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Michelle French owns and operates Books and More, a retail book store. Selected account balances on June 1 are as follows: The following purchases and cash payments transactions took place during the month of June: June 1 Purchased books on account from Irving Publishing Company, $2,100. Invoice No. 101, terms 2/10, n/30, FOB destination. 2 Issued Cheek No. 300 to Northeastern Publishing Co. for goods purchased on May 23, terms 2/10, n/30, $1,960 (the $2,000 invoice amount less the 2% discount). 3 Purchased books on account from Broadway Publishing, Inc., $2,880. Invoice No. 711, less a 20% trade discount, and invoice terms of 3/10, n/30, FOB shipping point. 3 Issued Cheek No. 301 to Mayday Shipping for delivery from Broadway Publishing, Inc., $250. 4 Issued Cheek No. 302 for June rent, $625. 8 Purchased books on account from Northeastern Publishing Co., $5,825. Invoice No. 268, terms 2/com, n/60, FOB destination. 10 Received a credit memo from Irving Publishing Company, $550. Books had been returned because the covers were on upside down. 13 Issued Check No. 304 to Broadway Publishing, Inc., for the purchase made on June 3. (Check No. 303 was voided because an error was made in preparing it.) 28 Made the following purchases: 30 Issued Cheek No. 305 to Taylor County Utility Co. for June utilities, $325. 30 French withdrew cash for personal use, $4,500. Issued Check No. 306. 30 Issued Cheek No. 307 to Irving Publishing Company for purchase made on June 1 less returns made on June 10. 30 Issued Check No. 308 to Northeastern Publishing Co. for purchase made on June 8. 30 Issued Check No. 309 for books purchased at an auction, $1,328. REQUIRED 1. Enter the transactions in a general journal (start with page 16). 2. Post from the journal to the general ledger accounts and the accounts payable ledger. Use general ledger account numbers as indicated in the chapter. 3. Prepare a schedule of accounts payable. 4. If merchandise inventory was $35,523 on January 1 and $42,100 as of June 30, prepare the cost of goods sold section of the income statement for the six months ended June 30,20--.

BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756
BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756

Solutions

Chapter
Section
Chapter 11, Problem 1MP
Textbook Problem

Michelle French owns and operates Books and More, a retail book store. Selected account balances on June 1 are as follows:

Chapter 11, Problem 1MP, Michelle French owns and operates Books and More, a retail book store. Selected account balances on , example  1

 The following purchases and cash payments transactions took place during the month of June:

June 1 Purchased books on account from Irving Publishing Company, $2,100. Invoice No. 101, terms 2/10, n/30, FOB destination.

2 Issued Cheek No. 300 to Northeastern Publishing Co. for goods purchased on May 23, terms 2/10, n/30, $1,960 (the $2,000 invoice amount less the 2% discount).

3 Purchased books on account from Broadway Publishing, Inc., $2,880. Invoice No. 711, less a 20% trade discount, and invoice terms of 3/10, n/30, FOB shipping point.

3 Issued Cheek No. 301 to Mayday Shipping for delivery from Broadway Publishing, Inc., $250.

4 Issued Cheek No. 302 for June rent, $625.

8 Purchased books on account from Northeastern Publishing Co., $5,825. Invoice No. 268, terms 2/com, n/60, FOB destination.

10 Received a credit memo from Irving Publishing Company, $550. Books had been returned because the covers were on upside down.

13 Issued Check No. 304 to Broadway Publishing, Inc., for the purchase made on June 3. (Check No. 303 was voided because an error was made in preparing it.)

28 Made the following purchases:

Chapter 11, Problem 1MP, Michelle French owns and operates Books and More, a retail book store. Selected account balances on , example  2

30 Issued Cheek No. 305 to Taylor County Utility Co. for June utilities, $325.

30 French withdrew cash for personal use, $4,500. Issued Check No. 306.

30 Issued Cheek No. 307 to Irving Publishing Company for purchase made on June 1 less returns made on June 10.

30 Issued Check No. 308 to Northeastern Publishing Co. for purchase made on June 8.

30 Issued Check No. 309 for books purchased at an auction, $1,328.

REQUIRED

  1. 1. Enter the transactions in a general journal (start with page 16).
  2. 2. Post from the journal to the general ledger accounts and the accounts payable ledger. Use general ledger account numbers as indicated in the chapter.
  3. 3. Prepare a schedule of accounts payable.
  4. 4. If merchandise inventory was $35,523 on January 1 and $42,100 as of June 30, prepare the cost of goods sold section of the income statement for the six months ended June 30,20--.

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Chapter 11 Solutions

College Accounting, Chapters 1-27
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Ch. 11 - Deering Housewares purchased merchandise for 1,200...Ch. 11 - Based on the following data for Daves Supply...Ch. 11 - The following journal entries are for current...Ch. 11 - On June 23, Felini Plumbings accounts payable...Ch. 11 - Identify the major documents commonly used in the...Ch. 11 - Distinguish between a cash discount and a trade...Ch. 11 - What is a voucher system?Ch. 11 - In a voucher system, a payment is supported by...Ch. 11 - Describe how each of the following accounts is...Ch. 11 - How are cost of goods sold and gross profit...Ch. 11 - What steps are followed in posting purchases from...Ch. 11 - What steps are followed in posting purchases from...Ch. 11 - What steps are followed in posting purchases...Ch. 11 - What steps are followed in posting cash payments...Ch. 11 - What steps are followed in posting cash payments...Ch. 11 - If the total of the schedule of accounts payable...Ch. 11 - PURCHASING DOCUMENTS AND FLOWCHART LABELING A...Ch. 11 - TRADE DISCOUNT AND CASH DISCOUNTS Merchandise was...Ch. 11 - PURCHASE TRANSACTIONS AND T ACCOUNTS Using T...Ch. 11 - COMPUTING GROSS PROFIT The following data were...Ch. 11 - JOURNALIZING PURCHASES TRANSACTIONS Journalize the...Ch. 11 - JOURNALIZING PURCHASES RETURNS AND ALLOWANCES AND...Ch. 11 - JOURN ALIZING CASH PAYMENTS TR ANS ACTIONS Enter...Ch. 11 - SCHEDULE OF ACCOUNTS PAYABLE Ryans Express, a...Ch. 11 - PURCHASES TRANSACTIONS J. B. Speck, owner of...Ch. 11 - CASH PAYMENTS TR ANS ACTIONS Sam Santiago operates...Ch. 11 - PURCHASES AND CASH PAYMENTS TRANSACTIONS Emily...Ch. 11 - SCHEDULE OF ACCOUNTS PAYABLE Based on the...Ch. 11 - PURCHASING DOCUMENTS AND FLOWCHART LABELING A...Ch. 11 - TRADE DISCOUNT AND CASH DISCOUNTS Merchandise was...Ch. 11 - PURCHASE TRANSACTIONS AND T ACCOUNTS Using T...Ch. 11 - COMPUTING GROSS PROFIT The following data were...Ch. 11 - JOURNALIZING PURCHASES TRANSACTIONS Journalize the...Ch. 11 - JOURNALIZING PURCHASES RETURNS AND ALLOWANCES AND...Ch. 11 - JOURN ALIZING CASH PAYMENTS TR ANS ACTIONS Enter...Ch. 11 - SCHEDULE OF ACCOUNTS PAYABLE Crystals Candles, a...Ch. 11 - PURCHASES TRANSACTIONS Ann Benton, owner of...Ch. 11 - CASH PAYMENTS TRANSACTIONS Kay Zembrowski operates...Ch. 11 - PURCHASES AND CASH PAYMENTS TRANSACTIONS Debbie...Ch. 11 - SCHEDULE OF ACCOUNTS PAYABLE Based on the...Ch. 11 - You are working as a summer intern at a rapidly...Ch. 11 - Bobs Discount Auto Parts receives a cash discount...Ch. 11 - Michelle French owns and operates Books and More,...Ch. 11 - Record the following transactions in a general...

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