Prepare journal entries for the following transactions from Barrels Warehouse.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
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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