Prepare journal entries to record the following merchandising transactions of Horus company, which uses the perpetual inventory system. All the transportation charges are paid in cash.
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July |
1 |
Purchased merchandise from Osiris Company for $6,500 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. |
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2 |
Sold merchandise to Anubis Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $542. Transportation charges is $50. |
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3 |
Paid $135 cash for transportation charges on the purchase of July 1. |
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8 |
Sold merchandise for $2,200 under credit terms of 2/0, n/60 that had cost $1,800 and the received the cash immediately on the day of the sale. |
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9 |
Purchased merchandise from Thoth Co. for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Transportation charges is $115. |
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11 |
Returned $200 of defective merchandise purchased from Thoth Co. for the part of the merchandise purchased on July 9. |
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14 |
Received the balance due from Anubis Co. for the invoice dated July 2. |
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14 |
Paid the balance due to Osiris Company. |
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19 |
Sold merchandise that cost $1,000 to Ra Co. for $1,500 under credit terms of 2/15, n/60, FOB destination, invoice dated July 19. Transportation charges is $120. |
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21 |
Issued a $250 credit memorandum to Ra Co. for an allowance on goods sold on July 19. |
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23 |
Paid Thoth Co. the balance due. |
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30 |
Received the balance due from Ra Co. for the invoice dated July 19. |
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31 |
Sold merchandise that cost $5,300 to Anubis Co. for $6,900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Transportation charges is $1,220. |
In: Accounting
The following items were selected from among the transactions completed by O’Donnel Co. during the current year:
| Jan. | 10. | Purchased merchandise on account from Laine Co., $414,000, terms n/30. |
| Feb. | 9. | Issued a 30-day, 4% note for $414,000 to Laine Co., on account. |
| Mar. | 11. | Paid Laine Co. the amount owed on the note of February 9. |
| May | 1. | Borrowed $180,000 from Tabata Bank, issuing a 45-day, 4% note. |
| June | 1. | Purchased tools by issuing a $228,000, 60-day note to Gibala Co., which discounted the note at the rate of 6%. |
| 15. | Paid Tabata Bank the interest due on the note of May 1 and renewed the loan by issuing a new 45-day, 6.5% note for $180,000. (Journalize both the debit and credit to the notes payable account.) | |
| July | 30. | Paid Tabata Bank the amount due on the note of June 15. |
| 30. | Paid Gibala Co. the amount due on the note of June 1. | |
| Dec. | 1. | Purchased office equipment from Warick Co. for $520,000, paying $90,000 and issuing a series of ten 4% notes for $43,000 each, coming due at 30-day intervals. |
| 15. | Settled a product liability lawsuit with a customer for 315,000, payable in January. O’Donnel accrued the loss in a litigation claims payable account. | |
| 31. | Paid the amount due Warick Co. on the first note in the series issued on December 1. |
| Required: | |||||||
| 1. | Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar. | ||||||
| 2. | Journalize the adjusting entry for each of the following
accrued expenses at the end of the current year:
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In: Accounting
The following items were selected from among the transactions completed by Sherwood Co. during the current year:
| Mar. | 1 | Purchased merchandise on account from Kirkwood Co., $390,000, terms n/30. |
| 31 | Issued a 30-day, 10% note for $390,000 to Kirkwood Co., on account. | |
| Apr. | 30 | Paid Kirkwood Co. the amount owed on the note of March 31. |
| Jun. | 1 | Borrowed $156,000 from Triple Creek Bank, issuing a 45-day, 8% note. |
| Jul. | 1 | Purchased tools by issuing a $216,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%. |
| 16 | Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $156,000. (Journalize both the debit and credit to the notes payable account.) | |
| Aug. | 15 | Paid Triple Creek Bank the amount due on the note of July 16. |
| 30 | Paid Poulin Co. the amount due on the note of July 1. | |
| Dec. | 1 | Purchased equipment from Greenwood Co. for $500,000, paying $150,000 cash and issuing a series of ten 8% notes for $35,000 each, coming due at 30-day intervals. |
| 22 | Settled a product liability lawsuit with a customer for $310,000, payable in January. Accrued the loss in a litigation claims payable account. | |
| 31 | Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. |
| Required: | |||||
| 1. | Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar. | ||||
| 2. | Journalize the adjusting entry for each of the following
accrued expenses at the end of the current year (refer to the Chart
of Accounts for exact wording of account titles):
|
In: Accounting
Prepare journal entries to record the following merchandising
transactions of Cabela’s, which uses the perpetual inventory system
and the gross method. Hint: It will help to identify each
receivable and payable; for example, record the purchase on July 1
in Accounts Payable—Boden.
| July | 1 | Purchased merchandise from Boden Company for $6,300 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. | ||
| 2 | Sold merchandise to Creek Co. for $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $525. | |||
| 3 | Paid $120 cash for freight charges on the purchase of July 1. | |||
| 8 | Sold merchandise that had cost $1,600 for $2,000 cash. | |||
| 9 | Purchased merchandise from Leight Co. for $2,900 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. | |||
| 11 | Returned $900 of merchandise purchased on July 9 from Leight Co., and debited its account payable for that amount. | |||
| 12 | Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. | |||
| 16 | Paid the balance due to Boden Company within the discount period. | |||
| 19 | Sold merchandise that cost $1,000 to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. | |||
| 21 | Gave a price reduction (allowance) of $250 to Art Co. for merchandise sold on July 19, and credited Art's accounts receivable for that amount. | |||
| 24 | Paid Leight Co. the balance due, net of discount. | |||
| 30 | Received the balance due from Art Co. for the invoice dated July 19, net of discount. | |||
| 31 | Sold merchandise that cost $5,100 to Creek Co. for $7,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. |
In: Accounting
The following items were selected from among the transactions completed by Sherwood Co. during the current year:
| Mar. | 1 | Purchased merchandise on account from Kirkwood Co., $390,000, terms n/30. |
| 31 | Issued a 30-day, 10% note for $390,000 to Kirkwood Co., on account. | |
| Apr. | 30 | Paid Kirkwood Co. the amount owed on the note of March 31. |
| Jun. | 1 | Borrowed $156,000 from Triple Creek Bank, issuing a 45-day, 8% note. |
| Jul. | 1 | Purchased tools by issuing a $216,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%. |
| 16 | Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $156,000. (Journalize both the debit and credit to the notes payable account.) | |
| Aug. | 15 | Paid Triple Creek Bank the amount due on the note of July 16. |
| 30 | Paid Poulin Co. the amount due on the note of July 1. | |
| Dec. | 1 | Purchased equipment from Greenwood Co. for $500,000, paying $150,000 cash and issuing a series of ten 8% notes for $35,000 each, coming due at 30-day intervals. |
| 22 | Settled a product liability lawsuit with a customer for $310,000, payable in January. Accrued the loss in a litigation claims payable account. | |
| 31 | Paid the amount due to Greenwood Co. on the first note in the series issued on December 1. |
| Required: | |||||
| 1. | Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year. Round your answers to the nearest dollar. | ||||
| 2. | Journalize the adjusting entry for each of the following
accrued expenses at the end of the current year (refer to the Chart
of Accounts for exact wording of account titles):
|
In: Accounting
Prepare journal entries to record the following merchandising
transactions of Cabela’s, which uses the perpetual inventory system
and the gross method. Hint: It will help to identify each
receivable and payable; for example, record the purchase on July 1
in Accounts Payable—Boden.
| July | 1 | Purchased merchandise from Boden Company for $6,600 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. | ||
| 2 | Sold merchandise to Creek Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $550. | |||
| 3 | Paid $135 cash for freight charges on the purchase of July 1. | |||
| 8 | Sold merchandise that had cost $1,900 for $2,300 cash. | |||
| 9 | Purchased merchandise from Leight Co. for $2,300 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. | |||
| 11 | Returned $300 of merchandise purchased on July 9 from Leight Co. and debited its account payable for that amount. | |||
| 12 | Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. | |||
| 16 | Paid the balance due to Boden Company within the discount period. | |||
| 19 | Sold merchandise that cost $1,000 to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. | |||
| 21 | Gave a price reduction (allowance) of $250 to Art Co. for merchandise sold on July 19 and credited Art's accounts receivable for that amount. | |||
| 24 | Paid Leight Co. the balance due, net of discount. | |||
| 30 | Received the balance due from Art Co. for the invoice dated July 19, net of discount. | |||
| 31 | Sold merchandise that cost $5,400 to Creek Co. for $7,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31 |
In: Accounting
Prepare journal entries to record the following merchandising
transactions of Cabela’s, which uses the perpetual inventory system
and the gross method. (Hint: It will help to identify each
receivable and payable; for example, record the purchase on July 1
in Accounts Payable—Boden.)
| July | 1 | Purchased merchandise from Boden Company for $6,800 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. | ||
| 2 | Sold merchandise to Creek Co. for $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $567. | |||
| 3 | Paid $115 cash for freight charges on the purchase of July 1. | |||
| 8 | Sold merchandise that had cost $2,100 for $2,500 cash. | |||
| 9 | Purchased merchandise from Leight Co. for $2,700 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. | |||
| 11 | Received a $700 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9. | |||
| 12 | Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. | |||
| 16 | Paid the balance due to Boden Company within the discount period. | |||
| 19 | Sold merchandise that cost $1,000 to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. | |||
| 21 | Issued a $250 credit memorandum to Art Co. for an allowance on goods sold on July 19. | |||
| 24 | Paid Leight Co. the balance due, net of discount. | |||
| 30 | Received the balance due from Art Co. for the invoice dated July 19, net of discount. | |||
| 31 | Sold merchandise that cost $5,600 to Creek Co. for $7,100 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. |
In: Accounting
Prepare journal entries to record the following merchandising transactions of Cabela’s, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable—Boden.) July 1 Purchased merchandise from Boden Company for $6,100 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Creek Co. for $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $508. 3 Paid $125 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,400 for $1,800 cash. 9 Purchased merchandise from Leight Co. for $2,400 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. 11 Received a $400 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. 16 Paid the balance due to Boden Company within the discount period. 19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 21 Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19. 24 Paid Leight Co. the balance due, net of discount. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $4,900 to Creek Co. for $7,300 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.
In: Accounting
Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System
The following were selected from among the transactions completed by Babcock Company during November of the current year:
| Nov. 3. | Purchased merchandise on account from Moonlight Co., list price $88,000, trade discount 30%, terms FOB destination, 2/10, n/30. |
| 4. | Sold merchandise for cash, $34,160. The cost of the goods sold was $20,380. |
| 5. | Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $890 added to the invoice. |
| 6. | Returned $11,200 ($16,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co. |
| 8. | Sold merchandise on account to Quinn Co., $15,330 with terms n/15. The cost of the merchandise sold was $8,890. |
| 13. | Paid Moonlight Co. on account for purchase of November 3, less return of November 6. |
| 14. | Sold merchandise on VISA, $226,690. The cost of the goods sold was $134,480. |
| 15. | Paid Papoose Creek Co. on account for purchase of November 5. |
| 23. | Received cash on account from sale of November 8 to Quinn Co. |
| 24. | Sold merchandise on account to Rabel Co., $58,800, terms 1/10, n/30. The cost of the goods sold was $31,420. |
| 28. | Paid VISA service fee of $3,800. |
| 30. | Paid Quinn Co. a cash refund of $5,740 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,280. |
Required:
Journalize the transactions.
| Nov. 3 | |||
| Nov. 4-sale | |||
| Nov. 4-cost | |||
| Nov. 5 | |||
| Nov. 6 | |||
| Nov. 8 | |||
| Nov. 8 | |||
| Nov. 13 | |||
| Nov. 14-sale | |||
| Nov. 14-cost | |||
| Nov. 15 | |||
| Nov. 23 | |||
| Nov. 24-sale | |||
| Nov. 24-cost | |||
| Nov. 28 | |||
| Nov. 30-refund | |||
| Nov. 30-cost | |||
In: Accounting
Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System
The following were selected from among the transactions completed by Babcock Company during November of the current year:
| Nov. 3. | Purchased merchandise on account from Moonlight Co., list price $83,000, trade discount 30%, terms FOB destination, 2/10, n/30. |
| 4. | Sold merchandise for cash, $38,000. The cost of the goods sold was $20,930. |
| 5. | Purchased merchandise on account from Papoose Creek Co., $44,600, terms FOB shipping point, 2/10, n/30, with prepaid freight of $790 added to the invoice. |
| 6. | Returned $13,300 ($19,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co. |
| 8. | Sold merchandise on account to Quinn Co., $16,920 with terms n/15. The cost of the merchandise sold was $8,990. |
| 13. | Paid Moonlight Co. on account for purchase of November 3, less return of November 6. |
| 14. | Sold merchandise on VISA, $234,310. The cost of the goods sold was $148,570. |
| 15. | Paid Papoose Creek Co. on account for purchase of November 5. |
| 23. | Received cash on account from sale of November 8 to Quinn Co. |
| 24. | Sold merchandise on account to Rabel Co., $61,500, terms 1/10, n/30. The cost of the goods sold was $31,520. |
| 28. | Paid VISA service fee of $3,440. |
| 30. | Paid Quinn Co. a cash refund of $5,760 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,550. |
Required:
Journalize the transactions.
| Nov. 3 | |||
| Nov. 4-sale | |||
| Nov. 4-cost | |||
| Nov. 5 | |||
| Nov. 6 | |||
| Nov. 8 | |||
| Nov. 8 | |||
| Nov. 13 | |||
| Nov. 14-sale | |||
| Nov. 14-cost | |||
| Nov. 15 | |||
| Nov. 23 | |||
| Nov. 24-sale | |||
| Nov. 24-cost | |||
| Nov. 28 | |||
| Nov. 30-refund | |||
| Nov. 30-cost | |||
In: Accounting