None During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence ofevents was as follows: Jan. 6 Purchased goods for $1,000 from Green with terms 2.5/10, n/30. 6 Purchased goods fromMunoz for $1,100 with terms 3/10, n/30. 14 Paid Green in full. Feb. 2 Paid Munoz in full. 28 Purchased goods for $250from Reynolds with terms 3/10, n/30. Required: Assume that Axe uses a perpetual inventory system, the company had noinventory on hand at the beginning of January, and no sales were made during January and February. Calculate the costof inventory as of February 28.

Step 1:Inventory costs consists all expenses incurred in the inventory. The cost of inventory…

Answered: During the months of January and…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 3PB: Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc....

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During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows:Jan. 6 Purchased goods for $1,200 from Green with terms 2/10, n/30.6 Purchased goods from Munoz for $900 with terms 2/10, n/30.14 Paid Green in full.Feb. 2 Paid Munoz in full.28 Purchased goods for $350 from Reynolds with terms 2/10, n/45.Required:Assume that Axe uses a perpetual inventory system, the company had no inventory on hand at thebeginning of January, and no sales were made during January and February. Calculate the cost ofinventory as of February 28.
During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows: January 6 Purchased goods for $2,200 from Green with terms 3/10, n/30. January 6 Purchased goods from Munoz for $1,900 with terms 3/10, n/30. January 14 Paid Green in full. February 2 Paid Munoz in full. February 28 Purchased goods for $850 from Reynolds with terms n/45. Required: Prepare journal entries to record the transactions, assuming Axe records discounts using the gross method in a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Haresh
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 three customers.The sequence of events was as follows:Jan. 6 Sold goods for $100 to Wizard Inc. with terms 2/10, n/30. The goods costSolitare $70.6 Sold goods to Spyder Corp. for $80 with terms 2/10, n/30. The goods costSolitare $60.14 Collected cash due from Wizard Inc.Feb. 2 Collected cash due from Spyder Corp.28 Sold goods for $50 to Bridges with terms 2/10, n/45. The goods cost Solitare $30.Required:Assuming that Sales Discounts are reported as contra-revenue, compute Net Sales for the twomonths ended February 28.
During April, Firestone purchased-goods from BF Goodrich. The sequence of events was as follows: April 1: Firestone orders 2,500 tires from BF Goodrich. BF Goodrich agrees to sell the wheels for $200 each on account under shipping terms FOB shipping point and payment terms 5/10, n45. The tires initially cost BF Goodrich $125 each on February 17th. J.B. Hunt Trucking Company will be responsible for transporting the inventory for $2,125. All shipping costs must be paid on the day of shipment. April 4: BF Goodrich loads the 2,500 tires into JB Hunt's truck. April 8: Firestone receives the shipment of tires. April 25: Firestone pays BF Goodrich for the tires previously purchased. A Accounts Payable Cash B Cash 500,000 500,000 Accounts Receivable 500,000 Event April 1 April 4 April 8 April 25 500,000 Buyer Inventory Seller Accounts Payable C Inventory Cash Accounts Receivable Sales Revenue 500,000 D Cost of Goods Sold Inventory 2,125 500,000 2,125 500,000 500,000 Required: For each Buyer…
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $3,400 from Diamond Incorporated with terms 2/12, n/45. June 5 Returned goods costing $1,150 to Diamond Incorporated for credit on account. June 6 Purchased goods from Club Corporation for $1,350 with terms 2.5/12, n/45. June 11 Paid the balance owed to Diamond Incorporated. June 22 Paid Club Corporation in full. Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
During the months of January, Ava Corporation purchased goods from two suppliers. The sequence of events was as follows: Jan. 6 Purchased goods for $1,120 from Noah with terms 2/10, n/30. 6 Purchased goods from Emma for $970 with terms 2/10, n/30. 14 Paid Noah in full. 30 Paid Emma in full. At the end of January, how will Ava's inventory increase by?
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,000 from Diamond Inc. with terms 2/15, n/60. 5 Returned goods costing $1,000 to Diamond Inc. for credit on account. 6 Purchased goods from Club Corp. for $1,550 with terms 2/15, n/60. 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 hand at the beginning of the month. Calculate the cost of inventory as of June 30.
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,100 from Diamond Incorporated with terms 2/10, n/30. June 5 Returned goods costing $1,100 to Diamond Incorporated for credit on account. June 6 Purchased goods from Club Corporation for $1,000 with terms 2/10, n/30. June 11 Paid the balance owed to Diamond Incorporated. June 22 Paid Club Corporation in full. Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30.
During the months of January, Ava Corporation purchased goods from two suppliers. The sequence of events was as follows: Jan. 6 Purchased goods for $1,590 from Noah with terms 2/10, n/30. 6 Purchased goods from Emma for $1,020 with terms 1/10, n/30. 14 Paid Emma in full. 15 Paid Noah in full. At the end of January, how will Ava's inventory increase by?
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 inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list No 1 2 3 4 5 Date June 03 June 05 June 06 June 11 June 22 View journal entry worksheet Inventory Accounts Payable Accounts Payable Inventory Inventory Accounts Payable Accounts Payable Cash Accounts Payable Cash General Journal Debit 7,700 2,900 2,800 7,546…

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