This information relates to Rice Co. 1.On April 5, purchased merchandise on account from...

E5-2 This information relates to Rice Co. 1.

On April 5, purchased merchandise on account from Jax Company for $28,000, terms 2/10, n/30. 2.

On April 6, paid freight costs of $700 on merchandise purchased from Jax. 3.

On April 7, purchased equipment on account for $30,000. 4.

On April 8, returned $3,600 of April 5 merchandise to Jax Company. 5.

On April 15, paid the amount due to Jax Company in full.

Instructions

a. Prepare the journal entries to record the transactions listed above on Rice Co.'s books. Rice Co. uses a perpetual inventory system.

b. Assume that Rice Co. paid the balance due to Jax Company on May 4 instead of April 15. Prepare the journal entry to record this payment.

Solutions

Expert Solution

Journal entry

Date	account and explanation	Debit	Credit
Apr 5	Merchandise inventory	28000
	Account payable		28000

Apr 6	Merchandise inventory	700
	Cash		700

Apr 7	Equipment	30000
	Account payable		30000

Apr 8	Account payable	3600
	Merchandise inventory		3600

Apr 15	Account payable (28000-3600)	24400
	Cash		23912
	Merchandise inventory		488

B) Journal entry

Date	account and explanation	Debit	Credit
may 4	Account payable (28000-3600)	24400
	Cash		24400

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

This information relates to Shamrock Co. 1. On April 5, purchased merchandise from Pharoah Company for...

This information relates to Shamrock Co. 1. On April 5, purchased merchandise from Pharoah Company for $28,600, terms 4/10,n/30. 2. On April 6, paid freight costs of $580 on merchandise purchased from Pharoah. 3. On April 7, purchased equipment on account for $32,000. 4. On April 8, returned $3,500 of April 5 merchandise to Pharoah Company. 5. On April 15, paid the amount due to Pharoah Company in full.(b) Assume that Shamrock Co. paid the balance due to Pharoah Company on May 4 instead of April...

This information relates to Sherper Co. 1. On April 5 purchased merchandise from Newport Company for...

This information relates to Sherper Co. 1. On April 5 purchased merchandise from Newport Company for $22,000, terms 2/10, n/30. 2. On April 6 paid freight costs of $900 on merchandise purchased from Newport. 3 On April 7 purchased equipment on account for $26,000. 4. On April 8 returned some of April 5 merchandise to Newport Company which cost $3,600. 5. On April 15 paid the amount due to Newport Company in full. Prepare the journal entries to record the...

Exercise 5-1 This information relates to Crane Co.. 1. On April 5, purchased merchandise from Sheridan...

Exercise 5-1 This information relates to Crane Co.. 1. On April 5, purchased merchandise from Sheridan Company for $26,000, terms 3/10, n/30. 2. On April 6, paid freight costs of $520 on merchandise purchased from Sheridan Company. 3. On April 7, purchased equipment on account for $31,400. 4. On April 8, returned $4,100 of April 5 merchandise to Sheridan Company. 5. On April 15, paid the amount due to Sheridan Company in full. (a) Prepare the journal entries to record the transactions listed above on Crane Co.'s...

Current Attempt in Progress This information relates to Skysong Co. 1. On April 5, purchased merchandise from Sheridan...

Current Attempt in Progress This information relates to Skysong Co. 1. On April 5, purchased merchandise from Sheridan Company for $27,600, terms 3/10,n/30. 2. On April 6, paid freight costs of $770 on merchandise purchased from Sheridan. 3. On April 7, purchased equipment on account for $34,300. 4. On April 8, returned $5,300 of April 5 merchandise to Sheridan Company. 5. On April 15, paid the amount due to Sheridan Company in full. (a) Prepare the journal entries to record the transactions listed above on Skysong Co's...

1. William purchased merchandise on account on April 5 for $4,488. On April 7, Brandon paid...

1. William purchased merchandise on account on April 5 for $4,488. On April 7, Brandon paid $44 of freight charges for the goods purchased on April 5. On April 8, William returned goods purchased on April 5 for $88. Include margin explanations for the changes in revenues and expenses. Use a tabular summary to record these transactions. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2. Prepare a tabular summary to...

Aug. 1 Purchased merchandise on account from Arotek Company for $7,500, FOB destination. 5 Sold merchandise...

Aug. 1 Purchased merchandise on account from Arotek Company for $7,500, FOB destination. 5 Sold merchandise on account to Laird Corp. for $5,200. The merchandise had cost $4,000. 8 Purchased merchandise on account from Waters Corporation for $5,400, FOB shipping point. The invoice showed that at Sheng’s request, Waters paid the $140 shipping charges and added that amount to the bill. 10 Laird returned merchandise from the August 5 sale that had cost Sheng $400 and been sold for $600....

Bascomb Company purchased $420,000 in merchandise on account during the month of April, and merchandise costing $350,000 was sold on account for $425,000

Provide the solution that is required, making sure to demonstrate how you obtained the answer. 4) Bascomb Company purchased $420,000 in merchandise on account during the month of April, and merchandise costing $350,000 was sold on account for $425,000. Required: 1. Prepare journal entries to record the purchases and sales assuming Bascomb uses a perpetual inventory system. 2. Prepare journal entries to record the purchases and sales assuming Bascomb uses a periodic inventory system. 5) Meteor Co. purchased merchandise on March 4, 2018, at a...

A company had the following related transactions: Purchased merchandise on account from Blitzen Co., list price...

A company had the following related transactions: Purchased merchandise on account from Blitzen Co., list price $20,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid transportation costs of $650 added to the invoice. Purchased merchandise on account from Cupid Co., $8,000, terms FOB destination, 1/10, n/30. Sold merchandise on account to Donner Co., $9,800, terms 2/10, n/30. The cost of the merchandise sold was $5,800. Returned $2,000 of merchandise purchased from Cupid Co. Paid Blitzen Co in...

5- On June 10, Tala Company purchased on account $50,000 of merchandise from Tigare Company, FOB...

5- On June 10, Tala Company purchased on account $50,000 of merchandise from Tigare Company, FOB destination, terms 2/10, n/30. Tala pays cash the freight costs of $600 on June 11. Damaged goods totaling $700 are returned to Tigare for credit on June 12. On June 19, Tala pays Tigare in full less the purchase discount. Both companies use a perpetual inventory system. Instructions (a) Prepare separate entries for each transaction on the books of Tala Company.

Jan. 10. Purchased merchandise on account from Laine Co., $240,000, terms n/30. Feb. 9. Issued a...

Jan. 10. Purchased merchandise on account from Laine Co., $240,000, terms n/30. Feb. 9. Issued a 30-day, 4% note for $240,000 to Laine Co., on account. Mar. 11. Paid Laine Co. the amount owed on the note of February 9. May 1. Borrowed $160,000 from Tabata Bank, issuing a 45-day, 5% note. June 1. Purchased tools by issuing a $180,000, 60-day note to Gibala Co., which discounted the note at the rate of 5%. 15. Paid Tabata Bank the interest...

Subjects