Presented below is information from Culver Computers Incorporated.July 1Sold $14,100 of computers to Larkspur Company with terms 3/15, n/60. Culver uses the gross method to record cashdiscounts.10Culver received payment from Larkspur for the full amount owed from the July 1 transaction.17Sold $108,100 in computers and peripherals to The Clark Store with terms of 3/10, n/30.30The Clark Store paid Culver for its purchase of July 17.Prepare the necessary journal entries for Culver Computers. (Credit account titles are automatically indented when the amountis entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for theamounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)

DateAccount TitleDebitCreditJuly 1Accounts Receivable - Larkspur Company14,100 Sales Revenue…

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College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 3PB

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Similar questions

Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400
Analyzing the Accounts The controller for Summit Sales Inc. provides the following information on transactions that occurred during the year: a. Purchased supplies on credit, $18,600 b. Paid $14,800 cash toward the purchase in Transaction a c. Provided services to customers on credit1 $46,925 d. Collected $39,650 cash from accounts receivable e. Recorded depreciation expense, $8,175 f. Employee salaries accrued, $15,650 g. Paid $15,650 cash to employees for salaries earned h. Accrued interest expense on long-term debt, $1,950 i. Paid a total of $25,000 on long-term debt, which includes $1.950 interest from Transaction h j. Paid $2,220 cash for l years insurance coverage in advance k. Recognized insurance expense, $1,340, that was paid in a previous period l. Sold equipment with a book value of $7,500 for $7,500 cash m. Declared cash dividend, $12,000 n. Paid cash dividend declared in Transaction m o. Purchased new equipment for $28,300 cash. p. Issued common stock for $60,000 cash q. Used $10,700 of supplies to produce revenues Summit Sales uses the indirect method to prepare its statement of cash flows. Required: 1. Construct a table similar to the one shown at the top of the next page. Analyze each transaction and indicate its effect on the fundamental accounting equation. If the transaction increases a financial statement element, write the amount of the increase preceded by a plus sign (+) in the appropriate column. If the transaction decreases a financial statement element, write the amount of the decrease preceded by a minus sign (-) in the appropriate column. 2. Indicate whether each transaction results in a cash inflow or a cash outflow in the Effect on Cash Flows column. If the transaction has no effect on cash flow, then indicate this by placing none in the Effect on Cash Flows column. 3. For each transaction that affected cash flows, indicate whether the cash flow would be classified as a cash flow from operating activities, cash flow from investing activities, or cash flow from financing activities. If there is no effect on cash flows, indicate this as a non-cash activity.
Presented below is information from Metlock Computers Incorporated. July 1 10 Sold $19,600 of computers to Robertson Company with terms 3/15, n/60. Metlock uses the gross method to record cash discounts. Metlock estimates allowances of $1,274 will be honored on these sales. (Metlock records these estimates at point of sale.) Metlock received payment from Robertson for the full amount owed from the July transactions. 17 Sold $196,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Metlock for its purchase of July 17. Prepare the necessary journal entries for Metlock Computers. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date July 1 Account Titles and Explanation Accounts…
Presented below is information from Kingbird Computers Incorporated. July 1 Sold $24,000 of computers to Robertson Company with terms 3/15, n/60. Kingbird uses the gross method to record cash discounts. Kingbird estimates allowances of $1,560 will be honored on these sales. (Kingbird records these estimates at point of sale.) Kingbird received payment from Robertson for the full amount owed from the July transactions. Sold $240,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. The Clark Store paid Kingbird for its purchase of July 17. 10 17 30 Prepare the necessary journal entries for Kingbird Computers. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation (To record sales…
Presented below is information from Cullumber Computers Incorporated. July 1 Sold $18,400 of computers to Robertson Company with terms 3/15, n/60. Cullumber uses the gross method to record cash discounts. Cullumber estimates allowances of $1,196 will be honored on these sales. 10 Cullumber received payment from Robertson for the full amount owed from the July transactions. 17 Sold $184,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Cullumber for its purchase of July 17. Prepare the necessary journal entries for Cullumber Computers. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Lasting Summer Inc. has $2,510 in the October 1 balance of the accounts receivableaccountconsisting of $1,060 from Champion Co. and $1,450 from Wayfarer Co. Transactionsrelated to revenue and cash receipts completed by Lasting Summer Inc. during themonth of October 20Y5 are as follows:Oct. 3. Issued Invoice No. 622 for services provided to Palace Corp., $2,890.5. Received cash from Champion Co., on account, for $1,060.8. Issued Invoice No. 623 for services provided to Sunny Style Inc., $1,940.12. Received cash from Wayfarer Co., on account, for $1,450.18. Issued Invoice No. 624 for services provided to Amex Services Inc., $2,970.23. Received cash from Palace Corp. for Invoice No. 622 of October 3.28. Issued Invoice No. 625 to Wayfarer Co., on account, for $900.30. Received cash from Rogers Co. for services provided, $120.a. Prepare a single-column revenue journal and a cash receipts journal to record thesetransactions. Use the following column headings for the cash receipts journal:…
Presented below is information from Larkspur Computers Incorporated. July 1 Sold $19,200 of computers to Robertson Company with terms 3/15, n/60. Larkspur uses the gross method to record cash discounts. Larkspur estimates allowances of $1,248 will be honored on these sales. 10 Larkspur received payment from Robertson for the full amount owed from the July transactions. 17 Sold $192,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. 30 The Clark Store paid Larkspur for its purchase of July 17. Prepare the necessary journal entries for Larkspur Computers.
(Recording Sales Transactions) Presented below is information from Perez Computers Incorporated.July 1 Sold $20,000 of computers to Robertson Company with terms 3/15, n/60. Perez uses the gross method to record cash discounts. Perez estimates allowances of $1,300 will be honored on these sales.July 10 Perez received payment from Robertson for the full amount owed from the July transactions.July 17 Sold $200,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30.July 30 The Clark Store paid Perez for its purchase of July 17.InstructionsPrepare the necessary journal entries for Perez Computers.
For the month of December, the records of Taboo Corporation show the following information: Cash received on accounts receivable - $140,000 Cash Sales - $120,000 Accounts Receivable, December 1 - $320,000 Accounts Receivable, December 31 - $286,000 Accounts Receivable written off as uncollectible - $4,000 The corporation uses the direct write-off method in accounting for uncollectible accounts receivable. What are the gross sales for the month of December?
Presented below is information from Novak Computers Incorporated. July 1 10 17 30 Sold $25,600 of computers to Robertson Company with terms 3/15, n/60. Novak uses the gross method to record cash discounts. Novak estimates allowances of $1,664 will be honored on these sales. (Novak records these estimates at point of sale.) Prepare the necessary journal entries for Novak Computers. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Novak received payment from Robertson for the full amount owed from the July transactions. Sold $256,000 in computers and peripherals to The Clark Store with terms of 2/10, n/30. The Clark Store paid Novak for its purchase of July 17. Date July 1 V July 17 July 10 V July 30 V Account Titles and Explanation…
Smith Co. sold $32403 of merchandise on account on April 3, 20x7 under the terms 2/15, n/45. The customer paid the balance of the account on April 16th. The journal entry to record the receipt of cash includes which of the following? Select one: O a. $0 impact to net income and $31755 reduction in accounts receivable Ob. $648 decrease to net income and $31755 reduction in accounts receivable Oc. $0 impact to net income and $32403 reduction in accounts receivable O d. $648 decrease to net income and $32403 reduction in accounts receivable
Oswego Clay Pipe Company sold $46,000 of pipe to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. Oswego uses the gross method of accounting for sales discounts. What entry would Oswego make on June 10, assuming the customer made the correct payment on that date? Multiple Choice Cash Accounts receivable Discounts receivable Cash Accounts receivable Sales discounts forfeited Cash Accounts receivable Cash Accounts receivable Sales discounts forfeited

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