3 to 4. Accounting Entries 3. In July, purchased supplies for $10.25 for its restaurants on credit from its supplier Restos-R-US with the terms2/30, net 60.4. Sold an old equipment for $3. It was originally purchased in 2013 for $15. At the time of sale, the equipmenthad accumulated depreciation of $13 and had a net book value of $2 at the time of sale.

The process of recording business transactions in the books of accounts for the first time is…

In July, purchased supplies for $10.25 for its restaurants on credit from its supplier Restos-R-US with the terms 2/30, net 60. Sold an old equipment for $3. It was originally purchased in 2013 for $15. At the time of sale, the equipment had accumulated depreciation of $13 and had a net book value of $2 at the time of sale.

In July, purchased supplies for $10.25 for its restaurants on credit from its supplier Restos-R-US with the terms 2/30, net 60. Sold an old equipment for $3. It was originally purchased in 2013 for $15. At the time of sale, the equipment had accumulated depreciation of $13 and had a net book value of $2 at the time of sale.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 7RE: At the end of Year 1, Herkimer Co. sells two laptops for 1,800 each. Based on the information in...

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Sennett Designs (SD) sells furniture on a retail basis. SD began operations duringDecember 2009 and sold furniture for €250,000 in cash. Th e furniture sold by SD waspurchased on credit for €150,000 and delivered by the supplier during December. Th ecredit terms granted by the supplier required SD to pay the €150,000 in January for thefurniture it received during December. In addition to the purchase and sale of furniture,in December, SD paid €20,000 in cash for rent and salaries.1 . How much is SD’s profi t for December 2009 if no other transactions occurred?2 . How much is SD’s cash fl ow for December 2009?3 . If SD purchases and sells exactly the same amount in January 2010 as it did inDecember and under the same terms (receiving cash for the sales and making purchases on credit that will be due in February), how much will the company’s profi tand cash fl ow be for the month of January?
Williams Corporation had the following purchases for May: May 3Bought ten lawn rakes from Owens Company, invoice no. J34Y9, 250.25; terms net 15 days; dated May 1; FOB shipping point, freight prepaid and added to the invoice, 15 (total 265.25). 11Bought one weed trimmer from Lionels Lawn Landscaping, invoice no. R7740, 219.72; terms 2/10, n/30; dated May 9; FOB shipping point, freight prepaid and added to the invoice, 35 (total 254.72). 15Bought five bags of fertilizer from Wrights Farm Supplies, invoice no. 478, 210.97; terms net 30 days; dated May 13; FOB destination. 25Bought one lawn mower from Gutierrez Corporation, invoice no. 2458, 425.39; terms net 30 days; dated May 22; FOB destination. Assume that Williams Corporation had beginning balances on May 1 of 3,492.29 (Accounts Payable 212), 4,239.49 (Purchases 511), and 234.89 (Freight In 514). Record the purchases of merchandise on account in the purchases journal (page 13) and then post to the general ledger.
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Garfunkle Company had the following four transactions during January 2017: January 3 Purchased 200 hair dryers from Hot Aire Corporation for $30 each, terms n/30. 5 Sold 50 hair dryers purchased on January 3 for $50 each, terms n/30. 15 Returned five of the hair dryers purchased on January 3 because they were defective. 22 A customer returned two hair dryers purchased on January 5 because they were defective. Given the information above, with the perpetual inventory system, the entry to record the January 15 transaction would include a Oa. credit to inventory of $150. Ob. credit to purchase returns of $150. Oc. debit to purchases of $150. Od. credit to purchases of $150.
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