The Yankee Corporation has recently begun to accept credit cards. On July 7, Yankee made a credit card sale of $600. The credit card company charges a fee of 3%.Which of the following answers correctly describes the effect of the collection of cash from the credit card company on the financial statements of Yankee Corporation? Assets=Liab.+EquityRev.?Expenses=Net Inc.Cash FlowA.NA=NA+NANA?NA=NA582 OAB.582=NA+NA582?NA=582582 OAC.NA=NA+NANA?NA=NANAD.582=582+NANA?NA=NA582 OA
A. Option A
B. Option B
C. Option C
D. Option D
Answer: A
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Lane Outfitters Company, a retailer, accepts payment through credit cards. During August, credit card sales amounted to $12,000. The processor charges a 3% fee. Assuming that the credit card processor uses the gross method, prepare the journal entries, on the books of Lane Outfitters, for the credit card sales and the payment of fees. (Ignore cost of goods sold.) Omit explanation.
What will be an ideal response?
A company pays $18,000 in interest on notes, consisting of $12,000 interest that was accrued during the last accounting period and $6,000 of interest that accumulated during the current accounting period but has not yet been accrued on the books. The journal entry for the interest payment should:
A. debit Interest Expense for $18,000 and credit Cash for $18,000. B. debit Cash for $18,000 and credit Interest Payable for $18,000. C. debit Interest Payable for $12,000, debit Accrued Interest $6,000 and credit Cash for $18,000. D. debit Interest Expense for $6,000, debit Interest Payable $12,000 and credit Cash for $18,000.
The form of income statement that derives its name from the fact that the total of all expenses is deducted from the total of all revenues is called a
A) multiple-step statement B) revenue statement C) report-form statement D) single-step statement
The Commerce Clause is one source of power of the federal government to pass laws
a. True b. False