QUESTION 2 Study the following transactions that occurred during August 2022 for Renwick & Co. Aug 2 - Renwick & Co. sold 40 office desks costing $2,000 each, at a unit price of $4,500 to Shams Ltd. Terms: 2/10, n/30. Aug 7-Shams Ltd. Returned for full credit 6 of the desks acquired on August 2 because they were of the incorrect size and style. Aug 8 - Renwick & Co. returned the office desks to its inventory. Aug 9 - Renwick & Co. received payment by cheque from Shams Ltd. for 30 office desks. Aug 27 - Renwick & Co. received payment in cash from Shams Ltd. in full settlement for the remaining office desks acquired on August 2. Renwick & Co. uses the net method to record sales and cash discounts and the perpetual inventory system. You may copy and paste from this list: Accounts receivable Discount Interest income Bad debt expense Bank Cash Cost of Goods Sold COGS REQUIRED: Interest receivable Inventory Notes receivable Par Premium Sales discounts Sales discounts forfeited Sales returns Sales revenue Service revenue

QUESTION 2 Study the following transactions that occurred during August 2022 for Renwick & Co. Aug 2 - Renwick & Co. sold 40 office desks costing $2,000 each, at a unit price of $4,500 to Shams Ltd. Terms: 2/10, n/30. Aug 7-Shams Ltd. Returned for full credit 6 of the desks acquired on August 2 because they were of the incorrect size and style. Aug 8 - Renwick & Co. returned the office desks to its inventory. Aug 9 - Renwick & Co. received payment by cheque from Shams Ltd. for 30 office desks. Aug 27 - Renwick & Co. received payment in cash from Shams Ltd. in full settlement for the remaining office desks acquired on August 2. Renwick & Co. uses the net method to record sales and cash discounts and the perpetual inventory system. You may copy and paste from this list: Accounts receivable Discount Interest income Bad debt expense Bank Cash Cost of Goods Sold COGS REQUIRED: Interest receivable Inventory Notes receivable Par Premium Sales discounts Sales discounts forfeited Sales returns Sales revenue Service revenue

Name: QUESTION 2Study the following transactions that occurred during Augus
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Description: QUESTION 2Study the following transactions that occurred during August 2022 for Renwick & Co.Aug 2 - Renwick & Co. sold 40 office desks costing $2,000 each, at a unit price of $4,500to Shams Ltd. Terms: 2/10, n/30.Aug 7- Shams Ltd. Returned for full

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 54BE

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Assignment 1 The Trial Balance of PAG Enterprises, a dealer in HR Software, as at 31stDecember, 2021. GHS GHS Capital 240,000 Receivables and Payables 159,000 51,000 Inventory 99,000 Motor vehicles: (cost) 72,500 Accumulated depreciation (31 December 2020) 32,500 Office equipment: (cost) 90,000 Accumulated depreciation (31 December 2020) 30,000 Administrative expenses 26,000 Purchases and sales 243,750…
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ASSIGNMENT 05: JOURNAL ENTRIES FOR MERCHANDISING BUSINESS Transactions for the 1st year 200x:Jan 1 Owner invested P1,000,000 cash Feb 1 Purchased furniture worth P120,000 with 8 years useful life and no salvage value Feb 12 Purchases on account, P600,000; terms: 2/20; n/30. FOB shipping point, freight prepaid, P2,000. Mar 2 Sold merchandise on account, P900,000; terms 10; 5/15, n/30. FOB shipping point, freight prepaid, P25,000 Mar 7 Collected 80% of receivable on March 2 Mar 12 Paid purchases made on Feb. 12 Mar 23 Received sales returns, P25,000 from sales on Mar 2 Apr 2 Collected remaining receivables on Mar 2. Dec. 30 Paid Rent, P80,000 and utilities, P16,000 Dec. 31 Accrued salary, P120,000 and merchandise inventory per count P60,000 Transactions for the 2nd year 200y: Jan. 15 Paid accrued salary of 200x Apr 27 Purchased goods on account P480,000. FOB destination, freight prepaid P14,000 May 22 Sold goods for cash to…
Exercise One: The data presented below are related to Gamma Company and has been gathered at June 30, 2020. Gamma Company prepares its financial statements Quarterly. 1. Salaries $1,300 were incurred but unpaid at June 30, 2020. 2. $2,000 of the unearned revenues has been earned prior to June 30, 2020. 3. The equipment of the Company has a cost of $10,000 with a 5 years useful life and no salvage value. It was purchased on January 1, 2020. 4. Services provided to customers totaling $5,000 were not yet billed or recorded on June 30, 2020. 5. The 6-month insurance policy was purchased on May 1, 2020 for $3,000. 6. Utilities expenses of $500 were incurred but unpaid at June 30, 2020. 7. Supplies totaling $600 were used in the last three months. Instructions: Journalize the adjusting entries for Gamma Company at June 30, 2020. Date Accounts Ref Debit Credit
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