On June 1, Cherry Tree Co. sells 1,250 baskets of cherries to a local market at...

On June 1, Cherry Tree Co. sells 1,250 baskets of cherries to a local market at a sales price of $10 per bucket. The cost to Cherry Tree is $2 per basket. The terms of the sale are 2/10, n/60 with an invoice date of June 1. Create the Journal entries for Cherry Tree to recognize the following transactions.

Expert Solution

The journal entries have been prepared based on gross method of accounting in the absence of specific information. Please comment if you have any queries

ekkarill92 answered 1 year ago

Recognizing Accounts Receivable On June 7, Bixby Co. sells $1,250 of merchandise to Jasmine Co. on...

Recognizing Accounts Receivable On June 7, Bixby Co. sells $1,250 of merchandise to Jasmine Co. on account. Jasmine Co. pays for this merchandise on June 21. Prepare the entry on Bixby's books to record the sale. Prepare the entry on Bixby's books to record the receipt of payment. a. General Journal Date Description Debit Credit June 7 Answer Answer Answer Answer Answer Answer To record sales of merchandise. b. General Journal Date Description Debit Credit June 21 Answer Answer Answer...

a. Sweet Co. sells $360,000 of 12% bonds on June 1, 2017. The bonds pay interest...

a. Sweet Co. sells $360,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 10%. On October 1, 2018, Sweet buys back $118,800 worth of bonds for $124,800 (includes accrued interest). Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0...

Swifty Co. sells $435,000 of 12% bonds on June 1, 2020. The bonds pay interest on...

Swifty Co. sells $435,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, Swifty buys back $130,500 worth of bonds for $136,500 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at...

Swifty Co. sells $386,000 of 12% bonds on June 1, 2017. The bonds pay interest on...

Swifty Co. sells $386,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 8%. On October 1, 2018, Swifty buys back $123,520 worth of bonds for $129,520 (includes accrued interest). Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal...

Oriole Co. sells $404,000 of 12% bonds on June 1, 2017. The bonds pay interest on...

Oriole Co. sells $404,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 10%. On October 1, 2018, Oriole buys back $125,240 worth of bonds for $130,240 (includes accrued interest). Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal...

Sheffield Co. sells $413,000 of 12% bonds on June 1, 2017. The bonds pay interest on...

Sheffield Co. sells $413,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 10%. On October 1, 2018, Sheffield buys back $128,030 worth of bonds for $134,030 (includes accrued interest). Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end

Ivanhoe Co. sells $397,000 of 12% bonds on June 1, 2017. The bonds pay interest on...

Ivanhoe Co. sells $397,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 8%. On October 1, 2018, Ivanhoe buys back $127,040 worth of bonds for $132,040 (includes accrued interest). Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end.

Sage Co. sells $ 403,000 of 12% bonds on June 1, 2017. The bonds pay interest...

Sage Co. sells $ 403,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 10%. On October 1, 2018, Sage buys back $ 132,990 worth of bonds for $ 138,990 (includes accrued interest). -Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end -Prepare all...

This problem uses StatCrunch. A local greenhouse sells coffee-tree saplings. They price their saplings based on...

This problem uses StatCrunch. A local greenhouse sells coffee-tree saplings. They price their saplings based on the height of the plant. They have two workers, Susan and Karen, who measure the saplings for pricing. The greenhouse manager wants to determine if there is a significant difference in the measurements made by these two individuals. She has them measure the same set of 15 saplings. Assume that the differences are calculated as Susan – Karen. Use this information to answer questions...

chapter 14 - long term liabilities LandMark Co. sells $440,000 of 12% bonds on June 1,...

chapter 14 - long term liabilities LandMark Co. sells $440,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 8%. On October 1, 2021, landmark buys back $140,800 worth of bonds for $147,800 (includes accrued interest). Give entries through December 1, 2022. Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or...

Question