July 8 98 tablets were purchased at a cost of $6,202 each. In addition, the business paid a freight | charge of $248 cash on each tablet to have the inventory shipped from the point of purchase to their warehouse. | The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 of these tablets were sold on account to longstanding customers) July 31 |August 4 A new batch of 67 tablets was purchased at a total cost of $465,650 5 of the tablets purchased on August 4 were returned to the supplier, as they were not of the model ordered. During the month 60 tablets were sold at a price of $10,350 each. August 10 | August 31 September 4 A customer, to whom 9 tablets were sold during the first business day of August, returned 3 of the instruments, as they were of another brand. September 10 Owing to an increased demand, a further 115 tablets were purchased at a cost of $7,900 each: these were subiect to a trade discount of 2% each
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Journalize the transactions for the month of July, assuming the company uses a:
- Perpetual inventory system
![BAYWEST Stationery & Supplies located in Montego Bay, Jamaica, sells a variety of school supplies
including several brands of tablets. The business uses a perpetual inventory system and adjusts cost of goods
sold for any shortage or excess inventory. BAYWEST began the third quarter (July to September) of 2020
with 30 (Alcatel) tablets at a total cost of $187,800. During the quarter, with the onset of the COVID-19
pandemic, the business completed the following transactions relating to the "Alcatel" tablets.
98 tablets were purchased at a cost of $6,202 each. In addition, the business paid a freight
| charge of $248 cash on each tablet to have the inventory shipped from the point of
purchase to their warehouse.
The sales for July were 85 tablets which yielded total sales revenue of $809,030. (25 of
these tablets were sold on account to longstanding customers)
|July 8
July 31
August 4
A new batch of 67 tablets was purchased at a total cost of $465,650
5 of the tablets purchased on August 4 were returned to the supplier, as they were not of
the model ordered.
August 10
August 31
During the month 60 tablets were sold at a price of $10,350 each.
A customer, to whom 9 tablets were sold during the first business day of August, returned
3 of the instruments, as they were of another brand.
September 4
September 10
Owing to an increased demand, a further 115 tablets were purchased at a cost of $7,900
each; these were subject to a trade discount of 2% each.
September 30
121 tablets were sold during September at a unit selling price of $11,085.
September 30
| An actual count of inventory was carried out which revealed that there were 34 units of the
"Alcatel" brand of merchandise in the store room.
Unless otherwise stated, assume that all purchases were on account and received on the dates stated.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa834b237-383d-4edc-93ca-11dcff9a7f0e%2Fbfd8cab5-2ec0-48dd-978a-1935fea07dc0%2Fhpn8yyp_processed.png&w=3840&q=75)
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