BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

Berry’s Pet Store records purchase transactions in the general journal.

The company is located in Boston, Massachusetts. In addition to a general ledger, Berry’s Pet Store also uses an accounts payable ledger. Transactions for April related to the purchase of merchandise are as follows:

Apr. 2    Bought ten Carefree Pet Bedding bags from Blackburn Company, $399.90, invoice no. 4R48, dated April 1; terms net 30 days; FOB destination.

5    Bought seven Marine Betta Kits from Herrera Company, $83.93, invoice no. 4851, dated April 3; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, $15 (total $98.93).

6    Bought 15 Two Door Deluxe Kennels from Barrett, Inc., $719.85, invoice no. 1845R, dated April 5; terms 1/10, n/30; FOB destination.

8    Bought five Dome Top Bird Cages from Faulkner Company, $1,849.95, invoice no. 1485, dated April 7; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, $76 (total $1,925.95).

13    Received credit memo no. 415 from Faulkner Company for merchandise returned, $589.13.

23    Bought three Five Tiered Cat Trees from Rhodes Manufacturing, $1,107, invoice no. 246J, dated April 21; terms net 60 days; FOB destination.

27    Bought 30 Glitter Collection Leashes from Solomon Products Company, $299.70, invoice no. 2675, dated April 25; terms net 30 days; FOB destination.

30    Received credit memo no. 861 from Solomon Products Company for merchandise returned, $76.25.

Required

  1. 1. If using Working Papers, open the following accounts in the accounts payable ledger and record the April 1 balances, if any, as given: Barrett, Inc., $185.25; Blackburn Company, $254.64; Faulkner Company, $485.12; Herrera Company; Rhodes Manufacturing, $452.31; Solomon Products Company, $1,785.23. 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. 2. If using working papers, record the April 1 balances in the general ledger as given: Accounts Payable 212 controlling account, $3,162.55; Purchases 511, $559.06; Purchases Returns and Allowances 512, $123.50; Freight In 514, $15.20. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow.
  3. 3. Record the transactions in the general journal. If using Working Papers, begin on page 115.
  4. 4. Post to the general ledger and the accounts payable ledger.
  5. 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.

3.

To determine

Prepare journal entry to record the given transaction.

Explanation

Merchandise Inventory:

Merchandise is the stock of goods bought by a wholesaler, or a retailer, or a trader, to be sold within a year. Merchandise Inventory is a current asset account which includes all the costs incurred to acquire merchandise, and process it further for sale.

Date Account Titles and explanation Post.Ref Debit ($) Credit ($)
April 2 Purchase 511 399.90  
       Accounts payable 212   399.90
  (To record the purchase of merchandise from the Company B, invoice no.4R48 terms n/30)      
         
April 5 Purchase 511 83.93  
  Freight in 514 15.00  
       Accounts payable 212   98.93
  (To record the purchase of merchandise from the Company H, invoice no.4851 terms n/30)      
         
April 6 Purchase 511 719.85  
       Accounts payable 212   719.85
  (To record the purchase of merchandise from the Company B, invoice no.1845R terms n/30)      
         
April 8 Purchase 511 1,849.95  
  Freight in 514 76.00  
       Accounts payable 212   1,925...

1 , 2 and 4

To determine

Enter the opening balance and post the transactions to the respective general ledger and accounts payable ledger.

5.

To determine

Prepare Company B’s schedule of accounts payable and compare the total with accounts payable controlling ledger.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

BOND VALUATION An investor has two bonds in his portfolio that have a face value of 1,000 and pay a 10% annual ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)