College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 23A, Problem 2SEA
To determine
Compute the amount of cash paid for merchandise in 20-2.
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Cash Paid for Merchandise
Douglas Company's cost of goods sold for 20-2 was $400,000.
The December 31, 20-2 and 20-1, balances of Merchandise Inventory and Accounts Payable were as follows:
20-2
20-1
Merchandise Inventory
$60,000
$80,000
Accounts Payable
30,000
70,000
Compute the amount of cash paid for merchandise in 20-2.
The entry to record the sale of $20,000 of merchandise on account with cost of $14,000, would include:
a. credit to accounts receivable for $14,000
b. debit to accounts receivable for $20,000
c. debit to cost of goods sold for $20,000
d. credit to inventory for $20,000
The financial statements of Wolverines Company showed the following: Cost of Goods Sold: $725,000 Merchandise Inventory: Beg. Balance $45,000 and Ending Balance$
56,000 Accounts Payable: Beg. Balance $37,000 and Ending Balance $42,000 Assuming all inventory is purchased on credit, determine the cash paid to suppliers using the
direct method. A) $731,000 C) $736,000 B) $719,000 D) $714,000
Chapter 23A Solutions
College Accounting, Chapters 1-27
Ch. 23A - Describe the direct method of reporting cash flows...Ch. 23A - Prob. 2RQCh. 23A - Prob. 3RQCh. 23A - Under the direct method of preparing a statement...Ch. 23A - Under the direct method of preparing a statement...Ch. 23A - CASH RECEIVED FROM CUSTOMERS Potts Companys sales...Ch. 23A - Prob. 2SEACh. 23A - Prob. 3SEACh. 23A - Prob. 4SEACh. 23A - Prob. 5SPA
Ch. 23A - COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES Horn...Ch. 23A - EXPANDED STATEMENT OF CASH FLOWS Financial...Ch. 23A - CASH RECEIVED FROM CUSTOMERS Boyd Companys sales...Ch. 23A - Prob. 2SEBCh. 23A - Prob. 3SEBCh. 23A - Prob. 4SEBCh. 23A - Prob. 5SPBCh. 23A - COMPUTE CASH PROVIDED BY OPERATING ACTIVITIES...Ch. 23A - EXPANDED STATEMENT OF CASH FLOWS Financial...
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