Rebecca's Equestrian Supplies sells riding saddles. On July 1, 2008, Rebecca had 9 saddles in inventory at a cost of $900 each. During July, the following transactions occurred. Jul. 1 Purchased 5 saddles at $900 each from North Country Equipment on account, terms net 30. 4 Returned 1 of the saddles purchased from North Country because it was defective. 9 Paid the balance due on the North Country account payable 12 Sold 8 saddles for $1,250 each, terms n/30 13 Paid freight of $250 on the Jul 12th sale 16 Purchased 7 saddles from Anders Tack Suppliers for $825 each, terms n/30 17 Sold 6 of the saddles purchased from Anders for cash, $1,080 each 19 Customer returned 2 of the saddles purchased on July 17th. Provided a cash refund. The saddles were returned to inventory 31 Counted the saddles on hand and determined the total cost of the remaining inventory was $6,975 Calculate the July cost of goods sold.

Rebecca's Equestrian Supplies sells riding saddles. On July 1, 2008, Rebecca had 9 saddles in inventory at a cost of $900 each. During July, the following transactions occurred. Jul. 1 Purchased 5 saddles at $900 each from North Country Equipment on account, terms net 30. 4 Returned 1 of the saddles purchased from North Country because it was defective. 9 Paid the balance due on the North Country account payable 12 Sold 8 saddles for $1,250 each, terms n/30 13 Paid freight of $250 on the Jul 12th sale 16 Purchased 7 saddles from Anders Tack Suppliers for $825 each, terms n/30 17 Sold 6 of the saddles purchased from Anders for cash, $1,080 each 19 Customer returned 2 of the saddles purchased on July 17th. Provided a cash refund. The saddles were returned to inventory 31 Counted the saddles on hand and determined the total cost of the remaining inventory was $6,975 Calculate the July cost of goods sold.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter20: Accounting For Inventory

Section: Chapter Questions

Problem 1MP

See similar textbooks

Similar questions

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.
Blue Barns sold 136 gallons of paint at $31 per gallon on July 6 to a customer with a cost of $19 per gallon to Blue Barns. Terms of the sale are 2/15, n/45, invoice dated July 6. The customer pays their account in full on July 24. On July 28, the customer discovers 17 gallons are the wrong color and returns the paint for a full cash refund. Blue Barns returns the gallons to their inventory at the original cost per gallon. Record the journal entries to recognize these transactions for Blue Barns.
Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
Williams Corporation had the following purchases for May: May 3Bought ten lawn rakes from Owens Company, invoice no. J34Y9, 250.25; terms net 15 days; dated May 1; FOB shipping point, freight prepaid and added to the invoice, 15 (total 265.25). 11Bought one weed trimmer from Lionels Lawn Landscaping, invoice no. R7740, 219.72; terms 2/10, n/30; dated May 9; FOB shipping point, freight prepaid and added to the invoice, 35 (total 254.72). 15Bought five bags of fertilizer from Wrights Farm Supplies, invoice no. 478, 210.97; terms net 30 days; dated May 13; FOB destination. 25Bought one lawn mower from Gutierrez Corporation, invoice no. 2458, 425.39; terms net 30 days; dated May 22; FOB destination. Assume that Williams Corporation had beginning balances on May 1 of 3,492.29 (Accounts Payable 212), 4,239.49 (Purchases 511), and 234.89 (Freight In 514). Record the purchases of merchandise on account in the purchases journal (page 13) and then post to the general ledger.
Logo Gear purchased $2,250 worth of merchandise during the month, and its monthly income statement shows cost of goods sold of $2,000. What was the beginning inventory if the ending inventory was $1,000?
John Neff owns and operates Waikiki Surf Shop. A year-end trial balance is provided on page 561. Year-end adjustment data for the Waikiki Surf Shop are shown below. Neff uses the periodic inventory system. Year-end adjustment data are as follows: (a, b)A physical count shows that merchandise inventory costing 51,800 is on hand as of December 31, 20--. (c, d, e)Neff estimates that customers will be granted 2,000 in refunds of this years sales next year and the merchandise expected to be returned will have a cost of 1,200. (f)Supplies remaining at the end of the year, 600. (g)Unexpired insurance on December 31, 2,600. (h)Depreciation expense on the building for 20--, 5,000. (i)Depreciation expense on the store equipment for 20--, 3,000. (j)Wages earned but not paid as of December 31, 1,800. (k)Neff also offers boat rentals which clients pay for in advance. Unearned boat rental revenue as of December 31 is 3,000. Required 1. Prepare a year-end spreadsheet. 2. Journalize the adjusting entries. 3. Compute cost of goods sold using the spreadsheet prepared for part (1).
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.
Blue Barns purchased 888 gallons of paint at $19 per gallon from a supplier on June 3. Terms of the purchase are 2/15, n/45, invoice dated June 3. Blue Barns pays their account in full on June 20. On June 22, Blue Barns discovers 20 gallons are the wrong color and returns the gallons for a full cash refund. Record the journal entries to recognize these transactions for Blue Barns.
During the months of January, Ava Corporation purchased goods from two suppliers. The sequence of events was as follows: Jan. 6 Purchased goods for $1,120 from Noah with terms 2/10, n/30. 6 Purchased goods from Emma for $970 with terms 2/10, n/30. 14 Paid Noah in full. 30 Paid Emma in full. At the end of January, how will Ava's inventory increase by?
During the months of January, Ava Corporation purchased goods from two suppliers. The sequence of events was as follows: Jan. 6 Purchased goods for $1,590 from Noah with terms 2/10, n/30. 6 Purchased goods from Emma for $1,020 with terms 1/10, n/30. 14 Paid Emma in full. 15 Paid Noah in full. At the end of January, how will Ava's inventory increase by?
In its first year of operations, Dulany Company, a clothing store, purchased $18,000 of merchandisefrom a supplier on account, terms 2/10, n 30. Dulany Company returned $3,000 of defectivemerchandise, and then paid the amount due within the discount period. During the year, the companysold merchandise inventory costing $12,000 to its customers. What would be the balance in Dulany’sCompany’s Merchandise Inventory account at the end of the year?A. $2,700B. $3,200C. $3,300D. $2,640
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.