At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,050, terms 2/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $270. June 8 Return defective radios to Radio World and receive credit, $400. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $3,700, that had a cost of $2,550. June 18 Receive payment on account from customers, $2,700. June 20 Purchase radios on account from Sound Unlimited for $3,150, terms 2/10, n/30. June 23 Sell radios to customers for cash, $4,650, that had a cost of $2,950.
At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,050, terms 2/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $270. June 8 Return defective radios to Radio World and receive credit, $400. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $3,700, that had a cost of $2,550. June 18 Receive payment on account from customers, $2,700. June 20 Purchase radios on account from Sound Unlimited for $3,150, terms 2/10, n/30. June 23 Sell radios to customers for cash, $4,650, that had a cost of $2,950.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following transactions occur during the month of June.
June | 2 | Purchase radios on account from Radio World for $2,050, terms 2/15, n/45. | ||
June | 4 | Pay cash for freight charges related to the June 2 purchase from Radio World, $270. | ||
June | 8 | Return defective radios to Radio World and receive credit, $400. | ||
June | 10 | Pay Radio World in full. | ||
June | 11 | Sell radios to customers on account, $3,700, that had a cost of $2,550. | ||
June | 18 | Receive payment on account from customers, $2,700. | ||
June | 20 | Purchase radios on account from Sound Unlimited for $3,150, terms 2/10, n/30. | ||
June | 23 | Sell radios to customers for cash, $4,650, that had a cost of $2,950. | ||
June | 26 | Return damaged radios to Sound Unlimited and receive credit of $500. | ||
June | 28 | Pay Sound Unlimited in full. |
3. Prepare the top section of the multiple-step income statement through gross profit for the month of June.
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