18. Good, Inc. sold inventory for $1,200 that was purchased for $700. Which is t

Question

18. Good, Inc. sold inventory for $1,200 that was purchased for $700. Which is the correet journal entry when Good sells the inventory using a perpetual inventory system? sold and inventory. B.Debit cost of goods sold $700; Credit inventory $700. C. Debit cost of goods sold $1,200; Credit inventory $1,200 D. Debit inventory $700; Credit cost of goods sold $700. 19. The Statement of Cash Flows: A. lists all cash flows over the life of a company. B. breaks down all cash transactions into Investing and Financing cash flows. C. shows that the change in total cash from one year to the next is equal to the net operating, investing, and financing eash flows. D. has two methods for Investing Cash Flows-direct and indirect. On January 2, 2016, AAA Publishing, Ine. received a one-year subscription for $100 to one of the magazines that it publishes. At that time, it debited cash for $100 and credited deferred revenue for $100. After all the magazines have been delivered through December 31, 2016, what journal entry needs to be recorded? 20. A. Debit Cash for $100 and credit Deferred Revenue for $100 B. Debit Accounts Receivable for $100 and credit Subscription Revenue for $100 S100 $100 C. Debit Accounts Receivable for $100 and credit Deferred Revenue for D. Debit Deferred Revenue for $100 and credit Subscription Revenue for

Explanation / Answer

Annswer =1 Entry of Cost of Goods Sold is will be as below, Journal Entries Date Account Title and explanation Debit Credit Date Cost of Goods Sold $                      700       To Inventory $                     700 (To Record the Cost of Goods Sold) Answer =2 Cash Flow Statement normally prepared for the changes in total cash from one year to the next is equal to net operating, Investing and financial cash Flows. So, Answer = Option C Answer = 3 We already recorded the cash receipt now we can only transferred the deferred revenue to revenue account. Journal Entries Date Account Title and explanation Debit Credit Date Deferred Revenue $                      100     To Subscription Revenue $                     100 (To Record the subscriptiption Revenue )

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