Ourson 4 Not yet answered Marked out of 1.00 P Flag question Many Packs Limited is a merchandiser of paper products. On November 3, 2022 Many Packs Limited purchased 300,000 units of goods from Peter Pan Paper Limited on credit with credit terms of 3/15, n/30. The recommended listing price of the goods purchased by Peter Pan Paper Limited is $15,000,000. Peter Pan Paper Limited provided a 25% trade discount to Many Packs Limited. On November 8, 2022. Many Packs Limited returned 25% of the units purchased on November 3, 2022 as the items were the wrong size. Many Packs Limited tried to return another 60,000 units on November 9, 2022 but were persuaded by Peter Pan Limited to keep the items in consideration of a reduction of 20% in the remaining balance due on the items purchased. On November 14, 2022 Many Packs Limited paid 50% of the amount due to Peter Pan Paper Limited. The remaining balance was paid on November 30, 2022. Required: Assume Many Packs Limited uses the periodic inventory system. At the start of November assume Many Packs Limited had no inventory and assume during the month of November o sales were made. If preparing the pre-adjustment trial balance at the end of November, what would be the value of the 'Merchandise Inventory' account and how many units did Many Packs Limited have? Select one: O a $8,437,500 and 165,000 units b. $0.00 and 225,000 units OC. $11,250,000 and 225,000 units 0 d. $8,500,000 and 165,000 units On the first day of the year Canada Traders purchased a Trailer for $12 000 which is to be depreciated by 25% a year. At the end of the first year the adjusting entry to record depreciation is which of the following? Question 5 Not yet answered Marked out of 1.00 P Flag question Select one: O a. Debit depreciation of Trailer $12 000; credit accumulated depreciation of Trailer $12 000 0 b. Debit accumulated depreciation of Trailer $3000; credit depreciation of Trailer $3000 O c. Debit depreciation of Trailer $3 000; credit accumulated depreciation of Trailer $3 000 d. Debit depreciation of Trailer $3 000; credit Trailer $ 3 000 Question 3 Not yet answered Marked out of 1.00 Make-Up Limited, a construction company, signed an agreement to produce a new piece of equipment for Lots of Fun Limited on July 15, 2024. The construction of the equipment will take 36-months at a total cost of $8,000,000. Construction would start on February 1, 2025 The agreement required Lots of Fun Limited to pay half of the amount on December 1, 2024 and the balance on receipt of the equipment. The financial year of Make-Up Limited is from January 1 to December 31. Required: For the 2024 financial year, the agreement resulted in the books of Make-Up Limited: P Flag question Select one: O a. Increasing assets by $4,000,000 and increasing liabilities by $4,000,000. b. Having no impact. c. Increasing assets by $8,000,000 and increasing revenue by $4,000,000. d. Increasing assets by $8,000,000 and increasing liabilities by $8,000,000. O O
