Accounting question on recording?
You don't say what type of inventory system is being used (periodic or perpetual). I'll give it a shot and use perpetual. 1. Purchased inventory costing $5,600 on account from Smoot Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $500 were paid in cash. Dr Merchandise Inventory 6,100 Cr Accounts Payable 5,600 Cr Cash 500 2. Returned $400 of the inventory that it had purchased because the inventory was damaged in transit. The freight company agreed to pay the return freight cost. Dr Accounts Payable 400 Cr Merchandise Inventory 400 3. Paid the amount due on its account payable to Smoot Company within the cash discount period. (5,600 - 400) x 2% = $104 discount Dr Accounts Payable 5,200 Cr Cash 5,096 Cr Merchandise Inventory 104 4. Sold inventory that had cost $6,000 for $9,000. The sale was on account under terms 2/10, n/45. Dr Accounts Receivable 9,000 Cr Sales 9,000 Dr Cost of Goods Sold 6,000 Cr Merchandise Inventory 6,000 5. Received returned merchandise from a customer. The merchandise had originally cost $520 and had been sold to the customer for $840 cash. The customer was paid $840 cash for the returned merchandise. Dr Sales Returns and Allowances 840 Cr Cash 840 Dr Merchandise Inventory 520 Cr Cost of Goods Sold 520 6. Delivered goods in Event 4 FOB destination. Freight costs of $600 were paid in cash. Dr Freight-Out 600 Cr Cash 600 7. Collected the amount due on accounts receivable within the discount period. 9,000 x 2% = $180 Discount Dr Cash 8,820 Dr Sales Discounts 180 Cr Accounts Receivable 9,000 8. Took a physical count indicating that $1,800 of inventory was on hand at the end of the accounting period. Without know the beginning inventory amount, I can't answer this one.
Accounting question on how to record dividend?
Assume you have 100,000 outstanding shares of par value $1. Your dividend is $0.50 a share. That makes the total dividend $50,000. On the date of declaration: Dr Dividend $50,000 Cr Dividend payable $50,000 On the date of payment Dec 16, Dr Dividend payable $50,000 Cr Cash $50,000
How would I record this account question!?
Journalizing transactions is a simple matter of deciding what took place in an exchange. You record what you received and you record what you gave up. It makes no sense to try to memorize journal entries. The idea is to analyze what was exchanged. You received or gave up assets and you use the debit and credit rules to record that. You incurred a liability (gave a promise to pay later) or you got your promise back because you discharged the liability. Again a credit or debit. Similarly with capital. You issued stock for cash so you received cash (a debit) and record a credit in owners’ equity representing the owner’s interest in the business assets. Or bought back stock giving up cash (a credit) and reducing the owner’s interest in the business (a debit in a capital account). You increase capital (credit revenue) by providing a service or product. You decreases capital (debit an expense) by using up assets or services. As long as you understand what was exchanged, you can decide what to debit and credit.
How to record a sale on account?
its d. a debit asset
How to record expenses in account?
i'm assuming this is an accounting question... 1/8/2009 (sorry, I'm American:) Dr Printing expense cr Accounts payable (if it is expenses that your company is responsible for) If you are the printing company you'd bill the customer by doing Dr Accounts receivable cr Sales Then when you pay DR Accounts payable CR cash Or if it is them that is paying you Debit Cash Cr Accounts receivable
How do you record contracts in accounting?
There are several types of contracts. Incremental contracts could mean only part of the contract is listed as a liability and expense. Are you disclosing a contract where you are the vendor or are you the client? The expense might be amortized over the period of the contract. If it is a 50% down contract, the full amount may be placed in Accounts Payable, and only 50% paid. In this case, you could place the expense amount in a prepaid expense account and expense the portion that is done in a given reporting period (month or quarter).If you are the contractor, revenue recognition is the acid test on how to disclose the contract. The time period the contract covers is a factor, as well. If the work will be done in one month’s time, life is simple. If the work will be over one year’s time, or over several reporting periods, then you should determine the percentage of work done in each period to recognize revenue. If the money is paid up front, the portion of the revenue not eanred will be in an unearned revenue account on the balance sheet.If it is a service contract, there will be regular payments. This would be recorded per month as an expense (a landscaper, for example) and paid per agreed terms. There is no need to disclose on-going service contracts. The provider would do best by recognizing the income in a normal reporting period - but not for unearned portions.Some contracts may be dependent on stages of work where not all the expense is recognized and therefore all the liability is not recognized until a contigency is met in the contract. There would be a schedule of what certain parts of the work represent percentages of completion. The provider would do likewise with revenue.If you can stand by your method of recognizing revenue (provider) or expense (client) you should be okay with the auditor. The most likely error in contracts would be recognizing the revenue in the proper periods. The expense side is as challenging. This is especially true when work is halted due to a perceived breach of contract.Hope this helps. It was a broad question.
Accounting: How to record Bank fees?
Well first if we are doing Alex's books, how the bank records revenue is irrelevant so throw out your second entry. The journal entry looks like this:DR Cash $100DR Bank Fee Expense 2 CR Due to Credit Card $102Alex's balance sheet looks likeCash $100Total Assets $100Due to Credit Card $102Retained Earnings Current Year Income $(2)Total Liability and Equity $100
Accounting: Bank account and Bank fees, do you record this in separate COA or the same COA?
separate bank fee account. your COA - bank account is an asset account that appears on your balance sheet. shows how much money you have in the bank at a given point in time. your COA - bank fee account will be an expense account that appears on your profitability report. that shows all the fees you've paid to the bank over a period of time. (of course, this is a trick question because every accounting entry has 2 sides to it - so the other side of the entry for your fee will be your COA - bank account -> thus reducing the asset value)example: bank has $100 so COA - bank account = 100you paid $10 in fee -> accounting entry looks like:COA bank fee : 10 COA Bank: 10so now it shows on your balance sheet:COA - bank account = 90on your profitability report:COA - bank fee = 10
Accounting questions-Journal entries?
May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, $1,550. Dr. Cash $1,550 Cr. Unearned fees $1,550 May 5. Received cash from clients on account, $1,750. Dr. Cash $1,750 Cr. Fees $1,750 May 15. Recorded services provided on account for the period May 1 – 15, $5,100. Dr. Accounts Receivables $5,100 Cr. Fees $5,100 May 17. Recorded cash from cash clients for fees earned during the period May 1 – 16, $7,380. Dr. Cash $7,380 Cr. Accounts Receivables $7,380 May 21. Recorded services provided on account for the period May 16 – 20, $2,900. Dr. Accounts Receivables $2,900 Cr. Fees $2,900 May 25. Recorded cash from cash clients for fees earned for the period May 17 – 23, $4,200. Dr. Cash $4,200 Cr. Fees $4,200 May 31. Recorded cash from cash clients for fees earned for the period May 26 – 31, $2,875 Dr. Cash $2,875 Cr. Fees $2,875 May 31. Recorded services provided on account for the remainder of May, $2,200. Dr. Accounts Receivables $2,200 Cr. Fees $2,200 May 31. Brent withdrew $7,500 for personal use. Dr. Shareholders Equity $7,500 Cr. Cash $7,500
In accounting, how do you record a loss of inventory that is not a result of a sale?
A loss of inventory should be charged off to cost of sales.The above answers the question you asked.However, what you describe in your question details is not a loss of inventory. You know exactly where it is (in the hands of the fraudulent buyer).My second answer, which addresses the spirit of your question, is that you still made a sale. It cost you something (presumably). If you bought it for $10 and sold it for $20, then your income should look like this:Sales $20Cost of Sales $10---------------------Gross Profit $10Now, the fact is you never got paid, due to the fraudulent transaction.What you really "lost" was a receivable, in other words, the $20. This would be considered a bad debt expense, rather than cost of sales as I first described, which would be more akin to someone breaking into your warehouse and 'stealing' a $10 item (i.e. losing inventory).The transaction you now want to record is a debit to bad debt expense and a credit to your accounts receivable (which you will never collect).Your income statement should now look like this:Sales $20Cost of Sales $10---------------------Gross Profit $10 (a)Operating Expenses: Bad debts $20 (b)Net Loss: ($10) - (a) minus (b)Rather than this:Sales $0Cost of Sales $10Gross Margin ($10)Operating Expenses: $0Net Loss: ($10)Using the bad debt expense method has the advantage of you being able to keep track of your fraudulent transactions, rather than "burying" them in cost of sales, in which case you have no visibility.