July 1 Purchased merchandise from Zhang Company for $7,400 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Knight Company for $1,600 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $960. July 3 Paid $405 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,900 for $3,100 cash. July 9 Purchased merchandise from Taylor Company for $2,900 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. uly 11 Returned $600 of merchandise purchased on July 9 from Taylor Company and debited its account payable for that amount. uly 12 Received the balance due from Knight Company for the invoice dated July 2, net of the discount. uly 16 Paid the balance due to Zhang Company within the discount period. uly 19 Sold merchandise that cost $1,800 to Wright Company for $2,600 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. uly 21 Gave a price reduction (allowance) of $500 to Wright Company for merchandise sold on July 19 and credited Wright's accounts receivable for that amount. uly 24 Paid Taylor Company the balance due, net of discount. uly 30 Received the balance due from Wright Company for the invoice dated July 19, net of discount. uly 31 Sold merchandise that cost $5,000 to Knight Company for $8,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. General Journal Schedule of Schedule of Receivables Payables Prepare a multiple-step income statement through the calculation of gross profit. Requirement General Ledger Trial Balance Income Statement Impact on Income

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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July 1 Purchased merchandise from Zhang Company for $7,400 under credit terms of 1/15, n/30, FOB shipping point, invoice dated
July 1.
July 2 Sold merchandise to Knight Company for $1,600 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2.
The merchandise had cost $960.
July 3 Paid $405 cash for freight charges on the purchase of July 1.
July 8 Sold merchandise that had cost $1,900 for $3,100 cash.
July 9 Purchased merchandise from Taylor Company for $2,900 under credit terms of 2/15, n/60, FOB destination, invoice dated July
July 11 Returned $600 of merchandise purchased on July 9 from Taylor Company and debited its account payable for that amount.
July 12 Received the balance due from Knight Company for the invoice dated July 2, net of the discount.
July 16 Paid the balance due to Zhang Company within the discount period.
July 19 Sold merchandise that cost $1,800 to Wright Company for $2,600 under credit terms of 2/15, n/60, FOB shipping point,
invoice dated July 19.
July 21 Gave a price reduction (allowance) of $500 to Wright Company for merchandise sold on July 19 and credited Wright's accounts
receivable for that amount.
July 24 Paid Taylor Company the balance due, net of discount.
July 30 Received the balance due from Wright Company for the invoice dated July 19, net of discount.
July 31 Sold merchandise that cost $5,000 to Knight Company for $8,400 under credit terms of 2/10, n/60, FOB shipping point,
invoice dated July 31.
Requirement
General
Journal
General
Ledger
Trial Balance
Prepare a multiple-step income statement through the calculation of gross profit.
Wilson's Company
Partial Income Statement
For the Month Ended July 31, 2021
$
Schedule of Schedule of
Receivables Payables
< Schedule of Payables
0
0
$
$
0
0
0
0
0
Income
Statement
Impact on Income >
Impact on
Income
Transcribed Image Text:July 1 Purchased merchandise from Zhang Company for $7,400 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Knight Company for $1,600 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $960. July 3 Paid $405 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $1,900 for $3,100 cash. July 9 Purchased merchandise from Taylor Company for $2,900 under credit terms of 2/15, n/60, FOB destination, invoice dated July July 11 Returned $600 of merchandise purchased on July 9 from Taylor Company and debited its account payable for that amount. July 12 Received the balance due from Knight Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Zhang Company within the discount period. July 19 Sold merchandise that cost $1,800 to Wright Company for $2,600 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $500 to Wright Company for merchandise sold on July 19 and credited Wright's accounts receivable for that amount. July 24 Paid Taylor Company the balance due, net of discount. July 30 Received the balance due from Wright Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $5,000 to Knight Company for $8,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Requirement General Journal General Ledger Trial Balance Prepare a multiple-step income statement through the calculation of gross profit. Wilson's Company Partial Income Statement For the Month Ended July 31, 2021 $ Schedule of Schedule of Receivables Payables < Schedule of Payables 0 0 $ $ 0 0 0 0 0 Income Statement Impact on Income > Impact on Income
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