PA5. LO 6.3 Review the following transactions for Birdy Birdhouses and record any required journal entries.Sep. 6Sep. 8Birdy Birdhouses purchases 55 birdhouses at $40 each with cash.Birdy Birdhouses purchases 80 birdhouses at $45 each on credit. Terms of thepurchase are 2/10, n/30, invoice date September 8.Birdy discovers 10 of the birdhouses are damaged from the Sep. 6 purchase andreturns them to the supplier for a full refund. Birdy also discovers that 10 of thebirdhouses from the Sep. 8 purchase are painted the wrong color but keeps themsince the supplier granted an allowance of $20 per birdhouse.Birdy pays their account in full from the September 8 purchase, less any returns,allowances, and/or discounts.Sep. 10Sep. 18

Journal entries are an important process of an accounting cycle under which financial transactions…

Answered: PA5. LO 6.3 Review the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use the transactions to fill in the plank chart of purchases. I’ve also wrote them below: Transactions: August; Purchased $1,500.00 in merchandise on account from Beads R Us, invoice 158. Bought a new computer on account from Best Buy for $1,600.00, invoice 822. Purchased gems (merchandise) from The Gem Mine for $1,100.00 on account, terms 2/15, n/30, invoice Purchased $525.00 in pens and paper from Staples on account, terms n/30, invoice 28. Bought an office desk on account from Office Depot for $750.00, invoice 76. Bought merchandise on account from The Gem Mine for $5,000.00, terms 2/15, n/30, invoice 282. Purchases
PB9. LO 6.5Record the following purchase transactions of Custom Kitchens Inc. Oct. 6 Purchased 230 cabinet doors on credit at a cost of $46 per door. Shipping charges are an extra $2 cash per door and are not subject to discount. Terms of the purchase are 5/15, n/35, FOB Shipping Point, invoice dated October 6. Oct. 9 Purchased 100 cabinet doors with cash at cost of $40 per door. Shipping charges are an extra $3.25 cash per door and are not subject to discount. Terms of the purchase are FOB Destination. Oct. 20 Custom Kitchens Inc. pays in full for their purchase from October 6.
Show all of your work 1. Sparrow Corporation uses the perpetual inventory system: 7-1: Sparrow purchases a diamond bracelet from DeBeers on account for $50,000. The payment terms are 2/10N/30. The shipping terms are FOB shipping point. 7-2: Sparrow pays the delivery charges in cash, $500. 7-5: Sparrow pays the DeBeers bill in cash. 7-10: Bella Barnes buys the bracelet for $70,000, cash Required: Prepare the appropriate journal entries and post them to the ledger.
Gordon's Grocers purchases bread from Buddy’s Bread Company at $1.45 per loaf. Gordon's recently engaged in a customer service contract with Buddy's to purchase 20,000 loaves of Buddy's bread. Buddy offered credit to Gordon's at terms of 2/10, n/30. Buddy expects Gordon to pay within the discount period. Required: Question Content Area Prepare the journal entry to record the sale using the net method Hint: In calculating your answer, use one minus the discount rate (eg. 1 - 0.02 = .98)
From the following particulars, prepare the Purchases Book of Devi Stationers and also show the ledger postings. 2018 Aug. 5 Purchased from Madan Mohan & Sons on credit 5 reams of white paper @ Rs. 75 per ream, 10 Purchased from Gopikrishna Bros. 5 dozen ink bottles @ Rs. 52 per dozen at a discount of 10%. 14 Purchased from Avanti Pen Stores 3 dozen ball pens @ Rs. 15 per dozen at a discount of 20%. 18 Purchased 100 pencils from Muralidhar & Co. @ Rs. 0.75 each. 25 Purchased a typewriter on credit from Office Equipment Limited for Rs. 4,500. 28 Purchased one dozen pen stands @ Rs. 100 per dozen for cash. 30 Purchased 5 dozen of note books on the credit from Rama & Co. @ Rs. 24 per dozen. (Hint: Transactions dated August 25 and 28 are not to be entered in Purchases Book.) (Answer: Total of Purchases Book Rs. 840)
Nkome Traders, owner T Nkome, is a registered VAT vendor. The VAT rate applicable is 15%. Transactions: 20.3 February 3 Received and invoice (re-numbered to 20.3/105) from Bapela Wholesalers for merchandise purchased on credit for R18 975. 5 Some of the items to the value of R1 265 on invoice number 20.3/105 was not received. Issued a debit note for the amount. Bapela Wholesalers granted the claim and issued a credit note for the amount claimed. 10 Bought stationery, R1 035, from Big Stationers and received their invoice. 12 Received an invoice from Electronics Traders for the purchase of a new printer for R3 680. 17 Bought merchandise to the value of R21 965 from Bangani Wholesalers and received their invoice. Complete the given Purchases journal and Purchases returns journal for February 20.3.
PB7. LO 6.4Review the following sales transactions for April Anglers and record any required journal entries. Oct. 4 April Anglers made a cash sale of 40 fishing poles to customer Billie Dyer at a price of $55 per pole. The cost to April is $33 per pole. Oct. 5 April Anglers sells 24 fishing poles to customer Billie Dyer at a price of $52 per pole on credit. The cost to April is $30 per pole. Terms of the sale are 2/10, n/30, invoice date October 5. Oct. 12 Billie returns seven of the fishing poles from the October 4 purchase to April Anglers for a full refund. April returns these poles to their inventory at the original cost per pole. Billie also discovers that 6 of the fishing poles from the October 5 purchase are the wrong color but keeps them since April granted an allowance of $18 per fishing pole. Oct. 24 April pays their account in full from the October 5 purchase, less any returns, allowances, and/or discounts.
Jan. SPurchased merchandise on account at a cost of 14,000. (Assume a perpetual inventory system.) 17Paid for the January 8 purchase. Apr.Received 40,000 from National Bank after signing a 12-month, 6 percent, promissory 1note. June Purchased merchandise on account at a cost of 18,000. July 5Paid for the June 3 purchase. Aug Rented out a small office in a building owned by Company and collected six months rent 1in advance amounting to 6,000. (Use an account called Unearned Rent Revenue.) Dec.Received a 100 deposit from a customer as a guarantee to return a large trailer borrowed 20 for 30 days. TIP: Consider whether Company has an obligation to return the money when the trailer is returned. Dec.Determined that wages of 6,500 were earned but not yet paid on December 31 (ignore 31payroll taxes). Dec-Adjusted the accounts at year-end, relating to interest. 31 Dec. Adjusted the accounts at year-end, relating to rent. 31 Required: 1.Prepare journal entries for each of the transactions. (If…
On March 1, Bates Board Shop sells 300 surfboards to a local lifeguard station at a sales price of $400 per board. The cost to Bates is $140 per board. The terms of the sale are 3/15, n/30, with an invoice date of March 1. Record the journal entries for Bates to recognize the following transactions. the initial sale the subsequent customer payment on March 10
record any necessary journal entries for Mary’s Hat Shop April 10 Mary's Hat Shop purchases $2500 worth of merchandise with cash from a manufacturer. Shipping charges are an extra $120.00 cash. Termsof the purchase are FOB shipping point. April 14 Mary’s Hat Shop sells $3,000 worth of merchandise to a customer who pays with cash. The merchandise has a cost to Mary’s of $1,800. Shipping charges are an extra $120 cash. Terms of the sale are FOB Shipping Point. Assume the perpetual inventory system is used.
Mar 31, 2022 Mrs. Santos visited the Royes Luggage Inc. store yesterday and discussed the problems (conditions of goods received) with their manager. Mrs. Santos and the manager agreed that there is a problem with the goods. Mrs. Santos will give a Sales price allowance for the goods on invoice # 2212, in the amount of $100.00, plus HST. Mrs. Santos received Royes Luggage Inc.'s cheque # 496 in the amount of $904.00 as payment for this invoice, less the allowance. There are no discount terms on this allowance as it is more than 10 days from the purchase date. 1. Record the allowance. 2. Record the cheque received.
4. On January 1st, 2018, Blue Co. made a $10,000 sale for 1,000 water bottles on account with terms: of 2/15, n/30. If the company uses the net method, which of the following will be included in the Journal entry to record customer payment for all 1,000 water bottles on January 28th, 2018? a) credit Accounts Receivable $10,000 b) credit Sales Discounts Forfelted $200 c) debit Sales Discount $200 d) debit Cash $9,800

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