Problem 6-9B (Algo) Record transactions and prepare a partial income statement using a periodic inventory system (LO6-8) At the beginning of June, Circuit Country has a balance in inventory of $2,450. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,150, terms 2/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $290. 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, $3,900, that had a cost of $2,650. June 18 Receive payment on account from customers, $2,900. June 20 Purchase radios on account from Sound Unlimited for $3,250, terms 2/10, n/30. June 23 Sell radios to customers for cash, $4,750, that had a cost of $3,050. June 26 Return damaged radios to Sound Unlimited and receive credit of $300. June 28 Pay Sound Unlimited in full. Required: 1. Assuming that Circuit Country uses a periodic inventory system, record the transactions. 2. Record the month-end adjusting entry to inventory, assuming that a final count reveals ending inventory with a cost of $1,744. 3. Prepare the top section of the multiple-step income statement through gross profit for the month of June.
Problem 6-9B (Algo) Record transactions and prepare a partial income statement using a periodic inventory system (LO6-8) At the beginning of June, Circuit Country has a balance in inventory of $2,450. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,150, terms 2/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $290. 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, $3,900, that had a cost of $2,650. June 18 Receive payment on account from customers, $2,900. June 20 Purchase radios on account from Sound Unlimited for $3,250, terms 2/10, n/30. June 23 Sell radios to customers for cash, $4,750, that had a cost of $3,050. June 26 Return damaged radios to Sound Unlimited and receive credit of $300. June 28 Pay Sound Unlimited in full. Required: 1. Assuming that Circuit Country uses a periodic inventory system, record the transactions. 2. Record the month-end adjusting entry to inventory, assuming that a final count reveals ending inventory with a cost of $1,744. 3. Prepare the top section of the multiple-step income statement through gross profit for the month of June.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter11: Accounting For Transactions Using A General Journal
Section11.2: Recording Sales Transactions Using A General Journal
Problem 1WT
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College