Answer full question. Answer required a,b,c and e Required ARequired BRequired CRequired EThe preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of inventory, (4) therecognition of cost of goods sold expense, and (5) the payment of income tax expense, Show the amounts of each event in horizontal statements models like thefollowing ones, assuming first a FIFO and then a LIFO cost flow. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity,FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Round your final answers to the nearest whole dollaramount. Enter any decreases to account balances and cash outflow with a minus sign.)Show less ApokTHE BRICK COMPANYEffect of Events on Financial StatementsintPanel 1: FIFO Cost FlowBalance SheetIncome StatementCash FlowsEventRetainedEarningsPrintNo.CashInventoryRevenueExpensesNet Income%3D1.2.erences3.4.=5.+Bal.Panel 2: LIFO Cost Flow1.+.=2.%3D3.%3D%3D4.%3D5.Bal.Required ARequired B Check my wcThe Brick Company had cash sales of $220,600 for Year 1, its first year of operation. On April 2, the company purchased 185 units ofinventory at $160 per unit. On September 1, an additional 139 units were purchased for $176 per unit. The company had 35 units onhand at the end of the year. The company's income tax rate is 40 percent. All transactions are cash transactions.Requireda. The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a secondpurchase of inventory, (4) the recognition of cost of goods sold expense, and (5) the payment of income tax expense. Show theamounts of each event in horizontal statements models like the following ones, assuming first a FIFO and then a LIFO cost flow.b. Compute net income using FIFO.c. Compute net income using LIFO.e. Which method, FIFO or LIFO, produced the larger amount of assets on the balance sheet?Complete this question by entering your answers in the tabs below.Required ARequired BRequired CRequired EThe preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of inventory, (4) therecognition of cost of goods sold expense, and (5) the payment of income tax expense. Show the amounts of each event in horizontal statements models like thefollowing ones, assuming first a FIFO and then a LIFO cost flow. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity,FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Round your final answers to the nearest whole dollaramount. Enter any decreases to account balances and cash outflow with a minus sign.)Show lessTHE BRICK COMPANY

Answer to Question: Panel 1 : FIFO Cost flow Event No. Cash + Inventory = Retained earnings…

The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of inventory, (4) the recognition of cost of goods sold expense, and (5) the payment of income tax expense. Show the amounts of each event in horizontal statements models like the following ones, assuming first a FIFO and then a LIFO cost flow. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Round your final answers to the nearest whole dollar mount Ente to account balances and cash outflow with a minUs sian

The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of inventory, (4) the recognition of cost of goods sold expense, and (5) the payment of income tax expense. Show the amounts of each event in horizontal statements models like the following ones, assuming first a FIFO and then a LIFO cost flow. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Round your final answers to the nearest whole dollar mount Ente to account balances and cash outflow with a minUs sian

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 7MCQ

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On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan.
Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
The Brick Company had cash sales of $226,200 for Year 1, its first year of operation. On April 2, the company purchased 164 units of inventory at $175 per unit. On September 1, an additional 123 units were purchased for $193 per unit The company had 68 units on hand at the end of the year. The company's income tax rate is 40 percent All transactions are cash transactions. Required a. The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of inventory, (3) a second purchase of inventory, (4) the recognition of cost of goods sold expense, and (5) the payment of income tax expense. Record the amounts of each event in horizontal statements models like the following ones, assuming first a FIFO and then a LIFO cost flow b. Compute net income using FIFO. c. Compute net income using LIFO.
Rapoo Inc. sells gift certificates. One-half of the gift certificates outstanding on January 1 unredeemed as of yearend expired during the year. The Unearned Revenue from Gift Certificates account increased to P210,000 at yearend. The gross profit rate based on cost is 25%. Information on gift certificates is shown below: How much of the gift certificates sold during the year was redeemed? How much is the net income for the year arising from the gift certificates?
A business sells $100,000 of products to a customer on account and collects 6% sales tax. Cost of the merchandise sold was $70,000. At the end of the month, the company pays the total sales tax collected ($185,000) to the state department of revenue. Required: Record the entries for (a) 'the sale' and for (b) 'the payment of the sales tax.' Indicate Dr. or Cr. in front of each account.
create a income statement for: The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $50,000 from the issue of common stock. Purchased equipment inventory of $380,000 on account. Sold equipment for $510,000 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $330,000. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 2 percent of sales. Paid the sales tax to the state agency on $400,000 of the sales. On September 1, Year 1, borrowed $50,000 from the local bank. The note had a 4 percent interest rate and matured on March 1, Year 2. Paid $6,200 for warranty repairs during the year. Paid operating expenses of $78,000 for the year. Paid $250,000 of accounts payable. Recorded accrued interest on the note issued in transaction no. 6.
The Brick Company had cash sales of $221,600 for Year 1, Its first year of operation. On April 2, the company purchased 227 units of Inventory at $190 per unit. On September 1, an additlonal 170 units were purchased for $209 per unit. The company had 49 units on hand at the end of the year. The company's Income tax rate Is 40 percent. All transactions are cash transactlons. Requlred a. The preceding paragraph describes five accounting events: (1) a sales transaction, (2) the first purchase of Inventory, (3) a second purchase of Inventory, (4) the recognition of cost of goods sold expense, and (5) the payment of Income tax expense. Show the amounts of each event In horizontal statements models, assuming first a FIFO and then a LIFO cost flow. b. Compute net Income using FIFO. c. Compute net Income using LIFO. e. Which method, FIFO or LIFO, produced the larger amount of assets on the balance sheet? Complete this question by entering your answers in the tabs below. Required A Required B…
The following transactions apply to Walnut Enterprises for Year 1, its first year of operations: Received $40,500 cash from the issue of a short-term note with a 6 percent interest rate and a one-year maturity. The note was made on April 1, Year 1. Received $117,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 5 percent. Paid $70,500 cash for other operating expenses during the year. Paid the sales tax due on $97,000 of the service revenue for the year. Sales tax on the balance of the revenue is not due until Year 2. Recognized the accrued interest at December 31, Year 1. The following transactions apply to Walnut Enterprises for Year 2: Paid the balance of the sales tax due for Year 1. Received $142,000 cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 5 percent. Repaid the principal of the note and applicable interest on April 1, Year 2. Paid $83,500 of…
The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer Co. sells and installs home and business security systems Jan. 3. Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10. Sold merchandise on account to Bradford & Co., $24,000. The cost of the mer-chandise sold was $14,400. 13. Sold merchandise on account to Dry Creek Co., $60,000. The cost of merchan-dise sold was $54,000. Mar. 12. Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account. 14. Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account. Apr. 3. Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account. May 11. Received from Bradford & Co. the amount due on the note of March 12. 13. Dry Creek Co. dishonored its note dated March 14. July 12. Received from Dry Creek Co. the…
View the data below and then answer the question below: Company Name: WaitRose Sales - $2,100 (20% cash, 80% credit) Inventory - $750 Depreciation - $1,500 Plant & Equipment - $2,000 Accounts Receivable - $225 Notes Payable - $165 Question: What is the average collection period for the year for Waitrose? (show your work and explain)
The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $48,000 from the issue of common stock. Purchased equipment inventory of $175,500 on account. Sold equipment for $193,500 cash (not including sales tax). Sales tax of 8 percent is collected when the merchandise is sold. The merchandise had a cost of $118,500. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. Paid the sales tax to the state agency on $143,500 of the sales. On September 1, Year 1, borrowed $20,000 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2. Paid $5,500 for warranty repairs during the year. Paid operating expenses of $54,000 for the year. Paid $124,400 of accounts payable. Recorded accrued interest on the note issued in transaction no. 6. Required Prepare the income statement, balance sheet, and statement of cash flows for…
During December, Rainey Equipment made a $600,000 credit sale. The state sales tax rate is 6% and the local sales tax rate is 1.5%. Prepare the appropriate journal entry.