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Prepare journal entries for the following transactions from Barrels Warehouse.

Prepare journal entries for the following transactions from Barrels Warehouse.

FINANCIAL ACCOUNTING
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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**Educational Resource: Journal Entry Preparation** **Objective:** Prepare journal entries for transactions from Barrels Warehouse. **Transaction Details:** 1. **July 1** - **Activity:** Sold 2,000 barrels. - **Sales Price:** $30 per barrel. - **Customer:** Luck’s Vineyards. - **Payment Method:** Cash. - **Cost Price:** $18 per barrel. 2. **July 3** - **Activity:** Sold 1,200 barrels. - **Sales Price:** $32 per barrel. - **Customer:** Paramount Apparel. - **Payment Method:** In-house credit account. - **Credit Terms:** 3/10, n/30. - **Cost Price:** $17 per barrel. 3. **July 5** - **Activity:** Sold 1,400 barrels. - **Sales Price:** $31 per barrel. - **Customer:** Melody Sharehouse. - **Payment Method:** MoneyPlus credit card. - **Cost Price:** $18 per barrel. - **Credit Card Usage Fee:** 2% of total sale per transaction (by MoneyPlus Credit Card Company). 4. **July 8** - **Activity:** MoneyPlus Credit Card Company paid Barrels Warehouse. - **Details:** Full cash payment for the transaction dated July 5, less any usage fees. 5. **July 13** - **Activity:** Paramount Apparel made a cash payment. - **Details:** Paid account in full, less any discounts. These transactions are key to understanding how to record sales transactions, payments, and any associated costs or discounts in the accounting journals.
Transcribed Image Text:**Educational Resource: Journal Entry Preparation** **Objective:** Prepare journal entries for transactions from Barrels Warehouse. **Transaction Details:** 1. **July 1** - **Activity:** Sold 2,000 barrels. - **Sales Price:** $30 per barrel. - **Customer:** Luck’s Vineyards. - **Payment Method:** Cash. - **Cost Price:** $18 per barrel. 2. **July 3** - **Activity:** Sold 1,200 barrels. - **Sales Price:** $32 per barrel. - **Customer:** Paramount Apparel. - **Payment Method:** In-house credit account. - **Credit Terms:** 3/10, n/30. - **Cost Price:** $17 per barrel. 3. **July 5** - **Activity:** Sold 1,400 barrels. - **Sales Price:** $31 per barrel. - **Customer:** Melody Sharehouse. - **Payment Method:** MoneyPlus credit card. - **Cost Price:** $18 per barrel. - **Credit Card Usage Fee:** 2% of total sale per transaction (by MoneyPlus Credit Card Company). 4. **July 8** - **Activity:** MoneyPlus Credit Card Company paid Barrels Warehouse. - **Details:** Full cash payment for the transaction dated July 5, less any usage fees. 5. **July 13** - **Activity:** Paramount Apparel made a cash payment. - **Details:** Paid account in full, less any discounts. These transactions are key to understanding how to record sales transactions, payments, and any associated costs or discounts in the accounting journals.
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