > < Previous

Related Solutions

On April 6, 2018, Home Furnishings purchased $41,000 of merchandise from Una's Imports, terms 3/10 n/45....
On April 6, 2018, Home Furnishings purchased $41,000 of merchandise from Una's Imports, terms 3/10 n/45. On April 8, Home Furnishings returned $8,600 of the merchandise to Una's Imports for credit. Home Furnishings paid cash for the merchandise on April 15, 2018. Required What is the amount that Home Furnishings must pay Una's Imports on April 15? Net amount due.        Record the events in a horizontal statements model. In the Cash Flow column, use OA to designate operating...
On April 6, Year 1, Home Furnishings purchased $25,200 of merchandise from Una Imports, terms 2/10...
On April 6, Year 1, Home Furnishings purchased $25,200 of merchandise from Una Imports, terms 2/10 n/45. On April 8, Home returned $2,400 of the merchandise to Una Imports for credit. Home paid cash for the merchandise on April 15, Year 1. What is the balance in the Accounts Payable account after the purchase, return, discount and payment have been recorded? What is the balance in the Inventory account after the purchase, return, discount and payment transactions have been recorded?
Typewritten answers only, please, no handwritten answers. Thank you. On April 6, 2018, Home Furnishings purchased...
Typewritten answers only, please, no handwritten answers. Thank you. On April 6, 2018, Home Furnishings purchased $37,000 of merchandise from Una's Imports, terms 2/10 n/45. On April 8, Home Furnishings returned $7,800 of the merchandise to Una's Imports for credit. Home Furnishings paid cash for the merchandise on April 15, 2018. Required What is the amount that Home Furnishings must pay Una's Imports on April 15? Record the events in a horizontal statements model. In the Cash Flow column, use...
A company purchased $11,900 of merchandise on June 15 with terms of 2/10, n/45, and FOB...
A company purchased $11,900 of merchandise on June 15 with terms of 2/10, n/45, and FOB shipping point. The freight charge, $1,450, was added to the invoice amount. On June 20, it returned $2,320 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:
On May 11, 2020, Wilson Purchasing purchased $26,500 of merchandise from Happy Sales; terms 3/10, n/90,...
On May 11, 2020, Wilson Purchasing purchased $26,500 of merchandise from Happy Sales; terms 3/10, n/90, FOB Happy Sales. The cost of the goods to Happy was $21,500. Wilson paid $1,650 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned $4,300 of goods to Happy Sales, which restored them to inventory. The returned goods had cost Happy $3,500. On May 20, Wilson mailed a cheque to Happy for the amount...
Purchased merchandise on account from Black Wholesale Supply for $8,000, terms 1/10, n/30. 2 Sold merchandise...
Purchased merchandise on account from Black Wholesale Supply for $8,000, terms 1/10, n/30. 2 Sold merchandise on account for $4,800, terms 2/10, n/30. The cost of the merchandise sold was $3,600. 5 Received credit from Black Wholesale Supply for merchandise returned $500. 9 Received collections in full, less discounts, from customers billed on May 2. 10 Paid Black Wholesale Supply in full, less discount. 11 Purchased supplies for cash $1,170. 12 Purchased merchandise for cash $4,030. 15 Received $299 refund...
On June 10, Sheridan Company purchased $6,600 of merchandise from Crane Company, terms 4/10, n/30
On June 10, Sheridan Company purchased $6,600 of merchandise from Crane Company, terms 4/10, n/30. Sheridan Company pays the freight costs of $350 on June 11. Goods totaling $300 are returned to Crane Company for credit on June 12. On June 19, Sheridan Company pays Crane Company in full, less the purchase discount. Both companies use a perpetual inventory system. Prepare separate entries for each transaction on the books of Sheridan Company. (If no entry is required, select "No Entry" for...
Jun 4 Willem Corporation purchased $4,000 worth of merchandise, terms 3/10, n/30, FOB shipping point, from...
Jun 4 Willem Corporation purchased $4,000 worth of merchandise, terms 3/10, n/30, FOB shipping point, from Cate Corporation. The cost of the merchandise to Cate was $2,600. 6 The appropriate party paid shipping costs of $150. 10 Willem returned $700 worth of goods to Cate for full credit. The goods had a cost of $450 to Cate and were placed back into inventory. 12 Willem paid Cate the outstanding balance. Required Prepare the journal entries to record these transactions in...
1. The Stationery Company purchased merchandise on account from a supplier for $11,000, terms 1/10, n/30....
1. The Stationery Company purchased merchandise on account from a supplier for $11,000, terms 1/10, n/30. The Stationery Company returned merchandise with an invoice amount of $1,300 and received full credit. a. If The Stationery Company pays the invoice within the discount period, what is the amount of cash required for the payment? $___________________ b. Under a perpetual inventory system, what account is credited by The Stationery Company to record the return
Sunland Company purchased merchandise on account from Office Suppliers for $68,000, with terms of 1/10, n/30....
Sunland Company purchased merchandise on account from Office Suppliers for $68,000, with terms of 1/10, n/30. During the discount period, Sunland returned some merchandise and paid $58,410 as payment in full. Sunland uses a perpetual inventory system. Prepare the journal entries that Sunland Company made to record the: (1) purchase of merchandise. (2) return of merchandise. (3) payment on account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT