Exercise 4-7 (Algo) Effects of sales transactions on income statement LO P2

Use the above informations, analyze each transaction by indicating its effects on the income statement-specifically, identify the

accounts and amounts (including + or -) for each transaction.

Answers

Answer 1

The Effects of Sales Transactions on the Income Statement are as follows:

Revenue Side:

May 5 Sales Revenue $21,000

May 7 Sales Returns     -$1,750

May 8 Sales Allowance  -$300

Net Sales Revenue =  $18,950

Costs:

May 5  Cost of goods sold   $15,000

May 7   Inventory                   -$1,250

Cost of goods sold =            $13,750

Operating Income:

Net Sales Revenue      $18,950

Cost of goods sold       -13,750

Gross profit                  $5,200

May 15 Cash Discounts -$379

Operating profit          $4,821

Data Analysis:

May 3 Inventory $20,000 Cash $20,000

May 5 Accounts Receivable (Macy Co.) $21,000) Sales Revenue $21,000 credit terms 2/10, n/60.

Cost of goods sold $15,000 Inventory $15,000

May 7 Sales Returns $1,750 Accounts Receivable (Macy Co.) $1,750

Inventory $1,250 Cost of goods sold $1,250

May 8 Sales Allowance $300 Accounts Receivable (Macy Co.) $300

May 15 Cash $18,571 Cash Discounts $379 Accounts Receivable (Macy Co.) $18,950

Thus, the transactions' effects will produce an operating income of $4,821 for the period.

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Related Questions

Trái phiếu của công ty S hiện được bán với mức giá $955, lãi suất coupon là
12% trả lãi hàng năm, mệnh giá là $1.000, thời gian đáo hạn là 15 năm. Hãy
tính YTM của trái phiếu.

Answers

Answer:

câu trả lời là 16.800 trong 15 năm với lãi suất 12%

Identify some of the ways that Starbucks ‘engages’ its consumers in customer relationships?

Answers

They keep the conversation going. They offer real value, meaning leading with content not products, building their communities

Answer:

1. Social media. Like many other companies, Starbucks tries to engage customers using social media.

2. Sale promotions. Sales promotion is a marketing strategy where the product is promoted using short-term attractive initiatives to stimulate its demand and increase its sales.

3. Advertisements.

Explanation:

Economics is best defined as the study of how societies deal with
O A. the factors of production.
O B. the problem of scarcity.
O C. the paradox of wealth.
O D. the division of labor.

Answers

Answer:

The division of labor.

Explanation:

First Bank loaned $360,000 for 180 days to a company purchasing a rock-crushing machine. The bank sold the 7% simple interest note 120 days later at an 8% discount rate. Find the proceeds. Assume a 360-day year for both notes.

Answers

$367,632 is the answer

Grade 10 SBA TERM 3 business studies ​

Answers

Answer:

good

Explanation:

we should study welll

Define unemployment.​

Answers

Answer:

Unemployment means when you do not have a job

Explanation:

It means this because when you DO have a job you are Employed or you're an Employee, so the opposite would be unemployed

Gerald just received a 2% raise from his employer. However, the rate of inflation last year
was 3%. Explain why this is a problem for Gerald.

Answers

Answer:

In conclusion, he will make less money.

Explanation:

It is a problem because the rate of inflation is higher than his raise.

Th increase in Gerald's income is a problem because the percentage increase in his income is lower than the increase in inflation. This means that the purchasing power in Gerald's income is lower.

Inflation is when the general price levels in an economy rises. Inflation reduces the purchasing power of money. The inflation rate in the US in 2020 was 1.2%.

Let us assume that Gerald's income is $1000.

After the raise, his income becomes: (1.02 x 1000) = $1020

As a result of the inflation, the increase in income needed to keep purchasing power constant is: (1.03 x $1000) = $1030.

The increase in Gerald's income is less than the inflation rate. This means that the purchasing power of Gerald would be lower.

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Waterworks Irrigation was a startup that was open for only one year of operation. During that year, it collected $175,000 in revenue and spent $50,000 on trucks, irrigation supplies, employees, and utilities. The owner of the firm, Cosmo, spent $100,000 of his own money to buy an office building and set up the office (instead of buying bonds and earning a 10% annual rate of return), which he later sold at the end of the year for $100,000. The firm's economic profit is:

Answers

The economic profit of Waterworks Irrigation  is $115,000.

Economic profit is revenue less explicit cost and opportunity cost.

Explicit cost is the cost incurred in the course of running the start-up. It includes administrative cost, rent and cost of raw materials.

Opportunity cost or implicit cost is the cost of the next best option that a decision maker forgoes when he chooses one option over other options.

Economic profit = revenue - explicit cost - opportunity cost

Revenue = $175,000Explicit cost = $50,000 Opportunity cost = 10% x 100,000 = $10,000

$175,000 - $50,000 - $10,000 = $115,000

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You own some land at the edge of Blacksburg. An individual wants to sign a contract where she rentsthe land from you for 10 years to operate a golf driving range. She is willing to pay $25,000 per year(at the end of each year). She will then buy the land from you at the end of year 10 for $350,000.Alternatively, she is willing to accept a five-year contract, but will only pay $20,000 per year (at theend of each year) and not buy the land at the end of the contract. You suspect that in five years,Blacksburg will have grown enough that a developer will buy your land to build new homes. Howmuch does the developer need to pay you at the end of five years to make the shorter contract thebetter option

Answers

Answer:

500,000

Explanation:

25,000x10=250,000+350,000=600,000   20,000x5=100,000     600,000-100,000=500,000

does anyone know this??? compare using necessary example,
The types of capital

Answers

Answer:

The four major types of capital include working capital, debt, equity, and trading capital. Trading capital is used by brokerages and other financial institutions.

a standard is A.set unit of measurement for a particular purpose

Answers

Explanation:

Units of measurement give standards so that the numbers from our measurements refer to the same thing. Measurement is a process that uses numbers to describe a physical quantity. We can measure how big things are, how warm they are, how heavy they are, and many other features.

How do the factors of production affect our daily lives?

Answers

The factors of production are the resources used in creating and producing a good or service and are the building blocks of an economy. ... Improved economic growth raises the standard of improved economic growth raises the standard of living by lowering production costs and increasing wages.

5 ways that bussiness bulid relationships with customers​

Answers

Answer:

How to Build Strong Customer Relationships

Write killer emails.

Embrace pathological empathy.

Blow away their customer service expectations.

Seek feedback and show you genuinely care.

Be consistent and timely in your interactions.

Establish trust.

Reward loyalty.

Explanation:

Answer:

Communicate

Exceed expectations

Ask for feedback

Connect

Show appreciation

Explanation:

Headlands Industries uses a perpetual inventory system. Data for product E2-D2 includes the following purchases.
Date Number of units Unit price
May 7 44 $12
July 28 33 $17
On June 1, Headlands sold 22 units, and on August 27, 33 more units.
Compute the cost of goods sold using FIFO, LIFO, and average cost.

Answers

Answer:

                   

Explanation:

1. The Practice of Management written by A. O Peter F Drucker B. O Terry C. O Louis Allan D. O Hendry Fayol​

Answers

The author was Peter f drucker. So A. Mark brainliest pls.

lan works in the IT department at Pleasant Valley Health Partners. He feels encouraged to
find his own solutions to problems, and to implement those solutions when practical. The
programmers and data analysts work with little supervision because management feels they
are committed and creative workers. This policy reflects a
attitude about
workers.
Multiple Choice
Theory z
О O
Theory X
Theory Y
Theory W

Answers

Policies are often regarded as guarding principles. They are set up to help to guard individuals, organizations and the society in their decision making process.

This policy reflects Theory Y attitude about workers.

Theory Y is a common known theory of human work motivation and management. It was created by Douglas McGregor to show the different models of workforce motivation.

It is often used by managers in human resource management, organizational behavior, organizational communication and organizational development.

This theory shows the motivating role of job satisfaction and boast workers morale to approach tasks without direct supervision.

Conclusively, Management use Theory Y can infuence employee motivation and productivity in different ways, as they believe that employees are internally motivated, like their job, and do hard work without a direct reward back.

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firm b produces gadgets. the price of gadgets is $2 each. firm b has total fixed costs of $300,000 and variable costs of $1.40 per gadget. the corporate tax rate is 30%. if the economy is strong, the firm will sell 2,000,000 gadgets. if the economy enters a recession, the firm will sell only half as many gadgets. if the economy is strong, the after-tax profit of firm b will be _________.

Answers

If the economy is strong, the after-tax profit of firm b will be $630,000.

Firm b After-tax profit

Sales $4,000,000

($2×$2,000,000)

Variable Costs $2,800,000

($1.40×2,000,000)

Fixed Costs $300,000  

EBT $900,000

($4,000,000-$2,800,000-$300,000)

Tax $270,000

($900,000×30%)

After-tax profit $630,000

($900,000-$270,000)

Inconclusion if the economy is strong, the after-tax profit of firm b will be $630,000.

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When we are doing the double entry for the closing inventory, why do we credit the inventory? I understand why we debit the closing inventory but not why we credit it.

Answers

Answer:

Debiting in this case means to add to the inventory. Therefore, crediting means that inventory was used up when closing inventory.

Explanation:

A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. ... A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account.

For each of the following separate situations, determine how much revenue is recognized in December (using accrual basis accounting).

a. On December 7, Oklahoma City Thunder sold a $90 ticket to a basketball game to be played in March.
b. Tesla sold and delivered a $58,000 car on December 25. The customer will not pay until February.
c. Deloitte signs a contract on December 1 to provide 40 days of advisory services with receipt of $10,000 due at the end of the contract. On December 31, 75% of the services have been completed.

Answers

The accrual concept of recognizing revenue in the period that the transaction occurs and not when payment is received agrees with the matching principle.  Revenue should be recognized to match with the recognition of costs incurred for earning the revenue.

Situations                Amount of Revenue Recognized in December

a. Ticket Sales         $0

   Revenue

b. Sales                   $58,000

   Revenue

c. Contract             $7,500 ($10,000 x 75%)

   Revenue

Thus, for situation (a), no revenue is recognized in December since the game will be played in March.  For situation (b), the $58,000 is fully recognized in December, notwithstanding that the customer will pay in February.  For situation (c), only 75% of the revenue is recognized in December to agree with the percentage of completion.

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A temporary association organized to perform a specific task requiring a large amount of capital is known as a(n)
O a. authority
b.cooperative
C, master limited partnership.
O d.conglomerate.
O e. syndicate

Answers

Answer:

Syndicate

Explanation:

tình hình kinh tế và triển vọng phát triển của việt nam

Answers

Answer:

English plzzz

Explanation:

How are the payments from a family income benefit policy treated for tax purposes?

Answers

Answer

i am not sure

Explanation:

Exempt from income taxes
Benefit payments from an individually-owned medical expense policy are exempt from income taxation.

Business plan templates​

Answers

The 7 elements of a Business Plan

Executive Summary. ...

Business Description. ...

Market Analysis. ...

Organization and Management Structure. ...

Sales Strategies. ...

Funding. ...

Financial Projections.

The number of days' sales in receivables a.measures the number of times the receivables turn over each year. b.is not useful in evaluating the efficiency of collecting receivables. c.is calculated as Average Receivables/Sales. d.is an estimate of the length of time the receivables have been outstanding.

Answers

Companies does make sales for cash or on a credit basis. Several categories of customers exist and to meet their demand, selling goods on credit is of an essential role. Receivables are often debited when credit sales are made. The number of days' sales in receivables an estimate of the length of time the receivables have been outstanding.

The days sales outstanding calculation, can also be called the average collection period or days' sales in receivables

It often measures the number of days it takes a firm to take cash from its credit sales.

This calculation often depicts the liquidity and efficiency of a firm's collections department.

Accounts receivable turnover is compared to number of days sales in receivables. It is often done by dividing 365 by the accounts receivable turnover ratio yields the accounts receivable turnover in days. It gives the average number of days it takes customers to pay their debts.

Conclusively, the accounts receivable days is a formula that helps an individual to fine out how long it takes to clear your accounts receivable.

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Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (1) Chase provided $18,800 of services on account, and (2) he purchased $7,500 of supplies on account. There were $1,050 of supplies on hand as of December 31, Year 1.

Required
a. b. & e. Record the two transactions in the accounts. Record two separate entries for the closing entries. Record the required year-end adjusting entry to reflect the use of supplies and the required closing entries. Post the entries in the T-accounts and prepare a post-closing trial balance.

Answers

Answer:

I need help too

Explanation:

23=56

The Munsters have been saving money in order to buy a house. They figure that, given current interest rates, they could afford a $465,000 home. Before looking at houses on the market they decide to explore the possibility of building a new home. The Munsters figure they could buy a suitable lot for $102,500–$$107,500. At a minimum they want to build a 2,300-square-foot house. The cost for a house of the quality they desire is $186 per square foot. Given this information, should the Munsters pursue the option of building a new house?

Answers

Answer:

Solution Cost of Lot = 75000 Area = 2400 square foot Cost per Square Foot = 160 Total Cost of Building Flat = 75000 + (2400 x 160) = 459,000 Cost

Explanation:

No, the given information, does not support the Munster's pursuing the option of building a new house because the cost is high to build a new house.

What is the importance of a house?

A decent house offers defense. Violence and sexual abuse against children are less likely. They are less likely to be compelled to work as children, get married off at a young age, or be coerced into joining armed organizations. Having a house guarantees that displaced individuals have easier access to humanitarian relief.

Given,

Cost of ready house = $465,000

Cost of building new house = $102,500 + $186 x 2,300 (min sq.ft )

Cost of building new house = $530,300

The cost of building a new house is greater by $65,300 ( 530,300 - 465,000)

Thus, the Munsters drop down the decision to build a new house they should purchase a ready-made house.

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#SPJ2

Calvin is the night security officer at a children's museum. What might be one task that Calvin performs as part of his job?

Answers

Making sure none of the displays have been tampered with.

Answer:

viewing video surveillance and conducting walk throughs

Explanation: I took the test

As explained in the Help section for the Workforce Compensation, Training, and Product Assembly decision screen, if (1) a company pays a drone PAT member an annual base wage of $24,000, an $800 year-end bonus for perfect attendance, and provides a company-paid annual fringe benefits package worth $3,200 and (2) a PAT is paid a $4 assembly quality incentive per UAV drone assembled that is equally divided among 4 PAT members, then if a drone PAT's productivity is 1500 drones per year then what would be the annual total compensation cost of a fully-staffed PAT and the total compensation cost per drone assembled?
*Please provide me with a step by step process how to solve the problem. Thanks

Answers

If the Workforce Compensation, Training, and Product Assembly decision screen, if (1) a company pays a drone PAT member an annual base wage of $24,000.  What would be the annual total compensation cost of a fully-staffed PAT and the total compensation cost per drone assembled is: $97.33.

Income of single PAT member $28,000

($24,000+$800+$3,200)

Annual income for 4 PAT members $112,000

($28,000×4)

Annual quality incentives $6,000

(4× 1,500)

Total labor cost  $146,000

($28,000+$112,000+$6,000)

Drones assembled 1,500

Total labor cost for each drones assembled $97.33

($146,000÷1,500)

Inconclusion if the Workforce Compensation, Training, and Product Assembly decision screen, if (1) a company pays a drone PAT member an annual base wage of $24,000.  What would be the annual total compensation cost of a fully-staffed PAT and the total compensation cost per drone assembled is: $97.33.

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1. Which type of inventory has seen the greatest growth in sales prices over the current year? 2. Which type of inventory has seen the greatest decline in sales prices over the current year? 3. Based on the trend lines provided, for which inventory items does management project to sell below its average unit cost in the following year (Hint: Compare projected sales prices to the bar chart showing average unit cost)? 4. Prepare the year-end adjusting entry to record inventory using the lower of cost or net realizable value method (Hint: Be sure to account for the number of units of ending inventory in your calculation).

Answers

The type of inventory that has seen the greatest growth in sales prices over the current year is the tables inventory.

The type of inventory that has seen the greatest decline in sales prices over the current year is sofas inventory.

The inventory item that the management projects to sell below its average unit cost in the following year is the sofas inventory.

The year-end adjusting entry to record inventory will be $23595.

Inventory: Dressers

Projected sales price $870

Average unit cost $810

Inventory: Chairs

Projected sales price $658

Average unit cost $320

Inventory: Sofas

Projected sales price $1177

Average unit cost $1540

Inventory: Tables

Projected sales price $2676

Average unit cost $1670

From the information above, we can see that the average unit cost for sofas is more than the projected sales price. Therefore, the inventory item that the management projects to sell below its average unit cost in the following year is the sofas inventory.

The year-end adjusting entry to record inventory will be:

Debit Cost of goods sold ($1540 - $1177) × 65 = $23595

Credit Inventory-Sofas = $23595

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Assume you are planning to invest $ 7,797 each year for six years and will earn 9 percent
per year. Determine the future value of this annuity due problem if your first $ 7,797 is
invested now. (Round answer to 0 decimal places.)

Answers

Answer:

Amount invested in the beginning of each year = $5,558 Interest received each year = 7 % Each year interest will be received on the total of that years deposit plus amount accumulated from previous years deposits and interest.

Explanation:

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