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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2 Required 3
Assuming that Circuit Country uses a periodic inventory system, record the transactions. (If no entry is required for a particular
transaction, select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
1
2
3
Date
Note: Enter debits before credits.
4
5
6
Record purchase of radios on account from Radio World for $2,150, terms
2/15, n/45.
General Journal
7
8 ..... 12
Debit
Credit
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