User Account

All Pages

What effect does recording the purchase of merchandise

Assignment Help Financial Accounting
Reference no: EM132993112

Park, Inc. purchased merchandise from Jay Zee Music Company on June 5, 2017. The goods were shipped the same day. The merchandise's selling price was $15,000. The credit terms were 1/10, n/30. The shipping terms were FOB shipping point. Park received the merchandise on June 10, 2017. Park paid the amount due on June 13, 2017.

Problem 1: Park uses the periodic inventory system. What effect does recording the purchase of merchandise on June 5, 2017 have on Park's accounting equation?

a. Assets and liabilities increase.
b. Assets and stockholders' equity increase.
c. Liabilities and stockholders' equity decrease.
d. Liabilities increase and stockholders' equity decreases.

Reference no: EM132993112

Questions Cloud

Interpretative phenomenological analysis : Interpretative phenomenological Analysis - Recognise and apply the most appropriate qualitative research design
Which of the statements regarding cost of goods available : Which of the statements regarding cost of goods available for sale is true? Cost of goods available for sale is an expense account.
Determine the partial financial productivity of Material A : The firm manufactured 3,234 units of the same product in 2018 with the following inputs: In 2018, determine the partial financial productivity of Material A
How much additional debt can impi issue the year : It pays 10% interest on its? debt, how much additional debt can Impi issue this year and still receive the benefit of the interest tax shield next? year?
What effect does recording the purchase of merchandise : Park uses the periodic inventory system. What effect does recording the purchase of merchandise on June 5, 2017 have on Park's accounting equation?
How much is the proceeds from the discounting : On July 1, 2021, Karrie Co. discounted an P800,000, 90-day, 12% note received from a customer on June 1, 2021, How much is the proceeds from the discounting
Belief of market efficiency when developing an investment : Discuss the relationship between the Markowitz portfolio selection model and your belief of market efficiency when developing an investment strategy.
What is the maximum unit purchasing price : If the manufacture buys the component, the direct fixed manufacturing costs can be reduced by 31 per cent. What is the maximum unit purchasing price
Why do need to assess the significance of variances : Describe the factors that managers may consider when assessing the significance of a variance. 1.5 standard hours per Jerf at $12.00 per direct labour hour

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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