Question

In: Accounting

The following selected transactions were completed by Betz Company during July of the current year. Betz...

The following selected transactions were completed by Betz Company during July of the current year. Betz Company uses the net method under a perpetual inventory system.

July 1 Purchased merchandise from Sabol Imports Co., $13,725, terms FOB destination, n/30.
3 Purchased merchandise from Saxon Co., $10,550, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $205 was added to the invoice.
5 Purchased merchandise from Schnee Co., $12,800, terms FOB destination, 2/10, n/30.
6 Issued debit memo to Schnee Co. for merchandise with an invoice amount of $4,550 returned from purchase on July 5.
13 Paid Saxon Co. for invoice of July 3.
14 Paid Schnee Co. for invoice of July 5, less debit memo of July 6.
19 Purchased merchandise from Southmont Co., $29,160, terms FOB shipping point, n/eom.
19 Paid freight of $425 on July 19 purchase from Southmont Co.
20 Purchased merchandise from Stevens Co., $22,400, terms FOB destination, 1/10, n/30.
30 Paid Stevens Co. for invoice of July 20.
31 Paid Sabol Imports Co. for invoice of July 1.
31 Paid Southmont Co. for invoice of July 19.

Journalize the entries to record the transactions of Betz Company for July. Refer to the Chart of Accounts for exact wording of account titles.

Solutions

Expert Solution

Solution:

Journal Entries - Betz Company
Date Particulars Debit Credit
1-Jul Inventory Dr $13,725.00
           To Accounts payable - Sabol Imports Co. $13,725.00
(To record merchandise purchased on account)
3-Jul Inventory Dr $10,755.00
           To Accounts payable - Saxon Co. $10,755.00
(To record merchandise purchased on account)
5-Jul Inventory Dr $12,800.00
           To Accounts payable - Schnee Co. $12,800.00
(To record merchandise purchased on account)
6-Jul Accounts payable - Schnee Co. Dr $4,550.00
           To Inventory $4,550.00
(To record merchandise returned)
13-Jul Accounts payable - Saxon Co. Dr $10,755.00
           To Cash $10,544.00
           To Inventory ($10,550*2%) $211.00
(To record payment for accounts payable)
14-Jul Accounts payable - Schnee Co. Dr $8,250.00
           To Cash $8,085.00
           To Inventory ($8,250*2%) $165.00
(To record payment for accounts payable)
19-Jul Inventory Dr $29,160.00
           To Accounts payable - Southmont Co $29,160.00
(To record merchandise purchased on account)
19-Jul Inventory Dr $425.00
           To Cash $425.00
(To record freight payment)
20-Jul Inventory Dr $22,400.00
           To Accounts payable - Stevens Co. $22,400.00
(To record merchandise purchased on account)
30-Jul Accounts payable - Stevens Co. Dr $22,400.00
           To Cash $22,176.00
           To Inventory ($22,400*1%) $224.00
(To record payment for accounts payable)
31-Jul Accounts payable - Sabol Imports Co. Dr $13,725.00
           To Cash $13,725.00
(To record payment for accounts payable)
31-Jul Accounts payable - Southmont Co Dr $29,160.00
           To Cash $29,160.00
(To record payment for accounts payable)

Related Solutions

The following selected transactions were completed by Betz Company during July of the current year. Betz...
The following selected transactions were completed by Betz Company during July of the current year. Betz Company uses the net method under a perpetual inventory system. July 1 Purchased merchandise from Sabol Imports Co., $13,725, terms FOB destination, n/30. 3 Purchased merchandise from Saxon Co., $10,550, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $205 was added to the invoice. 5 Purchased merchandise from Schnee Co., $12,800, terms FOB destination, 2/10, n/30. 6 Issued debit memo to Schnee Co....
The following selected transactions were completed by Betz Company during July of the current year. Betz...
The following selected transactions were completed by Betz Company during July of the current year. Betz Company uses the net method under a perpetual inventory system. July 1 Purchased merchandise from Sabol Imports Co., $13,322, terms FOB destination, n/30. 3 Purchased merchandise from Saxon Co., $10,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $240 was added to the invoice. 5 Purchased merchandise from Schnee Co., $13,700, terms FOB destination, 2/10, n/30. 6 Issued debit memo to Schnee Co....
The following selected transactions were completed by Capers Company during October of the current year: Oct...
The following selected transactions were completed by Capers Company during October of the current year: Oct 1. Purchased merchandise from UK Imports Co., $14,448, terms FOB destination, n/30. 3. Purchased merchandise from Hoagie Co., $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice. 4. Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30. 6. Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4. Oct...
The following selected transactions were completed by Air Systems Company during January of the current year....
The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system. Jan. 2 Purchased $21,600 of merchandise on account, FOB shipping point, terms 2/15, n/30. 5 Paid freight of $450 on the January 2 purchase. 6 Returned $4,400 of the merchandise purchased on January 2. 13 Sold merchandise on account, $6,500, FOB destination, 1/10, n/30. The cost of merchandise sold was $4,700. 15 Paid freight of $150...
The following selected transactions were completed by Capers Company during October of the current year: Oct....
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...
The following selected transactions were completed by Capers Company during October of the current year: Oct....
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...
The following selected transactions were completed by Capers Company during October of the current year: Oct....
The following selected transactions were completed by Capers Company during October of the current year: Oct. 1 Purchased merchandise from UK Imports Co., $14,448, terms FOB destination, n/30. 3 Purchased merchandise from Hoagie Co., $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice. 4 Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30. 6 Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4. 13...
The following selected transactions were completed by Capers Company during October of the current year: Oct....
The following selected transactions were completed by Capers Company during October of the current year: Oct. 1 Purchased merchandise from UK Imports Co., $13,201, terms FOB destination, n/30. 3 Purchased merchandise from Hoagie Co., $10,050, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice. 4 Purchased merchandise from Taco Co., $13,450, terms FOB destination, 2/10, n/30. 6 Issued debit memo to Taco Co. for $4,100 of merchandise returned from purchase on October 4. 13...
The following selected transactions were completed by Capers Company during October of the current year: Oct....
The following selected transactions were completed by Capers Company during October of the current year: Oct. 1 Purchased merchandise from UK Imports Co., $13,377, terms FOB destination, n/30. 3 Purchased merchandise from Hoagie Co., $10,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $230 was added to the invoice. 4 Purchased merchandise from Taco Co., $14,350, terms FOB destination, 2/10, n/30. 6 Issued debit memo to Taco Co. for $5,000 of merchandise returned from purchase on October 4. 13...
The following selected transactions were completed by Capers Company during October of the current year: Oct....
The following selected transactions were completed by Capers Company during October of the current year: Oct. 1 Purchased merchandise from UK Imports Co., $13,377, terms FOB destination, n/30. 3 Purchased merchandise from Hoagie Co., $10,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $230 was added to the invoice. 4 Purchased merchandise from Taco Co., $14,350, terms FOB destination, 2/10, n/30. 6 Issued debit memo to Taco Co. for $5,000 of merchandise returned from purchase on October 4. 13...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT