User Account

All Pages

Prepare general journal entries to record the transactions

Assignment Help Accounting Basics
Reference no: EM131015624

P8-3 (Purchases Recorded Gross and Net) Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method.

Aug 10 Purchased merchandise on account, terms 2/10, n/30 $12,000
Aug 13 Returned part of the purchase of Aug 10, and received credit on acct $1,200
Aug 15 Purchased merchandise on account, terms 1/10, n/60 $16,000
Aug 25 Purchased merchandise on account, terms 2/10, n/30 $20,000
Aug 28 Paid invoice of August 15 in full.  

  Instructions

(a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken:

(1) Prepare general journal entries to record the transactions.

(2) Describe how the various items would be shown in the financial statements.

(b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as finance expenses:

(1) Prepare general journal entries to record the transactions.

(2) Prepare the adjusting entry necessary on August 31 if financial statements are to be prepared at that time.

(3) Describe how the various items would be shown in the financial statements.

(c) Which of the two methods do you prefer and why?

Reference no: EM131015624

Questions Cloud

Find the p-value for test : Find the P-value for this test - What is the probability that this difference will be detected by the test described in part (a)?
Dominant over normal height : In humans, Achondroplasia "dwarfism" is dominant over normal height. A homozygous dominant person dies before the age of one. A heterozygous person is a dwarf. A homozygous recessive individual is normal.
What is electron drift speed in the wire on the right side : The figure shows two connected wires that are made of the same material. The current entering the wire on the left is 2.0 A, and in that wire the electron drift speed is Vd. What is the electron drift speed in the wire on the right side?
How does the body achieve homeostasis : Homeostatic. What does this mean and how does the body achieve homeostasis? Do not cut and paste or just quote/copy from the text - explain in your own words. 75-100 words
Prepare general journal entries to record the transactions : Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken
Create a payoff table that lists the profit : Create a payoff table that lists the profit from each Fine Line bid and each competing bid, and use it to find the bid that maximizes Fine Line's expected profit.
What is the magnitude of the electric field at point b : What is the electric potential at point D? What is the magnitude of the electric field at point B?
Why are fat-soluble vitamin deficiencies : Why are fat-soluble vitamin deficiencies occurring in the developed world?
Is each of the following a circadian clock input : Is each of the following a circadian clock input, circadian clock output, core clock component (or more than one of these)?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd