Question

The following selected transactions were completed by Capers Company during October of the current year:

Oct.	1	Purchased merchandise from UK Imports Co., $15,458, terms FOB destination, n/30.
	3	Purchased merchandise from Hoagie Co., $9,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $200 was added to the invoice.
	4	Purchased merchandise from Taco Co., $13,550, terms FOB destination, 2/10, n/30.
	6	Issued debit memo to Taco Co. for $4,350 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.
	19	Purchased merchandise from Veggie Co., $27,270, terms FOB shipping point, n/eom.
	19	Paid freight of $375 on October 19 purchase from Veggie Co.
	20	Purchased merchandise from Caesar Salad Co., $21,400, 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. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Capers Company

General Ledger

ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 211 Accounts Payable-Caesar Salad Co. 212 Accounts Payable-Hoagie Co. 213 Accounts Payable-Taco Co. 214 Accounts Payable-UK Imports Co. 215 Accounts Payable-Veggie Co. 216 Salaries Payable 218 Sales Tax Payable 219 Customers Refunds Payable 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary Journalize the entries to record the transactions of Capers Company for October. Refer to the Chart of Accounts for exact wording of account titles. PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Answer 1

Journal entries:
Date	Accounts title and explanations				Debit $	Credit $
1-Oct	Merchandise inventory Dr.				15458
	Accounts payable-UK imports					15458
3-Oct	Merchandise Inventory Dr.				9850
	Accounts payable- Hoagie Co.					9650
	Cash account					200
4-Oct	Merchandise Inventory Dr.				13550
	Accounts payable- Taco Co.					13550
6-Oct	Accounts payable -Taco Dr.				4350
	Merchandise inventory					4350
13-Oct	Accounts payable-Hoagie Dr.				9650
	Cash account					9457
	Merchandise inventory (9650*2%)					193
14-Oct	Accounts payable-taco Dr.				9200
	Cash a ccount					9016
	Merchandise inventory (9200*2%)					184
19-Oct	Merchandise invntory Dr.				27270
	Accounts payable-Veggie					27270
19-Oct	Merchandise invntory Dr.				375
	Cash account					375
20-Oct	Merchandise invntory Dr.				21400
	Accounts payable-Caesar salad					21400
30-Oct	Accounts payable-Caesar salad Dr.				21400
	Cash account					21186
	Merchandise invenntory(21400*1%)					214
31-Oct	Accounts payable-UK imports Dr.				15458
	Cash account					15458
31-Oct	Accounts payable-Vvegie Dr.				27270
	Cash account					27270