Question

Hickman Farms Company completes these transactions and events during March of the current year (terms of all credit sales are 2/10, n/30, unless otherwise stated in the transaction); perpetual inventory system was adopted by the Company in recording its inventory transactions. The company uses gross method of recording sales and purchases.

March

1. Don Hickmans invested $2,000,000 cash into the company.

Paid 4-year insurance premium $3,800 and it is effective from March 1.

Received $87,200 of merchandise and an invoice dated March 1, terms 2/15, n/30, from Fox Industries.

Received $3,600 fee for monthly services to be performed for three years starting from March 1.

1. Sold merchandise on credit to Armand Leon, Invoice No. 954, for $33,600 (cost $16,800).

1. Purchased $2,460 of office supplies on credit from Hilary Company, invoice dated March 3, terms 2/10, EOM.

3. Sold merchandise on credit to Kit Dean, Invoice No. 855, for $20,400 (cost,

   $11,600).

1. Borrowed $164,000 cash by giving Commerce Bank a long-term note payable.

1. Purchased $43,700 of office equipment on credit from Rose Supply, Invoice dated March 9, terms 3/10, EOM.

1. Sold merchandise on credit to Thomas Magic, Invoice No. 956, for $11,200 (cost, $5,800).

12. Received payment from Armand Leon for the March 2 sales less discount.

13. Sent Check No. 416 to Fox Industries in payment of the amount due on the

   March 1, invoice.

13. With respect to the sale of March 3, received the amount due from Kit Dean.

1. Received $32,625 of merchandise and an invoice dated March 13, terms 2/10, n/30, from the LR Company.

15. Issued Check No. 417, in payment of sales salaries for the first half of the month,

   $18,000.

15. Cash sales for the first half of the month are $69,000 (cost is $40,400).

1. Purchased $1,300 of store supplies on credit from Scott Company, invoice dated

   March 16, terms n/10 EOM.

17. Received $2,400 credit memorandum from LR Company for unsatisfactory

   merchandise received on March 14 and returned for credit.

19. Received $630 credit memorandum from Rose Supply for office equipment

received on March 9 and returned for credit

1. Paid the amount due to Rose Supply for office equipment.

1. Received amount due from Taylor Wood for the sale of March 10.

1. Issued Check No. 408 to LR Company in payment of the invoice of March 13

Less the returns and the discount.

1. Sold merchandise on credit to Taylor Wood Invoice No. 857 for $14,900 (cost $7000).

1. Sold merchandise on credit to Kit Dean, Invoice No. 858, for $6,300 (cost is $3,200)

1. Accrued salaries for the second half of the month, $18,600

Make necessary adjusting entries for the expired insurance as at March 31 of this year.

Make necessary adjusting entries for the monthly services performed in March for the customer who paid for three-year monthly services effective March 1.

1. Cash sales for the last half of the month are $30,000 (cost is $16,000).

31. Paid dividend of $1,500.

Make necessary journal entries for all the transactions and create trial balance.

Answer 1

JOURNAL ENTRIES IN THE BOOK OF HICKMAN FARM COMPANY
S.NO	ACCOUNT HEAD & EXPLANATIONS	DEBIT(IN $ )	CREDIT ( IN $ )
0
1	CASH   A/C	2,00,000.00
	TO CAPITAL A/C		2,00,000.00
2.	INSURANCE PREMIUM A/C	3,800.00
	TO    CASH A/C		3,800.00
3.	GOODS A/C	87,200.00
	TO FOX INDUSTRIES A/C		87,200.00
4.	CASH A/C	3,600.00
	TO SALES OF SERVICE A/C		3,600.00
5	ARMAND LEON A/C	33,600.00
	TO SALES A/C		33,600.00
6	GOODS A/C	2,460.00
	TO HILARY COMPANY A/C		2,460.00
7	KIT DEAN A/C	20,400.00
	TO SALES A/C		20,400.00
8	CASH A/C	1,64,000.00
	TO LONG TERM LOAN A/C		1,64,000.00
9	OFFICE EQUIPMENT A/C	43,700.00
	TO ROSE SUPPLY A/C		43,700.00
10	THOMAS MAGIC A/C	11,200.00
	TO SALES A/C		11,200.00
11	CASH A/C	32,928.00
	DISCOUNT A/C	672.00
	TO ARMAND LEON A/C		33,600.00
12	FOX INDUSTRIES A/C	87,200.00
	TO BANK A/C		87,200.00
13	CASH A/C	20,400.00
	TO KIT DEAN A/C		20,400.00
14	GOODS A/C	32,625.00
	TO L.R COMPANY A/C		32,625.00
15	SALARY A/C	18,000.00
	TO BANK A/C		18,000.00
16	CASH A/C	69,000.00
	TO SALES A/C		69,000.00
17	GOOD A/C	1,300.00
	TO SCOTT COMPANY A/C		1,300.00
18	L.R COMPANY A/C	2,400.00
	TO PURCHASE RETURN A/C		2,400.00
19	ROSE SUPPLY A/C	630.00
	TO PURCHASE RETURN A/C		630.00
20	ROSE SUPPLY A/C	43,070.00
	TO CASH A/C		43,070.00
21	ADVANCE AGAINST GOODS A/C	14,900.00
	TO TAYLOR WOOD A/C		14,900.00
22	L.R COMPANY A/C	30,225.00
	TO BANK A/C		ekkarill92 Next > < Previous Related Solutions Church Company completes these transactions and events during March of the current year (terms for all... Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 1/10, n/30). Mar. 1 Purchased $34,000 of merchandise from Van Industries, invoice dated March 1, terms 1/15, n/30. 2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $13,600 (cost is $6,800). 3 (a) Purchased $1,020 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM. 3 (b) Sold merchandise on credit to... Church Company completes these transactions and events during March of the current year (terms for all... Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30). Mar. 1 Purchased $33,000 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30. 2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $13,200 (cost is $6,600). 3 (a) Purchased $990 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM. 3 (b) Sold merchandise on credit to... Church Company completes these transactions and events during March of the current year (terms for all... Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 3/10, n/30). Mar. 1 Purchased $38,000 of merchandise from Van Industries, terms 3/15, n/30. 2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $15,200 (cost is $7,600). 3 (a) Purchased $1,140 of office supplies on credit from Gabel Company, terms n/30. 3 (b) Sold merchandise on credit to Linda Witt, Invoice No. 855, for $7,600 (cost is... Gonzalez Company completes these transactions and events during March of the current year (terms for all... Gonzalez Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30). Mar. 1 Purchased $44,000 of merchandise from Wright Industries, invoice dated March 1, terms 2/15, n/30. Mar. 2 Sold merchandise on credit to Mitchell Co., Invoice No. 854, for $21,600 (cost is $13,000). Mar. 3 Purchased $1,900 of office supplies on credit from Turner Company, invoice dated March 3, terms n/10 EOM. Mar. 3 Sold merchandise on credit... Church Company completes these transactions and events during March of the current year (terms for all... Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 1/10, n/30). Mar. 1 Purchased $38,000 of merchandise from Van Industries, invoice dated March 1, terms 1/15, n/30. 2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $15,200 (cost is $7,600). 3 (a) Purchased $1,140 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM. 3 (b) Sold merchandise on credit to... Church Company completes these transactions and events during March of the current year (terms for all... Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30). Mar. 1 Purchased $36,000 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30. 2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $14,400 (cost is $7,200). 3 (a) Purchased $1,080 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM. 3 (b) Sold merchandise on credit to... Church Company completes these transactions and events during March of the current year (terms for all... Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30). Mar. 1 Purchased $38,000 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30. 2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $15,200 (cost is $7,600). 3 (a) Purchased $1,140 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM. 3 (b) Sold merchandise on credit to... Church Company completes these transactions and events during March of the current year (terms for all... Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30). Mar. 1 Purchased $36,000 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30. 2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $14,400 (cost is $7,200). 3 (a) Purchased $1,080 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM. 3 (b) Sold merchandise on credit to... Douglas and Jaya Bowen Company completes these transactions and events during March of the current year... Douglas and Jaya Bowen Company completes these transactions and events during March of the current year (terms of all credit sales are 2/10, n/30, unless otherwise stated in the transaction); perpetual inventory system was adopted by the Company in recording its inventory transactions. The company uses gross method of recording sales and purchases. March Douglas and Jaya Bowen invested $3,000,000 cash into the company. Paid 4-year insurance premium $4,800 and it is effective from March 1. Received $87,200 of merchandise... Wiset Company completes these transactions during April of the current year (the terms of all its... Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30). Apr. 2 Purchased $14,600 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60. 3 Sold merchandise on credit to Page Alistair, Invoice No. 760, for $4,700 (cost is $2,500). 3 Purchased $1,440 of office supplies on credit from Custer, Inc. Invoice dated April 2, terms n/10 EOM. 4 Issued Check No. 587 to World... ADVERTISEMENT Subjects Accounting Advanced Math Anatomy and Physiology Biology Chemistry Civil Engineering Computer Science Economics Electrical Engineering Finance History Math Mechanical Engineering Operations Management Physics Psychology Statistics and Probability Nursing Other ADVERTISEMENT Latest Questions Cost of Production Report Hana Coffee Company roasts and packs coffee beans. The process begins by... C++ Task: You are to write a class called Monomial, using filenames monomial.h and monomial.cpp, that... Partial Pressure/Total Pressure Question Consider the equation: (CH3)2N2H2(l) + 2N2O4(l) ---> 3N2(g) + 4H2O(g) + 2CO2(g)... Can you show how to do this step by step using Matlab please. Write a function... Plaintiff died of gas asphyxiation when he entered a sewer tunnel without a mask to answer... Retail Co has a unique set of HR practices. Describe and evaluate how you think the... Discuss some of the ways artists experimented with new styles and techniques, and how these differed... ADVERTISEMENT About @ 2020 WizEdu