Show your work A company purchases office supplies worth $3,000 on credit. Later,they pay $1,200 in cash for part of the supplies purchased. After amonth, they realize $300 worth of supplies were defective and returnthem, receiving a refund. What are the entries for these transactions inthe company's accounts? XYZ Company, a small retail business,started the month with $15,000 in cash and inventory worth $25,000.During the month, the company purchased additional inventory worth$10,000 on credit and made sales totalling $20,000, of which $5,000was cash sales and the rest was on account. The cost of the inventorysold was $12,000. By the end of the month, the company paid $6,000to suppliers for inventory purchases. Additionally, the companyincurred $3,000 in operating expenses, which were all paid in cash.Prepare the journal entries for each transaction and calculate the endingbalances for Cash, Accounts Receivable, Inventory, Accounts Payable,and Retained Earnings.

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Answered: A company purchases office supplies…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter14: Adjustments For A Merchandising Business

Section: Chapter Questions

Problem 1CP: Block Foods, a retail grocery store, has agreed to purchase all of its merchandise from Square...

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A company purchases office supplies worth $3,000 on credit. Later, they pay $1,200 in cash for part of the supplies purchased. After a month, they realize $300 worth of supplies were defective and return them, receiving a refund. What are the entries for these transactions in the company's accounts? XYZ Company, a small retail business, started the month with $15,000 in cash and inventory worth $25,000. During the month, the company purchased additional inventory worth $10,000 on credit and made sales totalling $20,000, of which $5,000 was cash sales and the rest was on account. The cost of the inventory sold was $12,000. By the end of the month, the company paid $6,000 to suppliers for inventory purchases. Additionally, the company incurred $3,000 in operating expenses, which were all paid in cash. Prepare the journal entries for each transaction and calculate the ending balances for Cash, Accounts Receivable, Inventory, Accounts Payable, and Retained Earnings.
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On February 16th, Gates Gems received merchandise that was purchased on account from Gem Warehouse in the amount of $10,000. Half of the merchandise was damaged and they returned the damaged merchandise and kept the rest. What is the journal entry to record this transaction? Debit Accounts Receivable/Gem Warehouse, 10,000; credit Purchases Returns and Allowances, $10,000 Debit Accounts Payable/Gem Warehouse, $5,000; credit Purchases Returns and Allowances, $5,000 Debit Accounts Receivable/Gem Warehouse, $10,000; credit Purchases, $10,000 O Debit Accounts Receivable/Gem Warehouse, $5,000; credit Purchases $5,000
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The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer sells and installs home and business security systems. Jan. 3 Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10 Sold merchandise on account to Bradford & Co., $24,000. The cost of the goods sold was $14,400. 13 Sold merchandise on account to Dry Creek Co., $60,000. The cost of goods sold was $54,000. Mar. 12 Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account. 14 Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account. Apr. 3 Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) May 11 Received from Bradford & Co. the amount due on the note of March 12. 13 Dry Creek Co. dishonored its note dated March 14. July 12 Received from Dry Creek Co. the amount…
The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer sells and installs home and business security systems. Jan. 3 Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10 Sold merchandise on account to Bradford & Co., $24,000. The cost of the goods sold was $14,400. 13 Sold merchandise on account to Dry Creek Co., $60,000. The cost of goods sold was $54,000. Mar. 12 Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account. 14 Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account. Apr. 3 Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) May 11 Received from Bradford & Co. the amount due on the note of March 12. 13 Dry Creek Co. dishonored its note dated March 14. July 12 Received from Dry Creek Co. the amount…
The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer sells and installs home and business security systems. Jan. 3 Feb. 10 13 Mar. 12 14 Apr. 3 May 11 13 July 12 Aug. 1 Oct. 5 15 Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Sold merchandise on account to Bradford & Co., $24,000. The cost of the goods sold was $14,400. Sold merchandise on account to Dry Creek Co., $60,000. The cost of goods sold was $54,000. Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account. Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account. Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account.) Received from Bradford & Co. the amount due on the note of March 12. Dry Creek Co. dishonored its note dated March 14. Received from Dry Creek Co. the amount owed on the…
Llang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,354,500 of merchandise on credit (that had cost $983,300), terms n/30. b. Wrote off $20,200 of uncollectible accounts receivable. c. Received $670,000 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.50% of accounts receivable would be uncollectible. Year 2 e. Sold $1,561,900 of merchandise (that had cost $1,258,400) on credit, terms n/30. f. Wrote off $33,800 of uncollectible accounts receivable. g. Received $1,195,000 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.50 % of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liang's Year 1 and Year 2 summarized…
Listed below are selected events transactions relating to Sage Hill, Inc. for the current year ending December 31.Sage Hill manufactures laptop computers for sale in its own stores and for sale by other retailers. 1. On December 1, Sage Hill accepted an order from a new customer, Coronado Computers. Coronado has a questionable credit history, so Sage Hill requires a $11,000 deposit from Coronado in order to begin production on its order. 2. During December, cash sales at Sage Hill’s retail locations totaled $4,387,000, which includes the 7% sales tax Sage Hill must remit to the state by the fifteenth day of the following month. 3. During the year, Sage Hill was sued by a competitor for a patent violation. The competitor is claiming that Sage Hill’s liability is $2,650,000. Sage Hill’s attorneys have advised it that it is probable that the court will find for the company’s competitor. The attorneys estimate that the liability under the suit could be as little as $106,000…
Brown Co made a credit sale to Cody Co for $200,000 on July 19x9. It is known that at the end of 19x9 there was an outstanding receivable of $50,000. Managementestimates that $25,000 will be uncollectible.In July 19x9 the collections department stated that a receivable of $5,000 was written off frombookkeeping because it is impossible to receive payment from Cody Co. Unexpectedly monthOctober 19x9 Cody Co pays its outstanding debt. Requested:Prepare the adjusting entries and the journals needed to record the above transactions properlythe backup method as well as the direct deletion method!
The following were selected from among the transactions completed by Caldemeyer Co. during the current year. Caldemeyer Co. sells and installs home and business security systems. Jan. 3 Loaned $18,000 cash to Trina Gelhaus, receiving a 90-day, 8% note. Feb. 10 Sold merchandise on account to Bradford & Co., $24,000. The cost of the merchandise sold was $14,400. 13 Sold merchandise on account to Dry Creek Co., $60,000. The cost of merchandise sold was $54,000. Mar. 12 Accepted a 60-day, 7% note for $24,000 from Bradford & Co. on account. 14 Accepted a 60-day, 9% note for $60,000 from Dry Creek Co. on account. Apr. 3 Received the interest due from Trina Gelhaus and a new 120-day, 9% note as a renewal of the loan of January 3. (Record both the debit and the credit to the notes receivable account. Use a compound journal entry with debits before credits.) May 11 Received from Bradford & Co. the amount due on the note of March 12. 13 Dry Creek Co.…

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