At the beginning of the current season on April 1, the records of Ayayai Pro Shop showed Cash $2,950, Inventory $3,500, and Common Stock $6,450. The following transactions occurred during April 2017. Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. $2,500. 9 Received credit from Arnie Co. for merchandise returned $700. 10 Sold merchandise on account to members $1,340. The merchandise sold had a cost of $920. 12 Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $1,050. 14 Paid Arnie Co. in full. 17 Received credit from Woods Sportswear for merchandise returned $50. 20 Made sales on account to members $910. The cost of merchandise sold was $550. 21 Paid Woods Sportswear in full. 30 Received payments on account from members $1,400. Prepare a tabular summary that includes the following accounts: Cash, Accounts Receivable, Inventory, Accounts Payable, Common Stock, Sales Revenue, Sale Returns and Allowances, and Cost of Goods Sold. Enter the beginning balances in the summary. Assets Bal. Apr. 1 Cash + Accts. Rec. + Inv. M Liabilities Stockholders' Equity Accts. Pay. + Common Stock + Retained Earnings Rev. Exp.

At the beginning of the current season on April 1, the records of Ayayai Pro Shop showed Cash $2,950, Inventory $3,500, and Common Stock $6,450. The following transactions occurred during April 2017. Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. $2,500. 9 Received credit from Arnie Co. for merchandise returned $700. 10 Sold merchandise on account to members $1,340. The merchandise sold had a cost of $920. 12 Purchased golf shoes, sweaters, and other accessories on account from Woods Sportswear $1,050. 14 Paid Arnie Co. in full. 17 Received credit from Woods Sportswear for merchandise returned $50. 20 Made sales on account to members $910. The cost of merchandise sold was $550. 21 Paid Woods Sportswear in full. 30 Received payments on account from members $1,400. Prepare a tabular summary that includes the following accounts: Cash, Accounts Receivable, Inventory, Accounts Payable, Common Stock, Sales Revenue, Sale Returns and Allowances, and Cost of Goods Sold. Enter the beginning balances in the summary. Assets Bal. Apr. 1 Cash + Accts. Rec. + Inv. M Liabilities Stockholders' Equity Accts. Pay. + Common Stock + Retained Earnings Rev. Exp.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Journalize the following transactions for Evans Company. Assume the company uses a perpetual inventory system. (a) Sold merchandise for $645 cash. The cost of merchandise sold was $375. (b) Sold merchandise for $432 and accepted VISA as the form of payment. The cost of merchandise sold was $195. (c) Sold merchandise on account for $670. The cost of merchandise sold was $438. (d) Paid credit card fees for the month of $85. If an amount box does not require an entry, leave it blank.
Riverbed Retailers accepted $ 31500 of Silver Bank MasterCard credit card charges for merchandise sold on August 1. Silver Bank charges 6% for its credit card use. The entry to record this transaction by Riverbed Retailers will include a credit to Sales Revenue of $31500 and a debit(s) to Cash for $ 31500. Accounts receivable for $ 29610 and Service Charge Expense for $ 5820. Cash for $ 29610 and Service Charge Expense for $ 1890. Accounts Receivable for $ 31500.
Roger Company completed the following transactions during Year 1. Roger's fiscal year ends on December 31. Jan. 8 Purchased merchandise for resale on account. The invoice amount was $14,860; assume 17 Paid January 8 invoice. Apr. 1 Borrowed $35,000 from National Bank for general use; signed a 12-month, 8% annual interest-bearing note for the a perpetual inventory system. money. June 3 Purchased merchandise for resale on account. The invoice amount was $17,420. July 5 Paid June 3 invoice. Aug. 1 Rented office space in one of Roger's buildings to another company and collected six months' rent in advance amounting to $6,000. Dec.20 Received a $100 deposit from a customer as 31 Determined wages of $9,500 were earned but not yet paid on December 31 (disregard payroll taxes). a guarantee to return a trailer borrowed for 30 days. Required: 1. For each transaction (including adjusting entries on December 31), indicate the effects (e.g., Cash + or -), using the following schedule: (Indicate the…
On June 21, Marble Company purchased goods from Steel Company for $30,000, terms 2/10, n/30. The invoice was paid on June 27. The company uses a perpetual inventory system and records purchases gross. The June 27 journal entry to record payment of the account would include: Select one: a credit to Cash for $30,000. a credit to Inventory for $600. a credit to Purchases Discounts for $600. a debit to Accounts Payable for $29,400.
1. During October, the company had several transactions. Prepare journal entries for the transactions below and post them to the t-accounts. a. Sold merchandise with an original cost of $73,000 on account for a total selling price of $170,000. DR Accounts Receivable CR Revenue DR COGS CR Inventory DR Inventory DR PP&E I b. Purchased merchandise inventory on account from various suppliers for $92,600. 92,600 CR Accounts Payable Paid rent of $23,500 for the month of October. CR Cash 170,000 23,500 73,000 23,500 170,000 73,000 92,600
On December 22, Travis Company purchased merchandise on account from a supplier for $7,500, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period on December 31. Required: Under a perpetual inventory system, record the journal entries required for the above transactions. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS Travis Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customers Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary REVENUE…
Enter the following transaction in the ledger accounts and balance them October 2020: 1 Started in business with Ksh. 75,000 cash. 3 Bought goods for cash Ksh. 11,000. 7 Bought goods on credit Ksh. 32,000 from F Herd. 10 Sold goods for cash Ksh. 6,400. 14 Returned goods to F Herd Ksh. 4,600. 18 Bought goods on credit Ksh. 41,400 from D Exodus. 21 Returned goods to D Exodus Ksh. 3,100. 24 Sold goods to B Squire Ksh. 8,200 on credit. 25 Paid F Herd’s account by cash Ksh. 27,400. 31 B Squire paid us his account in cash Ksh. Ksh. 8,200.
The following items were selected from among the transactions completed by Pioneer Co. during the current year: Mar. 1. Purchased merchandise on account from Galston Co., $360,000, terms n/30. Mar. 31. Issued a 30-day, 5% note for $360,000 to Galston Co., on account. Apr. 30. Paid Galston Co. the amount owed on the note of March 31. June 1. Borrowed $180,000 from Pilati Bank, issuing a 45-day, 4% note. July 1. Purchased tools by issuing a $210,000, 60-day note to Zegna Co., which discounted the note at the rate of 7%. July 16. Paid Pilati Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 6.5% note for $180,000. (Journalize both the debit and credit to the notes payable account.) Aug. 15. Paid Pilati Bank the amount due on the note of July 16. Aug. 30. Paid Zegna Co. the amount due on the note of July 1. Dec. 1. Purchased office equipment from Taylor Co. for $500,000, paying $120,000 and issuing a series of ten 6% notes for $38,000 each, coming…
Chee Yong Chaw began his business on 1 July 2016. The business balances its books at month-end and uses special journals and the periodic inventory system. Transactions for July 2016 were as follows: July 1 Chee Yong Chaw invested $ 30,240 cash and $ 17,640 office equipment into the business. July 2 Purchased inventory from L Cao on account for $ 7,560 plus GST; terms 2/15, n/30. Paid July rental of $ 3,020 plus GST; by interbank transfer to Prime Properties Ltd. July 3 Purchased inventory from Difabio Ltd on account for $ 6,130 plus GST; terms n/30. July 6 Sold inventory to J Ellis on account for $ 1,680 plus GST; terms 2/15, n/30. July 7 Received July rental of $ 760 plus GST for space sublet to Perth Services. July 8 Purchased stationery supplies for $ 1,680 plus GST; cheque no. 124. July 10 Purchased inventory for cash $ 1,660 plus GST. July 13 Sold inventory to Giola Ltd on account for $ 3,780 plus GST; terms 2/10, n/30. July 14 Purchased…
Govender Wholesalers entered into the following transactions during February 2016 (IGNORE VAT).They make use of the perpetual inventory system.DateDetailsThe owner made a capital contribution of R640 000 to his business. This was done bymeans of an electronic transfer from his personal account into the business' bank account.Purchase trading inventory on credit for R153 500.1215Sell trading inventory for R32 160 cash. Goods were sold at a mark-up of 20% on cost.Purchase a computer for R15 000 on credit for use in the business.18Services rendered by Govender Wholesalers on credit for R36 000.2425The business paid back R50 000 of the inventory purchased on credit on 8 February.The debtor made full payment for the services rendered on credit on the 18t of February.27The owner takes inventory for his personal use with a selling price of R3 000. (Mark-up 50%on cost price.)28Pay staff salaries of R27 500,Required:Show the effect of each individual transaction on the accounting equation…
The following journal entry was included in the accounting records of Ostrosky Corporation on March 20: Debit Accounts payable $4,000, Credit Merchandise Inventory $40, Credit Cash $3,960 Based on this journal entry, it is likely that the company: A. Sold inventory for cash B. Collected cash for the inventory sold on credit and recorded a 1% sales discount C. Purchased inventory for cash D. Paid for the inventory purchased on credit and took advantage of the 1% purchase discount
1. On September 1, 2021, Lily Company had an initial accounts receivable control account balance of $72,000. The subsidiary ledger contains 3 accounts: Jasmine Company, balance $25,200; Sunflower Company, balance $14,400; and Orchid Company. The following were information regarding Lily Company's accounts receivable during September. Purchases Payments Returns Jasmine Company $57,500 $50,000 $2,000 Sunflower Company $82,000 $32,800 $ - Orchid Company $43,700 $52,000 $ - Instructions: What was the September 1 balance in the Orchid Company subsidiary account? b. What was the September 30 balance in the control account? c. Compute the balance in the subsidiary accounts at the end of the month! d. Which September transaction would not be recorded in the four common types of the special journal?