110. The Ballentine Company expects sales for June, July, and August of $62,000,
ID: 2438228 • Letter: 1
Question
110. The Ballentine Company expects sales for June, July, and August of $62,000, $68,000, and $58,000, respectively. Experience suggests that 30% of sales are for cash and 70% are on credit. The company collects 50% of its credit sales in the month following sale, 45% in the second month following sale, and 5% are not collected. What are the company's expected cash receipts for August from its current and past sales?
110B. On February 15, Jewel Company buys 7,500 shares of Marcelo Corp. common stock at $28.58 per share plus a brokerage fee of $425. The stock is classified as long-term available-for-sale securities. This is the company’s first and only investment in available-for-sale securities. On March 15, Marcelo declares a dividend of $1.20 per share payable to stockholders of record on April 15. Jewel received the dividend on April 15 and ultimately sells half of the Marcelo stock on November 17 of the current year for $29.35 per share less a brokerage fee of $275. The journal entry to record the purchase on February 15 is:
Explanation / Answer
110) Expected cash receipts in august = (58000*30%)+(68000*70%*50%)+(62000*70%*45%) = 60730
110b) Journal entry :
Date account and explanation debit credit Feb 15 Investment in Marcelo Corp (7500*28.58+425) 214775 Cash 214775 (To record investment)Related Questions
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