During January 2016, UPM Company completed the following transactions. Beginning inventory as of January 1 include 150 units $40 each which totals $6,000: o Jan 2: Purchased 300 units of inventory for 13,500$ from Happy Company, on terms, 3/20, n/60. o Jan 4: Purchased 150 units of inventory from Maids Company on account with terms 2/5, n/30. Total invoice includes $6,800 plus $250 freight charges. o Jan 5: Paid total salary of the December 2015, 27,000$. o Jan 10: Paid to Maids Company. o Jan 11: Prepaid one-year insurance, $3,600. o Jan 12: Sold 500 units of goods to Shine Company for $50,000 ($100 each) on account with terms 5/10, n/30. o Jan 14: Received 50 units of goods back from Shine Company (Returned goods are from $47 of cost each). o Jan 15: Received payment from Shine Company, settling the amount due in full. o Jan 20: Sold 70 units on account, $7,000 ($100 each) for cash to Bridget Company, n/30. o Jan 26: Owner withdrew cash of 5,000$

During January 2016, UPM Company completed the following transactions. Beginning inventory as of January 1 include 150 units $40 each which totals $6,000: o Jan 2: Purchased 300 units of inventory for 13,500$ from Happy Company, on terms, 3/20, n/60. o Jan 4: Purchased 150 units of inventory from Maids Company on account with terms 2/5, n/30. Total invoice includes $6,800 plus $250 freight charges. o Jan 5: Paid total salary of the December 2015, 27,000$. o Jan 10: Paid to Maids Company. o Jan 11: Prepaid one-year insurance, $3,600. o Jan 12: Sold 500 units of goods to Shine Company for $50,000 ($100 each) on account with terms 5/10, n/30. o Jan 14: Received 50 units of goods back from Shine Company (Returned goods are from $47 of cost each). o Jan 15: Received payment from Shine Company, settling the amount due in full. o Jan 20: Sold 70 units on account, $7,000 ($100 each) for cash to Bridget Company, n/30. o Jan 26: Owner withdrew cash of 5,000$

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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