Recording Sale and Purchase Transactions
Alpharack Company sells a line of tennis equipment to retailers. Alpharack uses the perpetual inventory system and engaged in the following transactions during April 2019, its first month of operations:
a. On April 2, Alpharack purchased, on credit, 360 Wilbur T-100 tennis rackets with credit terms of 2/10, n/30. The rackets were purchased at a cost of S30 each. Alpharack paid Barker Trucking $195 to transport the tennis rackets from the manufacturer to Alpharack’s warehouse, shipping terms were F.O.B. shipping point, and the items were shipped on April 2.
b. On April 3, Alpharack purchased, for cash, 115 packs of tennis balls for $10 per pack.
c. On April 4, Alpharack purchased tennis clothing, on credit, from Designer Tennis Wear. The cost of the clothing was $8,250. Credit terms were 2/10, n/25.
d. On April 10, Alpharack paid for the purchase of the tennis rackets in Transaction a.
e. On April 15, Alpharack determined that $325 of the tennis clothing was defective. Alpharack returned the defective merchandise to Designer Tennis Wear.
f. On April 20, Alpharack sold 1 18 tennis rackets at $90 each, 92 packs of tennis balls at $12 per pack, and $5,380 of tennis clothing. All sales were for cash. The cost of the merchandise sold was $7,580 and no sales returns are expected.
g. On April 23, customers returned $860 of the merchandise purchased on April 20. The cost of the merchandise returned was $450.
h. On April 25, Alpharack sold another 55 tennis rackets, on credit, for $90 each and 15 packs of tennis balls at $12 per pack, for cash. The cost of the merchandise sold was $1,800.
i. On April 29, Alpharack paid Designer Tennis Wear for the clothing purchased on April 4 minus the return on April 15.
j. On April 30, Alpharack purchased 20 tennis bags, on credit, from Bag Designs for $320. The bags were shipped F.O.B. destination and arrived at Alpharack on May 3.
Required:
1. Prepare the journal entries to record the sale and purchase transactions for Alpharack during April 2019.
2. Assuming operating expenses of $8,500 and income taxes of $1,180, prepare Alpharack’s income statement for April 2019.
Accounting Information Systems
Corporate Financial Accounting
Financial & Managerial Accounting
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Probability and Statistics for Engineering and the Sciences
Essentials of Business Communication (MindTap Course List)
Foundations of Business (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Principles of Economics (MindTap Course List)
Brief Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Financial And Managerial Accounting
Principles of Information Systems (MindTap Course List)
A Guide to SQL
Database Systems: Design, Implementation, & Management
Database Systems: Design, Implementation, & Management
Fundamentals of Information Systems
Fundamentals of Information Systems
Principles of Information Security (MindTap Course List)
Automotive Technology: A Systems Approach (MindTap Course List)
Precision Machining Technology (MindTap Course List)
Fundamentals of Geotechnical Engineering (MindTap Course List)
Principles of Information Systems (MindTap Course List)
Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
Mechanics of Materials (MindTap Course List)
Management Of Information Security
Systems Analysis and Design (Shelly Cashman Series) (MindTap Course List)
Solid Waste Engineering
Principles of Geotechnical Engineering (MindTap Course List)
Electric Motor Control
Fundamentals of Chemical Engineering Thermodynamics (MindTap Course List)
International Edition---engineering Mechanics: Statics, 4th Edition
EBK ELECTRICAL WIRING RESIDENTIAL
Automotive Technology
Steel Design (Activate Learning with these NEW titles from Engineering!)
Enhanced Discovering Computers 2017 (Shelly Cashman Series) (MindTap Course List)
Network+ Guide to Networks (MindTap Course List)
Structural Analysis
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting
College Accounting (Book Only): A Career Approach
Cornerstones of Cost Management (Cornerstones Series)
Accounting (Text Only)
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Corporate Financial Accounting
College Accounting (Book Only): A Career Approach
Financial Accounting
Survey of Accounting (Accounting I)
Intermediate Accounting: Reporting And Analysis
Financial Accounting
College Accounting, Chapters 1-27
Financial & Managerial Accounting
Accounting Information Systems
Practical Management Science
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Macroeconomics
Microeconomics
Macroeconomics: Private and Public Choice (MindTap Course List)
Understanding Management (MindTap Course List)
Economics For Today
MKTG 12:STUDENT ED.-TEXT
Essentials of Economics (MindTap Course List)
MACROECONOMICS FOR TODAY
Pkg Acc Infor Systems MS VISIO CD
Contemporary Marketing
Economics (MindTap Course List)
Principles of Microeconomics
Economics: Private and Public Choice (MindTap Course List)
Exploring Economics
Purchasing and Supply Chain Management
Microeconomics: Private and Public Choice (MindTap Course List)
Micro Economics For Today
Management, Loose-Leaf Version
Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)