1- James owns a grocery store in north Westley, UK. He purchased £50,000 worth of goods from his suppliers and sold for £100,000 worth of goods to his customers in the month of September 2019 excluding VAT. The rate of VAT is 10%. Calculate the input VAT? a. £5,000 b. £10,000 c. £4,000 d. None of the options

1- James owns a grocery store in north Westley, UK. He purchased £50,000 worth of goods from his suppliers and sold for £100,000 worth of goods to his customers in the month of September 2019 excluding VAT. The rate of VAT is 10%. Calculate the input VAT? a. £5,000 b. £10,000 c. £4,000 d. None of the options

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6. On 1 – 4 – 2018 Ms. Bushra Al Khair LLC buys 150 Apple phone @ 225 each from a local supplier. (i.e. the trade discount does not apply to the first RO 10,000). He is offered a 2.5% cash discount for immediate payment. What is the amount payable by Ms. Bushra Al Khair LLC assuming that if she makes payment after 3 months? The supplier offers a trade discount of 5% on amounts in excess of RO 10,000
$7,760.00 $798.46 $901.80 $38,800.00
1. What are the advantages and disadvantages of offering credit? 2. What precautions should she take before offering credit to people like John? 3. If Kate grants credit to John, the terms will be 2/10, n/30. Assuming the payment is made during the 10-day discount period, what would be the journal entry to record the sale and then subsequent payment? 4. If instead of playing early John pays in 25 days, what would the journal entry to record the payment? 5. Rather than providing the financing directly, assume that Kate decides to allow the use of credit cards. Further, assume that during the month there is 15,000 worth of credit cards sales. Provide the journal entry to record the sales, along with the associated credit card fee. The cost of goods sold total is 13,500.
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1 -ok Mr. Hugh Warner is a very cautious businessman. His supplier offers trade credit terms of 3/15, net 85. Mr. Warner never takes the discount offered, but he pays his suppliers in 75 days rather than the 85 days allowed so that he is sure the payments are never late. What is Mr. Warner's cost of not taking the cash discount? Note: Use a 360-day year. Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places. Cost of not taking a cash discount 96
5. Kumal wants to sell her townhouse in Whitehorse. She will spend $2100 updating her home. She has $2100 in cash, but she plans to buy a $2100 RRSP. She will need 120 d to pay off any loan. Interest is compounded daily. a) Complete the chart. Option secured personal loan RRSP loan no loan credit card Detalle Buy the RRSP with $2100 cash. Pay for updating with the loan using her home equity as collateral. Pay for updating with the $2100. Buy an RRSP with an RRSP loan. Pay for updating with the $2100. Do not get an RRSP. Buy an RRSP with the $2100. Pay for updating with a credit card with a 30 d grace period. 1125 APR 2.75% 1.75% 0% 20.1% Total amount A-PH1+ 62 b) Which option should Kumal choose? Explain why. c) Which option should Kumal not choose? Explain why. d) Suppose Kumal uses a RRSP loan instead of her credit card. How much interest will she save? What is equity? What is it used for? Total Interest/A-P REFLECTING Suppose Kumal has a loan with simple interest nstead of compound…
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8. Jamie wants to buy a computer that will cost $1200 one year from now. How much should he deposit at the end of each month in an account that pays 7.35% per annum, compounded monthly? N 1% PV PMT- FV P/Y C/Y Answer=
None
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