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Slinky Company purchased merchandise on June 10, 2016, at a price of $38,000, subject to credit terms of 3/10, n/30. Slinky uses the net method for recording purchases and uses a perpetual inventory system.
1. Prepare the journal entry to record the purchase.
2. Prepare the journal entry to record the appropriate payment if the entire invoice is paid on June 18, 2016.
3. Prepare the journal entry to record the appropriate payment if the entire invoice is paid on July 8, 2016.
Calculate the amount of dividends declared during 20x8 on the nonconvertible preferred stock.
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Prior Company buys merchandise on account from Wood Company. The selling price of the goods is $900 and the cost of goods is $630. Both companies use perpetual inventory systems. Journalize the transactions on the books of both companies.
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