Reference no: EM13614777

a) Carrie Company sold merchandise with an invoice priceof $1,000 to Underwood, Inc., with terms of 2/10, n/30. Which ofthe following is the correct entry to record the payment byUnderwood within the 10 days if the company uses the periodicinventory system and the gross method to record purchases?

b) In 2003, Landry's Restaurants' sales were$1,105.8 million and their property and equipment assets were$965.6 million. In 2002, their sales were $746.6 million andproperty and equipment was $830.9 million. Landry'sfixed asset turnover ratio in 2003 equals

c) On August 1, Red Company purchased computer equipment for$10,000 cash and also gave 100 shares of White common stock held byRed Company as an investment. The White common stock cost RedCompany $5,000 and on August 1 had a market value of $4,200.Installation cost was $700 and shipping cost was $500. What amountshould be the total amount debited to the computer equipment account?

d) In 2003, Landry Restaurants reported the cost of their property and equipment at $1,189.8 million and accumulated depreciation on these assets at $224.2 million. The remaining estimated life of these assets is approximately