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Assuming Magnus accounts for the sale using the net method, how much does he debit sales discounts for in order to record receipt of the first payment?

QUESTION 22 A comparative balance sheet for C. Corporation is presented below. 2020 2019 Change Assets Cash 66,640 21,560 Accounts receivable 80,360 64,680 15,680 Inventory 166,600 185,200 (18,600) Land 69,580 107,820 (38,240) Equipment 274,400 196,000 78,400 Accumulated depreciation – equipment (72,520) (41,160) (31,360) Total 585,060 534,100 Liabilities and Stockholders’ Equity Accounts payable 33,320 46,060 (12,740) Bonds payable 147,000 196,000 (49,000) Common stock ($1 Par) 160,720 160,720 – Retained earnings 244,020 131,320 112,700 Total 585,060 534,100 Additional information: Net income for 2020 was $151,900; there were no gains or losses. Cash dividends of $39,200 were declared and paid. Bonds payable of $49,000 were retired.

On January 1, 2020,SCompany sold to L Company $920,000 of its 9% bonds for$814,472 to yield 11%. Interest is payable semiannually on January 1 and July 1. What amount should S report as interest expense for the six months ended June 30, 2020?

7. Hamlin, Hamlin & McGill enters into a contract with a customer to complete a parking lot for $459,000 on April 30, 2026 with a performance bonus of $24,000 if the building is completed by July 31, 2026. The bonus is reduced by $4,800 each week that completion is delayed. Sunland commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes: Completed by Probability July 31, 2026 55% August 7, 2026 35% August 14, 2026 5% August 21, 2026 5% The transaction price is:

Bulldog Company had the following account balances at December 31, Year 1: Accounts Receivable $650,000 Allowance for doubtful accounts before any provision for Year 1 doubtful accounts expense  $14,000 Credit Sales for Year 1 $1,250,000 Bulldog is considering the following method of estimating doubtful accounts expense for year 1: Based on credit sales at 3% Based on accounts receivable at 6% What amount should Bulldog charge to bad debt expense under each method?   % of credit sales % of accounts receivable A. $37,500 $25,000 B. $51,500 $39,000 C. $37,500 $39,000 D. $51,500 $25,000

During the current fiscal year, Keenum Corp. signed along-term noncancellable purchase commitment with its primary supplier. Keenum agreed to purchase $2.62 million of raw materials during the next fiscal year under this contract. At the end of the current fiscal year, the raw material to be purchased under this contract had a market value of $1.34 million. What is the journal entry at the end of the current fiscal year? A: Estimated Liability on Purchase Commitment       1,280,000            Gain on Purchase Commitment                                             1,280,000 B: Loss on Purchase Commitment                               1,340,000            Estimated Liability on Purchase Commitment                      1,340,000 C: Loss on Purchase Commitment                               1,280,000            Estimated Liability on Purchase Commitment                      1,280,000 D: No journal entry is required

A flash flood swept through FMB, Inc.’s warehouse on May 1. After the flood, FMB’s accounting records showed the following: Inventory, January 1 $45,000 Purchases, January 1 through May 1 $145,000 Sales, January 1 through May 1 $200,000 Inventory not damaged by flood $20,000 Gross profit percentage on sales 45% What amount of inventory was lost in the flood?

6. Which of the following is an advantage of the single-step income statement over the multiple-step income statement?

23.a. The transaction price allocated to the pool is:

8. Expensing the cost of a wastebasket with an estimated useful life of 10 years when purchased is an example of the application of the