Question

The following selected transactions were completed by Capers Company during October of the current year: Oct 1. Purchased merchandise from UK Imports Co., $14,448, terms FOB destination, n/30. 3. Purchased merchandise from Hoagie Co., $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice. 4. Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30. 6. Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4. Oct 13. Paid Hoagie Co. for invoice of October 3. 14. Paid Taco Co. for invoice of October 4 less debit memo of October 6. 19. Purchased merchandise from Veggie Co., $27,300, terms FOB shipping point, n/eom. 19. Paid freight of $400 on October 19 purchase from Veggie Co. 20. Purchased merchandise from Caesar Salad Co., $22,000, 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.

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

Answer 1

Date	Account Titles and Explanation	Debit	Credit
01-Oct	Merchandise inventory	$ 14,448
	Accounts payable- UK Imports		$ 14,448
	(To record the purchases from UK imports)
03-Oct	Merchandise inventory ($9,950 + $220)	$ 10,170
	Accounts payable-Hoagie co.		$ 10,170
	(To record the purchases from Hoagie Co.)
04-Oct	Merchandise inventory	$ 13,650
	Accounts payable-Taco Co.		$ 13,650
	(To record the purchases from Taco Co.)
06-Oct	Accounts payable-Taco Co.	$    4,550
	Merchandise inventory		$    4,550
	(To record the purchase returns to Taco co.)
13-Oct	Accounts Payable-Hoagie Co	$ 10,170
	Cash ($10,170 - $199)		$    9,971
	Merchandise inventory ($9,950*2%)		$        199
	(To record the payment to Hoagie co.)
14-Oct	Accounts Payable-Taco Co.	$    9,100
	Cash ($9,100 - $182)		$    8,918
	Merchandise inventory [(13650-4550)*2%]		$        182
	(To record the payment to Taco co.)
19-Oct	Merchandise inventory	$ 27,300
	Accounts Payable-Veggie Co.		$ 27,300
	(To record the purchases from Veggie Co.)
19-Oct	Merchandise inventory	$        400
	Cash		$        400
	(To record the freight charges)
20-Oct	Merchandise inventory	$ 22,000
	Accounts Payable-Caesar Salad Co.		$ 22,000
	(To record the purchases from Caesar Salad Co.)
30-Oct	Accounts Payable-Caesar Salad Co.	$ 22,000
	Cash ($22,000 - $220)		$ 21,780
	Merchandise inventory ($22,000*1%)		$        220
	(To record the payment to Caesar Salad Co.)
31-Oct	Account payable - UK imports Co.	$ 14,448
	Cash		$ 14,448
	(To record the payment to UK imports Co.)
31-Oct	Accounts Payable-Veggie Co.	$ 27,300
	Cash		$ 27,300
	(To record the payment to Veggie Co.)