Question :
158.Daisy Company began business May 1. They use the periodic : 1236980
158.Daisy Company began business on May 1. They use the periodic inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May.
May 2Purchased $25,000 of merchandise inventory on credit from the Farthing Company, terms 2/10, n/30. Invoice dated May 1.
May 3Purchased $12,000 of merchandise inventory on credit from the Hacks Company, terms 2/10, n/30. Invoice dated May 2.
May 3Purchased $3,000 of office supplies for cash from Liston Co. Check no. 1267 May.
May 4Purchased $36,000 of office equipment on credit from Superior Office, terms n/60. Invoice dated May 3.
May 6Paid the amount due for the merchandise purchased from Farthing Company. Check no. 1268.
May 6Purchased $14,500 of merchandise inventory for cash from the Hills Co. Check no. 1269.
a. Use the purchases journal and the cash disbursements journal to record these transactions. b. Prepare a schedule of accounts payable. There was no accounts payable balance on May 1.
Purchases JournalPage 20
DateAccountDate of InvoiceTermsPRAccounts Payable CrPurchases Dr.Office Supplies Dr. Other Accounts Dr.
Cash Disbursements JournalPage 22
DateCk. NoPayeeAccount DebitedPRCash Cr.Purchases Discount Cr.Other Accounts Dr. Accounts Payable Dr.
a.
159.The Lavender Company completed the following sales and cash receipts transactions during the first week of December. The Lavender Company uses the periodic inventory system.
Dec. 1Sold merchandise for $6,700 on credit to the Banks Co., terms 2/10, n/30, invoice no. 1455. Cost of the merchandise sold is $3,600.
Dec. 1Sold merchandise for $3,400 on credit to the Warsaw Co., terms 2/10, n/30. Invoiceno. 1456. Cost of the merchandise sold is $1,800.
Dec. 2Sold merchandise for $590 for cash to the Draper Co. Invoice no. 1457. Cost ofthe merchandise sold is $300.
Dec. 3Borrowed $10,000 from Franklin Savings on a long-term note payable.
Dec. 3Sold merchandise for $7,200 on credit to the Wentner Co., terms 2/10, n/30. Invoice no. 1458. Cost of the merchandise sold is $4,000.
Dec. 5Received the amount due from the Banks Co. from the sale on December 1.
Dec. 6Sold merchandise on credit for $950 to the Global Co., terms 2/10, n/30. InvoiceNo. 1459.
Dec. 6Received the amount due from the Warsaw Co. from the sale on December 1.
a. Use the sales journal and the cash receipts journal to record these transactions. b. Prepare a schedule of accounts receivable. There was no accounts receivable balance at December 1.
Sales Journal
DateAccount DebitedInvoice NumberPRAccounts Receivable Dr.Sales Cr.
Cash Receipts Journal
DateAccount CreditedExplanationPRCash Dr.Sales Discount Dr.Accounts Receivable Cr. Sales Cr. Other Accounts Cr.
a.
160.The following information is available for Soda Station, Inc. (all amounts are in millions):
U.S.CanadaMexico
Segment sales$6,300$5,200$3,800
Segment operating income2,1202,2401,200
Segment average assets3,8004,2002,800
a. Determine the segment return on assets for each geographic segment. b. Comment on the results. How do the segments compare with respect to profitability? c. What measures could be taken to improve segment return?
a.
