Make the journal entry from garcia equipments standpoint if

Assignment Help Accounting Basics

Reference no: EM13389672

As the struggling owner of a new restaurant, you suffer from a habitual shortage of cash. Yesterday the following invoices arrived:

Vendor Face Amount Terms

Cornation Produce $ 600 n/30

John's Fisheries 1,000 1/10, n/45

Garcia Equipment 2,000 2/10, n/60

1. Write out the exact meaning of each of the terms.

2. You can borrow cash from the local bank on a note bearing an annual interest rate of 12%. Should you borrow to take advantage of the cash discounts offered by the last two vendors? Why? Show computations. For interest computations, assume a 360-day year.

3. Prepare the journal entry from Garcia Equipment's standpoint if you were to pay the amount due within the discount period.

Reference no: EM13389672

Questions Cloud

Dvelop a plan for a local fundraising event in your area : develop a plan for a local fundraising event in your area. include your thoughts on marketing strategies budgeting

Describe the importance of the communication process in the : 1.discuss the ethical issues that can arise in contracting.2.analyze and discuss the strengths and weaknesses of the

Research the concepts of push vs pull communication : research the concepts of push vs. pull communication strategies.develop an explanation in your own words of the

Conduct an internet search using the two phrases listed : during the period of early childhood mastering fine motor skills is a very important process needed for physical and

Make the journal entry from garcia equipments standpoint if : as the struggling owner of a new restaurant you suffer from a habitual shortage of cash. yesterday the following

Comstock company purchased 1000 units of its product for 6 : comstock company purchased 1000 units of its product for 6 per unit. comstock sold 800 units for 10 per unit.a. what

Each student will create a blog to post their observations : objectiveto observe and document the concepts of this course through your observations and subsequent application to

How is the income statement of the service company : how is the income statement of a service company different from the income statement of a merchandising

However it is also conceivable that some companies : it is often the case that companies work hard at reducing the amount of time a flow unit a customer or a product spends

User Account

All Pages