Prepare journal entries to record each of the following sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. Oct. 1 Sold fair trade merchandise for $2, 600, with credit teres n/30; invoice dated October 1. The cost of the nerchandise is $1,450 which had cost $145, is returned to inventory of the merchandise is $890 6 The customer in the October 1 sale returned $260 of fair trade merchandise for full credit. The merchandise, 9 Sold recycled leather merchandise for $1, 250, with credit terms of 1/10, n/30; invoice dated October 11 Received payment for the amount due from the October 1 sale less the return on 0ctober 6.

Answer:

Oct 1

Debit  : Accounts Receivable $2,600

Debit : Cost of Sales $1,450

Credit : Sales Revenue $2,600

Credit : Merchandise $1,450

Oct 6

Debit : Sales Revenue $260

Debit : Merchandise $145

Credit : Accounts Receivable $260

Credit : Cost of Sales $145

Oct 9

Debit  : Accounts Receivable $1, 250

Debit : Cost of Sales $1,450

Credit : Sales Revenue $1, 250

Credit : Merchandise $1,450

Oct 11

Debit  : Cash $2,340

Credit : Accounts Payable $2,340

Explanation:

The perpetual method ensures that the cost of sales and inventory values are calculated after every transaction made.

Therefore, remember to show the cost of sale journal and the resulting decrease in inventory after every sale.

Case A.
Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $16,500 (original cost of $37,000 less accumulated depreciation of $20,500) and a fair value of $9,900. Kapono paid $29,000 cash to complete the exchange. The exchange has commercial substance.

Case B.
Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $545,000 and a fair value of $790,000. Kapono paid $59,000 cash to complete the exchange. The exchange has commercial substance.

Required:
a. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?
b. Assume the fair value of the old tractor is $23,000 instead of $9,900. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?
c. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?
d. Assume the fair value of the farmland given is $436,000 instead of $790,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?
e. Assume that the exchange lacked commercial substance. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?

The Reserve Company had 606 million shares of common stock outstanding at January 1, 2016. The following activities affected common shares during the year: There are no potential common shares outstanding. 2016 Feb. 27 Purchased 18 million shares of treasury stock. Oct. 30 Sold the treasury shares purchased on February 27. Nov. 29 Issued 72 million new shares. Dec. 31 Net income for 2016 is $1,200 million. 2017 Jan. 14 Declared and issued a 2 for 1 stock split. Dec. 31 Net income for 2017 is $1,200 million. Required: 1. Determine the 2016 EPS. 2. Determine the 2017 EPS. 3. At what amount will the 2016 EPS be presented in the 2017 comparative financial statements

Pulmonary Company's perpetual inventory records indicate that $237,390 of merchandise should be on hand on June 30, 2016. The physical inventory indicates that $211,280 of merchandise is actually on hand. Journalize the adjusting entry for the inventory shrinkage for Pulmonary Company for the year ended June 30, 2016. Assume that the inventory shrinkage is a normal amount.

The joint processing costs in this operation: should be ignored in determining whether to sell at split-off or process further. should be allocated to products to determine whether they are sold at split-off or processed further. should be ignored in making all product decisions. are never included in product cost, as they are misleading to all management decisions.

Free contract is the _____.

Fundamental analysis is likely to yield best results for _______. Group of answer choices stocks with very few analysts following NYSE stocks stocks with many analysts following stocks that are frequently in the news stocks of firms that have recently announced earnings

ou invest $1,000 in stocks. Would a macroeconomist call this an investment? Why or why not? An economist would say no, because you are just buying an existing asset without creating any new productive capacity in the economy. yes, because you are purchasing something that may yield more value later. yes, because there is a concensus amongst Wall St. that this is considered an investment. no, because the minimum threshold for a stock purchase to be considered an investment is $10,000.

Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 30%. The T-bill rate is 10%. Suppose that you have a client that prefers to invest in your risky portfolio a proportion (y) of his total investment budget so that his overall portfolio will have an expected rate of return of 15%. What is the investment proportion

Which of the following statements is CORRECT?

a. A portfolio with a large number of randomly selected stocks would have more market risk than a single stock that has a beta of 0.5, assuming that the stock's beta was correctly calculated and is stable.
b. If a stock has a negative beta, its expected return must be negative.
c. If the returns on two stocks are perfectly positively correlated (i.e., the correlation coefficient is 1.0) and these stocks have identical standard deviations, an equally weighted portfolio of the two stocks will have a standard deviation that is less than that of the individual stocks.
d. According to the CAPM, stocks with higher standard deviations of returns must also have higher expected returns.
e. A portfolio with a large number of randomly selected stocks would have less market risk than a single stock that has a beta of 0.5.

Identify two employment laws which might affect
easyJet plc's business activities.

You are the manager of a small hotel with 40 rooms in Niagara. Your business has dropped almost 90% in recent months. Your cash remaining is enough to run the business for 3 more months.

Apply the 6 thinking hats approach, what would you recommend to do if you were:

1. wearing a blue hat?

2. wearing a white hat?

3. wearing a green hat?

4. wearing a red hat?

5. wearing a yellow hat?

6. wearing a black hat?

After considering the views from different perspectives, what is your recommendation?

If investing $1,000 for a year, how frequently is simple interest paid on the principal investment?
daily
annually
never
hourly

The Brital Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:Direct Materials processed:33,000 gallonsThe costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 33,000 gallons of saleable product was $55,000.Production Butter cream 13000 gallons condensed milk 20000 gallonsSales Butter cream 12500 gallons condensed milk 19500 gallonsSales Butter cream 2.50 $ per gallon condensed milk $ 9.00 per gallonsSeparable costin Butter cream 14500 gallons condensed milk 36000 gallonsThe company uses constant gross-margin percentage NRV method to allocate the joint costs of production. Which of the following statements is true of Brital?A) The gross profit percent of condensed milk is lower than the gross profit of butter cream.B) The gross margin is same for both products because constant gross margin percentage NRV method ignores profits earned before the split-off point.C) The gross profit of condensed milk is lower than the gross profit of butter cream.D) The gross margin is allocated to the joint products in order to determine the joint-cost allocations.

The last dividend paid by Wilden Corporation was $3.50. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (rs) is 12.0%. What is the best estimate of the current stock price? Select the correct answer. a. $87.92 b. $83.66 c. $82.24 d. $85.08 e. $86.50

Which of these statements is true?
O Simple interest percentages must be lower than compound interest percentages
O Compound interest will lead to a larger sum of money than a comparable simple interest payment
O Simple interest payments equal compound interest payments if invested over 10 years
all of these

If a check correctly written and paid by the bank for $646 is incorrectly recorded on the company's books for $664, the appropriate treatment on the bank reconciliation would be to deduct $646 from the book's balance. deduct $18 from the bank's balance. subtract $18 from the book's balance. add $18 to the book's balance.

The information that follows pertains to Esther Food Products: At December 31, 2018, temporary differences were associated with the following future taxable (deductible) amounts: Depreciation $ 70,000 Prepaid expenses 30,000 Warranty expenses (12,000 ) b. No temporary differences existed at the beginning of 2018. c. Pretax accounting income was $115,000 and taxable income was $27,000 for the year ended December 31, 2018. d. The tax rate is 45%. Required: Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2018. x Tax Rate = Tax $ Recorded as: Pretax accounting income $ 112,000 Permanent differences x =Income subject to taxation x =Temporary Differences x =Income taxable in current year x =Record 2021 income tax

A Rhode Island company produces communion wafers for churches around the country and the world. The little company produces a lot of wafers, several hundred million per year. When in production, the process produces wafers at the rate of 112 per second. During this production process, the wafers must spend 12 minutes passing through a cooling tube.

Required:
How many wafers does the cooling tube hold on average when in production?

You have been retained to testify as a damages expert at a binding arbitration about the financial loss your client sustained when a supplier shipped it defective raw materials. Several days before the arbitration proceeding, you discovered that the arbitrator is a member of your country club who occasionally plays golf with you.
a. Do you have a conflict of interest in testifying under oath on behalf of your client?
b. Should you discuss this case with the arbitrator if you see him at the country club?
c. Does the arbitrator have a conflict of interest?

explain how to use informal assessment to effectively prepare for an examination​

For calendar year 3, Clark Corp. had depreciation of $300,000 on its income statement. On its Year 3 tax return, Clark had depreciation of $500,000. Clark's income statement also included $50,000 accrued warranty expense that will be deducted for tax purposes when paid in a future year. Clark's enacted tax rates was 25% for all years. These were Clark's only temporary differences. The total deferred tax expense for year 3 should be:

A fee charged by a mutual fund is

Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow. Budgeted July August September Sales $ 62,700 $ 81,300 $ 49,300 Cash payments for merchandise 43,000 32,300 33,100 Sales are 15% cash and 85% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $13,600 in cash; $50,000 in accounts receivable; $5,800 in accounts payable; and a $3,300 balance in loans payable. A minimum cash balance of $13,300 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 2% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (5% of sales), office salaries ($5,300 per month), and rent ($7,800 per month). (1) Prepare a cash receipts budget for July, August, and September. (2) Prepare a cash budget for each of the months of July, August, and September.

Vella owns and operates an illegal gambling establishment. In connection with this activity, he has the following expenses during the year: Rent $43,500 Bribes 65,250 Travel expenses 4,350 Utilities 26,100 Wages 274,250 Payroll taxes 21,750 Property insurance 2,175 Illegal kickbacks 39,150 What are Vella's total deductible expenses for tax purposes

Cost pools are: A. costs that are accumulated before being allocated to cost objects on some common basis. B. costs that are relevant to decision-making but irrelevant to financial reporting. C. product costs that are assigned to cost objects using direct labor or machine hours. D. accounts in the product life cycle from research and development to customer service.

the impact of inflation in businesses​

Rodriguez Corporation issues 18,000 shares of its common stock for $174,800 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. The stock has a $8 par value. The stock has neither par nor stated value. The stock has a $4 stated value.

Consider a consumer who is contemplating a new automobile purchase. She has narrowed her decision down to two brands, Brand X and Brand Y. She has identified gas mileage, price, warranty, and styling to be important attributes to consider in her decision. Her evaluative ratings (e) for each attribute and her beliefs of how each brand performs on a given attribute (b) are given below: Brand X Brand Y Attribute e b b Mileage 2 6 4Low Price 3 2 2Warranty -1 1 3Design 1 10 5 Refer to the Automobile Scenario. Based on the attitude toward-the-object model, what is the consumer's overall attitude o toward Brand Y? a. 23 b. 16 c. 17d. 11e. 27

Learning involves changes in an individual's behavior resulting from previous experiences and information.
t or f

Lucy is trying to sell her CyberPowerPC Gamer Xtreme MSAAG1000 Gaming PC; however, none of the potential buyers is willing to pay the price Lucy desires. Lucy's friend Zeynep, an economist, thinks this might be due to a lack of information on the part of buyers. Zeynep uses the concept of __________ to explain to Lucy why she cannot sell her computer at the price she is asking