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In: Accounting

Purchase-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Capers Company during...

Purchase-Related Transactions Using Perpetual Inventory System

The following selected transactions were completed by Capers Company during October of the current year:

Oct. 1. Purchased merchandise from UK Imports Co., $13,891, terms FOB destination, n/30.
3. Purchased merchandise from Hoagie Co., $9,600, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $200 was added to the invoice.
4. Purchased merchandise from Taco Co., $12,350, terms FOB destination, 2/10, n/30.
6. Issued debit memo to Taco Co. for $4,950 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 and discount.
19. Purchased merchandise from Veggie Co., $29,480, terms FOB shipping point, n/eom.
19. Paid freight of $425 on October 19 purchase from Veggie Co.
20. Purchased merchandise from Caesar Salad Co., $21,200, 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.

Required:

Journalize the entries to record the transactions of Capers Company for October.

For a compound transaction, if an amount box does not require an entry, leave it blank.

Oct. 1 Inventory
Accounts Payable-UK Imports Co.
Oct. 3 Inventory
Accounts Payable-Hoagie Co.
Oct. 4 Inventory
Accounts Payable-Taco Co.
Oct. 6 Accounts Payable-Taco Co.
Inventory
Oct. 13 Accounts Payable-Hoagie Co.
Cash
Oct. 14
Oct. 19
Oct. 19
Oct. 20
Oct. 30
Oct. 31
Oct. 31

Solutions

Expert Solution

Date General Journal Debit Credit
Oct. 1 Inventory 13891
Accounts payable-UK Imports Co. 13891
(To record purchases on account)
Oct. 3 Inventory 9800
Accounts payable-Hoagie Co. 9800
(To record purchases on account)
Oct. 4 Inventory 12350
Accounts payable-Taco Co. 12350
(To record purchases on account)
Oct. 6 Accounts payable-Taco Co. 4950
Inventory 4950
(To record purchase returns)
Oct. 13 Accounts payable-Hoagie Co. 9800
Inventory ($9600 x 2%) 192
Cash 9608
(To record payment on account)
Oct. 14 Accounts payable-Taco Co. 7400
Inventory ($7400 x 2%) 148
Cash 7252
(To record payment on account)
Oct. 19 Inventory 29480
Accounts payable-Veggie Co. 29480
(To record purchases on account)
Oct. 19 Inventory 425
Cash 425
(To record freight paid)
Oct. 20 Inventory 21200
Accounts payable-Caesar Salad Co. 21200
(To record purchases on account)
Oct. 30 Accounts payable-Caesar Salad Co. 21200
Inventory ($21200 x 1%) 212
Cash 20988
(To record payment on account)
Oct. 31 Accounts payable-UK Imports Co. 13891
Cash 13891
(To record payment on account)
Oct. 31 Accounts payable-Veggie Co. 29480
Cash 29480
(To record payment on account)

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