On December 28, 2018, Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system...

On December 28, 2018, Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system from Tristar Communications for $29,000 each. The terms of each sale were 2/10, n/30. VTC uses the net method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2019.

Prepare the necessary journal entries assuming that VTC uses the net method to account for purchase discounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Solutions

Expert Solution

Date	General Journal	Debit	Credit
December 28, 2018	Inventory ($29,000 ×10 = $290,000 ; $290,000 - 2% = $284,200	$284,200
	Account payable		$284,200
	(Being purchse of new satellite uplink system recorded)

January 6 ,2019	Account payable	$284,200
	Cash		$284,200
	(Being payment made for the purchase recorded)

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

On December 28, 2021. Tristar Communications sold 15 units of its new satellite uplink system to...

On December 28, 2021. Tristar Communications sold 15 units of its new satellite uplink system to various customers for $20,000 each. The terms of each sale were 2/10, n/30. Tristar uses the gross method to account for sales discounts.In what year will income before tax be affected by discounts, assuming that all customers paid the net-of-discount amount on January 6, 2022? By how much?

Chipper, a calendar-year corporation, purchased new machinery for $1,135,000 in February 2018. In October, it purchased...

Chipper, a calendar-year corporation, purchased new machinery for $1,135,000 in February 2018. In October, it purchased $2,105,000 of used machinery. What was Chipper’s maximum cost recovery deduction for 2018? Question 1 options: 1) $1,243,621 2) $3,240,000 3) $1,038,114 4) $577,226

Becker Office Service purchased a new computer system on January 1, 2018, for $31,900. It is...

Becker Office Service purchased a new computer system on January 1, 2018, for $31,900. It is expected to have a five-year useful life and a $3,700 salvage value. Becker Office Service expects to use the computer system more extensively in the early years of its life. Calculate the depreciation expense for each of the five years, assuming the use of double-declining-balance depreciation. (Enter all amounts as positive values. Do not round intermediate calculations. Round "SL rate" answers to 2 decimal...

On February 10, 2018, Ace Corporation, a new calendar year corporation, elected S corporation status and...

On February 10, 2018, Ace Corporation, a new calendar year corporation, elected S corporation status and all shareholders consented to the election. There was no change in its shareholders during the current year. Ace met all eligibility requirements for an S corporation during the preelection portion of the year. What is the earliest date on which Ace can be recognized as an S corporation? February 10, 2018 January 1, 2019 February 10, 2019 January 1, 2018 In March of 2017...

The following transactions are from Sharper Vision Corporation. Purchased inventory on December 10, 2020, with a...

The following transactions are from Sharper Vision Corporation. Purchased inventory on December 10, 2020, with a list price of $6,000, a trade discount of 20%, and with terms 2/10, n/30. Returned $800 of inventory to the supplier on December 15, 2020. Paid $3,200 cash on account on December 19, 2020. Paid the remaining balance on January 5, 2021. Perpetual inventory systems Periodic inventory systems a. Prepare journal entries for the transactions 1 through 4, assuming that the company uses the...

A wholesale business with December 31 year-end purchased new equipment on November 25, 2018, for 40,000....

A wholesale business with December 31 year-end purchased new equipment on November 25, 2018, for 40,000. Before 2018, the business owned no other equipment. Required: 1. Complete the table below to show the tax consequences. If the business sells the equipment in 2020 for (a)$15000 (b) $23000 (c) $46000. 2018 purchase: 2018 CCA: 2018 UCC: 2019 CCA: 2019 UCC: SITUATION A: Less: Disposal Proceeds: Interim UCC: Terminal Loss/ Recapture: Ending UCC: Situation B Less: Disposal Proceeds: Interim UCC: Terminal Loss/...

1. In 2018, ABC Corporation purchased a new photocopier (asset class 8) with a CCA rate...

1. In 2018, ABC Corporation purchased a new photocopier (asset class 8) with a CCA rate of 20% for $5,000, as well as a new truck (asset class 10) with a CCA rate of 30% for $40,000. Calculate the total CCA for ABC Corporation for each of the first three years. Show your calculations. 2. ABC Corporation is a large retailer that has many stores in Canada. Each location has a store manager who receives a fixed salary regardless of...

1. In 2018, ABC Corporation purchased a new photocopier (asset class 8) with a CCA rate...

1. In 2018, ABC Corporation purchased a new photocopier (asset class 8) with a CCA rate of 20% for $5,000, as well as a new truck (asset class 10) with a CCA rate of 30% for $40,000. * Calculate total CCA for ABC Corporation for each of the first 3 years.( SHOW ALL CALCULATIONS)

On December 10, 2020, Astor, a US based corporation purchased inventory on credit from a vendor...

On December 10, 2020, Astor, a US based corporation purchased inventory on credit from a vendor located in Qatar for 300,000 Qatar rial. Astor paid the Qatar vendor the 300,000 rial on February 10, 2021. The exchange rate between Qatar rial and US dollar on each of the following dates were: Spot December 10, 2020 $.275 December 31, 2020 $.268 February 10, 2021 $.273 Prepare all necessary journal entries.

The Jamesway Corporation had the following situations on December 2018. On December 20, 2018, Jamesway received...

The Jamesway Corporation had the following situations on December 2018. On December 20, 2018, Jamesway received a $6,000 payment from a customer for services to be rendered early in 2019. Service revenue was credited. On December 1, 2018, the company paid a local radio station $6,000 for 40 radio ads that were to be aired, 20 per month, throughout December and January. Prepaid advertising was debited. Employee salaries for the month of December totaling $36,000 will be paid on January...

Subjects