Done on Excel:

Given Info:

On June 15 2020 Bombardier Inc. purchases inventory: 34,097 Precision Gears from Siemens, GmbH. Siemens' cost of this product is $12.88 per gear. The Terms of the Purchase are: [2.77/15; n/45 {[3.5%; 1.5%pa]/75}] Penalty interest is ONLY booked when there is a change in the AP or AR account. At that point, ALL the interest due to the date of the transaction is booked for Bombardier & Siemens.

Bombardier records ALL Inventory Purchases to track discounts: [Missed/NotTaken]] and is on the Periodic Inventory System. Siemens records Sales to Track Sales Discounts Taken and is on the Perpetual Inventory System. Siemens marks-up goods to arrive at a sale price which has a Gross contribution Margin of 155% of cost.

On 20 June Bombardier pays the following on the above Siemens purchase: 1) Cash $15,000 & a note payable to the order of Siemens for $35,000: Due 5Nov2020. Terms: Interest 3.6% thorough the date of payment; If not paid by 5Nov2020 there is a penalty on the unpaid balance of 4% and then interest is charged on: [The remaining balance + The penalty] Siemens accepts the Note as payment under these Terms. The Balance owed remains in the A/P[Siemens]. All Penalties that require the satisfaction with a Cash payment are booked as CashManagement ExpenseORRevenue: CME or CMR. These are usually due to inattentive management of Cash Disbursements. Both Bombardier & Siemens make these distinctions as Non-Operating Expense or Revenue.

On 29June20 Bombardier makes a payment on its AP to Siemens of $450,000.

On 4 Sept Bombardier returns 3,000 of the Precision Gears and receives full-credit based upon the MONETARY-Value of the Sales Price; the corresponding Debit Memo is only to be applied to the A/P[Siemens] or the Credit Memo to A/R[Bombardier].

On 9 Oct Bombardier pays off the payable[A/P[Siemens]].

On 16 Nov $17,000 is paid on the NotePayable[Siemens].

On 31Dec any accruals are recorded in the AIS of Bombardier & Siemens.

PoI: IF the questions asks for the value to be booked by Siemens use the USD [$-Value] for booking for Bombardier & Siemens.

QUESTIONS:

1. What is the Unit-Market Sales Price for the Sale on 15June2020?

2. What is the $-Change in Current Assets at Siemens for the Sale on 15June2020?

3. What is the Change in the Current Ratio at Bombardier for the Sale on 15June2020?

4. What is the AIS Booked Unit-Cost for the Bombardier purchase on 15June2020?

5. What is the $-Change in Quick Ratio for the purchase on 15June2020?

6. What is the Change in the G-Ledger: Inventory Account at Bombardier for the Sale on 15June2020?

7. What is the Change in the G-Ledger: Inventory Account at Siemens for the Sale on 15June2020?

3.