Please help me to get the answers for these questions in order to help my niece for their assignment answers correctly. thanks
Answers as called for show computations and analyses
1.An office machine costing p 20,000 has been used for three of its eight years estimated life. It was then sold for p 12,000
Record the sale
2.The sales on account amounted to p 45,000 with terms 4/10 n/60. The account was collected after six days.
Record the sale
3.The purchases on account was for p 63,000 terms 3/10 n/30. The company paid on the fifth day.
Record the payment
4.Sales on account was p 41,000 of which p 3,800 was returned by the customer.the balance was collected within the discount period and the customer was given the agreed 55 discount.
Record the collection
5.Purchases on credit was p 39,000 of which p 2,000 was returned to the supplier.the balance was paid with a 45 discount.
Record the payment.
Use the excerpt from Colin Powell's Speech to UN Security Council, February 5, 2003 to answer the question.
Which of the following BEST describes the context in which Powell gave this speech? Explain
A. during the War on Terror
B. during a humanitarian mission
C. immediately following the Gulf War
D. after testifying at a Congressional inquiry
Answer: A. during the War on Terror.
Explanation:
The context of Colin Powell's speech to the UN Security Council, given on February 5, 2003, was during the War on Terror. In his speech, Powell presented the US government's case for taking military action against Iraq based on allegations that Iraq possessed weapons of mass destruction. This was part of the larger efforts of the US government to combat terrorism in the aftermath of the 9/11 attacks.
Sure, I can help you with that. Let's go through each question one by one and I'll explain how to get the answers.
1. To record the sale of the office machine, we need to calculate the loss or gain on disposal.
- The original cost of the machine is P20,000.
- It was used for three out of its total eight years of estimated life.
- To calculate the accumulated depreciation, we divide the original cost by the total years of estimated life: P20,000 / 8 = P2,500 per year.
- For three years, the accumulated depreciation would be P2,500 x 3 = P7,500.
- Subtract the accumulated depreciation from the original cost to get the book value at the time of sale: P20,000 - P7,500 = P12,500.
- The machine was sold for P12,000, so the loss or gain on disposal is P12,500 - P12,000 = P500 (loss).
- The record of the sale would be: Debit Cash or Accounts Receivable P12,000 and Credit Office Machine P20,000 and Accumulated Depreciation P7,500 and Loss on Disposal P500.
2. To record the sale with terms and collection after six days:
- The sale amount is P45,000.
- The terms are 4/10 n/60, meaning the customer can take a 4% discount if paid within 10 days, otherwise, the full amount is due within 60 days.
- Since the account was collected after six days, the customer is eligible for the discount.
- Calculate the discount amount: P45,000 x 4% = P1,800.
- The customer pays the discounted amount: P45,000 - P1,800 = P43,200.
- The record of the sale would be: Debit Accounts Receivable P43,200 and Credit Sales on Account P45,000 and Credit Cash Discount P1,800.
3. To record the payment for purchases on account:
- The purchase amount is P63,000.
- The terms are 3/10 n/30, meaning the company can take a 3% discount if paid within 10 days, otherwise, the full amount is due within 30 days.
- The company paid on the fifth day, so they are eligible for the discount.
- Calculate the discount amount: P63,000 x 3% = P1,890.
- The company pays the discounted amount: P63,000 - P1,890 = P61,110.
- The record of the payment would be: Debit Accounts Payable P61,110 and Credit Cash P61,110.
4. To record the collection of sales on account with returns and discount:
- The sales amount is P41,000, and P3,800 was returned by the customer.
- The customer was given a 55% discount.
- Calculate the discount amount: P41,000 x 55% = P22,550.
- Subtract the returned amount and the discount from the original sales amount to get the collection amount: P41,000 - P3,800 - P22,550 = P14,650.
- The record of the collection would be: Debit Cash or Accounts Receivable P14,650 and Credit Sales Returns and Allowances P3,800 and Credit Discount on Sales P22,550 and Credit Sales on Account P41,000.
5. To record the payment for purchases on credit with return and discount:
- The purchase amount is P39,000, and P2,000 was returned.
- The company paid with a 45% discount.
- Calculate the discount amount: P39,000 x 45% = P17,550.
- Subtract the returned amount and the discount from the original purchase amount to get the payment amount: P39,000 - P2,000 - P17,550 = P19,450.
- The record of the payment would be: Debit Accounts Payable P19,450 and Credit Purchases Returns and Allowances P2,000 and Credit Cash or Accounts Payable P39,000 and Credit Discount on Purchases P17,550.
I hope this helps! Let me know if you have any more questions.