Concept explainers
Journalizing purchase and sales transactions
Learning Objective 2, 3
Journalize the following transactions for Soul Art Gift Shop. Explanations are not required
Feb. 3 Purchased $3,300 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping point.
7 Returned S900 of defective merchandise purchased on February 3.
9 Paid freight bill of $400 on February 3 purchase.
10 Sold merchandise inventory on account for $4,700. Payment terms were 2/15, n/30. These goods cost the company $2,350.
12 Paid amount owed on credit purchase of February 3, less the return and the discount.
28 Received cash from February 10 customer in full settlement of their debt.
Use the following information to answer Exercises EE-23 through EE-25.
The adjusted
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Horngren's Accounting (12th Edition)
- Cengage Learning keAssignment/takeAssignmentMain.do?invoker=&takeAssignment geNOWv2 | Online teachi x Institution Page a. b. Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. a. b. Merchandise $58,600 73,100 Check My Work Freight Paid by Seller X $1,300 600 Presentation Principals of Mark X Session Locator=&inprogress=false Freight Terms FOB destination, 1/10, n/30 FOB shipping point, 2/10, n/30 Credit for Refunds and Allowances $6,500 3,900 ES Previous ☐ 9:08 O - 0arrow_forwardMerchandising Business using Periodic Inventory System Instruction: Prepare journal entries for the following transactions using the general journal format given in class discussion. KIKAY HARDWARE CHART OF ACCOUNTS ASSETS INCOME 100 Cash and Cash Equivalents 400 Sales 101 Accounts Receivable 401 Sales Returns and Allowances 102 Merchandise Inventory 402 Sales Discount 103 Supplies 104 Equipment EXPENSES 500 Purchases LIABILITIES 501 Purchase returns and Allowances 200 Accounts Payable 502 Purchase Discounts 201 Bonds Payable 503 Freight In EQUITY 504 Advertising 300 Mark Reyes, Capital 505 Freight Out 301 Mark Reyes, Drawings 506 Salaries 507 Utilities 508 Income Summary Kikay HARDWARE STORE completed the following merchandising transactions in the month of May. At the beginning…arrow_forwardE6A-27 Computim Learning Objective 7 Appendix 6A ventory Consider the data of the following companies which use the PEHOUI system: Beginning Merchandise Inventory Ending Merchandise Inventory Cost of Goods Sold Net Cost of Net Sales Gross Profit Purchases Company Revenue $ 105,000 $ 23,000 $ 59,000 $ 22,000 24 (a) $ 45,000 Large Small (b) 27,000 94,000 (c) 99,000 40,000 Medium 96,000 (d) 58,000 24,000 68,000 (e) Petite 80,000 8,000 (f) 6,500 (g) 44,000 Requirements 1. Supply the missing amounts in the preceding table. 2. Prepare the income statement for the year ended December 31, 2019, for Large Company, which uses the periodic inventory system. Include a complete headıng and show the full computation of cost of goods sold. Large's operating expenses for the year were $12,000.arrow_forward
- Question Help v 7. Hampton Computers has the following transactions in April related to purchase of merchandise inventory. A (Click the icon to view the transactions.) Journalize the purchase transactions for Hampton Computers assuming the company uses the perpetual inventory system. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Apr. 1: Purchase of $25,000 More Info - X Date Apr. 1 April 1 Purchase of $25,000 worth of computers on account, term of 1/10, n /60. 3 Return of $2,500 of the computers to the vendor. 9 Payment made on account. Print Done Choose from any list or enter any number in the input fields and then click Check Answer. parts remaining Clear All Check Answer This course (BA2223section4) is based on Nobles/Mattison: Horngren's Accounting, 11e Global Edition ch EN A Q) acerarrow_forwardMatch the last day the discount may be taken to each letter Last Date Date Merchandise was Invoice Date Terms for Cash Received Discount a. September 28 October 4 8/10 EOM b. July 28 August 2 8/10 ROG C. January 22 January 27 2/10 EOM d. March 21 March 27 2/10 ROG е. May 30 June 6 1/15, n/30 f. September 14 September 17 3/10,n/30 [Choose] ( Choose ) I Choose) [ Choose] [Choose ) [ Choose]arrow_forwardTB Problem Qu. 4- 217 (Algo) Recording purchases, allowances, and discounts taken Prepare journal entries to record the following merchandising transactions. The company applies the perpetual inventory system and the gross method. May 3 Sold merchandise for $6,600 with terms 2/10, n/30. The merchandise had cost $4,000. May 8 Sold merchandise for $4,300 with terms 2/10, n/30. The merchandise had a cost of $2,500. May 12 Received the balance due from the May 3 sale within the discount period. May 14 Granted an allowance of $300 for scratched merchandise related to May 8 sale. May 17 Received the balance due from the May 8 sale within the discount period.arrow_forward
- eBook Show Me How Print Item Journalizing Purchases Transactions Instructions Chart of Accounts General Journal Instructions January Transactions: Jan. 3 Purchased merchandise from Feng, $7,000. Invoice No. 416, dated January 1, terms 2/10, n/30. 12 Purchased merchandise from Miranda, $8,000. Invoice No. 624, dated January 10, terms n/30. 19 Purchased merchandise from J. B. Barba, $6,600. Invoice No. 190, dated January 18, terms 1/10, n/30. 26 Purchased merchandise from Ramirez, $4,100. Invoice No. 923, dated January 25, terms 1/15, n/30. Required: Journalize the transactions in a general journal.arrow_forwardBookmarks Window Help Thu De A v2.cengagenow.com scent Tech.. BLearning Module 8- ACCT1105: Financial Ac.. E CengageNOwWv2 | Onltine teaching and learnin.. Cengage Learning eBook Show Me How Inventory Analysis A company reports the following: Cost of merchandise sold $558,000 Average inventory 45,000 Determine (a) the inventory turnover and (b) the number of days' sales in inventory. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume 365 days a year. a. Inventory turnover b. Number of days' sales in inventory days Previous Next Check My Work All work saved. Save and Exit Submit Assignment for Grading tv 16 MacBook Air 888 F10 80 F9 FB F6 F4 FS F3 F2 & 23 $ 7 8 3 4 { T Y U W E K S F G M .. .. - の * 00arrow_forwardProblem: Module 2 Textbook Problem 10 Learning Objective: Module 2-7 Show how different inventory cost flow methods (specific identification, FIFO, LIFO, and weighted average) affect financial statements The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Apr. 21 July 25 Sept. 19 Purchased Purchased Purchased Purchased 400 units @ 90 units @ 250 units 60 units $ 4- $5- $7 = $9- During the year. The Shirt Shop sold 650 T-shirts for $14 each. Required Gross margin $1,600 450 1,750 540 a. Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming the following cost flow assumptions: (1) FIFO, (2) LIFO, and (3) weighted average. b. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions. Complete this question by entering your answers in the tabs below. Required A Required B Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.…arrow_forward
- ab User Management,... H https://outlook.offi... FES Protection Plan System 7 - North C... Homework Exercises Saved Lewis Corporation engaged in the following transactions during June. DATE TRANSACTIONS 20X1 4 Purchased merchandise on account from Salinas Company; Invoice 100 for $1,005; terms n/30. 15 Recorded purchases for cash, $1,490. 30 Paid amount due to Salinas Company for the purchase on June 4. June Book Required: Record these transactions in a general journal. erences View transaction list Journal entry worksheet 1. 21 3 Paid amount due to Salinas Company for the purchase on June 4. Note: Enter cebits before credits.arrow_forwardChapter 12 Homework еBook Show Me How Print Item Journalizing Purchases Transactions Enter the following transactions in a purchases journal. Jan. Purchased merchandise from Feng, $5,500. Invoice No. 416, dated January 1, terms 3 2/10, n/30. Purchased merchandise from Schneider, $9,100. Invoice No. 624, dated January 10, 12 terms n/30. Purchased merchandise from J. B. Barba, $5,800. Invoice No. 190, dated January 18, 19 terms 1/10, n/30. Purchased merchandise from Ramirez, $3,800. Invoice No. 923, dated January 25, 26 terms 1/15, n/30. Page: 1 PURCHASES DEBIT INVOICE NO. POST. REF. FROM WHOM PURCHASED ACCTS. PAY. CREDIT DATE М.d 1 1 М.d 2 2 М. d 3 М. d 4 4 3.arrow_forwardP5-5B. Journalizing inventory purchases, sales, returns, and freight transactions using the perpetual inventory system; calculating gross profit (Learning Objectives 3, 4, 5, & 6) 25-30 min. The following transactions for Westcoast Tire Co. occurred during July: Jul Purchased $5,500 of merchandise on account from Meridian Tire Supply. Terms, 1/15, n/45, 4 FOB shipping point. Meridian Tire Supply prepaid the $475 shipping cost and added the amount to the invoice. 7 9 11 13 15 16 18 20 22 23 Purchased $300 of supplies on account from Office Express. Terms, 3/10, n/30, FOB destination. Sold $5,100 (cost, $2,800) of merchandise on account to P. Larson. Terms, 2/15, n/45, FOB destination. Paid $50 freight charges to deliver goods to P. Larson. Returned $500 of the merchandise purchased on July 4 and received a credit. Sold $900 (cost, $545) of merchandise to cash customers. Paid for the supplies purchased on July 7. Paid Meridian Tire Supply the amount due from the July 4 purchase in full.…arrow_forward
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage