In: Accounting
The following selected transactions were completed by Capers Company during October of the current year:
Oct. | 1 | Purchased merchandise from UK Imports Co., $13,322, terms FOB destination, n/30. |
3 | Purchased merchandise from Hoagie Co., $10,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $240 was added to the invoice. | |
4 | Purchased merchandise from Taco Co., $13,700, terms FOB destination, 2/10, n/30. | |
6 | Issued debit memo to Taco Co. for $4,850 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., $29,840, terms FOB shipping point, n/eom. | |
19 | Paid freight of $410 on October 19 purchase from Veggie Co. | |
20 | Purchased merchandise from Caesar Salad Co., $22,200, terms FOB destination, 1/10, n/30. | |
30 | Paid Caesar Salad Co. for invoice of October 20. | |
31 | Paid UK Imports Co. for invoice of October 1. | |
31 | Paid Veggie Co. for invoice of October 19. |
Journalize the entries to record the transactions of Capers Company for October. Refer to the Chart of Accounts for exact wording of account titles.
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
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SOLUTION
Date | Accounts titles and Explanation | Debit ($) | Credit ($) |
Oct.1 | Merchandise inventory | 13,322 | |
Accounts payable - UK Imports Co. | 13,322 | ||
Oct.3 | Merchandise inventory | 10,677 | |
Accounts payable -Hoagie Co. [10,650-(10,650*2%) +240] | 10,677 | ||
Oct.4 | Merchandise inventory | 13,426 | |
Accounts payable -Taco Co. [13,700-(13,700*2%)] | 13,426 | ||
Oct.6 | Accounts payable -Taco Co. | 4,753 | |
Merchandise inventory [4,850-(4,850*2%)] | 4,753 | ||
Oct.13 | Accounts payable -Hoagie Co. | 10,677 | |
Cash | 10,677 | ||
Oct.14 | Accounts payable -Taco Co. | 8,673 | |
Cash (13,426-4,753) | 8,673 | ||
Oct.19 | Merchandise inventory | 29,840 | |
Accounts payable - Veggie Co. | 29,840 | ||
Oct.19 | Merchandise inventory | 410 | |
Cash | 410 | ||
Oct.20 | Merchandise inventory | 21,978 | |
Accounts payable - Caesar Salad Co. [22,200-(22,200*1%)] | 21,978 | ||
Oct.30 | Accounts payable - Caesar Salad Co. | 21,978 | |
Cash | 21,978 | ||
Oct.31 | Accounts payable - UK Imports Co. | 13,322 | |
Cash | 13,322 | ||
Oct.31 | Accounts payable - Veggie Co. | 29,840 | |
Cash | 29,840 |