Question

Pronghorn Industries purchased $11,700 of merchandise on February 1, 2017, subject to a trade discount of...

Pronghorn Industries purchased $11,700 of merchandise on February 1, 2017, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $3,000 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13.
Assuming that Pronghorn uses the perpetual method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Feb. 1Feb. 4Feb. 13

Feb. 1Feb. 4Feb. 13

Feb. 1Feb. 4Feb. 13

SHOW LIST OF ACCOUNTS

LINK TO TEXT
Assuming that Pronghorn uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Feb. 1Feb. 4Feb. 13

Feb. 1Feb. 4Feb. 13

Feb. 1Feb. 4Feb. 13

SHOW LIST OF ACCOUNTS

LINK TO TEXT
At what amount would the purchase on February 1 be recorded if the net method were used? (Round answer to 0 decimal places, e.g. 6,578.)
Net price $
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Swifty Industries purchased $10,100 of merchandise on February 1, 2020, subject to a trade discount of...
Swifty Industries purchased $10,100 of merchandise on February 1, 2020, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,600 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. Assuming that Swifty uses the periodic method for recording merchandise transactions, record the purchase, return, and payment using the gross method. (If no entry is required, select "No entry" for the account titles and enter 0...
On January 1, 2017, Flounder Company purchased 12% bonds having a maturity value of $390,000, for...
On January 1, 2017, Flounder Company purchased 12% bonds having a maturity value of $390,000, for $419,567.77. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Flounder Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Prepare the journal entry at the date of the bond purchase. (Enter answers to 2...
Problem 12-11A The following bond transactions occurred during 2018 for the University of Higher Learning (UHL)...
Problem 12-11A The following bond transactions occurred during 2018 for the University of Higher Learning (UHL) and Covington Ltd.: Feb. 1 UHL issued $9,000,000 of five-year, 4% bonds at 95 (this means 95% of maturity value) at a price to yield a market interest rate of 5.1%. The bonds pay interest semi-annually on August 1 and February 1. 1 Covington Ltd. purchased $3,100,000 of UHL’s bonds at 95 as a long-term investment that was to be held to maturity. Aug....
Exercise 9-12 On January 1, 2017, Carla Vista Co. had a balance of $321,500 of goodwill...
Exercise 9-12 On January 1, 2017, Carla Vista Co. had a balance of $321,500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2017, the company had the following additional transactions. Jan. 2 Purchased a patent (6-year life) $376,950. July 1 Acquired a 8-year franchise; expiration date July 1, 2025, $547,200. Sept. 1 Research and development costs $185,500. Prepare the necessary entries to...
Pronghorn Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December...
Pronghorn Steel Company, as lessee, signed a lease agreement for equipment for 5 years, beginning December 31, 2017. Annual rental payments of $46,000 are to be made at the beginning of each lease year (December 31). The interest rate used by the lessor in setting the payment schedule is 7%; Pronghorn’s incremental borrowing rate is 9%. Pronghorn is unaware of the rate being used by the lessor. At the end of the lease, Pronghorn has the option to buy the...
Blossom Company issued $579,000 of 9%, 10-year bonds on January 1, 2020, at face value. Interest...
Blossom Company issued $579,000 of 9%, 10-year bonds on January 1, 2020, at face value. Interest is payable annually on January 1. Your answer is incorrect. Try again. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 LINK TO TEXT Your answer is partially correct. Try again. Prepare the journal entry to record the...
Presented below are transactions related to Novak, Inc. May 10 Purchased goods billed at $15,700 subject...
Presented below are transactions related to Novak, Inc. May 10 Purchased goods billed at $15,700 subject to cash discount terms of 2/10, n/60. 11 Purchased goods billed at $10,800 subject to terms of 1/15, n/30. 19 Paid invoice of May 10. 24 Purchased goods billed at $12,100 subject to cash discount terms of 2/10, n/30. Prepare general journal entries for the transactions above under the assumption that purchases are to be recorded at net amounts after cash discounts and that...
Swifty Corporation purchased 400 common shares of Sigma Inc. for trading purposes for $12,800 on September...
Swifty Corporation purchased 400 common shares of Sigma Inc. for trading purposes for $12,800 on September 8 and accounted for the investment under ASPE at FV-NI. In December, Sigma declared and paid a cash dividend of $1.70 per share. At year end, December 31, Sigma shares were selling for $35.60 per share. In late January, Swifty sold the Sigma shares for $34.91 per share. Prepare Swifty Corporation’s journal entry to record the purchase of the investment. (Credit account titles are...
Presented below is information related to equipment owned by Cullumber Company at December 31, 2017. Cost...
Presented below is information related to equipment owned by Cullumber Company at December 31, 2017. Cost $10,440,000 Accumulated depreciation to date 1,160,000 Expected future net cash flows 8,120,000 Fair value 5,568,000 Cullumber intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $23,200. As of December 31, 2017, the equipment has a remaining useful life of 5 years. Prepare the journal entry (if any) to record the impairment of the...
Presented below is information related to equipment owned by Ivanhoe Company at December 31, 2017. Cost  ...
Presented below is information related to equipment owned by Ivanhoe Company at December 31, 2017. Cost       $10,080,000 Accumulated depreciation to date       1,120,000 Expected future net cash flows       7,840,000 Fair value       5,376,000 Ivanhoe intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,400. As of December 31, 2017, the equipment has a remaining useful life of 5 years.    Prepare the journal entry (if any) to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT