Question

Purchase-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Capers Company during October of the current year:

Oct. 1. Purchased merchandise from UK Imports Co., $13,082, terms FOB destination, n/30.

3. Purchased merchandise from Hoagie Co., $10,150, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $210 was added to the invoice.

4. Purchased merchandise from Taco Co., $13,150, terms FOB destination, 2/10, n/30.

6. Issued debit memo to Taco Co. for $4,250 of merchandise returned from purchase on October 4.

13. Paid Hoagie Co. for invoice of October 3.

14. Paid Taco Co. for invoice of October 4, less debit memo of October 6 and discount.

19. Purchased merchandise from Veggie Co., $26,110, terms FOB shipping point, n/eom.

19. Paid freight of $425 on October 19 purchase from Veggie Co.

20. Purchased merchandise from Caesar Salad Co., $22,900, terms FOB destination, 1/10, n/30.

30. Paid Caesar Salad Co. for invoice of October 20.

31. Paid UK Imports Co. for invoice of October 1.

31. Paid Veggie Co. for invoice of October 19.

Journalize the entries to record the transactions of Capers Company for October.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Answer 1

Journal entries:
Date	Accounts title and explanations				Debit $	Credit $
1-Oct	Merchandise inventory Dr.				13082
	Accounts payable-UK imports					13082
3-Oct	Merchandise inventory Dr.				10360
	Accounts payable-Hoagie & co.					10360
4-Oct	Merchandise inventory Dr.				13150
	Accounts payable-Taco & Co.					13150
6-Oct	Accounts payable-Taco & Co. Dr.				4250
	Merchandise inventory					4250
13-Oct	Accounts payable-Hoagoe & Co. Dr.				10360
	Merchandise inventory (10150*2%)					203
	Cash account					10157
14-Oct	Accounts payable-Taco & Co. Dr.				8900
	Merchandise inventory (8900*2%)					178
	Cash account					8722
19-Oct	Merchandise inventory Dr.				26110
	Accounts payable-VeggieCo.					26110
19-Oct	Merchandise inventory Dr.				425
	cash account					425
20-Oct	Merchandise inventory Dr.				22900
	Accounts payable-Caesar Salad					22900
30-Oct	Accounts payable-Caesar SaladDr.				22900
	Merchandise inventory (22900*1%)					229
	Cash account					22671
31-Oct	Accounts payable-UK Dr.				13082
	Cash account					13082
31-Oct	Accounts payable-Veggie Co. Dr.				26110
	Cash account					26110