Dani Corporation signed a binding commitment on December 2 to purchase inventory for $300,000 cash on January 2. By December 31, the market price (replacement cost) of the inventory had declined to $280,000. Pre-pare Dani’s journal entries at year-end and at the date of purchase.
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Dani Corporation signed a binding commitment on December 2 to purchase inventory for $300,000 cash on January 2. By December 31, the market price (replacement cost) of the inventory had declined to $280,000. Pre-pare Dani’s
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- Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.Rescue Sequences LLC purchased inventory by issuing a 30,000, 10%, 60-day note on October 1. Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory system and a 360-day calendar fiscal year. Rescue Sequences LLC uses a perpetual inventory system.Quimby Sports Authority purchased inventory costing $30,000 by signing a 6% short-term, one-year note payable. The purchase occurred on July 31, 2021. Quimby pays annual interest each year on July 31. Read the requirements. First, journalize the company's (a) purchase of inventory. (Record debits first, then credits Exclude explanations from journal entries.) Journal Entry Jul Date 2021 31 Accounts Print Debit Requirements Joutnalize the company's (a) purchase of inventory; (b) accrual of interest expense on April 30, 2022, which is the company's fiscal year-end; and (c) payment of the note plus interest on July 31, 2022. (Round your answers to the nearest whole number) (d) Show what the company would report for liabilities on its balance sheet at April 30, 2022, and on its income statement for the year ended on that date Done - X Credit Clear all Check answer
- The following are selected 2020 transactions of Blue Corporation. Sept. 1 Purchased inventory from Encino Company on account for $ 46,400. Blue records purchases gross and uses a periodic inventory system. Oct. 1 Issued a $ 46,400, 12-month, 8% note to Encino in payment of account. Oct. 1 Borrowed $ 46,400 from the Shore Bank by signing a 12-month, zero-interest-bearing $ 49,560 note. Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement.) Prepare adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g.…On April 1, Year 3, River's Inc. purchased inventory for $20,000 by signing a 1-year note payable that is due March 31, Year 4. The interest rate is the market rate of 6%. All interest rates are expressed as an annual rate. River's Inc. uses the perpetual inventory system. Assume there is no GST or PST. River's Inc. fiscal year end is December 31st. Required Prepare the required journal entries from April 1, Year 3 through March 31, Year 4. Round interest to the nearest month.Vaughn Limited, which uses a perpetual inventory system, purchased inventory costing $22,000 on February 1 by issuing a 3-month note payable bearing interest at 6%, with interest and principal due on May 1. The company's year end is on March 31 and the company records adjusting entries only at that time. (a) Prepare the journal entry to record the purchase of inventory on February 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Date Account Titles Feb. 1 Debit Credit
- Vaughn Limited, which uses a perpetual inventory system, purchased inventory costing $22,000 on February 1 by issuing a 3-month note payable bearing interest at 6%, with interest and principal due on May 1. The company's year end is on March 31 and the company records adjusting entries only at that time. (a) Prepare the journal entry to record the purchase of inventory on February 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.) Your answer is correct. Feb. 1 (b) Date Account Titles Inventory Notes Payable eTextbook and Media List of Accounts Your answer is incorrect. Mar. 31 Debit 22000 Debit Credit Prepare the journal entry to record the accrual of interest expense on March 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is…The following are selected 2020 transactions of Astin Corporation. Sept. 1 Purchased inventory from Encino Company on account for $50,000. Astin records purchases gross and uses a periodic inventory system. Oct. 1 Issued a $50,000, 12-month, 8% note to Encino in payment of account. Oct. 1 Borrowed $50,000 from the Shore Bank by signing a 12-month, zero-interest-bearing $54,000 note. Instructions a. Prepare journal entries for the selected transactions above. b. Prepare adjusting entries at December 31. c. Compute the total net liability to be reported on the December 31 balance sheet for: 1. The interest-bearing note. 2. The zero-interest-bearing note.An entity sells inventory with a list price of P10,000 under credit terms of 20%, 10%, 2/15, n/30. The entity uses PFRs 15 and estimates that only 80% of the cash discount will be taken. By the end of the reporting period, the account receivables are not yet settled and the entity changes its estimate of cash discount to be taken by 40%. Requirements: Provide the journal entry on the date of the sale and the year-end adjusting entry. Determine the amounts of net revenue and accounts receivable to be reported in the financial statements.
- The following are selected 2020 transactions of Wildhorse Corporation. Purchased inventory from Encino Company on account for $59,600. Wildhorse records purchases gross and uses a periodic inventory system. Sept. 1 Oct. Issued a $59,600, 12-month, 8% note to Encino in payment of account. 1 Oct. Borrowed $59,600 from the Shore Bank by signing a 12-month, zero-interest-bearing $62,480 note. 1 (a) Prepare journal entries for the selected transactions above. (If no entry is required, seléct "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement.) Date Account Titles and Explanation Debit CreditThe following are selected 2020 transactions of Culver Corporation. Sept. Purchased inventory from Encino Company on account for $46,800. Culver records purchases gross and uses a periodic inventory system. 1 Issued a $46,800, 12-month, 8% note to Encino in payment of account. Oct. 1 Oct. 1 Borrowed $46,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $49,920 note. Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement.) Account Titles and Explanation Date October 1 Debit CreditABC Company is using the perpetual inventory system purchased inventory worth P25,000 on account with terms of 2/10, n/30. Defective inventory of P2,000 was returned 2 days later and the accounts were appropriately adjusted. If the invoice is paid within 10 days, the amount of the purchase discount that would be available to the company is: