Larry Hoover is the owner and operator of Hoover’ s Merchandizing Company and the company has presented the following unadjusted trial balance at the end of their financial year ending December 31, 2016.
Hoover’s Merchandizing Company
Trial Balance as at December 31, 2016
|
A/C Name |
DR $ |
CR $ |
|
Cash |
1,500,000 |
|
|
Accounts Receivable |
4,580,000 |
|
|
Interest Receivable |
||
|
Merchandise Inventory |
5,400,054 |
|
|
Prepaid Insurance |
1,200,000 |
|
|
Furniture and Equipment |
6,000,000 |
|
|
Accumulated Depreciation –Furniture/Equipment |
1,770,000 |
|
|
Accounts Payable |
1,450,000 |
|
|
Sales Commission Payable |
||
|
Salaries Payable |
||
|
Unearned Sales Revenue |
6,400,054 |
|
|
Larry Hoover, Capital |
8,000,000 |
|
|
Larry Hoover, Withdrawal |
1,000,000 |
|
|
Sales Revenue Earned |
21,668,000 |
|
|
Interest Revenue |
||
|
Sales Discount |
115,000 |
|
|
Sales Returns and Allowances |
248,000 |
|
|
Cost of Goods Sold |
9,210,000 |
|
|
Travelling Expense |
225,000 |
|
|
Sales Commission Expense |
2,150,000 |
|
|
Salaries Expense |
4,500,000 |
|
|
Rent Expense |
1,800,000 |
|
|
Utilities Expense |
849,000 |
|
|
Depreciation Expense-Furniture/Equipment |
||
|
Insurance Expense |
||
|
Advertising Expense |
345,000 |
|
|
General Expense |
166,000 |
__________ |
|
Total |
39,288,054 |
39,288,054 |
The following additional information was made available at December 31, 2016
Interest revenue earned at December 31, 2016 but not yet recorded $250,000.
Insurance prepaid includes an expired amount of $1,000,000 relating to the period January to December 31, 2016.
Furniture and Equipment has an estimated life of ten (10) years and is being depreciated on the straight-line method of depreciation, down to a residual value of $100,000.
Unearned sales revenue still unearned as at December 31, 2016 amounts to $2,400,054.
Salaries expense owing as December 31, 2016 amounts to $450,000
Accrued sales commission expense as at December 31, 2016 amounts to $450,000.
Inventory on hand was $5,500,000 as at December 31, 2016.
Required:
Prepare the necessary adjusting journal entries on December 31, 2016
Prepare Hoover’s Merchandizing Company multiple-step income statement for the year ended December 31, 2016.
Prepare the company’s statement of owner’s equity for the year ended December 31, 2016
Prepare the company’s classified balance sheet at December 31, 2016
In: Accounting
Mike Right is the owner and operator of Right’ s Merchandizing Company and the company has presented the following unadjusted trial balance at the end of their financial year ending December 31, 2016.
Right’s Merchandizing Company
Trial Balance as at December 31, 2016
|
A/C Name |
DR $ |
CR $ |
|
Cash |
1,500,000 |
|
|
Accounts Receivable |
4,580,000 |
|
|
Interest Receivable |
||
|
Merchandise Inventory |
5,400,054 |
|
|
Prepaid Insurance |
1,200,000 |
|
|
Furniture and Equipment |
6,000,000 |
|
|
Accumulated Depreciation –Furniture/Equipment |
1,770,000 |
|
|
Accounts Payable |
1,450,000 |
|
|
Sales Commission Payable |
||
|
Salaries Payable |
||
|
Unearned Sales Revenue |
6,400,054 |
|
|
Mike Right, Capital |
8,000,000 |
|
|
Mike Right, Withdrawal |
1,000,000 |
|
|
Sales Revenue Earned |
21,668,000 |
|
|
Interest Revenue |
||
|
Sales Discount |
115,000 |
|
|
Sales Returns and Allowances |
248,000 |
|
|
Cost of Goods Sold |
9,210,000 |
|
|
Travelling Expense |
225,000 |
|
|
Sales Commission Expense |
2,150,000 |
|
|
Salaries Expense |
4,500,000 |
|
|
Rent Expense |
1,800,000 |
|
|
Utilities Expense |
849,000 |
|
|
Depreciation Expense-Furniture/Equipment |
||
|
Insurance Expense |
||
|
Advertising Expense |
345,000 |
|
|
General Expense |
166,000 |
__________ |
|
Total |
39,288,054 |
39,288,054 |
The following additional information was made available at December 31, 2016
Interest revenue earned at December 31, 2016 but not yet recorded $250,000.
Insurance prepaid includes an expired amount of $1,000,000 relating to the period January to December 31, 2016.
Furniture and Equipment has an estimated life of ten (10) years and is being depreciated on the straight-line method of depreciation, down to a residual value of $100,000.
Unearned sales revenue still unearned as at December 31, 2016 amounts to $2,400,054.
Salaries expense owing as December 31, 2016 amounts to $450,000
Accrued sales commission expense as at December 31, 2016 amounts to $450,000.
Inventory on hand was $5,500,000 as at December 31, 2016.
Required:
Prepare the necessary adjusting journal entries on December 31, 2016
Prepare Right’s Merchandizing Company multiple-step income statement for the year ended December 31, 2016.
Prepare the company’s statement of owner’s equity for the year ended December 31, 2016
Prepare the company’s classified balance sheet at December 31, 2016
In: Accounting
a.
Which of the following statement is correct?
|
None of the above |
||
|
Spread is not a trading cost for investors when trading common stocks |
||
|
Both open-end and close-end fund shares can be traded |
||
|
Closed-end fund share price is always the same as NAV |
||
|
Mutual funds can invest in money market instruments |
b.
Which of the following statement is NOT correct?
|
Municipal bonds is not a financial asset |
||
|
Common shares is a financial asset |
||
|
If the Efficient Markets Hypothesis is NOT true, investors should time the market |
||
|
Preferred shares is a financial asset |
||
|
None of the above |
c.
Which of the following statement is correct?
|
None of the above |
||
|
Price Impact is not a trading cost for investors when trading common stocks |
||
|
ETFs can be traded continuously throughout the trading day |
||
|
When buying on margin, if margin is greater than Initial Margin Requirement, a margin call will occur |
||
|
When buying on margin, if margin is greater than Maintenance Margin Requirement, a margin call will occur |
In: Finance
The European Union (EU) and United States (US) demand and supply equations for corn are: QDEU = 70 – 2 PEU QSEU = 20 + 3PEU QDUS = 130 – 3PUS QSUS = 30 + PUS where QD and QS represent the quantities demanded and supplied in both countries (in billions of tons) and P represents the Dollar price per ton of corn in each country.
Now assume that there is free trade between the European Union and US.
d. Determine the international equilibrium price of corn (per ton).
e. How much corn is produced and consumed in the European Union and US.
f. How much corn is traded between the two regions. Draw graphs to represent the market situation before and after trade. Suppose now that the European Union limits its imports of corn to 14 billions of tons.
g. What will be the new equilibrium prices of corn in the European Union and US?
h. What are the new domestic production and consumption levels in each region? How much corn is traded?
In: Economics
Sales-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
| July 1. | Sold merchandise on account to Landscapes Co., $13,900, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,300. |
| 2. | Sold merchandise for $21,200 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $13,800. |
| 5. | Sold merchandise on account to Peacock Company, $30,900, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $20,100. |
| 8. | Sold merchandise for $12,500 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $7,500. |
| 13. | Sold merchandise to customers who used MasterCard cards, $9,500. The cost of merchandise sold was $6,000. |
| 14. | Sold merchandise on account to Loeb Co., $14,200, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $8,400. |
| 15. | Received check for amount due from Peacock Company for sale on July 5. |
| 16. | Issued credit memo for $2,100 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,200. |
| 18. | Sold merchandise on account to Jennings Company, $6,000, terms FOB shipping point, 2/10, n/30. Paid $210 for freight and added it to the invoice. The cost of merchandise sold was $3,600. |
| 24. | Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. |
| 28. | Received check for amount due from Jennings Company for sale of July 18. |
| 31. | Paid Black Lab Delivery Service $2,200 for merchandise delivered during July to customers under shipping terms of FOB destination. |
| 31. | Received check for amount due from Landscapes Co. for sale of July 1. |
| Aug. 3. | Paid Hays Federal Bank $1,050 for service fees for handling MasterCard and VISA sales during July |
| 10. | Paid $2,610 to state sales tax division for taxes owed on sales. |
Required:
Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 1-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 1-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 2-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 2-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 5-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 5-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 8-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 8-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 13-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 13-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 14-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 14-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 15 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 16-return | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 16-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-freight | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 24 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 28 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 31-freight | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 31-collection | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Aug. 3 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Aug. 10 | |||
In: Accounting
Sales-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
| July 1. | Sold merchandise on account to Landscapes Co., $16,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $9,800. |
| 2. | Sold merchandise for $25,400 plus 8% sales tax to retail cash customers. The cost of merchandise sold was $16,500. |
| 5. | Sold merchandise on account to Peacock Company, $37,200, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $24,200. |
| 8. | Sold merchandise for $7,500 plus 5% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $4,500. |
| 13. | Sold merchandise to customers who used MasterCard cards, $5,000. The cost of merchandise sold was $3,200. |
| 14. | Sold merchandise on account to Loeb Co., $13,600, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $8,000. |
| 15. | Received check for amount due from Peacock Company for sale on July 5. |
| 16. | Issued credit memo for $2,000 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,100. |
| 18. | Sold merchandise on account to Jennings Company, $6,200, terms FOB shipping point, 2/10, n/30. Paid $180 for freight and added it to the invoice. The cost of merchandise sold was $3,700. |
| 24. | Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. |
| 28. | Received check for amount due from Jennings Company for sale of July 18. |
| 31. | Paid Black Lab Delivery Service $1,610 for merchandise delivered during July to customers under shipping terms of FOB destination. |
| 31. | Received check for amount due from Landscapes Co. for sale of July 1. |
| Aug. 3. | Paid Hays Federal Bank $1,020 for service fees for handling MasterCard and VISA sales during July |
| 10. | Paid $2,770 to state sales tax division for taxes owed on sales. |
Required:
Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 1-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 1-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 2-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 2-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 5-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 5-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 8-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 8-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 13-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 13-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 14-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 14-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 15 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 16-return | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 16-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-freight | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 24 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 28 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 31-freight | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 31-collection | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Aug. 3 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Aug. 10 | |||
In: Accounting
Sales-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
| July 1. | Sold merchandise on account to Landscapes Co., $10,600, terms FOB shipping point, n/eom. The cost of merchandise sold was $6,400. |
| 2. | Sold merchandise for $23,000 plus 7% sales tax to retail cash customers. The cost of merchandise sold was $15,000. |
| 5. | Sold merchandise on account to Peacock Company, $31,000, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $20,200. |
| 8. | Sold merchandise for $9,800 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $5,900. |
| 13. | Sold merchandise to customers who used MasterCard cards, $8,500. The cost of merchandise sold was $5,400. |
| 14. | Sold merchandise on account to Loeb Co., $10,000, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $5,900. |
| 15. | Received check for amount due from Peacock Company for sale on July 5. |
| 16. | Issued credit memo for $1,500 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $800. |
| 18. | Sold merchandise on account to Jennings Company, $6,000, terms FOB shipping point, 2/10, n/30. Paid $180 for freight and added it to the invoice. The cost of merchandise sold was $3,600. |
| 24. | Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. |
| 28. | Received check for amount due from Jennings Company for sale of July 18. |
| 31. | Paid Black Lab Delivery Service $2,200 for merchandise delivered during July to customers under shipping terms of FOB destination. |
| 31. | Received check for amount due from Landscapes Co. for sale of July 1. |
| Aug. 3. | Paid Hays Federal Bank $860 for service fees for handling MasterCard and VISA sales during July |
| 10. | Paid $2,750 to state sales tax division for taxes owed on sales. |
Required:
Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 1-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 1-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 2-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 2-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 5-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 5-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 8-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 8-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 13-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 13-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 14-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 14-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 15 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 16-return | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 16-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-freight | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 24 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 28 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 31-freight | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 31-collection | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Aug. 3 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Aug. 10 | |||
In: Accounting
Sales-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
| July 1. | Sold merchandise on account to Landscapes Co., $14,100, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,500. |
| 2. | Sold merchandise for $25,500 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $16,600. |
| 5. | Sold merchandise on account to Peacock Company, $32,800, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $21,300. |
| 8. | Sold merchandise for $8,300 plus 5% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $5,000. |
| 13. | Sold merchandise to customers who used MasterCard cards, $10,000. The cost of merchandise sold was $6,300. |
| 14. | Sold merchandise on account to Loeb Co., $9,900, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $5,800. |
| 15. | Received check for amount due from Peacock Company for sale on July 5. |
| 16. | Issued credit memo for $1,500 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $800. |
| 18. | Sold merchandise on account to Jennings Company, $6,800, terms FOB shipping point, 2/10, n/30. Paid $200 for freight and added it to the invoice. The cost of merchandise sold was $4,100. |
| 24. | Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. |
| 28. | Received check for amount due from Jennings Company for sale of July 18. |
| 31. | Paid Black Lab Delivery Service $1,990 for merchandise delivered during July to customers under shipping terms of FOB destination. |
| 31. | Received check for amount due from Landscapes Co. for sale of July 1. |
| Aug. 3. | Paid Hays Federal Bank $1,010 for service fees for handling MasterCard and VISA sales during July |
| 10. | Paid $2,240 to state sales tax division for taxes owed on sales. |
Required:
Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 1-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 1-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 2-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 2-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 5-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 5-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 8-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 8-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 13-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 13-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 14-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 14-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 15 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 16-return | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 16-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-freight | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 24 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 28 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 31-freight | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 31-collection | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Aug. 3 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Aug. 10 | |||
In: Accounting
Sales-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
| July 1. | Sold merchandise on account to Landscapes Co., $13,900, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,300. |
| 2. | Sold merchandise for $18,000 plus 8% sales tax to retail cash customers. The cost of merchandise sold was $11,700. |
| 5. | Sold merchandise on account to Peacock Company, $30,100, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $19,600. |
| 8. | Sold merchandise for $8,700 plus 6% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $5,200. |
| 13. | Sold merchandise to customers who used MasterCard cards, $10,000. The cost of merchandise sold was $6,300. |
| 14. | Sold merchandise on account to Loeb Co., $10,900, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $6,400. |
| 15. | Received check for amount due from Peacock Company for sale on July 5. |
| 16. | Issued credit memo for $1,600 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $900. |
| 18. | Sold merchandise on account to Jennings Company, $5,200, terms FOB shipping point, 2/10, n/30. Paid $250 for freight and added it to the invoice. The cost of merchandise sold was $3,100. |
| 24. | Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. |
| 28. | Received check for amount due from Jennings Company for sale of July 18. |
| 31. | Paid Black Lab Delivery Service $2,300 for merchandise delivered during July to customers under shipping terms of FOB destination. |
| 31. | Received check for amount due from Landscapes Co. for sale of July 1. |
| Aug. 3. | Paid Hays Federal Bank $910 for service fees for handling MasterCard and VISA sales during July |
| 10. | Paid $2,260 to state sales tax division for taxes owed on sales. |
Required:
Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 1-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 1-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 2-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 2-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 5-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 5-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 8-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 8-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 13-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 13-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 14-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 14-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 15 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 16-return | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 16-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-freight | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 18-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 24 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 28 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 31-freight | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| July 31-collection | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Aug. 3 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Aug. 10 | |||
In: Accounting
8. Capital goods are treated as _______ goods and, therefore, _______ GDP.
A. final; included in
B. final; excluded from
C. intermediate; included in
D. intermediate; excluded from
9. Which of the following transactions would be included in the GDP of the United States?
A. Coca Cola produces soft drinks in England.
B. Honda produces cars in Ohio.
C. McDonalds sells hamburgers in Russia.
D. Ford Motors produces cars in Mexico
10. In the year 2006, Pete Rich purchases a painting done by Rembrandt in 1642 for $20 million. He also pays a one percent commission to the auction house that sold the painting. What is the contribution of this transaction to GDP in the year 2006?
A. $0
B. $200,000
C. $2 million
D. $20.2 million
11. The four categories of final users of GDP are:
A. businesses, firms, governments, and the foreign sector.
B. households, the Federal Reserve, governments, and the foreign sector.
C. businesses, corporations, firms, and farms.
D. households, firms, governments, and the foreign sector.
12. Total spending on final goods and services in an economy must equal total:
A. profits.
B. production.
C. revenues from all transactions.
D. investment.
13. Consumption spending includes spending on:
A. durables, nondurables, and services.
B. stocks, bonds, and other financial instruments.
C. capital goods, residential housing, and changes in inventories.
D. goods and services by federal, state, and local governments.
14. Spending on new capital goods, new homes, and the addition of unsold goods to company inventories is included in:
A. consumption expenditures.
B. investment.
C. government purchases.
D. service spending.
15. Government purchases include all of the following EXCEPT:
A. social security benefits paid by the federal government.
B. the construction of a new court house built by a county government.
C. the salary paid to an elementary school teacher employed by a local public school district.
D. the purchase of new military hardware by the U.S. Army.
In: Economics