Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1)Marcus Corp uses a perpetual system. Marcus Corp purchases inventory for $64,000 on account with 2/15, n/30. If payment is made within the discount period

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
1)Marcus Corp uses a perpetual system. Marcus Corp purchases inventory for $64,000 on account with 2/15, n/30. If payment is made within the discount period what is the journal entry to record it? A) a debit to Accounts Payable for $64,000, a credit to Cash for $1,280, and a credit to Merchandise Inventory for $62,720 B) a debit to Accounts Payable for $64,000, a credit to Merchandise Inventory for $1,280, and a credit to Cash for $62,720 C) a debit to Merchandise Inventory for $1,280, a debit to Accounts Payable for $64,000, and a credit to Cash for $65,280 D) a debit to Accounts Payable for $62,720, a debit to Merchandise Inventory for $1,280, and a credit to Cash for $64,000 4) Joey Co. uses a perpetual system. During the year, Sales Revenue amounted to $80,000, Cost of Goods Sold was $45,000, and all other expenses totaled $12,000. There were no new capital contributions during the year. The beginning Owner, Capital balance of the merchandiser was $120,000. Owner withdrawals were $27,000. The ending balance of Owner, Capital would be? A) $143,000 B) $116,000 C) $170,000 D) $120,000 7) If you wanted to close out the Rent Expense account at the end of the year what journai entry would you do? A) debit Rent Expense and credit Income Summary B) debit Rent Expense and credit Owner, Capital C) debit Owner, Withdrawals and credit Rent Expense D) debit Income Summary and credil Rent Expense 9) Fields purchased an asset for $20,00. Residual value is 2,000 and has an estimated useful life of 10 years. If the company uses the straight-line depreciation method, calculate the depreciation expense for the first year. A) $2,000 B) $3,000 C) $1,800 D) $2,100

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

5. Understand how cultural values influence conflict behavior.

Answered: 1 week ago

Question

e. What do you know about your ethnic background?

Answered: 1 week ago