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problem 1-2




Problem #1;As the struggling owner of a new restaurant, you suffer from a habitual shortage of cash. Yesterday the following invoices arrived;Vendor Face Amount Terms;Cornation Produce $ 600 n/30;John?s Fisheries 1,000 1/10, n/45;Garcia Equipment 2,000 2/10, n/60;1. Write out the exact meaning of each of the terms.;2. You can borrow cash from the local bank on a note bearing an annual interest rate of 12%. Should you borrow to take advantage of the cash discounts offered by the last two vendors? Why? Show computations. For interest computations, assume a 360-day year.;3. Prepare the journal entry from Garcia Equipment?s standpoint if you were to pay the amount due within the discount period.;Problem #2 Sherwin-Williams (obtain 2013 annual report or 10k online?review financial statements and notes);1. What is the amount of gross accounts receivable at fiscal year-end 2013?;2. Suppose that write-offs of accounts receivable during fiscal year 2013 amounted to $6K, there were no reinstatements, and all sales during 2013 were on credit.;(a) Prepare the journal entry to record bad debt expense during 2013.;(b) Determine cash collected from customers during 2013.;3. What inventory costing method(s) does Sherwin-Williams use for financial reporting?;4. Calculate inventory turnover for fiscal year 2013 (use total reported inventory).;5. Compute the amount of ?Work-in-process and raw materials? transferred to finished goods during 2013.;6. What is the LIFO reserve at fiscal year-end 2013?;7. What method of depreciation does Sherwin-Williams use for its PPE?;8. How much was depreciation expense during 2013?;9. Was any PPE sold during 2013? How do you know?


Paper#79579 | Written in 18-Jul-2015

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