Torres Company budgets merchandise purchases of $15,800 in January, $17,600 in February, and $20,200 in March. For thosepurchases, 50% of purchases are paid in the month of purchase and 50% are paid in the month after the purchase. The companypurchased $21,000 of merchandise in December.Prepare a schedule of cash payments for merchandise for the months of January, February, and March.TORRES COMPANYCash Payments for Merchandise PurchasesJanuaryFebruaryMarchMerchandise purchases$ 15,800$ 17,600$ 20,200Cash payments for:Current period purchasesPrior period purchasesTotal cash payments for merchandise purchases

Schedule of Cash payments for Merchandise Purchases for May, April and June TORRES COMPANY Cash…

TORRES COMPANY Cash Payments for Merchandise Purchases January February March Merchandise purchases Cash payments for: $ 15,800 S 17,600 $ 20,200 Current period purchases Prior period purchases Total cash payments for merchandise purchases

TORRES COMPANY Cash Payments for Merchandise Purchases January February March Merchandise purchases Cash payments for: $ 15,800 S 17,600 $ 20,200 Current period purchases Prior period purchases Total cash payments for merchandise purchases

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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July 1 Purchased merchandise from Carter Company for $11,200 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Martin Company for $3,500 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $2,100. July 3 Paid $1,165 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $4,100 for $6,900 cash. July 9 Purchased merchandise from Walker Company for $4,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July sukrale cab the th 9. July 11 Returned $1,000 of merchandise purchased on July 9 from Walker Company and debited its account payable for that amount. July 12 Received the balance due from Martin Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Carter Company within the discount period. July 19 Sold merchandise that cost $4,500 to Ryan Company for $6,400 under credit terms of 2/15, n/60, FOB…
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Sales and purchase-related transactions for seller and buyer using perpetual inventory system The following selected transactions were completed during April between Swan Company and Bird Company: Date Transaction Apr. 2. Swan Company sold merchandise on account to Bird Company, $63,900, terms FOB shipping point, n/15. Swan paid freight of $1,550, which was added to the invoice. The cost of the goods sold was $34,840. 8. Swan Company sold merchandise on account to Bird Company, $44,100, terms FOB destination, n/15. The cost of the goods sold was $28,720. 8. Swan Company paid freight of $1,040 for delivery of merchandise sold to Bird Company on April 8. 17. Bird Company paid Swan Company for purchase of April 2. 23. Bird Company paid Swan Company for purchase of April 8. 24. Swan Company sold merchandise on account to Bird Company, $66,550, terms FOB shipping point, n/eom. The cost of the goods sold was $40,840. 25. Swan Company paid Bird Company a cash refund of $2,350 for damaged…
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Accounting Fulco Company engaged in the following transactions in March 2020 March Sold merchandise on credit to James William, terms n/30, FOB shipping point, $3,000 (cost, $1,800). 7 Purchased merchandise on credit from Leverage Company, terms n/30, FOB shipping point, $6,000. Paid Leverage Company for shipping charges on merchandise purchased on March 8, $254 9 Sold merchandise on credit to Deepak Soni, terms n/30, FOB shipping point, $2,400 (cost, $1,440). 14 Returned damaged merchandise received from Leverage Company on March 8 for credit, $600. 14 17 Received check from James William for his purchase of March 7. 21 Paid Leverage Company the balance from the transactions of March 8 and March 14. Accepted from Deepak Soni a return of merchandise, which was put back in inventory, $200 (cost, $120). 24 Prepare journal entries to record the transactions, assuming use of the perpetual inventory system.
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