Indicate the accounts affected and the amounts

Assignment Help Accounting Basics
Reference no: EM133135811

Question - Diego Company sells a wide range of goods through two retail stores operating in adjoining cities. Most purchases of goods for resale are on account. Occasionally, a short-term note payable is used to obtain cash for current use. The following transactions were selected from those occurring during 2021:

a. On January 10, 2021, purchased merchandise on credit, $38,750; the company uses a perpetual inventory system.

b. On March 1, 2021, borrowed $230,000 cash from the bank and signed an interest-bearing note payable at the end of one year, with an annual interest rate of 7 percent payable at maturity.

c. On April 5, 2021, sold merchandise on credit, $68,800; this amount included GST of $3,200 and PST of $5,000. The cost of sales represents 80 percent of the sales invoice.

Required - Indicate the accounts affected and the amounts of the financial statement effects of these transactions.

Reference no: EM133135811

Questions Cloud

What would your account be worth : If you deposit $3,500 today into an account earning an annual rate of return of 11 percent, what would your account be worth in 35 years
Creating a successful effectiveness plan : How does the importance of training and development play a factor in a small organization creating a successful effectiveness plan?
Development of a high-performance organization : How would you use the talent management approaches discussed in this course to contribute to the development of a high-performance organization?
Embedded citizenship behavior measure productivity : What is the connection between performance and citizenship behavior and how embedded citizenship behavior measure productivity?
Indicate the accounts affected and the amounts : On January 10, 2021, purchased merchandise on credit, $38,750; Indicate the accounts affected and the amounts of the financial statement effects of transaction
Conduct a training needs analysis for employee : Imagine you are the Marketing Manager of an FMCG company. Mention the company, its location, and its products.
Define work design : Discuss the main traditional forms that a particular organization might structure itself around including their main advantages.
Compute the first production department cost of the units : Compute the first production department's cost of the units transferred to the next production department for materials, conversion, and in total for May
Why employees are considered companies biggest assets : Explain why investment in human capital is important and why employees are considered companies' biggest assets?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd