Part IV.A. Record the following transaction of Pal Tos Sales for the month of May under the periodicinventory system and perpetual inventory system. Assume that terms for all purchases are 2/20,n/30 and terms for all sales are 1/15, n/30. Mark up for all sales is 25%. With Computation.May5Cash sales, P 210,000Purchased P 550,000 merchandise from Hoo Enterprise on account.8Sold P 30,000 goods to Lucky Trading11Purchased P 150,000 merchandise from Vee Cut SalesReceived P 3,000, returns of defective MerchandiseLucky Trading1519Returned P 50,000 defective goods to Hoo Enterprise22Lucky Trading Settled its account in full25Paid Hoo Enterprises in full30Settled account with Vee Cut Sales in fullB. Selected unadjusted account balance from the trial balance of Jim Crickets Cleaners for the yearDecember 31, 2016 are as follows: With ComputationJim Cricket CleanersPartial Unadjusted Trial BalanceDecember 31, 2016DebitsCreditsCashP 18,000Prepaid Rent86,400EquipmentAccumulated Depreciation - EquipmentNotes Payable36,000P 14,40018,000Unearned Income8,100Adjustment data for December 31,2016 as follow:a. Prepaid rent represents 18-month office rent paid last February 01, 2016b. The equipment was purchased on account last September 30,2014. It has an estimated salvagevalue of P 3,600 and is expected to have a useful life of 3 years. Straight-line method ofdepreciation will be used.c. The balance in Notes Payable represents a 60-day, 12% interest-bearing note dated December1,2016.d. Last August 31, Jim Crickets Cleaners received a check amounting to P 8,100 as payment for ninemonths cleaning service.Required: Give the adjusting journal entries on December 31, 2016.00

A. Record the following transaction of Pal Tos Sales for the month of May under the periodic inventory system and perpetual inventory system. Assume that terms for all purchases are 2/20, n/30 and terms for all sales are 1/15, n/30. Mark up for all sales is 25%. With Computation. May 5 Cash sales, P 210,000 Purchased P 550,000 merchandise from Hoo Enterprise on account. 8 Sold P 30,000 goods to Lucky Trading 11 Purchased P 150,000 merchandise from Vee Cut Sales 15 Received P 3,000, returns of defective Merchandise from Lucky Trading 19 Returned P 50,000 defective goods to Hoo Enterprise 22 Lucky Trading Settled its account in full 25 Paid Hoo Enterprises in full 30 Settled account with Vee Cut Sales in full ww m

A. Record the following transaction of Pal Tos Sales for the month of May under the periodic inventory system and perpetual inventory system. Assume that terms for all purchases are 2/20, n/30 and terms for all sales are 1/15, n/30. Mark up for all sales is 25%. With Computation. May 5 Cash sales, P 210,000 Purchased P 550,000 merchandise from Hoo Enterprise on account. 8 Sold P 30,000 goods to Lucky Trading 11 Purchased P 150,000 merchandise from Vee Cut Sales 15 Received P 3,000, returns of defective Merchandise from Lucky Trading 19 Returned P 50,000 defective goods to Hoo Enterprise 22 Lucky Trading Settled its account in full 25 Paid Hoo Enterprises in full 30 Settled account with Vee Cut Sales in full ww m

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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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.
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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