During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence ofevents was as follows:June 3 Purchased goods for $4,100 from Diamond Inc. with terms 2/10, n/30.5 Returned goods costing $1,100 to Diamond Inc. for full credit.6 Purchased goods from Club Corp. for $1,000 with terms 2/10, n/30.11 Paid the balance owed to Diamond Inc.22 Paid Club Corp. in full.Required:Assume that Ace uses a perpetual inventory system and that the company had no inventory on handat the beginning of the month. Calculate the cost of inventory as of June 30.
Q: During the months of January and February, Axe Corporation purchase follows: Jan. 6 Purchased goods…
A: Solution journal entries…
Q: The following is a series of related transactions between Company A, a wholesaler, and Company B, a…
A: Journal Entry It is important for the firm to enter the required transaction into the journal to…
Q: The following were selected from among the transactions completed by Caldemeyer Co. during the…
A: Note: As the Chart of Account is not provided, the generally used account titles are used for…
Q: During the months of January and February, Solitare Corporation sold goods to three customers.The…
A:
Q: The following transactions were selected from among those completed by Bear’s Retail Store:Nov. 20…
A: A sale is an exchange of money for goods, services, or other property. In accounting, net sales…
Q: The following selected transactions were completed by Green Lawn Supplies Co., which sells…
A: Journalizing the transaction is the process of recording the transaction in the books of accounts as…
Q: Sanchez Company is a wholesaler of bakery equipments. Beginning of the current year, the entity's…
A: Inventory is the raw materials used in production as well as the goods that are available for sale.…
Q: At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following…
A: The gross profit is calculated as difference between sales and cost of goods sold.
Q: Compute for the following: a. Cost of sales b. Gross profit c. Operating Expenses
A: Cost of Sales: It represents the cost of manufacturing the service or goods sold. It is also known…
Q: Jordan Footwear sells athletic shoes and uses the perpetual inventory system. During June,…
A: For every business, purchases and sales are the most important of transactions. The purchases and…
Q: Record this series of transactions in the general journal of Company B (The company records…
A: Journal Entry It is important for the company to include the required work in the journal in order…
Q: McGovern Distributing is a merchandising company. Record each of the following transactions related…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: The following transactions occurred for Surfer Paradise Ltd (SPL), a raw materials supplier, during…
A: Perpetual Inventory System is a process of valuation of inventory where in there is continuous…
Q: Sheffield Hardware Store completed the following merchandising transactions in the month of May. At…
A: COST OF GOODS SOLD DATE PARTICULAR AMOUNT 2-May Credit Sales 3,300…
Q: The following selected transactions were completed by Amsterdam Supply Co., which sells office…
A: Hence, the above journal entries to record the transaction in the A supply Company’s books of…
Q: During the month of March 2022, Turaco sole trader purchased goods to the value of N$12 000, of…
A: Cost of sales is the total purchase value of goods sold
Q: At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following…
A: Journal entry: It is often defined as the recording of transactions in the first or the primary book…
Q: he following were selected from among the transactions completed by Caldemeyer Co. during the…
A: Journal entries are a record of financial transactions.
Q: At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following…
A: Closing inventory: It implies to the remaining material or stock that lies unsold with a company at…
Q: During the months of January, Ava Corporation purchased goods from two suppliers. The sequence of…
A: Solution: Inventory increase by = Purchase cost of goods cost - Purchase Discount
Q: During the months of January and February, Solitare Corporation sold goods to three customers. The…
A: Discount on Jan. 6 on paymentb received from Wizard Inc. = Amount receivables x rate of discount =…
Q: The following items were selected from among the transactions completed by O’Donnel Co. during the…
A: 1 )
Q: On June 1, Grissol Inc. had an inventory of 10 barbeques at a cost of $440 each. Grissol uses a…
A: JOURNAL: A journal is a book in which accounting transaction is entering accounting terms. Journal…
Q: June 2 Purchase radios on account from Radio World for $2,050, terms 2/15, n/45. June 4 Pay…
A: Period-end Adjustment Entry: Date General Ledger Debit Credit June 30 Income Summary... Dr.…
Q: The following selected transactions were completed during August between Summit Company and…
A: Hence, the above journal entries are passed to record the transactions in S ltd. books of accounts…
Q: The following transactions occurred for Donaldson Inc. during the month of July. Jul. 1 Sold 50…
A: The ledger accounts are prepared to record the transactions for each account separately.
Q: At the beginning of June, Circuit Country has a balance in inventory of $2,600. The following…
A: Sales and Cost of goods sold are given on June 11 and 23.
Q: Sennett Designs (SD) sells furniture on a retail basis. SD began operations duringDecember 2009 and…
A: The profit of the company is the income net of expenses. The income consists of both direct and…
Q: During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of…
A: A perpetual inventory system is an important category of inventory management. It is based on the…
Q: Church Company completes these transactions and events during March of the current year (terms for…
A: A credit in accounting is an entry that documents a decline in assets or a rise in liabilities as…
Q: Purchased merchandise on account from Braun’s Wholesale Supply for $4,500, terms 2/10, n/30. 2…
A: 1) Journal Entries (Amount in $) Date Account Titles and Explanations Debit Credit May 1…
Q: The following items were selected from among the transactions completed by O’Donnel Co. during the…
A: Prepare journal entry (from January 10th - June 1st).
Q: Journalize the entries to record the transactions.
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: After its initial month of operations in December 2021, the following is the trial balance of…
A: Trading & P&L A/c for the period ended December 31,2021 To opening stock 50000 By…
Q: Wiset Company completes these transactions during April of the current year (the terms of all Its…
A: Purchase journal represents the transactions involved in purchasing the goods and service by the…
Q: FDN Trading had the following selected transactions on November 5: Purchase of furniture on account,…
A: Solution: Cash account shows inflows of cash and outflows of cash. Inflows of cash are debited to…
Q: During the months of January, Ava Corporation purchased goods from two suppliers. The sequence of…
A: Purchase of Inventory from Noah discount = $ 1590 * 2% = $ 31.8 Purchase of Inventory from Emma…
Q: Ryan Manufacturing sells flat-pack bookcases to retailers. The following transactions occurred…
A: Sales journal is a special journal in which all credit sales have been recorded
Q: At the beginning of June, Circuit Country has a balance in inventory of $2,350. The following…
A: Income statement is prepared to show the net income or net loss of the company. It includes the…
Q: The following were selected from among the transactions completed by Caldemeyer Co. during the…
A: Journal entry: This is the first step to record accounts. It is written in the same order in which…
Q: Hobart Sign Company began the month of June with an inventory of 50 signs that cost a total of…
A: First-in, First-out Method: In this method, we sell the goods purchased first and then goods…
Q: Pina Colada Corp. completed the following merchandising transactions in the month of May. At the…
A: May 9 : Sales discount = $ 4800 * 2% = $ 96
Q: The following is a series of related transactions between Texas Wholesale Corp. and Boot Hill, a…
A: Problem 5.7 : a. Texas Wholesale Corp. On February 9, Texas Wholesale Corp. sold Boot Hill Sold =…
Q: During its first month of business, Dig the Dogs, Inc. purchased $700 of hotdogs of which it paid…
A: The cost of goods sold is the cost that can be assigned to the goods that are sold during the year.…
Q: [The following information applies to the questions dlisplayed below.) At the beginning of June,…
A: Journal entry is a record of financial transactions in the books of accounts of a business. It…
Q: After its initial month of operations in December 2021, the following is the trial balance of…
A: Income statement shows the performance for the year. If the income exceed expenses then it shows…
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of
events was as follows:
June 3 Purchased goods for $4,100 from Diamond Inc. with terms 2/10, n/30.
5 Returned goods costing $1,100 to Diamond Inc. for full credit.
6 Purchased goods from Club Corp. for $1,000 with terms 2/10, n/30.
11 Paid the balance owed to Diamond Inc.
22 Paid Club Corp. in full.
Required:
Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand
at the beginning of the month. Calculate the cost of inventory as of June 30.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Record journal entries for the following transactions of Furniture Warehouse. A. July 5: Purchased 30 couches at a cost of $150 each from a manufacturer. Credit terms are 2/15, n/30, invoice date July 5. B. July 10: Furniture Warehouse returned 5 couches for a full refund. C. July 15: Furniture Warehouse found 6 defective couches, but kept the merchandise for an allowance of $500. D. July 20: Furniture Warehouse paid their account in full with cash.Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On December 10, Lands Inc. contracts with a supplier to purchase 450 plants for its merchandise inventory, on credit, for $12.50 each. Credit terms are 4/15, n/30 from the invoice date of December 10. B. On December 28, Lands pays the amount due in cash to the supplier.The following transactions relate to Hawkins, Inc., an office store wholesaler, during June of this year. Terms of sale are 2/10, n/30. The company is located in Los Angeles, California. June 1Sold merchandise on account to Hendrix Office Store, invoice no. 1001, 451.20. The cost of the merchandise was 397.06. 3Bought merchandise on account from Krueger, Inc., invoice no. 845A, 485.15; terms 1/10, n/30; dated June 1; FOB San Diego, freight prepaid and added to the invoice, 15 (total 500.15). 10Sold merchandise on account to Ballard Stores, invoice no. 1002, 2,483.65. The cost of the merchandise was 2,235.29. 13Bought merchandise on account from Kennedy, Inc., invoice no. 4833, 2,450.13; terms 2/10, n/30; dated June 11; FOB San Francisco, freight prepaid and added to the invoice, 123 (total 2,573.13). 18Sold merchandise on account to Lawson Office Store, invoice no. 1003, 754.99. The cost of the merchandise was 671.94. 20Issued credit memo no. 33 to Lawson Office Store for merchandise returned, 103.25. The cost of the merchandise was 91.89. 25Bought merchandise on account from Villarreal, Inc., invoice no. 4R32, 1,552.30; terms net 30; dated June 18; FOB Santa Rosa, freight prepaid and added to the invoice, 84 (total 1,636.30). 30Received credit memo no. 44 for merchandise returned to Villarreal, Inc., for 224.50. Required Record the transaction in the general journal using the perpetual inventory system. If using Working Papers, use pages 25 and 26.
- Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.Review the following transactions and prepare any necessary journal entries. A. On January 5, Bunnet Co. purchases 350 aprons (Supplies) at $25 per apron from a supplier, on credit. Terms of the purchase are 3/10, n/30 from the invoice date of January 5. B. On February 18, Melon Construction receives advance cash payment from a client for construction services in the amount of $20,000. Melon had yet to provide construction services as of February 18. C. On March 21, Noonan Smoothies sells 875 smoothies for $4 cash per smoothie. The sales tax rate is 6.5%. D. On June 7, Organic Methods paid a portion of their noncurrent note in the amount of $9,340 cash.
- The following transactions were completed by Nelsons Hardware, a retailer, during September. Terms on sales on account are 1/10, n/30, FOB shipping point. Sept. 4Received cash from M. Alex in payment of August 25 invoice of 275, less cash discount. 7Issued Ck. No. 8175, 915.75, to Top Tools, Inc., for invoice. no. 2256, recorded previously for 925, less cash discount of 9.25. 10Sold merchandise in the amount of 175 on a credit card. Sales tax on this sale is 8%. The credit card fee the bank deducted for this transaction is 5. 11Issued Ck. No. 8176, 653.40, to Snap Tools, Inc. for invoice no. 726, recorded previously on account for 660. A trade discount of 15% was applied at the time of purchase, and Snap Tools, Inc.s credit terms are 1/10, n/45. 15Received 95 cash in payment of August 20 invoice from N. Johnson. No cash discount applied. 19Received 1,165 cash in payment of a 1,100 note receivable and interest of 65. 22Voided Ck. No. 8177 due to error. 26Received and paid telephone bill, 62; Ck. No. 8178, payable to Southern Telephone Company. 30Paid wages recorded previously for the month, 3,266, Ck. No. 8179. Required 1. Journalize the transactions for September in the cash receipts journal, the general journal (for the transaction on Sept. 10th), or the cash payments journal as appropriate. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals. Prove the equality of debit and credit totals.Allen Company is a wholesale distributor of automotive replacement parts. Initial amounts taken from Allens accounting records are as follows: Accounts payable at December 31, 2019: Additional information is as follows: 1. Parts held on consignment from Charlie to Allen, the consignee, amounting to 155,000 were included in the physical count of goods in Allens warehouse on December 31, 2019, and in accounts payable at December 31, 2019. 2. 22,000 of parts, which were purchased from Full and paid for in December 2019, were sold in the last week of 2019 and appropriately recorded as sales of 28,000. The parts were included in the physical count of goods in Allens warehouse on December 31, 2019, because the parts were on the loading dock waiting to be picked up by customers. 3. Parts in transit to customers on December 31, 2019, shipped FOB shipping point on December 28, 2019, amounted to 34,000. The customers received the parts on January 7, 2020. Sales of 40,000 to the customers for the parts were recorded by Allen on January 3, 2020. 4. Retailers were holding 210,000 at cost (250,000 at retail) of goods on consignment from Allen, the consignor, at their stores on December 31, 2019. 5. Goods were in transit from Greg to Allen on December 31, 2019. The cost of the goods was 25,000, and they were shipped FOB shipping point on December 29, 2019. 6. A quarterly freight bill in the amount of 2,000 specifically relating to merchandise purchases in December 2019, all of which was still in the inventory at December 31, 2019, was received on January 4, 2020. The freight bill was not included in either the inventory or in accounts payable at December 31, 2019. 7. All of the purchases from Baker occurred during the last 7 days of the year. These items have been recorded in accounts payable and accounted for in the physical inventory at cost before discount. Allens policy is to pay invoices in time to take advantage of all cash discounts, adjust inventory accordingly, and record accounts payable, net of cash discounts. Required: Prepare a schedule of adjustments to the initial amounts of inventory, accounts payable, and sales. Show the effect, if any, of each of the transactions separately and indicate if the transactions would have no effect on the amount.Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.
- The following transactions relate to Khan, Inc., a sporting goods wholesaler, during November of this year. Terms of sale are 2/10, n/30. The company is located in Denver, Colorado. Nov. 3Sold merchandise on account to Spence Tennis Shop, invoice no. 5420, 2,482.51. The cost of the merchandise was 1,961.18. 5Issued credit memo no. 38 to Spence Tennis Shop for merchandise returned, 287.45. The cost of the merchandise was 227.09. 7Bought merchandise on account from Maldonado Manufacturing, Inc., invoice no. 1548, 3,854.16; terms n/45; dated November 4; FOB Memphis, freight prepaid and added to the invoice, 135 (total 3,989.16). 9Bought merchandise on account from Lozano, Inc., invoice no. 8755, 426.65; terms 1/15, n/30; dated November 5; FOB New York City, freight prepaid and added to the invoice, 67 (total 493.65). 12Received credit memo no. 542 to Lozano, Inc., for merchandise returned, 102.20. 17Sold merchandise on account to Jacks Golfing Shop, invoice no. 5421, 486.35. The cost of the merchandise was 432.85. 23Sold merchandise on account to Yates Sporting Goods, invoice no. 5422, 2,465.99. The cost of the merchandise was 1,972.79. 28Bought merchandise on account from Fields, Inc., invoice no. 4599, 441.29; terms 2/10, n/30; dated November 25; FOB Austin, freight prepaid and added to the invoice, 102 (total 543.29). Required Record the transaction in the general journal using the perpetual inventory system. If using Working Papers, use pages 84 and 85.The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. Jan. 2Issued Ck. No. 6981 to JSS Management Company for monthly rent, 775. 2J. Hammond, the owner, invested an additional 3,500 in the business. 4Bought merchandise on account from Valencia and Company, invoice no. A691, 2,930; terms 2/10, n/30; dated January 2. 4Received check from Vega Appliance for 980 in payment of 1,000 invoice less discount. 4Sold merchandise on account to L. Paul, invoice no. 6483, 850. 6Received check from Petty, Inc., 637, in payment of 650 invoice less discount. 7Issued Ck. No. 6982, 588, to Fischer and Son, in payment of invoice no. C1272 for 600 less discount. 7Bought supplies on account from Doyle Office Supply, invoice no. 1906B, 108; terms net 30 days. 7Sold merchandise on account to Ellison and Clay, invoice no. 6484, 787. 9Issued credit memo no. 43 to L. Paul, 54, for merchandise returned. 11Cash sales for January 1 through January 10, 4,863.20. 11Issued Ck. No. 6983, 2,871.40, to Valencia and Company, in payment of 2,930 invoice less discount. 14Sold merchandise on account to Vega Appliance, invoice no. 6485, 2,050. Jan. 18Bought merchandise on account from Costa Products, invoice no. 7281D, 4,854; terms 2/10, n/60; dated January 16; FOB shipping point, freight prepaid and added to the invoice, 147 (total 5,001). 21Issued Ck. No. 6984, 194, to M. Miller for miscellaneous expenses not recorded previously. 21Cash sales for January 11 through January 20, 4,591. 23Issued Ck. No. 6985 to Forbes Freight, 96, for freight charges on merchandise purchased on January 4. 23Received credit memo no. 163, 376, from Costa Products for merchandise returned. 29Sold merchandise on account to Bruce Supply, invoice no. 6486, 1,835. 31Cash sales for January 21 through January 31, 4,428. 31Issued Ck. No. 6986, 53, to M. Miller for miscellaneous expenses not recorded previously. 31Recorded payroll entry from the payroll register: total salaries, 6,200; employees federal income tax withheld, 872; FICA Social Security tax withheld, 384.40, FICA Medicare tax withheld, 89.90. 31Recorded the payroll taxes: Social Security tax, 384.40, FICA Medicare tax, 89.90; state unemployment tax, 334.80; federal unemployment tax, 37.20. 31Issued Ck. No. 6987, 4,853.70, for salaries for the month. 31J. Hammond, the owner, withdrew 1,000 for personal use, Ck. No. 6988. Required 1. Record the transactions in the general journal for January. If you are using Working Papers, start with page 1 in the journal. Assume the periodic inventory method is used. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?