Information related to Cheyenne Co. is presented below. On April 5, purchased merchandise on account from Skysong Company for $ 41,800, terms 2/10, net/30, FOB shipping point. 1. 2. On April 6, paid freight costs of $ 790 on merchandise purchased from Skysong. 3. On April 7, purchased equipment on account for $ 30,500. On April 8, returned damaged merchandise to Skysong Company and was granted a $ 4. 4,800 credit for returned merchandise. 5. On April 15, paid the amount due to Skysong Company in full. (a) Prepare the journal entries to record these transactions on the books of Cheyenne Co. under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit 1. 2. 3. 4. 5.
Information related to Cheyenne Co. is presented below. On April 5, purchased merchandise on account from Skysong Company for $ 41,800, terms 2/10, net/30, FOB shipping point. 1. 2. On April 6, paid freight costs of $ 790 on merchandise purchased from Skysong. 3. On April 7, purchased equipment on account for $ 30,500. On April 8, returned damaged merchandise to Skysong Company and was granted a $ 4. 4,800 credit for returned merchandise. 5. On April 15, paid the amount due to Skysong Company in full. (a) Prepare the journal entries to record these transactions on the books of Cheyenne Co. under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit 1. 2. 3. 4. 5.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Help with account balance
Transcribed Image Text:Information related to Cheyenne Co. is presented below.
On April 5, purchased merchandise on account from Skysong Company for $ 41,800,
terms 2/10, net/30, FOB shipping point.
1.
2.
On April 6, paid freight costs of $790 on merchandise purchased from Skysong.
3.
On April 7, purchased equipment on account for $ 30,500.
On April 8, returned damaged merchandise to Skysong Company and was granted a $
4,800 credit for returned merchandise.
4.
5.
On April 15, paid the amount due to Skysong Company in full.
(a)
Prepare the journal entries to record these transactions on the books of Cheyenne Co. under
a perpetual inventory system. (Credit account titles are automatically indented when
amount is entered. Do not indent manually.)
No. Date
Account Titles and Explanation
Debit
1.
2.
3.
4.
5.
Transcribed Image Text:Assume that Cheyenne Co. paid the balance due to Skysong Company on May 4 instead of
April 15. Prepare the journal entry to record this payment. (Credit account titles are
automatically indented when amount is entered. Do not indent manually. Record
journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
May
4
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