During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $7,700 from Diamond Incorporated with terms 2/10, n/30. June 5 Returned goods costing $2,900 to Diamond Incorporated for credit on account. June 6 Purchased goods from Club Corporation for $2,800 with terms 2/10, n/30. June 11 Paid the balance owed to Diamond Incorporated. June 22 Paid Club Corporation in full. Required: Prepare journal entries to record the transactions, assuming Ace records discounts using the gross method in a perpetual inv system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet *********

During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $7,700 from Diamond Incorporated with terms 2/10, n/30. June 5 Returned goods costing $2,900 to Diamond Incorporated for credit on account. June 6 Purchased goods from Club Corporation for $2,800 with terms 2/10, n/30. June 11 Paid the balance owed to Diamond Incorporated. June 22 Paid Club Corporation in full. Required: Prepare journal entries to record the transactions, assuming Ace records discounts using the gross method in a perpetual inv system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet *********

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 8PB: Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following...

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Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On December 10, Lands Inc. contracts with a supplier to purchase 450 plants for its merchandise inventory, on credit, for $12.50 each. Credit terms are 4/15, n/30 from the invoice date of December 10. B. On December 28, Lands pays the amount due in cash to the supplier.
Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.
Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence ofevents was as follows:June 3 Purchased goods for $4,100 from Diamond Inc. with terms 2/10, n/30.5 Returned goods costing $1,100 to Diamond Inc. for full credit.6 Purchased goods from Club Corp. for $1,000 with terms 2/10, n/30.11 Paid the balance owed to Diamond Inc.22 Paid Club Corp. in full.Required:Assume that Ace uses a perpetual inventory system and that the company had no inventory on handat the beginning of the month. Calculate the cost of inventory as of June 30.
During the months of January and February, Solitare Corporation sold goods to two customers. The sequence of events was as follows: January 6 Sold goods for $260 to Wizard Incorporated with terms 2/30, n/60. The goods cost Solitare $78. January 6 Sold goods to Spyder Corporation for $104 with terms 2/10, n/30. The goods cost Solitare $68. January 14 Collected cash for the amount due from Wizard Incorporated. February 28 Collected cash for the amount due from Spyder Corporation. Required: Compute the Net Sales Solitare would report over the two months. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Net Sales 132 H 11 **** 1 +
Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30). March 1 Purchased $43,600 of merchandise from Van Industries, terms 2/15, n/30. March 2 Sold merchandise on credit to Min Cho, Invoice Number 854, for $16,800 (cost is $8,400). March 3 Purchased $1,230 of office supplies on credit from Gabel Company, terms n/30. March 3 Sold merchandise on credit to Linda Witt, Invoice Number 855, for $10,200 (cost is $5,800). March 6 Borrowed $82,000 cash from Federal Bank by signing a long-term note payable. March 9 Purchased $21,850 of office equipment on credit from Spell Supply, terms n/30. March 10 Sold merchandise on credit to Jovita Albany, Invoice Number 856, for $5,600 (cost is $2,900). March 12 Received payment from Min Cho for the March 2 sale less the discount of $336. March 13 Sent Van Industries Check Number 416 in payment of the March 1 invoice less the discount of $872. March 13 Received payment from…
Levchenko Company purchased inventories from a vendor for $16,000 on July 1. The purchase was financed through a $10,000 note with the remainder paid in cash. The vendor charged an additional $400 for shipping, on account. Levchenko paid a moving company $700 cash to move the inventory to a different warehouse. Interest on the note totaled $50, payable in August. a. Determine the cost to be assigned to the inventory. $ b. Record the transactions using the financial statement effects template. Note: Use negative signs with your answers, when appropriate. Select "N/A" as your answer if a part of the accounting equation is not affected. Transaction a. Inventory purchase b. Shipping charge c. Moving cost d. Interest incurred Totals Cash Asset ♦ ◆ ◆ ◆ 0 + Noncash Asset ◆ ◆ ◆ ◆ 0 Balance Sheet Liabilities ◆ ◆ ◆ 0 Contributed + Capital + Earned Capital ♦ ◆ ♦ ♦ 0 Revenues Income Statement Expenses ◆ ◆ ◆ 0 Net = Income 0
Sims Company regularly sells merchandise to Laurier Supply on terms 2/15, n/30 and records sales at gross. During a recent month, the two firms engaged in the following transactions: a. Sims sold merchandise with a list price of $38,400. b. Sims sold merchandise with a list price of $48,000. c. Laurier paid for the purchase in Transaction a within the discount period. d. Laurier paid for the purchase in Transaction b after the discount period. Required: 1. Provide the journal entries for Sims to record the sales in Transactions a and b. (a) Record sale (b) Record sale 2. Record the journal entry for Sims to record the receipt of Laurier's payment in Transaction c. For those boxes in which no entry is required, leave the box blank. (c) Record collection of cash within discount period 3. Record the journal entry for Sims to record the receipt of Laurier's payment in Transaction d. (d) Record collection of cash after discount period 4. CONCEPTUAL CONNECTION: What implied annual interest…
Mathis Company and Reece Company use the periodic system. The following transactions occurred during the month of April: On April 1, Mathis purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the merchandise sold was $2,225. On April 1, Mathis paid freight charges of $250 cash to have the goods delivered to its warehouse. On April 8, Mathis returned $800 of the merchandise which had originally cost Reece $500. On April 10, Mathis paid Reece the balance due. Required: Hide 1. Prepare the journal entry to record the April 1 purchase of merchandise and payment of freight by Mathis. April 1 (Purchased inventory on account) April 1…
The following transactions were selected from the records of Evergreen Company: July 12 Sold merchandise to Wally Butler, who paid the $1,100 purchase with cash. The goods cost Evergreen Company $650. July 17 July 18 July 23 July 31 Received cash from Otto's Ottomans for the amount due from July 18. Sold merchandise to Claudio's Chair Company at a selling price of $5,100 on terms 3/10, n/30. The goods cost Evergreen Company $3,550. Sold merchandise to Otto's Ottomans at a selling price of $3,050 on terms 3/10, n/30. The goods cost Evergreen Company $1,950. Received cash from Claudio's Chair Company for the amount due from July 17. Required: Compute the amount of Net Sales to be reported for the month ended July 31. (Round your answer to 2 decimal places.) Net Sales
Record the transactions on the books of Martinez corporation.
Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30). April 2 Purchased $14,700 of merchandise on credit from Noth Company, terms 2/10, n/60. April 3 (a) Sold merchandise on credit to Page Alistair, Invoice Number 760, for $8,000 (cost is $7,000). April 3 (b) Purchased $1,490 of office supplies on credit from Custer, Incorporated, terms n/30. April 4 Issued Check Number 587 to World View for advertising expense of $904. April 5 Sold merchandise on credit to Paula Kohr, Invoice Number 761, for $15,000 (cost is $13,500). April 6 Returned $90 of office supplies purchased on April 3 to Custer, Incorporated. Wiset reduces accounts payable by that amount. April 9 Purchased $12,225 of store equipment on credit from Hal’s Supply, terms n/30. April 11 Sold merchandise on credit to Nic Nelson, Invoice Number 762, for $21,600 (cost is $18,100). April 12 Issued Check Number 588 to Noth Company in payment…