Prepare journal entries to record the following merchandising transactions of Cabela’s, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable—Boden.)
| Jul. | 1 | Purchased merchandise from Boden Company for $9,200 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. | ||
| Jul. | 2 | Sold merchandise to Creek Co. for $2,500 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,500. | ||
| Jul. | 3 | Paid $765 cash for freight charges on the purchase of July 1. | ||
| Jul. | 8 | Sold merchandise that had cost $2,900 for $4,900 cash. | ||
| Jul. | 9 | Purchased merchandise from Leight Co. for $3,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. | ||
| Jul. | 11 | Received a $800 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9. | ||
| Jul. | 12 | Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. | ||
| Jul. | 16 | Paid the balance due to Boden Company within the discount period. | ||
| Jul. | 19 | Sold merchandise that cost $3,100 to Art Co. for $4,400 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. | ||
| Jul. | 21 | Issued a $900 credit memorandum to Art Co. for an allowance on goods sold on July 19. | ||
| Jul. | 24 | Paid Leight Co. the balance due, net of discount. | ||
| Jul. | 30 | Received the balance due from Art Co. for the invoice dated July 19, net of discount. | ||
| Jul. | 31 | Sold merchandise that cost $6,100 to Creek Co. for $10,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. |
For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as negative values. Upon completion, compare the gross profit with the amount reported on the partial income statement.
In: Accounting
Liability Transactions
The following items were selected from among the transactions completed by O’Donnel Co. during the current year:
| Jan. 10. | Purchased merchandise on account from Laine Co., $144,000, terms n/30. |
| Feb. 9. | Issued a 30-day, 6% note for $144,000 to Laine Co., on account. |
| Mar. 11. | Paid Laine Co. the amount owed on the note of February 9. |
| May 1. | Borrowed $158,400 from Tabata Bank, issuing a 45-day, 7% note. |
| June 1. | Purchased tools by issuing a $87,000, 60-day note to Gibala Supply Co., which discounted the note at the rate of 6%. |
| 15. | Paid Tabata Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 7% note for $158,400. (Journalize both the debit and credit to the notes payable account.) |
| July 30. | Paid Tabata Bank the amount due on the note of June 15. |
| 30. | Paid Gibala Co. the amount due on the note of June 1. |
| Dec. 1. | Purchased office equipment from Warick Co. for $120,000, paying $20,000 and issuing a series of ten 5% notes for $10,000 each, coming due at 30-day intervals. |
| 15. | Settled a product liability lawsuit with a customer for $71,000, payable in January. O’Donnel accrued the loss in a litigation claims payable account. |
| 31. | Paid the amount due Warick Co. on the first note in the series issued on December 1. |
Required:
1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. Don't round the intermediate calculations and round the final answers to the nearest dollar amount.
For a compound transaction, accounts should be listed largest to smallest.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Jan. 10 | |||
| Feb. 9 | |||
| Mar. 11 | |||
| May 1 | |||
| June 1 | |||
| June 15 | |||
| July 30 | |||
| July 30 | |||
| Dec. 1 | |||
| Dec. 15 | |||
| Dec. 31 | |||
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $15,600; (b) interest on the nine remaining notes owed to Warick Co. Assume a 360-day year. Round your answers to the nearest dollar amount.
| Item | Account | Debit | Credit |
|---|---|---|---|
| a. | |||
| b. | |||
In: Accounting
Liability Transactions
The following items were selected from among the transactions completed by Emerald Bay Stores Co. during the current year:
| Feb. 15. | Purchased merchandise on account from Hood Co., $144,000, terms n/30. |
| Mar. 17. | Issued a 60-day, 6% note for $144,000 to Hood Co., on account. |
| May 16. | Paid Hood Co. the amount owed on the note of March 17. |
| June 15. | Borrowed $172,800 from Acme Bank, issuing a 60-day, 7% note. |
| July 21. | Purchased tools by issuing a $99,000, 90-day note to Columbia Supply Co., which discounted the note at the rate of 7%. |
| Aug. 14. | Paid Acme Bank the interest due on the note of June 15 and renewed the loan by issuing a new 60-day, 10% note for $172,800. (Journalize both the debit and credit to the notes payable account.) |
| Oct. 13. | Paid Acme Bank the amount due on the note of August 14. |
| Oct. 19. | Paid Columbia Supply Co. the amount due on the note of July 21. |
| Dec. 1. | Purchased office equipment from Mountain Equipment Co. for $120,000, paying $20,000 and issuing a series of ten 6% notes for $10,000 each, coming due at 30-day intervals. |
| Dec. 12. | Settled a product liability lawsuit with a customer for $85,000, payable in January. Emerald Bay accrued the loss in a litigation claims payable account. |
| Dec. 31. | Paid the amount due Mountain Equipment Co. on the first note in the series issued on December 1. |
Required:
1. Journalize the transactions. If an amount box does not require an entry, leave it blank. Assume a 360-day year. If required, round to one decimal place. Don't round the intermediate calculations.
For a compound transaction, accounts should be listed largest to smallest.
| Date | Account | Debit | Credit |
|---|---|---|---|
| Feb. 15 | |||
| Mar. 17 | |||
| May 16 | |||
| June 15 | |||
| July 21 | |||
| Aug. 14 | |||
| Oct. 13 | |||
| Oct. 19 | |||
| Dec. 1 | |||
| Dec. 12 | |||
| Dec. 31 | |||
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year: (a) product warranty cost, $19,000; (b) interest on the nine remaining notes owed to Mountain Equipment Co.
| Item | Account | Debit | Credit |
|---|---|---|---|
| a. | |||
| b. | |||
In: Accounting
The following selected transactions relate to investment
activities of Ornamental Insulation Corporation during 2021. The
company buys debt securities, intending to profit from short-term
differences in price and maintaining them in an active trading
portfolio. Ornamental’s fiscal year ends on December 31. No
investments were held by Ornamental on December 31, 2020.
| Mar. | 31 | Acquired 8% Distribution Transformers Corporation bonds costing $400,000 at face value. | ||
| Sep. | 1 | Acquired $900,000 of American Instruments’ 10% bonds at face value. | ||
| Sep. | 30 | Received semiannual interest payment on the Distribution Transformers bonds. | ||
| Oct. | 2 | Sold the Distribution Transformers bonds for $425,000. | ||
| Nov. | 1 | Purchased $1,400,000 of M&D Corporation 6% bonds at face value. | ||
| Dec. | 31 | Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are |
| American Instruments bonds | $ | 850,000 | |
| M&D Corporation bonds | $ | 1,460,000 | |
(Hint: Interest must be accrued.)
Required:
1. Prepare the appropriate journal entry for each
transaction or event during 2021, as well as any adjusting entries
necessary at year end.
2. Indicate any amounts that Ornamental Insulation
would report in its 2021 income statement, 2021 statement of
comprehensive income, and 12/31/2021 balance sheet as a result of
these investments. Include totals for net income, comprehensive
income, and retained earnings as a result of these investments.
I only need help with the Income statement. Everything in place is correct however, it says it is incomplete.
Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year end. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
| No | Date | General Journal | Debit | Credit |
|---|---|---|---|---|
| 1 | March 31, 2021 | Investment in bonds | 400,000 | |
| Cash | 400,000 | |||
| 2 | September 01, 2021 | Investment in bonds | 900,000 | |
| Cash | 900,000 | |||
| 3 | September 30, 2021 | Cash | 16,000 | |
| Interest revenue | 16,000 | |||
| 4 | October 02, 2021 | Fair value adjustment | 25,000 | |
| Gain on investments (unrealized, NI) | 25,000 | |||
| 5 | October 02, 2021 | Cash | 425,000 | |
| Investment in bonds | 400,000 | |||
| Fair value adjustment | 25,000 | |||
| 6 | November 01, 2021 | Investment in bonds | 1,400,000 | |
| Cash | 1,400,000 | |||
| 7 | December 31, 2021 | Interest receivable | 30,000 | |
| Interest revenue | 30,000 | |||
| 8 | December 31, 2021 | Interest receivable | 14,000 | |
| Interest revenue | 14,000 | |||
| 9 | December 31, 2021 | Fair value adjustment | 10,000 | |
| Gain on investments (unrealized, NI) | 10,000 |
Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments. (Amounts to be deducted should be indicated with a minus sign.)
|
In: Accounting
In: Physics
1. What were the elements behind the successful acceleration of industrialization after 1865. 2. What were factors that caused ex-slave states in the south lag behind the north in participation in this acceleration of industrialization? 3. Why were the creation of the Interstate Commerce Commission (ICC) and passage of the Sherman Anti-trust Act of 1890 so important to the creation of a fair business climate.
In: Economics
With reference to the role of the financial system in economic development, especially in the current Covid-19 pandemic circumstances, discuss your understanding of the following: 6.1. The role that a typical central bank such as the South African Reserve Bank will play and the steps it has taken in terms of helping to lighten the financial debt burden of, for example, repayments on development loans and to help stimulate and secure ongoing economic development.
In: Economics
Imagine that the Earth’s rotational axis was tilted 90 degrees rather than 23.5 degrees (so the polar axis would point towards the Sun twice a year). Describe the apparent motion of the Sun and stars over a 24-h period on the winter solstice from (a) the North Pole, (b) the equator, and (c) the South Pole. Note that the Sun’s angular diameter is 0.5 degrees.
In: Physics
In: Biology
Write a summary of your overall impressions of the community: (Hunts point(south Bronx))
1. What do you think people should know about this community?
2. How do its citizens feel about the community?
3.. What need(s) do you identify as requiring to be addressed by the community in collaboration with the community health nurse and other community partners?
In: Nursing