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Question
Axle Inc. purchases inventory from Nutria Company and then Axle sells it to Chang Company. Inventory is in transit on the last day of the year. Indicate who owns the inventory by placing an X in the proper column for each item that is described.
| Description | Owned by Nutria | Owned by Axle | Owned by Chang |
| Terms of purchase were FOB destination | Not applicable | ||
| Terms of purchase were FOB shipping point | Not applicable | ||
| Terms of sale were FOB destination | Not applicable | ||
| Terms of sale were FOB shipping point | Not applicable |
Answer
This answer is hidden. It contains 231 characters.
Related questions
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D) are always positive unless the company is experiencing serious financial trouble.
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Q:
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Q:
Which of the following statements most appropriately describes the purpose of depreciating a long-lived tangible asset?
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Under the cost principle, a company capitalizes:
A) all ordinary repair expenditures incurred in the use of an asset.
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Q:
The following information was summarized from the adjusted trial balance of Reliance Yacht Repair, Inc. as of September 30, 2015, the end of the companys fiscal year. Accounts Payable
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500 Retained Earnings
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Part a. Prepare the closing entry for the company for the year ended September 30, 2015.
Part b. Draw a T-account for the Retained Earnings account. Enter the beginning balance into the T-account, post the closing entry, and then determine the ending balance.
Part c. Prepare a post-closing trial balance at September 30, 2015.
Q:
On December 31, 2016, Ditka Inc. had Retained Earnings of $267,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $168,100 and interest revenue of $81,300. The company used supplies in the amount of $87,900, advertising expenses were $16,400, salaries and wages totaled $18,300, and income tax expense was calculated as $13,700. During the year, the company declared and paid dividends of $6,000.
Required:
Part a. Prepare the closing entries dated December 31, 2016.
Part b. Draw a T-account for the Retained Earnings account. Enter the beginning balance into the T-account, post the closing entries, and then determine the ending balance.