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Requirements 1. Journalise the following​ transactions: a. Purchase of the goods on 8 January 2016. b. Return of the damaged goods on 12 January 2016. c. Payment on 15 January 2016. 2. What is the final balance of Wonderland Toys inventory​ account?

Requirements 1. Journalise the following​ transactions: a. Purchase of the goods on 8 January 2016. b. Return of the damaged goods on 12 January 2016. c. Payment on 15 January 2016. 2. What is the final balance of Wonderland Toys inventory​ account?

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 37E: Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following...
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Question
Suppose
Wonderland Toys
buys
$160 000
worth of
ConnectABlock
toys on credit terms of
2​/10​,
​n/60.
Some of the goods are damaged in​ shipment, so
Wonderland Toys
returns
$15 950
of the merchandise to
ConnectABlock.
The business uses a perpetual inventory system. All amounts are inclusive of GST at the rate of​ 10%.
 
Requirements
1.
Journalise the following​ transactions:
 
a. Purchase of the goods on 8
January
2016.
 
b.
Return of the damaged goods on 12
January
2016.
 
c. Payment on 15
January
2016.
2.
What is the final balance of
Wonderland Toys
inventory​ account?
 
 
 

Question content area bottom

Part 1
 
Requirement 1a. Journalise the
purchase
of the goods on 8
January
2016.
​(Record debits​ first, then credits. Explanations​ aren't required. Round amounts to the nearest​ dollar.)
 
Journal Entry
Date
Accounts
Debit
Credit
Jan
8
 
 
 
 
 
 
 
 
 
 
 
 
 
Part 2
Requirement 1b. Journalise the
return
of the damaged goods on 12
January
2016.
​(Record debits​ first, then credits. Explanations​ aren't required. Round amounts to the nearest​ dollar.)
 
Journal Entry
Date
Accounts
Debit
Credit
Jan
12
 
 
 
 
 
 
 
 
 
 
 
 
 
Part 3
Requirement 1c. Journalise the
payment
on 15
January
2016.
​(Record debits​ first, then credits. Explanations​ aren't required. Round amounts to the nearest​ dollar.)
 
Journal Entry
Date
Accounts
Debit
Credit
Jan
15
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Part 4
Requirement 2. What is the final balance of
Wonderland Toys
inventory​ account?
 
Post the necessary entries to the​ T-account to calculate the ending balance. Determine the final inventory cost. ​(Round amounts to the nearest​ dollar.)
 
Inventory
 
 
 
  
 
 
 
 
 
  
 
 
Net cost
 
 
 
 
 
 
 
 
 
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