entered into the following transactions in May 2010: May 1- The Western Wear Company was organized as a corporation. The stockholders purchased stock at par for the following assets in the business: Php462,000 cash, Php168,000 merchandise, and Php105,000 land. May 1- Paid rent on administrative offices for May, Php25,200. May 5- The company purchased merchandise from Carl Company on account, Php189,000; terms 2/10, n/30. Freight terms were FOB shipping point, freight collect. May 8- Cash of Php8,400 was paid to a trucking company for delivery of the merchandise purchased May 5. May 14- The company sold merchandise on account, Php315,000; terms 2/10, n/30 May 15- Paid Carl Company the amount due on the purchase of May 5. May 16- Of the merchandise sold May 14, Php13,860 was returned for credit. May 19- Salaries for services received were paid for May as follows: office employees, Php16,800; salespersons, Php33,600. May 24- The company collected the amount due on Php126,000 of the accounts receivable arising from the sale of May 14. May 25- The company purchased merchandise on account from Bond Company, Php151,200; terms 2/10, n/30. Freight terms were FOB shipping point, freight collect. May 27- Of the merchandise purchased May 25, Php25,200 was returned to the vendor. May 28- A trucking company was paid Php2,100 for delivery to The Western Wear Company of the goods purchased May 25. May 29- The company sold merchandise on open account, Php15,120; terms 2/10, n/30. May 30- Cash sales were Php74,088. May 30- Cash of Php100,800 was received from the sale of May 14. May 31- Paid Bond Company for the merchandise purchased on May 25, taking into consideration the merchandise returned on May 27. REQUIRED • Journalize the following transactions.
entered into the following transactions in May 2010: May 1- The Western Wear Company was organized as a corporation. The stockholders purchased stock at par for the following assets in the business: Php462,000 cash, Php168,000 merchandise, and Php105,000 land. May 1- Paid rent on administrative offices for May, Php25,200. May 5- The company purchased merchandise from Carl Company on account, Php189,000; terms 2/10, n/30. Freight terms were FOB shipping point, freight collect. May 8- Cash of Php8,400 was paid to a trucking company for delivery of the merchandise purchased May 5. May 14- The company sold merchandise on account, Php315,000; terms 2/10, n/30 May 15- Paid Carl Company the amount due on the purchase of May 5. May 16- Of the merchandise sold May 14, Php13,860 was returned for credit. May 19- Salaries for services received were paid for May as follows: office employees, Php16,800; salespersons, Php33,600. May 24- The company collected the amount due on Php126,000 of the accounts receivable arising from the sale of May 14. May 25- The company purchased merchandise on account from Bond Company, Php151,200; terms 2/10, n/30. Freight terms were FOB shipping point, freight collect. May 27- Of the merchandise purchased May 25, Php25,200 was returned to the vendor. May 28- A trucking company was paid Php2,100 for delivery to The Western Wear Company of the goods purchased May 25. May 29- The company sold merchandise on open account, Php15,120; terms 2/10, n/30. May 30- Cash sales were Php74,088. May 30- Cash of Php100,800 was received from the sale of May 14. May 31- Paid Bond Company for the merchandise purchased on May 25, taking into consideration the merchandise returned on May 27. REQUIRED • Journalize the following transactions.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter2: Asset And Liability Valuation And Income Recognition
Section: Chapter Questions
Problem 20PC: Analyzing Transactions. Using the analytical framework, indicate the effect of the following related...
Related questions
Question
REQUIRED:
Journalize the following transactions.
Transcribed Image Text:The Western Wear Company, a wholesaler of western wear clothing, sells to retailers. The company
entered into the following transactions in May 2010:
May 1- The Western Wear Company was organized as a corporation. The stockholders purchased stock
at par for the following assets in the business: Php462,000 cash, Php168,000 merchandise, and
Php105,000 land.
May 1- Paid rent on administrative offices for May, Php25,200.
May 5- The company purchased merchandise from Carl Company on account, Php189,000; terms 2/10,
n/30. Freight terms were FOB shipping point, freight collect.
May 8- Cash of Php8,400 was paid to a trucking company for delivery of the merchandise purchased
May 5.
May 14- The company sold merchandise on account, Php315,000; terms 2/10, n/30
May 15- Paid Carl Company the amount due on the purchase of May 5.
May 16- Of the merchandise sold May 14, Php13,860 was returned for credit.
May 19- Salaries for services received were paid for May as follows: office employees, Php16,800;
salespersons, Php33,600.
May 24- The company collected the amount due on Php126,000 of the accounts receivable arising from
the sale of May 14.
May 25- The company purchased merchandise on account from Bond Company, Php151,200; terms
2/10, n/30. Freight terms were FOB shipping point, freight collect.
May 27- Of the merchandise purchased May 25, Php25,200 was returned to the vendor.
May 28- A trucking company was paid Php2,100 for delivery to The Western Wear Company of the
goods purchased May 25.
May 29- The company sold merchandise on open account, Php15,120; terms 2/10, n/30.
May 30- Cash sales were Php74,088.
May 30- Cash of Php100,800 was received from the sale of May 14.
May 31- Paid Bond Company for the merchandise purchased on May 25, taking into consideration the
merchandise returned on May 27.
REQUIRED
• Journalize the following transactions.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College