FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Suppose
Wonderland Toys
buys
$160 000
worth of
ConnectABlock
toys on credit terms of
2/10,
n/60.
Some of the goods are damaged in shipment, so
Wonderland Toys
returns
$15 950
of the merchandise to
ConnectABlock.
The business uses a perpetual inventory system. All amounts are inclusive of GST at the rate of 10%.Requirements
|
1.
|
Journalise the following transactions:
|
|
|
a. Purchase of the goods on 8
January
2016.
|
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|
b.
Return of the damaged goods on 12
January
2016.
|
|
|
c. Payment on 15
January
2016.
|
|
2.
|
What is the final balance of
Wonderland Toys
inventory account? |
Question content area bottom
Part 1
Requirement 1a. Journalise the
purchase
of the goods on 8
January
2016.
(Record debits first, then credits. Explanations aren't required. Round amounts to the nearest dollar.)|
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Date
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Accounts
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Debit
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Credit
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Jan
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8
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Part 2
Requirement 1b. Journalise the
return
of the damaged goods on 12
January
2016.
(Record debits first, then credits. Explanations aren't required. Round amounts to the nearest dollar.)|
Journal Entry
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Date
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Accounts
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Debit
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Credit
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Jan
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12
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Part 3
Requirement 1c. Journalise the
payment
on 15
January
2016.
(Record debits first, then credits. Explanations aren't required. Round amounts to the nearest dollar.)|
Journal Entry
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||||
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Date
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Accounts
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Debit
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Credit
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Jan
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15
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Part 4
Requirement 2. What is the final balance of
Wonderland Toys
inventory account?|
Inventory
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Net cost
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