Purchase-Related Transactions Using Perpetual Inventory System Instructions Chart of Accounts Journal Instructions The following selected transactions were completed by Capers Company during October of the current year: Oct. 1 Purchased merchandise from UK Imports Co., $13,322, terms FOB destination, n/30. 3 Purchased merchandise from Hoagie Co., $10,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $240 was added to the invoice. 4 Purchased merchandise from Taco Co., $13,700, terms FOB destination, 2/10, n/30. 6 Issued debit memo to Taco Co. for $4,850 of merchandise returned from purchase on October 4. 13 Paid Hoagie Co. for invoice of October 3. 14 Paid Taco Co. for invoice of October 4 less debit memo of October 6. 19 Purchased merchandise from Veggie Co., $29,840, terms FOB shipping point, n/eom. 19 Paid freight of $410 on October 19 purchase from Veggie Co. 20 Purchased merchandise from Caesar Salad Co., $22,200, terms FOB destination, 1/10, n/30. 30 Paid Caesar Salad Co. for invoice of October 20. 31 Paid UK Imports Co. for invoice of October 1. 31 Paid Veggie Co. for invoice of October 19. Journalize the entries to record the transactions of Capers Company for October. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Purchase-Related Transactions Using Perpetual Inventory System Instructions Chart of Accounts Journal Instructions The following selected transactions were completed by Capers Company during October of the current year: Oct. 1 Purchased merchandise from UK Imports Co., $13,322, terms FOB destination, n/30. 3 Purchased merchandise from Hoagie Co., $10,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $240 was added to the invoice. 4 Purchased merchandise from Taco Co., $13,700, terms FOB destination, 2/10, n/30. 6 Issued debit memo to Taco Co. for $4,850 of merchandise returned from purchase on October 4. 13 Paid Hoagie Co. for invoice of October 3. 14 Paid Taco Co. for invoice of October 4 less debit memo of October 6. 19 Purchased merchandise from Veggie Co., $29,840, terms FOB shipping point, n/eom. 19 Paid freight of $410 on October 19 purchase from Veggie Co. 20 Purchased merchandise from Caesar Salad Co., $22,200, terms FOB destination, 1/10, n/30. 30 Paid Caesar Salad Co. for invoice of October 20. 31 Paid UK Imports Co. for invoice of October 1. 31 Paid Veggie Co. for invoice of October 19. Journalize the entries to record the transactions of Capers Company for October. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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Question
Purchase-Related Transactions Using Perpetual Inventory System
Instructions
Chart of Accounts
Journal
Instructions
The following selected transactions were completed by Capers Company during October of the current year:
| Oct. | 1 | Purchased merchandise from UK Imports Co., $13,322, terms FOB destination, n/30. |
| 3 | Purchased merchandise from Hoagie Co., $10,650, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $240 was added to the invoice. | |
| 4 | Purchased merchandise from Taco Co., $13,700, terms FOB destination, 2/10, n/30. | |
| 6 | Issued debit memo to Taco Co. for $4,850 of merchandise returned from purchase on October 4. | |
| 13 | Paid Hoagie Co. for invoice of October 3. | |
| 14 | Paid Taco Co. for invoice of October 4 less debit memo of October 6. | |
| 19 | Purchased merchandise from Veggie Co., $29,840, terms FOB shipping point, n/eom. | |
| 19 | Paid freight of $410 on October 19 purchase from Veggie Co. | |
| 20 | Purchased merchandise from Caesar Salad Co., $22,200, terms FOB destination, 1/10, n/30. | |
| 30 | Paid Caesar Salad Co. for invoice of October 20. | |
| 31 | Paid UK Imports Co. for invoice of October 1. | |
| 31 | Paid Veggie Co. for invoice of October 19. |
Chart of Accounts
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Capers Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journal
Journalize the entries to record the transactions of Capers Company for October. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
PAGE 10
JOURNAL
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Transcribed Image Text:x CengageNOWv2 | Online teachin x
S "To maintain public confidence.
b My Questions | bartleby
Content
A v2.cengagenow.com/iln/takeAssignment/takeAssignmentMain.do?inprogress=true
Chapter 6 Homework #2
еВook
Purchase-Related Transactions Using Perpetual Inventory System
1. EX.06.20
Instructions Chart of Accounts Journal
2. EX.06.23
Instructions
3. EX.06.24
The following selected transactions were completed by Capers Company during October of the current year.
4. EX.06.27.ALGO
Oct
1
Purchased merchandise from UK Imports Co., $13,322, terms FOB destination, n/30.
5. EX.06.29.ALGO
3
Purchased merchandise from Hoagie Co., S10,650, terms FOB shipping point, 2/10, n/eom. Prepaid
6. PR.06.01.BLANKSHEET AL.
freight of $240 was added to the invoice.
4
Purchased merchandise from Taco Co., $13,700, tems FOB destination, 2/10, n/30.
7. PR.06.05B
6
Issued debit memo to Taco Co. for $4,850 of merchandise returned from purchase on October 4.
13
Paid Hoagie Co. for invoice of October 3.
14
Paid Taco Co. for invoice of October 4 less debit memo of October 6.
19
Purchased merchandise from Veggie Co., $29,840, terms FOB shipping point, n/eom.
19
Paid freight of S410 on October 19 purchase from Veggie Co.
20
Purchased merchandise from Caesar Salad Co., S22,200, terms FOB destination, 1/10, n/30.
30
Paid Caesar Salad Co. for invoice of October 20.
31
Paid UK Imports Co. for invoice of October 1.
31
Paid Veggie Co. for invoice of October 19.
Journalize the entries to record the transactions of Capers Company for October. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for
inurnal evnlanatinne Even line on a inurnal nane is uned for dehit or oradit antrier CNOW inurnale unill artomatinalhe indent a radit antor arhen a credlit amount in onterad
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Transcribed Image Text:* CengageNOWv2 | Online teachin x
S "To maintain public confidence a xb My Questions | bartleby
Content
A v2.cengagenow.com/iln/takeAssignment/takeAssignmentMain.do?inprogress=true
Chapter 6 Homework #2
еВook
DATE
DESCRIPTION
POST, REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
1. EX.06.20
Oct 1 Merchandise Inventory
1
13.322.00
Accounts Payable-UK Imports Co.
13,322.00
2
2. EX.06.23
Oct 3
Merchandise Inventory
3. EX.06.24
4
Accounts Payable-Hoagie Co.
4. EX.06.27 ALGO
Oct. 4 Merchandise Inventory
6
Accounts Payable-Taco Co.
5. EX.06.29.ALGO
7
Oct 6
Accounts Payable-Taco Co.
6. PR.06.01.BLANKSHEET AL.
Merchandise Inventory
8
7. PR.06.05B
Oct. 13
Accounts Payable-Hoagie Co.
10,677.00
10
Cash
10,677.00
Oct. 14 Accounts Payable-Taco Co.
8,673.00
11
12
Cash
8,673.00
13
29,840.00
14
Cash
29,840.00
Oct. 19 Merchandise Inventory
29,840.00
15
16
Accounts Payable-Veggie Co.
29,840.00
Oct. 19 Merchandise Inventory
410.00
17
18
Cash
410.00
| 19
Oct. 20 Merchandise Inventory
21,978.00
Check My Work
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