FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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On June 10, Culver Company purchased $8,700 of merchandise on account from Concord Company, FOB shipping point, terms 3/10, n/30. Culver pays the freight costs of $600 on June 11. Goods totaling $700 are returned to Concord for credit on June 12. On June 19, Culver pays Concord Company in full, less the discount. Both companies use a perpetual inventory system.
(a)
Prepare separate entries for each transaction on the books of Culver Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
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Date
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Account Titles and Explanation
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Debit
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Credit
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| choose a transaction date |
enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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| choose a transaction date |
enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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| choose a transaction date |
enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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| choose a transaction date |
enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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enter an account title
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enter a debit amount
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enter a credit amount
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- On June 10, Sunland Company purchased $7,800 of merchandise from Blossom Company, terms 4/10, n/30. Sunland Company pays the freight costs of $370 on June 11. Goods totaling $800 are returned to Blossom Company for credit on June 12. On June 19, Sunland Company pays Blossom Company in full, less the purchase discount. Both companies use a perpetual inventory system (b) Prepare separate entries for each transaction for Blossom Company. The merchandise purchased by Blossom Company on June 10 cost McGiver $3,180, and the goods returned cost Blossom Company $210. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit choose a transaction date…arrow_forwardJournalize the following inventory merchandise transactions for both Sampson and Batson, assuming that the both Sampson and Batson uses the perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. Dec. 1 Sampson Co. sold merchandise to Batson Co. on account, $34,200, terms 2/15, net 45. The cost of the merchandise sold is $25,650. 6 Batson Co. paid the invoice within the discount period.arrow_forwardBlossom Company buys merchandise on account from Pina Company. The selling price of the goods is $1,140, and the cost of the goods is $830. Both companies use perpetual inventory systems. Journalize the transaction on the books of both companies.arrow_forward
- Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $48,000, with terms 4/10, n/30. On February 10, the company pays on account for the inventory. Required: (a) Determine the financial statement effects for the inventory purchase on account on February 2. (b) Determine the financial statement effects for the payment on February 10. Complete this question by entering your answers in the tabs below. Required a Required b Determine the financial statement effects for the inventory purchase on account on February 2. (Amounts to be deducted should minus sign.) Revenues Income Statement Expenses Net Incomearrow_forwardAssume that Telca Co. uses perpetual inventory system. The following are the transactions that occurred. Journalize Purchased merchandise amounting to 9, 000 from Racer Company with terms 3/10, net/30 on March 6. > Paid freight on purchase from Racer Company with an amount 500 on March 7. > Returned merchandise to Racer Company 2,000 on March 9. > Paid Racer Company in full on March 16. > On March 25, Telca Co. sold merchandise purchased from Racer Company, which cost 1,700 to a customer on account at a gross profit of 15%.arrow_forwardCumberland Co. sells $919 of inventory to Hancock Co. for cash. Cumberland paid $673 for the merchandise. Under a perpetual inventory system, which of the following journal entry(ies) would be recorded?arrow_forward
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