In: Accounting
Purchase-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Niles Co. during March of the current year:
Mar. 1. | Purchased merchandise from Haas Co., $18,800, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $525 was added to the invoice. |
5. | Purchased merchandise from Whitman Co., $15,350, terms FOB destination, n/30. |
10. | Paid Haas Co. for invoice of March 1. |
13. | Purchased merchandise from Jost Co., $4,900, terms FOB destination, 1/10, n/30. |
14. | Issued debit memo to Jost Co. for $900 of merchandise returned from purchase on March 13. |
18. | Purchased merchandise from Fairhurst Company, $12,750, terms FOB shipping point, n/eom. |
18. | Paid freight of $260 on March 18 purchase from Fairhurst Company. |
19. | Purchased merchandise from Bickle Co., $11,350, terms FOB destination, 2/10, n/30. |
23. | Paid Jost Co. for invoice of March 13, less debit memo of March 14. |
29. | Paid Bickle Co. for invoice of March 19. |
31. | Paid Fairhurst Company for invoice of March 18. |
31. | Paid Whitman Co. for invoice of March 5. |
Required: Journalize the entries to record the transactions of Britt Co. for March.Sales-Related Transactions Using Perpetual Inventory System
Sales-Related Transactions Using Perpetual Inventory System
The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
July 1. | Sold merchandise on account to Landscapes Co., $14,300, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,600. |
2. | Sold merchandise for $20,500 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $13,300. |
5. | Sold merchandise on account to Peacock Company, $35,100, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $22,800. |
8. | Sold merchandise for $12,400 plus 7% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $7,400. |
13. | Sold merchandise to customers who used MasterCard cards, $5,500. The cost of merchandise sold was $3,500. |
14. | Sold merchandise on account to Loeb Co., $11,700, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $6,900. |
15. | Received check for amount due from Peacock Company for sale on July 5. |
16. | Issued credit memo for $1,800 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,000. |
18. | Sold merchandise on account to Jennings Company, $6,300, terms FOB shipping point, 2/10, n/30. Paid $230 for freight and added it to the invoice. The cost of merchandise sold was $3,800. |
24. | Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. |
28. | Received check for amount due from Jennings Company for sale of July 18. |
31. | Paid Black Lab Delivery Service $1,900 for merchandise delivered during July to customers under shipping terms of FOB destination. |
31. | Received check for amount due from Landscapes Co. for sale of July 1. |
Aug. 3. | Paid Hays Federal Bank $1,100 for service fees for handling MasterCard and VISA sales during July |
10. | Paid $2,410 to state sales tax division for taxes owed on sales. |
Required:
Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.
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Company name | |||
Journal entries (Under Net Method) | |||
Date | General Journal | Debit | Credit |
Mar 1 | Merchandise inventory | 18,949 | |
Account payable - Hass Co. | 18,949 | ||
(To record purchased of inventory on account) (18800-(18800*2%)+525) | |||
Mar 5 | Merchandise inventory | 15,350 | |
Account payable -Whitman Co. | 15,350 | ||
(To record purchased of inventory on account) | |||
Mar 10 | Account payable - Hass Co. | 18,949 | |
Cash | 18,949 | ||
(To record cash paid to supplier.) | |||
Mar 13 | Merchandise inventory | 4,851 | |
Account payable -Jost Co. | 4,851 | ||
(To record purchased of inventory on account) (4900-(4900*1%)) | |||
Mar 14 | Account payable -Jost Co. | 891 | |
Merchandise inventory | 891 | ||
(To record goods returned to suppliers) (900-(900*1%)) | |||
Mar 18 | Merchandise inventory | 12,750 | |
Account payable -Fairhurst Company | 12,750 | ||
(To record purchased of inventory on account) | |||
Mar 18 | Merchandise inventory | 260 | |
Cash | 260 | ||
(To record freight paid on purchase of inventory.) | |||
Mar 19 | Merchandise inventory | 11,123 | |
Account payable -Bickle Co. | 11,123 | ||
(To record purchased of inventory on account) ((11350-(11350*2%)) | |||
Mar 23 | Account payable -Jost Co. | 3,960 | |
Cash | 3,960 | ||
(To record cash paid to supplier.) (4851-891) | |||
Mar 29 | Account payable -Bickle Co. | 11,123 | |
Cash | 11,123 | ||
(To record cash paid to supplier.) | |||
Mar 31 | Account payable -Fairhurst Company | 12,750 | |
Cash | 12,750 | ||
(To record cash paid to supplier.) | |||
Mar 31 | Account payable -Whitman Co. | 15,350 | |
Cash | 15,350 | ||
(To record cash paid to supplier.) |