Prepare journal entries to record these purchases.
Q: fill in blanks please. let me know how you came to calculations.
A: Equivalent units of production means that when whole of units has not been completed and it is still...
Q: Bailey’s Manufacturing Company is looking at changing its method of reporting bad debts expense. In ...
A: Accounts receivable is the money due to the company in the short term. It is shown in the balance sh...
Q: In its first month of operations, Weatherall Company made three purchases of merchandise in the foll...
A: The periodic system uses an occasional physical count to measure the level of inventory and the cost...
Q: If current assets are 112,000 and current liabilities are 56,000.00 what is the current ratio?
A: Ratio analysis is a method of measuring the financial position of the organization with different ki...
Q: Garden of Eat’n Corp. has the following items that the controller is uncertain of where to place on ...
A: The cash flows statement is a statement that shows flows of cash during a particulars period of time...
Q: Which costing method tends to overstate the cost of high-volume products? a. Traditional volume-base...
A: Activity-based costing (ABC) is a costing method that identifies activities in an organization and...
Q: Refer to the pr the previous page. What is the present value today of $4,000 to be received 6 years ...
A: The present value of future cash inflow means the amount that should be invested today at a certain ...
Q: An asset will cost $1750 when purchased this year. It is further expected to have a salvage value of...
A:
Q: Several years ago Walker Security purchased for $120,000 a well-known trademark for padlocks and oth...
A: Amortization is the writing off of the intangible assets’ value over a period of time like the depre...
Q: Google management is planning to acquire new equipment to manufacture tablet computers. What are som...
A: Definition:
Q: The issues that overturned the Andersen verdict were based on faulty jury instructions, not on wheth...
A: It is my belief that Andersen did not violate the law. They were acting within the legal rights and ...
Q: Discuss the significant of the following assumptions in the preparation of entity financial statemen...
A: Accounting concepts paves the base for formulation of rules and regulations governing accounting act...
Q: Select financial information for Logistical Corp. as at December 31, 20X6, follows: Please find the ...
A: Cash Flows from Operating Activities : Particulars Details $ Amount $ Profit before tax as pe...
Q: Determining the future value of one or more present day cash flows is known as ________. ...
A: Future value is known as value in the future of present cash flows
Q: Haynna Company on Ján. 1, 2014 grantéd 100 sharé áppréčiátión rights tó éách óf itš 1,000 employees ...
A: IFRS 2 deals with "Share based payments". Under measurement for cash settled transactions, SAR's (sh...
Q: Trent Department Store uses a perpetual inventory sys-tem but adjusts its inventory records at year-...
A: Perpetual inventory system:-in this method, a record of sales and purchase of inventory is the conti...
Q: Our Little Secret is a small manufacturer of swimsuits and other beach apparel. The company isclosel...
A: a. The ethical issues raised for person L by the person F’s disclosure are as follows: The practice...
Q: Costs per Equivalent Unit and Production Costs The following information concerns production in the ...
A:
Q: Roamfree Pte Ltd manufactures buggies. Manufacturing a buggy takes 20 units of wood and 1 unit of st...
A: The formula for calculation of the number of units to be purchased during the month is as follows: ...
Q: Estimated Income Statements, using Absorption and Variable Costing Prior to the first month of opera...
A: Absorption costing also called as historical costing is the practice of charging both fixed and vari...
Q: Which of the following statements is true with regard to the gross profit ratio? An increase in cos...
A: Gross profit is an excess amount of revenue over its cost of goods sold.it measures profitability an...
Q: Calculate the Value Added Tax (VAT) payable to / refundable by the South African Revenue Services (S...
A: Given information is: Sales R 10 000 Cost of sales R 4 000 Machine purchased R 30 ...
Q: P5.6
A: Answer 1
Q: The Cash account in the general ledger of Lyco Corporation showed a balance of $21,749 atDecember 31...
A: Bank reconciliation statement Bank reconciliation statement is prepared to balance in the bank colum...
Q: Which of the following statements is true for a company that uses a periodic inventory system? a....
A: Only inventory account is used for all the inventory transactions in the perpetual inventory system....
Q: Give one example each of when an auditor might render an unmodified opinion and include an emphasis-...
A: Emphasis of matter paragraph is the paragraph in the auditor’s report which shows the auditor’s judg...
Q: Which of the following statements regarding the lower of cost and net realizable value (LCNRV) rule ...
A: The rule of valuing the inventory at cost or net realizable value is also called as Prudence concept...
Q: Inventory Costing: Weighted Average Filimonov Inc. has the following information related to purchase...
A: Inventory or Stock is the goods and material a business holds for resale. Before working on the purc...
Q: The accounting department reports the accounts receivable balance as $175,000.You are willing to acc...
A: Auditing refers to an independent examination of financial information of any organization. The sole...
Q: Prepare adjusting entries at December 31 for Maxum Company’s year-end financial statements for each ...
A: 1) Adjusting entry for employee benefits is as follows:
Q: When purchase prices are rising, which of the following statements is true? a.LIFO produces a hig...
A: FIFO method means first in first out which means that cost of goods sold valued at older prices and ...
Q: A small company maintains a petty cash fund for minor expenditures. The followingtransactions occurr...
A: Journal entries: 1. Date Particulars Debit ($) Credit($) June 1 Petty cash ...
Q: The SIMple Company manufactures a single product; the standard costs per unit being variable manufac...
A: Given that, Opening inventory = 5000 units Produced units = 150000 units Sold units = 125000 units C...
Q: Johnson company’s financial year ended on December 31, 2010. All the transactions related to the com...
A: Journal entry is as follows: Resultant table:
Q: QUESTION 9 1. Amy is single with a salary of $50,000. She has been offered a new position that will ...
A: Tax is payable on defined percentage on the income of a person.
Q: What is the relationship between the audit of property, plant, andequipment accounts and the audit o...
A:
Q: Azure Mapping Solutions, Inc., is an advisory corporation owned by outside investors with $9 million...
A: The accrual basis of accounting is that basis in which the company records the revenues and expendit...
Q: (B) Why do you think standard setters have considered a single measurement base approach? In your re...
A: The conceptual framework is an attempt by standard regulation authorities to define nature and a sys...
Q: Johnson company’s financial year ended on December 31, 2010. All the transactions related to the com...
A: Journal entry:-Way of recording any transaction of a company with debit and credit side. It works on...
Q: Costs that are incurred as part of the manufacturing process, but are not clearly traceable to the s...
A: e.Fixed costs.
Q: Purple & Orange, Inc., sold $700,000 of bonds on an interest payment date at 102. Assumingthe bo...
A: Firstly we shall calculate the issue price of the bonds. Then we shall calculate the premium on bond...
Recording Purchases and Shipping Terms
On May 12, Digital Distributors received three shipments of merchandise. The first was shipped FOB shipping point, had a total invoice price of $142,500, and was delivered by a trucking company that charged an additional $8,300 for transportation charges. The second was shipped FOB shipping point and had a total invoice price of $87,250, including transportation charges of $5,700 that were prepaid by the seller. The third shipment was shipped FOB destination and had an invoice price of $21,650, excluding transportation charges of $1,125 paid by the seller. Digital uses a perpetual inventory system. Digital has not paid any of the invoices.
Required:
Prepare
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- PURCHASES TRANSACTIONS Ann Benton, owner of Bentons Galleria, made the following purchases of merchandise on account during the month of October: Oct. 2Purchase Invoice No. 321, 1,950, from Boggs Distributors. 7Purchase Invoice No. 152, 2,915, from Wolfs Wholesaler. 10Purchase Invoice No. 634, 3,565, from Komuro Co. 16Purchase Invoice No. 349, 2,845, from Fritz McCord, Inc. 24Purchase Invoice No. 587, 3,370, from Boggs Distributors. 26Purchase Invoice No. 764, 2,240, from Sanderson Company. 31Purchase Invoice No. 672, 1,630, from Wolfs Wholesaler. Required 1. Record the transactions starting with page 16 of a general journal. 2. Post from the general journal to the general ledger accounts and to the accounts payable ledger accounts. Use general ledger account numbers as shown in the chapter.PURCHASES TRANSACTIONS J. B. Speck, owner of Specks Galleria, made the following purchases of merchandise on account during the month of September: Sept. 3Purchase Invoice No. 415, 2,650, from Smith Distributors. 8Purchase Invoice No. 132, 3,830, from Michaels Wholesaler. 11Purchase Invoice No. 614, 3,140, from J. B. Sanders Co. 18Purchase Invoice No. 329, 2,250, from Bateman Jones, Inc. Sept. 23Purchase Invoice No. 767, 4,160, from Smith Distributors. 27Purchase Invoice No. 744, 1,980, from Anderson Company. 30Purchase Invoice No. 652, 2,780, from Michaels Wholesaler. Required 1. Record the transactions starting with page 16 of a general journal. 2. Post from the general journal to the general ledger accounts and to the accounts payable ledger accounts. Use general ledger account numbers as shown in the chapter.Lowerys Pet Depot records purchase transactions in the general journal. The company is located in Cleveland, Ohio. In addition to a general ledger, Lowerys Pet Depot also uses an accounts payable ledger. Transactions for October related to the purchase of merchandise are as follows: Oct. 3Bought 12 Automatic Fish Feeders from Barrera Company, 959.88, invoice no. 5493, dated October 2; terms net 30 days; FOB shipping point, freight prepaid and added to the invoice, 79.45 (total 1,039.33). 4Bought two 18 x 18 Terrarium Stands from Hickman Company, 259.98, invoice no. 2JYX, dated October 2; terms 2/10, n/30; FOB destination. 7Bought four Chinchilla Bath Houses from Baldwin, Inc., 67.96, invoice no. 4183, dated October 6; terms 1/10, n/30; FOB destination. 10Received credit memo no. 123 from Baldwin, Inc., for merchandise returned, 13.94. Oct. 14Bought 20 Zoo Slider Hoods from Douglas, Inc., 2,599.80, invoice no. X431, dated October 12; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, 140.50 (total 2,740.30). 15Bought four Hanging Bird Baths from Krause, Inc., 71.96, invoice no. A499, dated October 11; terms net 60 days; FOB destination. 24Bought eight Automatic Cat Litter Boxes from Villa Manufacturing, 2,399.92, invoice no. 4429, dated October 21; terms net 30 days; FOB destination. 27Received credit memo no. 452 from Villa Manufacturing for merchandise returned, 346.78. Required 1. If using Working Papers, open the following accounts in the accounts payable ledger and record the October 1 balances, if any, as given: Baldwin, Inc., 46.57; Barrera Company, 743.15; Douglas, Inc., 615.20; Hickman Company; Krause, Inc., 23.45; Villa Manufacturing, 725.64. For the accounts having balances, write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 2. If using Working Papers, record the October 1 balances in the general ledger as given: Accounts Payable 212 controlling account, 2,154.01; Purchases 511, 2,485.12; Purchases Returns and Allowances 512, 287.52; Freight In 514, 48.57. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 3. Record the transactions in the general journal. If using Working Papers, begin on page 95. 4. Post to the general ledger and the accounts payable ledger. 5. Prepare a schedule of accounts payable, and compare the balance of the Accounts Payable controlling account with the total of the schedule of accounts payable.
- The following transactions were completed by Nelsons Hardware, a retailer, during September. Terms on sales on account are 1/10, n/30, FOB shipping point. Sept. 4Received cash from M. Alex in payment of August 25 invoice of 275, less cash discount. 7Issued Ck. No. 8175, 915.75, to Top Tools, Inc., for invoice. no. 2256, recorded previously for 925, less cash discount of 9.25. 10Sold merchandise in the amount of 175 on a credit card. Sales tax on this sale is 8%. The credit card fee the bank deducted for this transaction is 5. 11Issued Ck. No. 8176, 653.40, to Snap Tools, Inc. for invoice no. 726, recorded previously on account for 660. A trade discount of 15% was applied at the time of purchase, and Snap Tools, Inc.s credit terms are 1/10, n/45. 15Received 95 cash in payment of August 20 invoice from N. Johnson. No cash discount applied. 19Received 1,165 cash in payment of a 1,100 note receivable and interest of 65. 22Voided Ck. No. 8177 due to error. 26Received and paid telephone bill, 62; Ck. No. 8178, payable to Southern Telephone Company. 30Paid wages recorded previously for the month, 3,266, Ck. No. 8179. Required 1. Journalize the transactions for September in the cash receipts journal, the general journal (for the transaction on Sept. 10th), or the cash payments journal as appropriate. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals. Prove the equality of debit and credit totals.Sales-related transactions The- following selected transactions were completed by Affordable Supplies Co., which sells supplies primarily to wholesalers and occasionally to retail customers. Jan. 6. Sold merchandise on account, $14,000. terms FOB shipping point, n/com. The cost of merchandise sold was $8,400. 8. Sold merchandise on account. $20,000. terms FOB destination. 1/10. n/30. The cost of merchandise sold was $14,000. 16. Sold merchandise on account, $19-500. terms FOB shipping point, n/30. The cost of merchandise sold was $11,700. 18. Received check for amount due for sale on January 8. 19. Issued credit memorandum for $4,500 for merchandise returned from sale on January 16. The cost of the merchandise returned was $2,700. 26. Received check for amount due for sale on January 16 less credit memorandum of January 19. 31. Paid Cashell Delivery Service $3,000 for merchandise delivered during January to customers under shipping terms of FOB destination. 31. Received cheek for amount due for sale of January 6. Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Affordable Supplies Co. Identify each transaction by date.Screpcap Co. had the following transactions during the first week of June: June 1Purchased merchandise on account from Acme Supply, 2,700, plus freight charges of 160. 1Issued Check No. 219 to Denver Wholesalers for merchandise purchased on account, 720, less 1% discount. 1Sold merchandise on account to F. Colby, 246, plus 5% state sales tax plus 2% city sales tax. June 2Received cash on account from N. Dunlop, 315. 2Made cash sale of 413 plus 5% state sales tax plus 2% city sales tax. 2Purchased merchandise on account from Permon Co., 3,200, plus freight charges of 190. 3Sold merchandise on account to F. Ayres, 211, plus 5% state sales tax plus 2% city sales tax. 3Issued Check No. 220 to Ellis Co. for merchandise purchased on account, 847, less 1% discount. 3Received cash on account from F. Graves, 463. 4Issued Check No. 221 to Penguin Warehouse for merchandise purchased on account, 950, less 1% discount. 4Sold merchandise on account to K. Stanga, 318, plus 5% state sales tax plus 2% city sales tax. 4Purchased merchandise on account from Mason Milling, 1,630, plus freight charges of 90. 4Received cash on account from O. Alston, 381. 5Made cash sale of 319 plus 5% state sales tax plus 2% city sales tax. 5Issued Check No. 222 to Acme Supply for merchandise purchased on account, 980, less 1% discount. Required 1. Record the transactions in a general journal. 2. Assuming these are the types of transactions Screpcap Co. experiences on a regular basis, design the following special journals for Screpcap: (a) Sales journal (b) Cash receipts journal (c) Purchases journal (d) Cash payments journal
- Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.The following transactions were completed by Nelsons Boutique, a retailer, during July. Terms of sales on account are 2/10, n/30, FOB shipping point. July 3Received cash from J. Smith in payment of June 29 invoice of 350, less cash discount. 6Issued Ck. No. 1718, 742.50, to Designer, Inc., for invoice. no. 2256, recorded previously for 750, less cash discount of 7.50. July 9Sold merchandise in the amount of 250 on a credit card. Sales tax on this sale is 6%. The credit card fee the bank deducted for this transaction is 5. 10Issued Ck. No. 1719, 764.40, to Smart Style, Inc., for invoice no. 1825, recorded previously on account for 780. A trade discount of 25% was applied at the time of purchase, and Smart Style, Inc.s credit terms are 2/10, n/30. 12Received 180 cash in payment of June 20 invoice from R. Matthews. No cash discount applied. 18Received 1,575 cash in payment of a 1,500 note receivable and interest of 75. 21Voided Ck. No. 1720 due to error. 25Received and paid utility bill, 152; Ck. No. 1721, payable to City Utilities Company. 31Paid wages recorded previously for the month, 2,586, Ck. No. 1722. Required 1. Journalize the transactions for July in the cash receipts journal, the general journal (for the transaction on July 9th), or the cash payments journal as appropriate. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals. Prove the equality of debit and credit totals.Shirleys Beauty Store records sales and purchase transactions in the general journal. In addition to a general ledger, Shirleys Beauty Store also uses an accounts receivable ledger and an accounts payable ledger. Transactions for January related to the sales and purchase of merchandise are as follows: Jan. 3Bought 30 Mango Bath and Shower Gels from Madden, Inc., 660, invoice no. 3487, dated January 1; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, 125.43 (total 785.43). 4Bought ten Beauty Candle Travel Sets from Calhoun Candles, Inc., 420, invoice no. 4513, dated January 1; terms net 45; FOB destination. 12Sold four Mango Bath and Shower Gels on account to R. Kielman, sales slip no. 1456, 120, plus sales tax of 9.60, total 129.60. 13Received credit memo no. 8715 from Calhoun Candles, Inc., for merchandise returned, 84. 21Bought five Winter Skin Essentials Kits from Whitney and Waters, 197.50, invoice no. A875, dated January 18; terms 2/15, n/45; FOB destination. 25Sold three Winter Skin Essentials on account to A. Benner, sales slip no. 1457, 135.75, plus sales tax of 10.86, total 146.61. 27Issued credit memo no. 33 to A. Benner for merchandise returned, 45.25 plus 3.62 sales tax, total 48.87. Required 1. If using Working Papers, open the following accounts in the accounts receivable ledger and record the balances as of January 1: A. Benner, 45.77; R. Kielman, 175.39. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 2. If using Working Papers, open the following accounts in the accounts payable ledger and record the balances as of January 1: Calhoun Candles, Inc., 355.23; Madden, Inc., 573.15; Whitney and Waters, 50.25. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 3. If using Working Papers, record the January 1 balances in the general ledger as given: Accounts Receivable 113 controlling account, 221.16; Accounts Payable 212 controlling account, 978.63; Sales Tax Payable 214, 128.45. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 4. Record the transactions in the general journal. If using Working Papers, begin on page 25. 5. Post the entries to the general ledger and accounts receivable ledger or accounts payable ledger as appropriate. 6. Prepare a schedule of accounts receivable. 7. Prepare a schedule of accounts payable. 8. Compare the totals of the schedules with the balances of the controlling accounts.
- Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On December 10, Lands Inc. contracts with a supplier to purchase 450 plants for its merchandise inventory, on credit, for $12.50 each. Credit terms are 4/15, n/30 from the invoice date of December 10. B. On December 28, Lands pays the amount due in cash to the supplier.Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.Mays Beauty Store records sales and purchase transactions in the general journal. In addition to a general ledger, Mays Beauty Store also uses an accounts receivable ledger and an accounts payable ledger. Transactions for January related to the sales and purchase of merchandise are as follows: Jan. 2Bought nine Matte Nail Color Kits from Mejia, Inc., 450, invoice no. 4521, dated January 1; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, 87.50 (total 537.50). 5Bought 30 Perfume Cocktail Rings from Braun, Inc., 1,200, invoice no. 37A, dated January 3; terms 2/10, n/30; FOB destination. 8Sold two Matte Nail Color Kits on account to J. Herbert, sales slip no. 113, 110, plus sales tax of 8.80, total 118.80. 11Received credit memo no. 455 from Braun, Inc., for merchandise returned, 315.25. 18Bought 15 Eye Palettes from Vargas, Inc., 660, invoice no. 910, dated January 14; terms net 30; FOB destination. 23Sold four Eye Palettes on account to T. Cantrell, sales slip no. 114, 200, plus sales tax of 16, total 216. 26Issued credit memo no. 12 to T. Cantrell for merchandise returned, 50 plus 4 sales tax, total 54. Required 1. If using Working Papers, open the following accounts in the accounts receivable ledger and record the balances as of January 1: T. Cantrell, 86.99; J. Hebert, 63.47. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 2. If using Working Papers, open the following accounts in the accounts payable ledger and record the balances as of January 1: Braun, Inc., 513.20; Mejia, Inc., 113.40; Vargas, Inc., 67.15. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 3. If using Working Papers, record the January 1 balances in the general ledger as given: Accounts Receivable 113 controlling account, 150.46; Accounts Payable 212 controlling account, 693.75; Sales Tax Payable 214, 237.89. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 4. Record the transactions in the general journal. If using Working Papers, begin on page 17. 5. Post the entries to the general ledger and accounts receivable ledger or accounts payable ledger as appropriate. 6. Prepare a schedule of accounts receivable. 7. Prepare a schedule of accounts payable. 8. Compare the totals of the schedules with the balances of the controlling accounts.