InstructionsLong Horn Music Store uses a perpetual inventory system and had the following transactions during July.1Sold merchandise on account for $1,475. The cost of inventory sold was $785.4Purchased $1,500 of inventory, paying $1,000 cash with the remainder on account.7Sold equipment that cost $1,900 for $2,300. The equipment was fully depreciated and had no salvagevalue.10Paid wages of $1,250 and salaries of $3,250. Neither had been previously accrued.12Sold merchandise for $4,450 cash and for $3,250 on account. The cost of inventory sold was $4,050.18Purchased new equipment for $3,780, paying $1,780 cash and signing a 90-day note for the remainder.24Sold merchandise for $1,235 cash. The cost of inventory sold was $650.Paid wages of $1,470 and salaries of $3,250. Neither had been previously accrued.29Paid the July 4 invoice on account.Required:Record the preceding transactions in a general journal.Chart of Accounts

Journal entries recording is the first step in the accounting process in which atleast one account…

Answered: Long Horn Music Store uses a perpetual…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Can you help solve this & explain the answers. Thank you Plum Corporation began the month of May with $900,000 of current assets, a current ratio of 2201, and an acid-test ratio of 1.30.1. During the month, it completed the following transactions (the company uses a perpetual inventory system). Hay 2 Purchased $75,000 of merchandise inventory on credit. May 8 Sold merchandise inventory that cost $45,0e0 for $125,000 cash. May 10 Collected $22,000 cash on an account receivable. May 15 Paid $27,500 cash to settle an account payable. May 17 Wrote off a $5,0e0 bad debt against the Alilowance for Doubtful Accounts account. May 22 Declared a $1 per share cash dividend on its 68,000 shares of outstanding common stock. May 26 Paid the dividend declared on May 22. May 27 Borrowed $85,000 cash by giving the bank a 30-day, 10% note. May 28 Borrowed $105,e00 cash by signing a long-tere secured note. May 29 Used the $190,000 cash proceeds from the notes to buy new machinery. Required: Complete the…
Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred. Sept. 6 Purchased calculators from Oriole Co. at a total cost of $1,770, terms n/30. 9. Paid freight of S60 on calculators purchased from Oriole Co. Returned calculators to Oriole Co. for $69 credit because they did not meet specifications. Sold calculators costing $500 for $750 to Fryer Book Store, terms n/30. Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator cost $30 Sold calculators costing $700 for $890 to Heasley Card Shop, terms n/30. 10 12 14 20 Journalize the September transactions. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the…
Wildhorse Company commenced operations on July 1. Wildhorse Company uses a periodic inventory system. During July, Wildhorse Company was involved in the following transactions and events: July 2 Purchased $14,600 of merchandise from Suppliers Inc. on account, terms 2/10, n/30, FOB shipping point. 3 Returned $1,200 of merchandise to Suppliers inc. as it was damaged. Received a credit on account from Suppliers 4 Paid $590 of freight costs on July 2 shipment. 8 Sold merchandise for $3,000 cash. 11 Paid Suppliers Inc. the full amount owing 15 25 2 NG Sold merchandise for $6,400 on account, 1/10, n/30, FOB shipping point. Received full payment for the merchandise sold on July 25. 31 Wildhorse did a physical count and determined there was $10.100 of inventory on hand. Record the transactions in Wildhorse Company's books. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and…
Jordache Corp. uses a perpetual inventory system and sells merchandise on account to Polo Limited for $2.000 on February 2, terms n/10. Management expects returns of 10%. The goods cost Jordache $800. On February 5, Polo returns merchandise worth $500 to Jordache. This merchandise costs $300 and is still in saleable condition; therefore, it was put back into inventory. On February 9, Jordache receives payment from Polo for the balance due. Identify the journal entry that Jordache needs to record for the sale of the merchandise on February 2. Accounts Receivable Sales Refund Liability Cash Accounts Receivable Accounts Receivable Sales Accounts Receivable Sales 2,000 1,800 1.800 2,000 1,800 200 1,800 1,800 2,000
At the beginning of November, Yoshi Inc.’s inventory consists of 67 units with a cost per unit of $96. The following transactions occur during the month of November. November 2 Purchase 75 units of inventory on account from Toad Inc. for $100 per unit, terms 1/10, n/30. November 3 Pay cash for freight charges related to the November 2 purchase, $150. November 9 Return 25 defective units from the November 2 purchase and receive credit. November 11 Pay Toad Inc. in full. November 16 Sell 100 units of inventory to customers on account, $12,300. [Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $3 per unit for freight less $1 per unit for the purchase discount, or $102 per unit.] November 20 Receive full payment from customers related to the sale on November 16. November 21 Purchase 53 units of inventory from Toad Inc. for $106 per unit, terms 3/10, n/30. November 24 Sell 65 units of inventory to…
At the beginning of November, Yoshi Inc.’s inventory consists of 64 units with a cost per unit of $96. The following transactions occur during the month of November. November 2 Purchase 80 units of inventory on account from Toad Inc. for $100 per unit, terms 1/10, n/30. November 3 Pay cash for freight charges related to the November 2 purchase, $320. November 9 Return 16 defective units from the November 2 purchase and receive credit. November 11 Pay Toad Inc. in full. November 16 Sell 100 units of inventory to customers on account, $12,600. [Hint: The cost of units sold from the November 2 purchase includes $100 unit cost plus $5 per unit for freight less $1 per unit for the purchase discount, or $104 per unit.] November 20 Receive full payment from customers related to the sale on November 16. November 21 Purchase 56 units of inventory from Toad Inc. for $106 per unit, terms 3/10, n/30. November 24 Sell 70 units of inventory to…
Edward's Music is a store that buys and sells musical instruments and uses a periodic inventory system. Transactions for the business are shown below: Nov. 2 4 5 7 8 10 12 13 16 20 22 Purchased two electric guitars from Fender Supply Limited, on account, at a cost of $700 each, terms 1/10, n/60. Made a cash sale of two keyboards for a total invoice price of $2,500. The cost of each keyboard was $950. Received a credit from Western Acoustic Inc. for the return of an acoustic guitar, which was defective. The original invoice price was $475 and the guitar had been purchased on account. One of the keyboards from the cash sale of Nov. 4 was returned to the store for a full cash refund because the customer was not satisfied with the instrument. Purchased store supplies for cash from a stationery store. The price of the supplies is $225. Sold one Omega trumpet to the Toronto Regional Band, on account, for an invoice price of $2,900. Terms are 1/10, n/60. The trumpet had cost Edward's Music…
Record the transactions on the books of marigold corporation.
GameGirl, Incorporated, has the following transactions during August. August 6 Sold 60 handheld game devices for $150 each to DS Unlimited on account, terms 3/10, net 60. The cost of the 60 game devices sold was $130 each. August 10 DS Unlimited returned four game devices purchased on August 6 since they were defective. August 14 Received full amount due from DS Unlimited. Required:Prepare the transactions for GameGirl, Incorporated, assuming the company uses a perpetual inventory system. The items returned on August 10 were considered worthless to GameGirl and were discarded. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Muller Computers stores its inventory in a warehouse that burned to the ground in late November, 2018. Their sales office was at a different location. In order to file a claim with their insurance, the owners ask you to estimate the inventory that was in the warehouse. The following information is available: Beginning Inventory 375,000 Purchases through November 30 470,250 Net sales revenue through november 30 793,000 The company's gross profit has historically been 40% of net sales revenue. Estimate the value of the inventory destroyed in the fire using the gross profit method. a.$528,550 b.$388,450 c.$369,950 d.$410,000
At the beginning of June, Circuit Country has a balance in inventory of $2,650. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,350, terms 2/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $330. June 8 Return defective radios to Radio World and receive credit, $300. June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $4,300, that had a cost of $2,850. June 18 Receive payment on account from customers, $3,300. June 20 Purchase radios on account from Sound Unlimited for $3,450, terms 2/10, n/30. June 23 Sell radios to customers for cash, $4,950, that had a cost of $3,250. June 26 Return damaged radios to Sound Unlimited and receive credit of $400. June 28 Pay Sound Unlimited in full.
The ABC merchandise Company has the following transactions: May 01: The Company purchased 5 units of inventory on account at a costof $500 each.May 04: sold 4 units of inventory on account at a price of $800 each.May 05: Purchased an additional 6 units on account at a cost of $500.May 07: Paid $2500 against purchases to supplier of inventory.May 08: Sold 5 units of inventory for cash at a sale price of $850.May 10: Collected $3200 from the customer against the credit sales onMay 04.Requirement: Prepare the journal entries to record the above transactions byusing the following:1. Perpetual inventory system2. Periodic inventory system check_circle Expert Answer Step 1 Under the perpetual inventory system, the cost of goods sold are recorded immediately at the time of the sale and it is kept updated in the books. Under this system, there is no physical count of inventory on regular basis. Under periodic inventory system, the physical count of inventory is taken from time to time.…

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS