12. IBM sold 20 computers on account to Saturn Technology which unit sale price of computer

is $1000. Both companies use perpetual inventory system and unit cost of computers is $500.

Which journal entry belongs to recognition of revenue for IBM?

_________________________.

13. IBM sold 20 computers on account to Saturn Technology which unit sale price of computer

is $1000. Both companies use perpetual inventory system and unit cost of computers is $500.

Which journal entry belongs to recognition of COGS for IBM?

_________________________.

14. IBM sold 20 computers on account to Saturn Technology which unit sale price of computer

is $1000. Both companies use perpetual inventory system and unit cost of computers is $500.

Sometime later Saturn Technology returned 5 of these computers. Which journal entries should

be the first journal entry prepared by IBM?

_________________________.

15. IBM sold 20 computers on account to Saturn Technology which unit sale price of computer

is $1000. Both companies use perpetual inventory system and unit cost of computers is $500.

Sometime later Saturn Technology returned 5 of these computers. Which journal entries should

be the second journal entry prepared by IBM

Mercury Corp. decides to issue 500.000 shares of $10 par value each on 26 July 2010. On 22 August 2010, underwriter sent a memo explaining that shares were sold for $11 each and money transferred. Which accounting treatment is correct regarding this transaction?

a. Cash accounts is debit $5M on 26 July. b. Share Premiums account is credit $500K c. Cash account is debit $5M on 22 August. d. Unpaid Capital account is credit $5,5M

On June 1 Aspen Corp. has outstanding 200.000 shares of $1 par value of common stock with a market value of $5 per share. On this date company declared and distributed a 5% stock dividend. Which of the following accounting treatment is correct regarding this transaction?

a. Cash accounts is debit $50K. b. Capital Stock is debit $50K c. Retained Earnings is debit $10K. d. Retained Earnings is debit $50K.