Question
In: Accounting
Assume that credit sales "to be received in 90 days" are received in exactly 90 days...
Assume that credit sales "to be received in 90 days" are received in exactly 90 days and that EFT wage payments are made in exactly 7 days. Expected to pay income tax of 35%? And its journal entries CR and DR
|
01-January-2016 |
Open business bank account with transfer of personal funds |
$210,000 |
||
|
02-January-2016 |
EFT for rental of office space. Immediate occupancy. 60 months at $3500 per month. |
$210,000 |
||
|
11-January-2016 |
Office equipment purchased for cash to get discount from the retail price of $56,000. |
$50,000 |
||
|
11-January-2016 |
The office equipment will be replaced in 5 years at an expected cost of $67,000. |
$67,000 |
||
|
13-January-2016 |
Bank loan approved and credited to account. Payable in 2021 |
$310,000 |
||
|
28-June-2016 |
Credit sales. EFT payment to be received in 90 days. |
$65,500 |
||
|
04-July-2016 |
Employee timesheets submitted for work performed. Payment (EFT) to be made in 7 days. |
$5,200 |
||
|
29-July-2016 |
Cash sales. |
$33,500 |
||
|
12-December-2016 |
Credit sales. EFT payment to be received in 90 days. |
$42,500 |
||
|
28-December-2016 |
Employee timesheets submitted for work performed. Payment (EFT) to be made in 7 days. |
$5,720 |
||
Solutions
ekkarill92 answered 6 months agoRelated Solutions
95. Wichita Industries' sales are 10% for cash and 90% on credit. Credit sales are collected...
95.
Wichita Industries'
sales are 10% for cash and 90% on credit. Credit sales are
collected as follows: 30% in the month of sale, 60% in the next
month, and 10% in the following month. On December 31, the accounts
receivable balance includes $32,000 from November sales and $42,000
from December sales. Assume that total sales for January and
February are budgeted to be $70,000 and $140,000, respectively.
What are the expected cash receipts for February from current and
past...
Aurora Corporation has annual credit sales of $1,200,000 with credit terms of 45 days and an...
Aurora Corporation has annual credit sales of $1,200,000 with
credit terms of 45 days and an average collection period of 40 days
with no discount. In the current economy Aurora has fallen upon
tough times and is looking for ways improve cash flow, so the
company is considering a changing their collection policy to 1/10
net 30. They estimate 50% of customers will take advantage of the
discount and the average collection period will be 28 days. With
the change...
You purchased a bond 90 days ago for $881.03. You received aninterest payment of $20.00...
You purchased a bond 90 days ago for $881.03. You received an
interest payment of $20.00 50 days ago. Today the bond’s price is
$830.64. What is the holding period return (HPR) on the bond as of
today? (Negative value should be indicated by a minus sign. Round
your answer to 2 decimal places.) HPR %
Maddox Resources has credit sales of $196,000 yearly with credit terms of net 30 days, which...
Maddox Resources has credit sales of $196,000 yearly with credit
terms of net 30 days, which is also the average collection period.
Maddox does not offer a discount for early payment, so its
customers take the full 30 days to pay. (Use 365 days in a
year.)
a-1. What is the average receivables balance?
(Do not round intermediate calculations. Round the final
answer to nearest whole dollar.)
Accounts receivable balance
$ 16109.59
a-2. What is the receivables turnover?
(Round...
Maddox Resources has credit sales of $185,000 yearly with credit terms of net 30 days, which...
Maddox Resources has credit sales of $185,000 yearly with credit
terms of net 30 days, which is also the average collection period.
Maddox does not offer a discount for early payment, so its
customers take the full 30 days to pay. (Use 365 days in a
year.)
a-1. What is the average receivables balance?
(Do not round intermediate calculations. Round the final
answer to nearest whole dollar.)
Accounts receivable balance
$
a-2. What is the receivables turnover?
(Round the...
Maddox Resources has credit sales of $193,000 yearly with credit terms of net 30 days, which...
Maddox Resources has credit sales of $193,000 yearly with credit
terms of net 30 days, which is also the average collection period.
Maddox does not offer a discount for early payment, so its
customers take the full 30 days to pay. (Use 365 days in a
year.)
a-1. What is the average receivables balance?
(Do not round intermediate calculations. Round the final
answer to nearest whole dollar.)
Accounts receivable balance
$
a-2. What is the receivables turnover?
(Round the...
Maddox Resources has credit sales of $193,000 yearly with credit terms of net 30 days, which...
Maddox Resources has credit sales of $193,000 yearly with credit
terms of net 30 days, which is also the average collection period.
Maddox does not offer a discount for early payment, so its
customers take the full 30 days to pay. (Use 365 days in a
year.)
a-1. What is the average receivables balance?
(Do not round intermediate calculations. Round the final
answer to nearest whole dollar.)
Accounts receivable balance
$
a-2. What is the receivables turnover?
(Round the...
Dome Metals has credit sales of $180,000 yearly with credit terms of net 60 days, which...
Dome Metals has credit sales of $180,000 yearly with credit
terms of net 60 days, which is also the average collection
period.
a. Assume the firm offers a 3 percent discount for
payment in 18 days and every customer takes advantage of the
discount. Also assume the firm uses the cash generated from its
reduced receivables to reduce its bank loans which cost 12 percent.
What will the net gain or loss be to the firm if this discount...
Company X has credit sales of $189,000 Annual credit terms of net 30 days, Collection period...
Company X has credit sales of $189,000
Annual credit terms of net 30 days,
Collection period is 30 days.
3/10 discount worth it?
Cash generated used for bank loans of 12%
3/10 discount causes 23% increase in sales
Profit of 15%
what is the change in annual income?
Take offer?
Kim Mitchell, the new credit manager of the Vinson Corporation, was alarmed to find that Vinson sells on credit terms of net 90 days while industry-wide credit terms have recently been lowered to net 30 days
Kim Mitchell, the new credit manager of the Vinson Corporation, was alarmed to find that Vinson sells on credit terms of net 90 days while industry-wide credit terms have recently been lowered to net 30 days. On annual credit sales of $2.63 million, Vinson currently averages 95 days of sales in accounts receivable. Mitchell estimates that tightening the credit terms to 30 days would reduce annual sales to $2,505,000, but accounts receivable would drop to 35 days of sales and...
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