3. On September 1, ABC Company had an inventory of 30 calculators at a cost of $18 each. Thecompany uses a perpetual inventory system. During September, the following transactionsoccurred. Sept. 6 Purchased 80 calculators at $20 each from DeVito Co. for cash. Sept. 9 Paidfreight of $80 on calculators purchased from DeVito Co. Sept. 10 Returned 2 calculators to DeVitoCo. for $42 credit (including freight) because they did not meet specifications. Sept. 12 Sold 26calculators costing $21 (including freight) for $31 each to Mega Book Store, terms n/30. Sept. 14Granted credit of $31 to Mega Book Store for the return of one calculator that was not ordered.Sept. 20 Sold 30 calculators costing $21 for $31 each to Barbara's Card Shop, terms n/30.Required: Journalize the September transactions.4. The following information pertains to POR Company. 1. Cash balance per bank, July 31, $7,263. 2.July bank service charge not recorded by the depositor $28. 3. Cash balance per books, July 31,$7,284. 4. Deposits in transit, July 31, $1,500. 5. Bank collected $900 note for PQR in July, plusinterest $36, less fee $20. The collection has not been recorded by PQR, and no interest has beenaccrued. 6. Outstanding checks, July 31, $591.Required: Prepare a bank reconciliation at July 31.5. KLM Company reports the following for the month of June.June 1: Inventory 200 units @ $5 $1,000 June 12 :Purchase 300 units @ $6 $ 1,800June: 23 Purchase 500units @S 7 $3,500 June: 30 Inventory 120 UnitsRequired: Compute the cost of the ending inventory and the cost of goods sold under FIFOMethod.

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Description: 3. On September 1, ABC Company had an inventory of 30 calculators at a cost of $18 each. Thecompany uses a perpetual inventory system. During September, the following transactionsoccurred. Sept. 6 Purchased 80 calculators at $20 each from DeVito Co.

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3. On September 1, ABC Company had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred. Sept. 6 Purchased 80 calculators at $20 each from Devito Co. for cash. Sept. 9 Paid freight of $80 on calculators purchased from DeVito Co. Sept. 10 Returned 2 calculators to DeVito Co. for $42 credit (including freight) because they did not meet specifications. Sept. 12 Sold 26 calculators costing $21 (including freight) for $31 each to Mega Book Store, terms n/30. Sept. 14 Granted credit of $31 to Mega Book Store for the return of one calculator that was not ordered. Sept. 20 Sold 30 calculators costing $21 for $31 each to Barbara's Card Shop, terms n/30. Required: Journalize the September transactions.

3. On September 1, ABC Company had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred. Sept. 6 Purchased 80 calculators at $20 each from Devito Co. for cash. Sept. 9 Paid freight of $80 on calculators purchased from DeVito Co. Sept. 10 Returned 2 calculators to DeVito Co. for $42 credit (including freight) because they did not meet specifications. Sept. 12 Sold 26 calculators costing $21 (including freight) for $31 each to Mega Book Store, terms n/30. Sept. 14 Granted credit of $31 to Mega Book Store for the return of one calculator that was not ordered. Sept. 20 Sold 30 calculators costing $21 for $31 each to Barbara's Card Shop, terms n/30. Required: Journalize the September transactions.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...

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Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of 250,000. During the year, it made 613,000 of net purchases. At the end of the year, a physical inventory showed it had ending inventory of 140,000. Calculate Reid Companys cost of goods sold for the year.
RE7-8 Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased 100,000 of inventory on credit with payment terms of 1/15, net 45. Using the net price method, prepare journal entries to record Johnsons purchases on October 23 and the subsequent payment on October 31. Using the information from RE7-8, prepare journal entries to record Johnsons purchase on October 23 and the subsequent payment on November 30.
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Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
The accounts and their balances in the ledger of Markeys Mountain Shop as of December 31, the end of its fiscal year, are as follows: Data for the adjustments are as follows. Assume that Markeys Mountain Shop uses the perpetual inventory system. a. Merchandise Inventory at December 31, 140,357. b. Store supplies inventory (on hand) at December 31, 540. c. Depreciation of building, 3,400. d. Depreciation of store equipment, 3,800. e. Salaries accrued at December 31, 1,250. f. Insurance expired during the year, 1,480. Required 1. Complete the work sheet after entering the account names and balances onto the work sheet. Ignore this step if using CLGL. 2. Journalize the adjusting entries. If using manual working papers, record adjusting entries on journal page 63.
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Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
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Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions take place during the current year. A. On July 3, the company purchases thirty fountains for $1,200 per fountain, on credit. Terms of the purchase are 2/10, n/30, invoice dated July 3. B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees to convert the debt owed into a short-term note, with an 8% annual interest rate, payable in two months from August 3. C. On October 3, Serene Company pays its account in full. Record the journal entries to recognize the initial purchase, the conversion, and the payment.