Question

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
Oct. 3
Oct. 4
Oct. 6
Oct. 13
Oct. 14
Oct. 19
Oct. 19
Oct. 20
Oct. 30
Oct. 31
Oct. 31

Answer 1

Capers Company
Journal Entries
Date	Particulars	Debit	Credit
01-Oct	Inventory	$             13,891
	Accounts Payable UK-Imports Co.		$          13,891
03-Oct	Inventory ( $ 9,600 + $ 200)	$               9,800
	Accounts Payable Hoagie Co.		$             9,800
04-Oct	Inventory	$             12,350
	Accounts Payable Taco Co.		$          12,350
06-Oct	Accounts Payable Taco Co.	$               4,950
	Inventory		$             4,950
13-Oct	Accounts Payable Hoagie Co.	$               9,800
	Inventory ( 2 % of $ 9,600)		$                196
	Cash ( $ 9,600 - ( 2 % of $ 9,600) + $ 200)		$             9,604
14-Oct	Accounts Payable Taco Co. ( $ 12,350 - $ 4,950)	$               7,400
	Inventory ( 2 % of $ 7,400)		$                148
	Cash [$ 7,400 - ( 2 % of $ 7,400)]		$             7,252
19-Oct	Inventory	$             29,480
	Accounts Payable Veggie Co.		$          29,480
19-Oct	Inventory	$                   425
	Cash		$                425
20-Oct	Inventory	$             21,200
	Accounts Payable Caesar Salad Co.		$          21,200
30-Oct	Accounts Payable Caesar Salad Co.	$             21,200
	Inventory ( $ 21,200 * 1%)		$                212
	Cash [ $ 21,200 - ( $ 21,200 * 1%)]		$          20,988
31-Oct	Accounts Payable UK-Imports Co.	$             13,891
	Inventory		$          13,891
31-Oct	Accounts Payable Veggie Co.	$             29,480
	Cash		$          29,480