Prepare journal entries for the following transactions from Barrels Warehouse. Jul. 1 Sold 5,000 barrels with a sales price of $40 per barrel to customer Luck’s Vineyards. Luck’s Vineyards paid with cash. The cost for this sale is $20 per barrel. Jul. 3 Sold 1,500 barrels with a sales price of $32 per barrel to customer Paramount Apparel. Paramount paid using its in-house credit account. Terms of the sale are 3/10, n/30. The cost for this sale is $17 per barrel. Jul. 5 Sold 1,400 barrels with a sales price of $35 per barrel to customer Melody Sharehouse. Melody paid using her MoneyPlus credit card. The cost for this sale is $18 per barrel. MoneyPlus Credit Card Company charges Barrels Warehouse a 2% usage fee based on the total sale per transaction. Jul. 8 MoneyPlus Credit Card Company made a cash payment in full to Barrels Warehouse for the transaction from July 5, less any usage fees. Jul. 13 Paramount Apparel paid its account in full with a cash payment, less any discounts. If an amount box does not require an entry, leave it blank. Jul. 1 Cash Cash Sales Revenue Sales Revenue To record sale of barrels Jul. 1 Cost of Goods Sold Cost of Goods Sold Merchandise Inventory: Barrels Merchandise Inventory: Barrels To record cost of sale Jul. 3 Accounts Receivable: Paramount Apparel Accounts Receivable: Paramount Apparel Sales Revenue Sales Revenue To record sale of barrels Jul. 3 Cost of Goods Sold Cost of Goods Sold Merchandise Inventory: Barrels Merchandise Inventory: Barrels To record cost of sale Jul. 5 Accounts Receivable: MoneyPlus CC Accounts Receivable: MoneyPlus CC Credit Card Expense Credit Card Expense Sales Revenue Sales Revenue To record sale of barrels Jul. 5 Cash Cash Accounts Receivable: MoneyPlus CC Accounts Receivable: MoneyPlus CC To record cost of sale Jul. 8 - Select - - Select - - Select - - Select - To record cash payment, less usage fee Jul. 13 - Select - - Select - - Select - - Select - - Select - - Select - To record cash payment, less discount

Prepare journal entries for the following transactions from Barrels Warehouse. Jul. 1 Sold 5,000 barrels with a sales price of $40 per barrel to customer Luck’s Vineyards. Luck’s Vineyards paid with cash. The cost for this sale is $20 per barrel. Jul. 3 Sold 1,500 barrels with a sales price of $32 per barrel to customer Paramount Apparel. Paramount paid using its in-house credit account. Terms of the sale are 3/10, n/30. The cost for this sale is $17 per barrel. Jul. 5 Sold 1,400 barrels with a sales price of $35 per barrel to customer Melody Sharehouse. Melody paid using her MoneyPlus credit card. The cost for this sale is $18 per barrel. MoneyPlus Credit Card Company charges Barrels Warehouse a 2% usage fee based on the total sale per transaction. Jul. 8 MoneyPlus Credit Card Company made a cash payment in full to Barrels Warehouse for the transaction from July 5, less any usage fees. Jul. 13 Paramount Apparel paid its account in full with a cash payment, less any discounts. If an amount box does not require an entry, leave it blank. Jul. 1 Cash Cash Sales Revenue Sales Revenue To record sale of barrels Jul. 1 Cost of Goods Sold Cost of Goods Sold Merchandise Inventory: Barrels Merchandise Inventory: Barrels To record cost of sale Jul. 3 Accounts Receivable: Paramount Apparel Accounts Receivable: Paramount Apparel Sales Revenue Sales Revenue To record sale of barrels Jul. 3 Cost of Goods Sold Cost of Goods Sold Merchandise Inventory: Barrels Merchandise Inventory: Barrels To record cost of sale Jul. 5 Accounts Receivable: MoneyPlus CC Accounts Receivable: MoneyPlus CC Credit Card Expense Credit Card Expense Sales Revenue Sales Revenue To record sale of barrels Jul. 5 Cash Cash Accounts Receivable: MoneyPlus CC Accounts Receivable: MoneyPlus CC To record cost of sale Jul. 8 - Select - - Select - - Select - - Select - To record cash payment, less usage fee Jul. 13 - Select - - Select - - Select - - Select - - Select - - Select - To record cash payment, less discount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Prepare journal entries for the following transactions from Barrels Warehouse.

Jul. 1	Sold 5,000 barrels with a sales price of $40 per barrel to customer Luck’s Vineyards. Luck’s Vineyards paid with cash. The cost for this sale is $20 per barrel.
Jul. 3	Sold 1,500 barrels with a sales price of $32 per barrel to customer Paramount Apparel. Paramount paid using its in-house credit account. Terms of the sale are 3/10, n/30. The cost for this sale is $17 per barrel.
Jul. 5	Sold 1,400 barrels with a sales price of $35 per barrel to customer Melody Sharehouse. Melody paid using her MoneyPlus credit card. The cost for this sale is $18 per barrel. MoneyPlus Credit Card Company charges Barrels Warehouse a 2% usage fee based on the total sale per transaction.
Jul. 8	MoneyPlus Credit Card Company made a cash payment in full to Barrels Warehouse for the transaction from July 5, less any usage fees.
Jul. 13	Paramount Apparel paid its account in full with a cash payment, less any discounts.

If an amount box does not require an entry, leave it blank.

Jul. 1		Cash	Cash
		Sales Revenue	Sales Revenue
	To record sale of barrels
Jul. 1		Cost of Goods Sold	Cost of Goods Sold
		Merchandise Inventory: Barrels	Merchandise Inventory: Barrels
	To record cost of sale
Jul. 3		Accounts Receivable: Paramount Apparel	Accounts Receivable: Paramount Apparel
		Sales Revenue	Sales Revenue
	To record sale of barrels
Jul. 3		Cost of Goods Sold	Cost of Goods Sold
		Merchandise Inventory: Barrels	Merchandise Inventory: Barrels
	To record cost of sale
Jul. 5		Accounts Receivable: MoneyPlus CC	Accounts Receivable: MoneyPlus CC
		Credit Card Expense	Credit Card Expense
		Sales Revenue	Sales Revenue
	To record sale of barrels
Jul. 5		Cash	Cash
		Accounts Receivable: MoneyPlus CC	Accounts Receivable: MoneyPlus CC
	To record cost of sale
Jul. 8		- Select -	- Select -
		- Select -	- Select -
	To record cash payment, less usage fee
Jul. 13		- Select -	- Select -
		- Select -	- Select -
		- Select -	- Select -
	To record cash payment, less discount

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