when the company purchases raw materials for $60,000 on account, the entry should include: * A debit to Raw Materials Inventory $60,000 and a credit to Accounts Payable $60,000 A debit to Raw Material Inventory $60,000 and a credit to Cash $60,000 A debit to Direct Material $60,000 and a credit to Accounts Payable $60,000 None of the above

when the company purchases raw materials for $60,000 on account, the entry should include: * A debit to Raw Materials Inventory $60,000 and a credit to Accounts Payable $60,000 A debit to Raw Material Inventory $60,000 and a credit to Cash $60,000 A debit to Direct Material $60,000 and a credit to Accounts Payable $60,000 None of the above

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Description: when the company purchases raw materials for $60,000 on account, the entry should include: *A debit to Raw Materials Inventory $60,000 and a credit to Accounts Payable $60,000A debit to Raw Material Inventory $60,000 and a credit to Cash $60,000A deb

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 5EB: Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On...

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The company purchases raw materials for $20,000 on account, the entry is: A debit to Raw Material Inventory $20,000 and a credit to Cash $20,000 A debit to Direct Material $20,000 and a credit to Accounts Payable $20,000 A debit to Raw Materials Inventory O $20,000 and a credit to Accounts Payable $20,000 None of the above
Consider the following account starting balances and transactions involving these accounts. Use T-accounts to record the starting balances and the offsetting entries for the transactions. The starting balance of Accounts Receivable is $3,200 The starting balance of Cash is $13,700 The starting balance of Inventory is $5,100 1. Buy $14 worth of manufacturing supplies for cash 2. Sell product for $35 in cash with historical cost of $35 3. Receive payment of $13 owed by a customer What is the final amount in Inventory? Note: No unit adjustments are necessary.
Goods costing $630,000 were sold for $1,200,000 on account. The entry to record this transaction would include: A credit to Accounts Receivable $1,200,000 and a debit to Sales Revenue $1,200,000 A debit to Cost of Goods Sold $630,000 and a credit to Finished Goods Inventory $630,000 A debit to Cost of Goods Sold $1,200,000 and a credit to Finished Goods Inventory $1,200,000 None of the above
The following information is available for the Murphy Manufacturing company for 2020. (Click the icon to view the information.) Requirement Assume that all raw materials are purchased on credit and all sales are credit sales. Compute the missing amounts above. Accounts receivable, January 1, 2020 Accounts payable, January 1, 2020 Raw materials, January 1, 2020 Work in process, January 1, 2020 Finished goods, January 1, 2020 Accounts receivable, December 31, 2020 Accounts payable, December 31, 2020 Raw materials, December 31, 2020 Work in process, December 31, 2020 Finished goods, December 31, 2020 Raw materials used in production Raw materials purchased Accounts receivable collections Accounts payable payments Sales Total manufacturing costs Cost of goods manufactured Cost of goods sold Gross margin Data table Accounts receivable, January 1, 2020 Accounts payable, January 1, 2020 Raw materials, January 1, 2020 Work in process, January 1, 2020 Finished goods, January 1, 2020 Accounts…
Review the following transactions, and prepare any necessary journal entries for Renovation Goods. A. On May 12, Renovation Goods purchases 750 square feet of flooring (Flooring Inventory) at $3.00 per square foot from a supplier, on credit. Terms of the purchase are 2/10, n/30 from the invoice date of May 12. B. On May 15, Renovation Goods purchases 200 measuring tapes (Tape Inventory) at $5.75 per tape from a supplier, on credit. Terms of the purchase are 4/15, n/60 from the invoice date of May 15. C. On May 22, Renovation Goods pays cash for the amount due to the flooring supplier from the May 12 transaction. D. On June 3, Renovation Goods pays cash for the amount due to the tape supplier from the May 15 transaction.
Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On December 10, Lands Inc. contracts with a supplier to purchase 450 plants for its merchandise inventory, on credit, for $12.50 each. Credit terms are 4/15, n/30 from the invoice date of December 10. B. On December 28, Lands pays the amount due in cash to the supplier.
A company receives an advance payment for special－order goods to be manufactured and delivered with in 6 months. The advance payment should be reported On the company’s balance sheet as a: a. deffred charge b.contra-asset account c. current liability d. noncurrent liability
MAKE THE NECCESSARY JOURNAL ENTRIES FOR THE FOLLOWING TRANSACTIONS... 1)Merchandise acquired cost is 114.000 +10 % VAT. Freight In was 6.000 TL +10% VAT Paid by the vendor. Purchase is completed by endorsing a check. 2) Machinary is purchased for 326.000 TL + %10 VAT, Note is endorced for purchase . Transportation and Installations invoice is 94.000 TL + %10 VAT half paid by check balance is on account. 3) Merchandise sold for 64.000 USD (rate 7.05 TL/ USD) + 10% VAT received note for sale. VAT paid cash. Cost of good Sold is 235.000 TL 4) Bank Credit Memorandum states that , 95.000 TL issued check is collected from the Bank. 5) 24 month rent contract, Starting 1st April 2020 is signed for 384.000 TL. Prepayment is made by half check and half note issued, 6) 25.000 USD is paid (cash) by the customer for USD Merchandise sale. Rate is 7.15 TL/USD. 7) Customer transferred 85 .000 TL to the Bank, to close the open account 8) Customer ordered to purchase 270.000 TL + %10 VAT Merchandise .…
Goods costing $21,000 were sold for $52,000 on account. The entry to record this transaction would include:* O A credit to Accounts Receivable $52,0o00 and a debit to Sales Revenue $52,000 A debit to Cost of Goods Sold $21,000 and a credit to Finished Goods Inventory $21,000 A debit to Cost of Goods Sold $52,000 and a credit to Finished Goods Inventory $52,000 None of the above Time tickets indicated 8.000labochours in thelnmduction of lob115.out.of
In the below question, is the answer provided in the image for part b? If so could you please provide the answer and journal entry for part a. I think "part a" is: Cash 9,860 Estimated product warranty liability 60,000 Service Revenue 9,860 Merchandise Inventory 60,000 Is my journal entry for part a correct?
MAKE THE NECESSARY JOURNAL ENTRIES FOR THE FOLLOWINGTRANSACTIOn: 1)Merchandise acquired cost is 114.000 +10 % VAT .Freight In was 6.000 TL+10% VAT Paid by the vendor. Purchase is completed by endorsing a check. 2)Machinary is purchased for 326.000 TL + %10 VAT , Note is endorced forpurchase . Transportation and Installations invoice is 94.000 TL + %10 VAT halfpaid by check balance is on account. . 3) Merchandise sold for 64.000 USD ( rate 7.05 TL/ USD) + 10% VATreceived note for sale. VAT paid cash . Cost of good Sold is 235.000 TL
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