In: Accounting
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 | |||
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) |