By Kenneth Boyd
Get in control quickly—review and perform significant suggestions in accounting!
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Additional resources for 1,001 Accounting Practice Problems For Dummies
Accrual-basis accounting is most frequently used by which group? 36. Why is cash-basis accounting not used by large businesses? 37. When are transactions recorded under accrual-basis accounting? 38. Al LaMode Ice Cream Company produces high-quality ice cream that is distributed to shops in resort areas. On July 1, the company purchased the raw materials to make the ice cream. On July 15, the process was complete, and the product was stored in the freezer ready to ship to customers. On July 31, Ken and Mary’s Ice Cream Shop ordered 200 pounds of ice cream.
247. A company buys a large quantity of shipping supplies to obtain a big discount. The supplies will last for about two years but only cost $2,000 in cash. How should the company record the transaction? 248. A company purchases insurance coverage for the next three years. The firm pays cash of $120,000. What is the proper journal entry to record this transaction? 249. What type of inventory transaction results in an increase to inventory and a decrease to assets? 250. A company purchases $20,000 of products for sale on account and properly records the journal entry.
5%. The entry to record the sales will include a credit to sales revenues of $120,000 and debits to accounts receivable $120,000 cash $115,800 and interest expense $4,200 accounts receivable $115,800 and credit card fees $4,200 accounts receivable $115,800 and interest expense $4,200 cash $115,800 and credit card fees $4,200 208. If a company has $10,000 of credit card sales but has to pay $250 in credit card fees, how much should be recorded as sales revenues? 209. Which of the following is not a source of income for a company?