Instructions The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies use the net method under a perpetual inventory system. Aug. Summit Company sold merchandise on account to Beartooth Co., $52,150, terms FOB destination, 1 2/15, n/eom. The cost of the goods sold was $25,940. Summit Company paid freight of $1,235 for delivery of merchandise sold to Beartooth Co. on August 1. Summit Company sold merchandise on account to Beartooth Co., $60,090, terms FOB shipping.point, n/eom. The cost of the goods sold was $36,900. Beartooth Co. paid freight of $2,140 on August 5 purchase from Summit Company. 15 Summit Company sold merchandise on account to Beartooth Co., $62,600, terms FOB shipping point, n/45. Summit paid freight of $1,515, which was added to the invoice. The cost of the goods sold was $32,600. 16 Beartooth Co. paid Summit Company for purchase of August 1. 20 Summit Company paid Beartooth Co. a cash refund of $1,000 for defective merchandise purchased on August 1. Beartooth Co. kept the merchandise. 31 Beartooth Co. paid Summit Company on account for purchase of August 5. 31 Summit Company issued Beartooth Co. a credit memo for merchandise with an invoice amount of $3,800 that was returned from the August 15 sale. The cost of the merchandise returned was $2,200.
Instructions The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies use the net method under a perpetual inventory system. Aug. Summit Company sold merchandise on account to Beartooth Co., $52,150, terms FOB destination, 1 2/15, n/eom. The cost of the goods sold was $25,940. Summit Company paid freight of $1,235 for delivery of merchandise sold to Beartooth Co. on August 1. Summit Company sold merchandise on account to Beartooth Co., $60,090, terms FOB shipping.point, n/eom. The cost of the goods sold was $36,900. Beartooth Co. paid freight of $2,140 on August 5 purchase from Summit Company. 15 Summit Company sold merchandise on account to Beartooth Co., $62,600, terms FOB shipping point, n/45. Summit paid freight of $1,515, which was added to the invoice. The cost of the goods sold was $32,600. 16 Beartooth Co. paid Summit Company for purchase of August 1. 20 Summit Company paid Beartooth Co. a cash refund of $1,000 for defective merchandise purchased on August 1. Beartooth Co. kept the merchandise. 31 Beartooth Co. paid Summit Company on account for purchase of August 5. 31 Summit Company issued Beartooth Co. a credit memo for merchandise with an invoice amount of $3,800 that was returned from the August 15 sale. The cost of the merchandise returned was $2,200.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Two
Transcribed Image Text:**Instruction for Journalizing Transactions**
*Objective:* Learn to accurately journalize transactions for accounting purposes.
*Task:*
Journalize the August transactions for two companies:
1. Summit Company
2. Beartooth Co.
*Guidelines:*
- Refer to the Chart of Accounts for each respective company.
- Ensure the exact wording of account titles is used as per the Chart of Accounts.
*Note:* Understanding the structure and terminology within the Chart of Accounts is essential for accurate financial reporting and analysis.
Transcribed Image Text:### Instructions
The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies use the net method under a perpetual inventory system.
#### August Transactions
**August 1**
- Summit Company sold merchandise on account to Beartooth Co. for $52,150, terms FOB destination, 2/15, n/eom.
- The cost of the goods sold was $25,940.
**August 2**
- Summit Company paid freight of $1,235 for delivery of merchandise sold to Beartooth Co. on August 1.
**August 5**
- Summit Company sold merchandise on account to Beartooth Co. for $60,090, terms FOB shipping point, n/eom.
- The cost of the goods sold was $36,900.
**August 9**
- Beartooth Co. paid freight of $2,140 on the August 5 purchase from Summit Company.
**August 15**
- Summit Company sold merchandise on account to Beartooth Co. for $62,600, terms FOB shipping point, n/45.
- Summit paid freight of $1,515, which was added to the invoice.
- The cost of the goods sold was $32,600.
**August 16**
- Beartooth Co. paid Summit Company for the purchase of August 1.
**August 20**
- Summit Company paid Beartooth Co. a cash refund of $1,000 for defective merchandise purchased on August 1. Beartooth Co. kept the merchandise.
**August 31**
- Beartooth Co. paid Summit Company on account for the purchase of August 5.
**August 31**
- Summit Company issued Beartooth Co. a credit memo for merchandise with an invoice amount of $3,800 that was returned from the August 15 sale.
- The cost of the merchandise returned was $2,200.
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