Accounting English Lu_Xiufen

Lesson one Lesson Seven An illustration Lesson Seven An illustration

Accounting English Questions What is meant by “cash discounts” ? Explain the terms:2/10,1/20,n/30. Who would bear the freight cost and who would remit to the freight company under each of the following selling terms? a.F.O.B. shipping point, freight prepaid. b.F.O.B. shipping point, freight collect. c.F.O.B. destination, freight collect. d.F.O.B. destination, freight prepaid.

Accounting English Terms 1 Credit terms 2 Transportation terms

Accounting English Credit terms 1/10,n/30; Cash discounts are calculated on the billed price of merchandise retained in a purchase or sale. e.g. sales:10,000 ; sales returns and allowances: 1,000; “ 2/10,n/30”; Cash discounts =(10,000-1,000)*2%=180

Accounting English Transportation Terms(1) Text Freight prepaid Collect Text designate the party expected to remit to the freight company buyer seller

Accounting English Transportation Terms(2) Text F.O.B. destination Shipping point designate the party who bear the transportation cost buyer seller

Accounting English Question(1) What is meant by “cash discounts” ? “Cash discounts” is refer to as the deduction of the invoice price.

Accounting English Question(2) Explain the terms:2/10,1/20,n/30. The terms mean that the full sales price (less any returns) is due in 30days from the date of sale; 2% cash discount will be granted if the payment is made within 10 days; if the payment is made beyond 10 days but within 20 days, the buyer may deduct 1% from the invoice price.

Accounting English Question(3a) a.F.O.B. shipping point, freight prepaid. The buyer would bear the freight cost and the seller would remit it to the freight company.

Accounting English Question(3b) b. F.O.B. shipping point, freight collect. The buyer would bear the freight cost and the buyer would remit it to the freight company.

Accounting English Question(3c) c. F.O.B. destination, freight collect. The seller would bear the freight cost and the buyer would remit it to the freight company.

Accounting English Question(3d) d. F.O.B. destination, freight prepaid. The seller would bear the freight cost and the seller would remit it to the freight company.

Accounting English Lesson Seven An illustration — Exercise 1 (1) Problem: Alan Meaken began business as a surveyor and during a short period completed these transactions:

Accounting English Cash Office Equipment Surveying Equipment Alan Meaken, Capital Lesson Seven An illustration — Exercise 1 (2) a Began business by investing cash, $20 000; office equipment, $3 000; and surveying equipment, $

Accounting English Lesson Seven An illustration — Exercise 1 (3) b Purchased land for an office site, $ Paid $3 800 in cash and signed a long- term note payable for the balance. Land Cash Long-term note payable

Accounting English c Purchased for cash a used prefabricated building and moved it onto the land for use as an office, $ Building Cash Lesson Seven An illustration — Exercise 1 (4)

Accounting English Prepaid Insurance Cash d Prepaid the annual premium on two insurance policies, $4 800 Lesson Seven An illustration — Exercise 1 (5)

Accounting English Cash 800 Surveying Fees Earned 800 e Completed a surveying job and collected $800 cash in full payments. Lesson Seven An illustration — Exercise 1 (6)

Accounting English Office Equipment Cash 700 Long-term note payable f Purchased additional equipment costing $ Gave $700 in cash and singed a long-term note payable for the balance. Lesson Seven An illustration — Exercise 1 (7)

Accounting English Accounts Receivable Surveying Fees Earned g Completed a surveying job on credit for Kilmer Contractors, $ Lesson Seven An illustration — Exercise 1 (8)

Accounting English Office Equipment 250 Accounts Payable 250 h Purchased additional office equipment on credit, $250. Lesson Seven An illustration — Exercise 1 (9)

Accounting English Accounts Receivable Surveying Fees Earned i Completed a surveying job for Valley Hospital on credit, $ Lesson Seven An illustration — Exercise 1 (10)

Accounting English Machinery Rental Expense 150 Accounts Payable 150 j Received and recorded as an account payable a bill for rent on special machinery used on the Valley Hospital job, $150. Lesson Seven An illustration — Exercise 1 (11)

Accounting English Cash Accounts Receivable k Received $2 100 from Kilmer Contractors for the work of transaction g. Lesson Seven An illustration — Exercise 1 (12)

Accounting English Wages Expense 840 Cash 840 l Paid the wages of the surveying assistant, $840. Lesson Seven An illustration — Exercise 1 (13)

Accounting English m Paid for the office equipment purchased in transaction h. Accounts Payable 250 Cash 250 Lesson Seven An illustration — Exercise 1 (14)

Accounting English n Paid $350 cash for repairs to a piece of surveying equipment, Repairs Expense, Surveying Equipment 350 Cash 350 Lesson Seven An illustration — Exercise 1 (15)

Accounting English o Alan Meaken wrote a $260 check on the bank account for the business to pay for repairs to his personal automobile. (The car is not used for business purposes.) Alan Meaken, Withdrawals 260 Cash 260 Lesson Seven An illustration — Exercise 1 (16)

Accounting English p Paid the wages of the surveying assistant, $880. Wages Expense 880 Cash 880 Lesson Seven An illustration — Exercise 1 (17)

Accounting English q Paid fee to county for surveying permits, $150. Permits Expense 150 Cash 150 Lesson Seven An illustration — Exercise 1 (18)

Accounting English 2007 Annual report of WAL*MART

Accounting English 2007 Annual report of TESCO