On July 8, Ray Inc. sold 100 printers to Office Rental Company at $600 each and offered a 2% discount for payment within 10 days. On July 15, Office Rental Company paid the full amount in cash. What should Ray Inc. record on July 15?
Debit/Credit
A. Debit - Cash 60,000
Credit - Accounts Receivable 60,000
B. Debit - Cash 58,800
Credit - Accounts Receivable 58,800
C. Debit - Cash 58,800
Debit - Sales Discounts 1,200
Credit - Accounts Receivable 60,000
D. Debit - Cash 60,000
Credit - Sales Discounts 1,200
Credit - Sales Revenue 58,800
Answer: Debit - Cash 58,800
Debit - Sales Discounts 1,200
Credit - Accounts Receivable 60,000
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Accounting
- When treasury stock is sold for more than the company originally paid to purchase the shares, the difference:
- A company currently has 200,000 shares issued and 190,000 shares outstanding. If the company purchases 20,000 shares of treasury stock, what amount of shares will be outstanding?
- The purchase of treasury stock can boost earnings per share by:
- Why would a corporation purchase its own stock?
- The corporation's own stock that has been issued and then bought back by the company is referred to as:
- What would be the impact on the accounting equation when a company acquires treasury stock?
- Which of the following is TRUE regarding the accounting for treasury stock?
- Which of the following statements about treasury stock transactions is true?
- When an investment is made in another corporation's common stock, what is the effect on total stockholders' equity?
- When treasury stock is acquired, what is the effect on total stockholders' equity?
- When treasury stock is resold at a price above cost:
- A company issued 1,000 shares of $1 par value preferred stock for $5 per share. What is true about the journal entry to record the issuance?
- Which of the following is not a potential feature of preferred stock?
- Which of the following financing alternatives has the highest preference for dividends/interest payments?
- Which of the following is the most likely to have voting rights?
- Which of the following has the lowest expected return to the investor?
- Which of the following has the highest expected return to the investor?
- Preferred stock:
- Hayes Corporation issues 100 shares of its $1 par value common stock for $15 per share. The entry to record the issuance will not include a:
- South Beach Apparel issued 10,000 shares of $1 par value stock for $5 per share. What is true about the journal entry to record the issuance?
- Jade Jewelers issued 15,000 shares of $1 par value stock for $20 per share. What is true about the journal entry to record the issuance?
- Wright Inc. issued 20,000 shares of $1 par value common stock for $80,000. The journal entry to record this issuance includes a:
- When a company issues 25,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include:
- When a company issues 25,000 shares of $1 par value common stock for $10 per share, the journal entry for this issuance would include:
- If a company issues 1,000 shares of $1 par value common stock for $20 per share, which of the following accounts would be credited?
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