Events represent business transactions

Assignment Help Financial Accounting

Reference no: EM131293667

Do the following events represent business transactions? Explain your answer in each case.

(a) A computer is purchased on account.

(b) A customer returns merchandise and is given credit on account.

(d) The owner of the business withdraws cash from the business for personal use.

(e) Merchandise is ordered for delivery next month.

Reference no: EM131293667

Questions Cloud

Journal entry for pension expense and the year-end balances : The following defined pension data of Rydell Corp. apply to the year 2014. For 2014, prepare a pension worksheet for Rydell Corp. that shows the journal entry for pension expense and the year-end balances in the related pension accounts.

At what price did the bonds sell : A company issued 5%, 20-year bonds with a face amount of $80 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell?

Describe the legal and ethical issues surrounding the case : Jackson Daniels graduated from Lynchberg State College two years ago. Since graduating from the College, he has worked in the accounting department of Lynchberg Manufacturing. Daniels was recently asked to prepare a sales budget for the year 2011. De..

Discuss how federal taxation system is driven by economic : Consider Adam Smith's canons of taxation. Identify one of his ideas and post your thought on its applicability to the current income tax system in the United States. In a follow up post, discuss how the federal taxation system is driven by economic a..

Events represent business transactions : Do the following events represent business transactions?

Prepare the journal entry to record the redemption : The balance sheet for Miley Consulting reports the following information on July 1, 2014. Long-term liabilities Bonds payable $1,040,000 Less: Discount on bonds payable 83,200 $956,800 Miley decides to redeem these bonds at 101 after paying semiannua..

Record the mortgage loan and first two installment payments : Jernigan Co. receives $226,800 when it issues a $226,800, 14%, mortgage note payable to finance the construction of a building at December 31, 2014. The terms provide for semiannual installment payments of $18,900 on June 30 and December 31. Prepare ..

Balances appear in the ledger of specialty auto racing : Specialty Auto Racing Inc. retails racing products for BMWs, Porsches, and Ferraris. The following accounts and their balances appear in the ledger of Specialty Auto Racing Inc. on July 31, the end of the current year: Common Stock, $32par - $8,755,2..

Prepare the journal entries to record each bond transaction : Frankum Company has issued three different bonds during 2014. Interest is payable semiannually on each of these bonds. 1. On January 1, 2014, 1,110, 8%, 5-year, $1,000 bonds dated January 1, 2014, were issued at face value. 2. On July 1, $877,400, 9%..

User Account

All Pages