The following items were selected from among the transactions completed by Sherwood Co. during the current year:
Mar. 1 Purchased merchandise on account from Kirkwood Co., $225,000, terms n/30.
31 Issued a 30-day, 8% note for $225,000 to Kirkwood Co., on account.
Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31.
Jun. 1 Borrowed $600,000 from Triple Creek Bank, issuing a 45-day, 6% note.
Jul. 1 Purchased tools by issuing a $50,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%.
16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 7% note for $600,000. (Journalize both the debit and credit to the notes payable account.)
Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16.
30 Paid Poulin Co. the amount due on the note of July 1.
Dec. 1 Purchased equipment from Greenwood Co. for $280,000, paying $80,000 cash and issuing a series of ten 9% notes for $20,000 each, coming due at 30-day intervals.
22 Settled a product liability lawsuit with a customer for $40,000, payable in January. Accrued the loss in a litigation claims payable account.
31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.
Required:
1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
a. Product warranty cost, $65,000.
b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.

Answers

Answer 1

Completing the recording of the transactions in Sherwood Co. is as follows:

Mar. 1 Debit Inventory $225,000

Credit Accounts Payable (Kirkwood Co.) $225,000

To record the purchase of goods on account, terms n/30.

Mar. 31  Debit Accounts Payable (Kirkwood Co.) $225,000

Credit Notes Payable (Kirkwood) $225,000

To record the issuance of a 30-day, 8% note on account.

Apr. 30 Debit Notes Payable (Kirkwood) $225,000

Debit Interest Expense $1,500

Credit Cash $226,500

To record payment on note payable with interest.

Jun. 1 Debit Cash $600,000

Credit 6% Notes Payable (Triple Creek Bank) $600,000

To record loan from bank on a 45-day, 6% note.

Jul. 1 Debit Equipment $50,000

Credit Notes Payable (Poulin Co.) $50,000

To record purchase of tools with 60-day note.

Jul. 16 Debit Interest Expense $4,500

Credit Cash $4,500

To record the payment of interest expense.

Debit 6% Notes Payable (Triple Creek Bank) $600,000

Credit 7% Notes Payable (Triple Creek Bank) $600,000

To record the renewal of notes payable with 7% notes.

Aug. 15 Debit 7% Notes Payable (Triple Creek Bank) $600,000

Debit Interest Expense $3,500

Credit Cash $603,500

To record payment on account with interest.

Aug. 30 Debit Notes Payable (Poulin Co.) $50,000

Credit Cash $50,000

To record payment on account.

Dec. 1 Debit Equipment $280,000

Credit 9% Notes Payable $200,000 (Greenwood Co.)

Credit Cash $80,000

To record the purchase of equipment with notes and cash.

Dec. 22 Debit Litigation Loss $40,000

Credit Litigation Claims Payable $40,000

To record the settlement of a product liability lawsuit.

Dec. 31 Debit Notes Payable (Greenwood Co.) $20,000

Debit Interest Expense $1,500

Credit Cash $21,500

To record first payment on account with interest.

Adjustments:

a. Debit Product Warranty Expense $65,000

Credit Warranty Liability $65,000

To record product warranty expense.

b. Debit Interest Expense $13,500

Credit Interest Payable $13,500

To accrue interest for the nine remaining notes.

Data Analysis:

Mar. 1 Inventory $225,000 Accounts Payable (Kirkwood Co.) $225,000 terms n/30.

Mar. 31  Accounts Payable (Kirkwood Co.) $225,000 Notes Payable (Kirkwood) $225,000 30-day, 8% note

Apr. 30 Notes Payable (Kirkwood) $225,000 Interest Expense $1,500 Cash $226,500

Jun. 1 Cash $600,000 6% Notes Payable (Triple Creek Bank) $600,000

a 45-day, 6% note.

Jul. 1 Equipment $50,000 Notes Payable (Poulin Co.) $50,000

60-day note to Poulin Co., which discounted the note at the rate of 6%.

Jul. 16 Interest Expense $4,500 Cash $4,500 7% Notes Payable (Triple Creek Bank) $600,000 6% Notes Payable (Triple Creek Bank) $600,000

Aug. 15 7% Notes Payable (Triple Creek Bank) $600,000 Interest Expense $3,500 Cash $603,500

Aug. 30 Notes Payable (Poulin Co.) $50,000 Cash $50,000

Dec. 1 Equipment $280,000 9% Notes Payable $200,000 (Greenwood Co.) Cash $80,000

Dec. 22 Litigation Loss $40,000 Litigation Claims Payable $40,000

Dec. 31 Notes Payable (Greenwood Co.) $20,000 Interest Expense $1,500 Cash $21,500

Adjustments:

a. Product Warranty Expense $65,000 Warranty Liability $65,000

b. Interest Expense $13,500 Interest Payable $13,500

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Related Questions

The RRR is 20%. Total demand deposits in the economy equal $2 billion. Banks in the economy are fully lent up (i.e., are holding no excess reserves). The Fed then lowers the RRR to 10%. As a result, the money supply, assuming that banks continue to be fully lent up and that there are no cash leaks, shall __________________ . (Hint: First calculate bank's cash reserves as 20% of $2 billion

Answers

This tells us that if there are no cash leaks there would be a rise by 2 billion dollars in the money supply.

The total demand deposit = 2 billion dollars

The RRR is said to be = 20%

This is now = 10%.

20% of 2billion =

[tex]\frac{20}{100} *2000000000\\\\= 400million[/tex]

10% of 2billion = 200 million.

The excess = 400m - 200m

= 200m

The money = 200*1/0.10

= 2 billion dollars.

10% is kept while 90% is lent out compared to before when 20% was kept and 80% lent out.

Former multiplier = 1/0.20 = 5

Multiplier now = 1/0.10 = 10.

This tells us that if there are no cash leaks there would be a rise by 2 billion dollars in the money supply.

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outlook 365 can be described as a personal information manager true or false

Answers

Answer:

True.

Explanation:

If you search up this exact question, your number one answer should be from wikipedia. It says, and I quote:

"Microsoft Outlook is a personal information manager software system from Microsoft, available as a part of the Microsoft Office suite. Though primarily an email client, Outlook also includes such functions as calendaring, task managing, contact managing, note-taking, journal logging, and web browsing."

02. GeCo begins 20X4 with merchandise costing $69,000. 20X4 sales are
$233,000, purchases are $198,000, and ending inventory is $81,000.
GeCo's 20X4 cost of goods sold is...
a. $245,000 b. $221,000 c. $210,000 d. $186,000
3. On December 3, HuCo purchases merchandise for $47,000 on account
F.O.B. destination. Freight charges are $800. On December 26, HUC
pays the vendor $14,000. On HuCo's December 31 balance sheet the
accounts payable balance will be...
a. $33,800
b. $47,000
c. $47,800
d. $33,000
4. RiCo uses the perpetual method for inventory and records purchases a
In 20X4, it has total merchandise purchases of $324,000. It retu

Answers

2. GeCo's 20X4 cost of goods sold is d. $186,000.

3. On HuCo's December 31 balance sheet the  accounts payable balance will be d. $33,000.

4. The net cost of RiCo's 20X4 merchandise purchases is a. $297,000.

Data and Calculations:

GeCo:

Beginning inventory = $69,000

Sales for he year = $233,000

Purchases =$198,000

Cost of goods available for sale = $267,000 ($69,000 + $198,000)

Ending inventory = $81,000

Cost of goods sold = $186,000 ($267,000 - $81,000)

HuCo:

Purchases on account = $47,000

Trade terms = FOB destination

Freight charges = $800 on the Seller

Payment on December 26 = $14,000

Accounts Payable balance = $33,000 ($47,000 - $14,000)

RiCo:

Merchandise Purchases = $324,000

Return of goods = $19,000

Purchases allowances = $7,000

Cash discount = $1,000.

Net cost of purchases = $297,000 ($324,000 - $19,000 - $7,000 - $1,000)

Question 4 Completion:

RiCo uses the perpetual method for inventory and records purchases at gross. In 20X4, it has total merchandise purchases of $324,000. It returns 19,000 of the merchandise for full credit and receives $7,000 in allowances from its vendors for defective merchandise and takes cash discount of $1,000. The net cost of RiCo's 20X4 merchandise purchases is... a. 297,000 b. 305,000 c.324,000 d. 298,000

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EXPLAIN HOW IMPORTANT MOTIVATION IN AN ORGANIZATION ​

Answers

level of commitment, drive and energy that a company's workers bring to the role everyday.

Answer:

Motivation is a human factor in management. Motivation represents the willingness of an individual to put his efforts in a particular direction so as to achieve his goals. Motivation is what makes people perform or do the things

In selling a house, Matt, a licensed realtor, tells Ann that the wiring, fixtures, and ap-pliances are of a certain quality. Matt knows nothing about the quality, but it is not as specified. Ann buys the house. On learning the true quality, Ann confronts Matt. He says he was not trying to fool her; he was only trying to make a sale. Can she rescind the deal

Answers

no she cant rescind the deal

Briefly explain 2 functions of an offcice

Answers

Answer:

An office is the center point of organization. ... The office performs a clerical function such as information collection, recording analyzing, distribution of information and executive function such as planning, policies formulation, organization, decision making etc.

Explanation:

Your dad mentioned that he had $100,000 in his retirement account 20 years ago. If the account has grown by the market rate of 10% per year by how much would the account have grown.

Answers

Answer:

ow much would the account have grown

Describe the role of supply, demand, and competition in a free enterprise system

Answers

Answer:

if a product is wanted for instance chocolate the price and demand will increase but the stock will drop

Regal, Incorporated, currently has an EPS of $1.30 and an earnings growth rate of 6.5 percent. If the benchmark PE ratio is 30, what is the target share price five years from now

Answers

Based on the information given the target share price five years from now is $53.4.

First step is to earning per share for year 5 using this formula

Earning per share for year 5=EPS×(1+Growth Rate)^5

Let plug in the formula

Earning per share for year 5=$1.30×(1+.065)^5

Earning per share for year 5=$1.30×(1.065)^5

Earning per share for year 5=$1.78111266

Second step is to calculate the  target share price

Target Stock price=$1.78111266×30

Target Stock price=$53.4

Inconclusion  the target share price five years from now is $53.4.

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Is foreign employment good or bad for Nepal?​

Answers

They are good for employment

It has an immediate benefit but it is not beneficial for a long term of the Nepalese labour and sweat is being used in foreign countries and there is scarcity of human power for the development of our own country

If Paul’s children run a lemonade stand for a day and sell 400 glasses of lemonade at $1.00 each, their total revenues are

a. $200.

b. $800.

c. $400.

d. $1.00.

Answers

Answer:

c

Explanation:

Because 400 × $1.00 = $400

Why Does a Taxi To Gatwick Airport Make So Much Sense?

Answers

Answer:

Because se seen is very beautiful no te jode

Explanation:

If you go by car blalalal is more goood

how does it make sense

Arturo makes and sells organic frozen yogurt with fresh fruit toppings. He wants to price discriminate according to a preference for organic food so that those with the most inelastic demand for organic food pay the highest price. To accomplish this, to which group should he give discount coupons for his yogurt

Answers

To accomplish his price discrimination, Arturo should give discount coupons for his yogurt to D. Students at the local art school.

Price discrimination will help Arturo charge the highest price to those who prefer organic food because they exhibit inelastic demand. They include members of the local organic food cooperation, people who come to the community's weekly farmer's market, and customers of the local fast-food restaurant.

Thus, students at the local art school require lowered prices to patronize Arturo's organic frozen yogurt.

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Answer:

B. Customers of the local fast-food restaurant

Explanation:

Inelastic demand is when a buyer's demand for a product does not change as much as its change in price.

Answer choices:
A. Members of the local organic food co-op

B. Customers of the local fast-food restaurant

C. Students at the local art school

D. People who come to the community's weekly farmer's market

A. Members of the local organic food co-op and D. People who come to the community's weekly farmer's market are similar. If people are already buying organic foods, they are more likely to be elastic when the price changes meaning they will find a substitute.


C. Students at the local art school is incorrect because the students would look for substitutes when the price increases after discounts.

B. Customers of the local fast-food restaurant is the most likely group to keep buying the organic yogurt to stay healthy even when the price increases.

Minor Corporation purchases 5,000 shares of its $4 par common stock at $7 per share and also has an outstanding loan of $100,000.
Under the provisions of the contract of the loan, Minor is required to maintain 25% of the balance of the loan in retained earnings at
all times. What is the current minimum retained earnings restriction for the company?
O $40,000
O $45,000
O $60,000
O $0

Answers

The current minimum retained earnings restriction for the company is $60,000

Restriction of retained earnings for Loan = Outstanding loan *  % of maintained balance

Restriction of retained earnings for Loan = $100,000 * 25%

Restriction of retained earnings for Loan = $25,000

Restriction of retained earnings for treasury Stock = Purchased shares * $7 per share

Restriction of retained earnings for treasury Stock = 5000 shares * $7

Restriction of retained earnings for treasury Stock = $35,000

Current Minimum retained earnings restriction = Restriction of retained earnings for Loan + Restriction of retained earnings for treasury Stock

Current Minimum retained earnings restriction = $25,000 + $35,000

Current Minimum retained earnings restriction = $60,000

Therefore, the Option C is correct because current minimum retained earnings restriction for the company is $60,000

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A Virginia county is considering whether to pay $50,000 per year to lease a prisoner transfer facility in a prime location near Washington, D.C. They estimate it will cost $50 per prisoner to process the paperwork at this new location. The county is paid a $75 commission for each new prisoner they process. What would be the county's annual profit if they were to process 4,000 prisoners per year at this new location

Answers

Based on the information given  the county's annual profit if they were to process 4,000 prisoners per year at this new location is $50,000.

Annual profit=Total revenue-Total cost

Where:

Total revenue=(4,000×$75)=$300,000

Total cost=[(4,000×$50)+$50,000]=$250,000

Let plug in the formula

Annual profit=(4,000×$75)-[(4,000×$50)+$50,000]

Annual profit=$300,000-($200,000+$50,000)

Annual profit=$300,000-$250,000

Annual profit=$50,000

Inconclusion  the county's annual profit if they were to process 4,000 prisoners per year at this new location is $50,000.

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When asked how positive or negative they feel about their work, fewer than 20% of U.S. workers report being dissatisfied with their jobs.

Answers

According to statistical data, it is indeed TRUE that less than 20% of U.S. workers are dissatisfied with their jobs.

According to recent labor statistics:

85% of Americans are satisfied with their jobs Most Americans don't mind the roles they execute at work

If 85% of people are satisfied then the percentage is potentially dissatisfied is:

= 100% - 85%

= 15%

It is therefore true that less than 20% are dissatisfied.

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ở mỹ nổi lên một nhà triệu phú nổi tiếng về kỹ nghệ da mèo chiến lược mèo xơi chuột chuột xơi mèo

Answers

Meta nam Diogo Merida hai

A negative attitude can lead to
O more completed work
O high turnover
O better work environment
O fewer conflicts between employees

Answers

Negative attitude can lead to high turnover

Options for dealing with uncertainty include using safety ________. Inventory and demand Demand and stock Lead time and inventory Stock and lead time

Answers

When one experiences uncertainty in business, one way they can deal with it is by using safety stock and lead time.

Safety stock and lead time:

Allow for goods to arrive earlier than they normally would have so as to avoid delays Allows for goods to be stored to satisfy an unplanned increase in demand

By doing these things, safety lead time and safety stock ensure that a company can deal with stock uncertainty such that they will have enough to sell to people.

In conclusion, one can deal with uncertainty through the use of safety lead time and stock.

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Whats the best Kool-aid packit

Answers

Answer:

ik this doesnt help, but there all  gross in my opinion sry lol

Explanation:

Answer:

lemonade grape red white and blue and blue raseberry

Explanation:

True or False: The purchases of items from foreigners will be greater than the sales of items to foreigners. True False

Answers

Answer:

The correct answer is false.

Explanation:

From the perspective of the United States, the demand for foreign currencies in exchange for dollars reflects purchases by Americans of goods, services, and assets from foreigners. The supply of foreign currencies in exchange for dollars reflects sales by Americans of goods, services, and assets to foreigners. The equilibrium exchange rate will bring the quantity of foreign exchange demanded by Americans into balance with the quantity supplied by foreigners. Thus, it will also bring purchases by Americans from foreigners into balance with sales by Americans to foreigners. See section: Determinants of the exchange rate.

compare the company profit performance and financial position with the average for the industry

Answers

Answer:

what average for the industry

Explanation:

can i have a choise

If a firm's marginal costs _____ then its _____. Group of answer choices rise; output increases fall; best-response curve shifts rise; forced out of the oligopoly fall; price falls

Answers

If a firm's marginal costs fall, then its price falls.

This is based on the principle that if the marginal cost of a product or firm rises, that implies that the firm is operating at a high fixed cost, thereby leading to an increase in the cost of production, which generally equates to products having a high price.

On the other hand, where there is low marginal cost, production costs reduce because the products are being produced at a lower fixed cost. Thereby leading to lower prices.

Hence, in this case, it is concluded that "If a firm's marginal costs fall, then its price falls."

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Beautinator Cosmetics borrowed $152,300 from a bank for three years. If the quoted rate (APR) is 11.75 percent, and the compounding is daily, what is the effective annual rate (EAR)

Answers

ear ear 11.75 beep boop bop

The effective annual interest rate (EAR) is the rate of interest that shows the actual rate that is owed on a loan. The effective annual interest rate reflects the impacts of compounding.  

EAR = (1 + periodic interest rate)^m - 1

Periodic interest rate = APR /m

11.75 / 365 = 0.032192%

m =  number of compounding = 365

EAR = (1 + 0.000322)^365 - 1 = 0.1247 = 12.47%

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Purchased office supplies for $1,400. Cash paid $ 400 and remaining
outstanding.

Answers

Answer: $1,000

Explanation:

help pls What is one course of action available in every decision making process?

a.

Respond in a way which will have only positive consequences

b.

Respond in a way which will have no negative consequences

c.

Choose to do nothing about the issue

d.

None of the above

Answers


the answer is c) choose to do nothing about the issue

Answer:

answer is c

Explanation:

Which option helps minimize costs in a project?
O A. adjusting resources
OB. indentifying resources
Oc.
eliminating resources
OD. gathering resources

Answers

Answer:

c

Explanation:

po ang tamang sagon po

eliminating resources it saves money D would be incorrect because the key is making it less exspesive

Bonds with credit rating of below BBB by S&P are called:

Answers

Answer:

"AAA" and "AA" (high credit quality) and "A" and "BBB" (medium credit quality) are considered investment grade. Credit ratings for bonds below these designations ("BB," "B," "CCC," etc.) are considered low credit quality, and are commonly referred to as "junk bonds."

Bonds with credit rating of below BBB by S&P are called high yield bonds.

What are bonds?

A bond is a debt instrument used by businesses to raise capital needed for business operations. Bondholders earn interest on the amount invested and at the maturity of the bond, they are paid back the amount invested.

Bonds rated BBB and above are bonds of the highest quality. They have the least rate of default. Bonds rated BBB and below are bonds of lower quality. They are called high yield bonds. They have a higher rate of default and bondholders demand a higher rate of return for holding this bond.

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Solo wants to store her tax returns, her will, and her budget in a location where she can quickly retrieve these records for review and revision.
What is the MOST logical thing for Solo to do with these records?
ОА
Place them in a paid storage facility.
ОВ.
Don't store them; they should be shredded.
Ос.
Save them to a computer file.
OD
Store them in a safe deposit box.

Answers

OD is the logical one in my opinion

Answer:

Save them to a computer file.

Explanation:

Just took the test, and this is the answer.

On January 1, 2019, Santo Company purchased a computer system for $30,500. The system had an estimated useful life of 5 years and no salvage value. At January 1, 2021, the company revised the remaining useful life to two years. What amount of depreciation will be recorded for 2021 and 2022

Answers

The amount of depreciation for both 2021 and 2022 based on the information given is $9,150

First find the accumulated depreciation for 2019 and 2020.

= Cost of system / Useful life x 2 years

= 30,500 / 5 x 2

= $12,200

The amount left to be depreciated is therefore:

= Cost - Accumulated depreciation

= 30,500 - 12,200

= $18,300

The depreciation for the next two years will be:

= Amount to be depreciated / Useful life

= 18,300 / 2

= $9,150

In conclusion, both 2021 and 2022 will see a depreciation of $9,150.

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As expected, Pablo and Claudette used Marcel's talking point as a chance to catch their breath before going back to talking over one another. Pablo had been giving in to Claudette and her need for pizza for months now. It was always pizza because pizza was never an option at home and he knew this. Eating with Pablo and Marcel was Claudette's one time to eat something a little less healthy, so she was adamant to eat pizza. Claudette and Pablo were both stubborn, so when Marcel offered up the chance to try a new place that would satisfy what everyone wanted, it went in one ear and out the other. Marcel was prepared for this, but he also knew his two friends often had a delayed reaction to good news when they were arguing amongst themselves. After a few more minutes of going back and forth, Claudette and Pablo suddenly stopped. They both turned to Marcel, as if they just had a new idea."Hey, there is that new buffet place. Isn't it just down the road?" 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