Concept explainers
On May 1, 2020, Indigo Inc. entered into a contract to deliver one of its specialty mowers to Kickapoo Landscaping Co. The contract requires Kickapoo to pay the contract price of $826 in advance on May 15, 2020. Kickapoo pays Indigo on May 15, 2020, and Indigo delivers the mower (with cost of $511) on May 31, 2020.
(a) Prepare the
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
May 1, 2020
|
enter an account title to record the transaction on May 1, 2017
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record the transaction on May 1, 2017
|
enter a debit amount
|
enter a credit amount
|
(b) Prepare the journal entry on May 15, 2020, for Indigo. (Credit account titles are automatically indented when the 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.)
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
May 15, 2020
|
enter an account title to record the transaction on May 15, 2017
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record the transaction on May 15, 2017
|
enter a debit amount
|
enter a credit amount
|
(c) Prepare the journal entry on May 31, 2020, for Indigo. (Credit account titles are automatically indented when the 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.)
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
---|---|---|---|
May 31, 2020
|
enter an account title to record sales on May 31, 2017
|
enter a debit amount
|
enter a credit amount
|
enter an account title to record sales on May 31, 2017
|
enter a debit amount
|
enter a credit amount
|
|
(To record sales)
|
|||
enter an account title to record cost of goods sold on May 31, 2017
|
enter a debit amount
|
enter a credit amount
|
|
enter an account title to record cost of goods sold on May 31, 2017
|
enter a debit amount
|
enter a credit amount
|
|
(To record cost of goods sold)
|
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