Jan. 4 Bought five mixers on account from Kzinski Supply Co. for $3,020, FOB shipping point, terms n/30. 6 Paid $100 freight on the January 4 purchase. 7 Returned one of the mixers to Kzinski because it was damaged during shipping. Kzinski issues Cookie Creations credit for the cost of mixer plus $20 for the cost of freight that was paid on January 6 for one mixer. 9 Bought four mixers on account from Kzinski Supply Co. for $2,392, FOB shipping point, terms n/30. 10 Natalie is concerned that there is not enough cash available to pay for all of the mixers purchased. She invests an additional $2,080 cash in Cookie Creations. 12 Paid $88 freight on the January 9 purchase. 17 Natalie issued a check to her assistant for all the help the assistant has given her during the month. Her assistant worked 20 hours in January and is also paid the $69 owed at December 31, 2019. (Natalie’s assistant earns $8 an hour.) 20 Paid a $152 cell phone bill ($84 for the December 2022 account payable and $68 for the month of January). (Recall that the cell phone is used only for business purposes.) (Use accounts payable). 21 Paid Kzinski the amount due from the January 4 purchase. 22 Collected $396 of the accounts receivable from December 2022. 23 Three mixers are sold on account for $3,588, FOB destination, terms n/30. (Hint: You must record both the revenue and expense components of this transaction. The expense component should include the invoice cost plus freight-in.) (Cost of goods sold is $624 per mixer.) 24 Paid the $84 of delivery charges for the three mixers that were sold on January 23. 26 Sold two mixers for $2,392 cash. (Cost of goods sold is $624 per mixer.) 28 Collected the amounts due from customers for the January 23 transaction. 29 Paid Kzinski the amount due from the January 9 purchase in the amount of $2,392. 31 Natalie withdrew $780 cash for personal use.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 3PB: Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc....

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Natalie uses the perpetual inventory system. The following transactions happen during the month of January.

Jan. 4		Bought five mixers on account from Kzinski Supply Co. for $3,020, FOB shipping point, terms n/30.
6		Paid $100 freight on the January 4 purchase.
7		Returned one of the mixers to Kzinski because it was damaged during shipping. Kzinski issues Cookie Creations credit for the cost of mixer plus $20 for the cost of freight that was paid on January 6 for one mixer.
9		Bought four mixers on account from Kzinski Supply Co. for $2,392, FOB shipping point, terms n/30.
10		Natalie is concerned that there is not enough cash available to pay for all of the mixers purchased. She invests an additional $2,080 cash in Cookie Creations.
12		Paid $88 freight on the January 9 purchase.
17		Natalie issued a check to her assistant for all the help the assistant has given her during the month. Her assistant worked 20 hours in January and is also paid the $69 owed at December 31, 2019. (Natalie’s assistant earns $8 an hour.)
20		Paid a $152 cell phone bill ($84 for the December 2022 account payable and $68 for the month of January). (Recall that the cell phone is used only for business purposes.) (Use accounts payable).
21		Paid Kzinski the amount due from the January 4 purchase.
22		Collected $396 of the accounts receivable from December 2022.
23		Three mixers are sold on account for $3,588, FOB destination, terms n/30. (Hint: You must record both the revenue and expense components of this transaction. The expense component should include the invoice cost plus freight-in.) (Cost of goods sold is $624 per mixer.)
24		Paid the $84 of delivery charges for the three mixers that were sold on January 23.
26		Sold two mixers for $2,392 cash. (Cost of goods sold is $624 per mixer.)
28		Collected the amounts due from customers for the January 23 transaction.
29		Paid Kzinski the amount due from the January 9 purchase in the amount of $2,392.
31		Natalie withdrew $780 cash for personal use.

Prepare journal entries for the January 2023 transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record entries in the order displayed in the problem statement.)

Date	Account Titles and Explanation	Debit	Credit

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