QS 4-5 (Algo) Recording purchases, returns, and discounts taken LO P1 Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. November 5 Purchased 1,250 units of product at a cost of $20 per unit. Terms of the sale are 5/10, n/60; the invoice is dated November 5. November 7 Returned 40 defective units from the November 5 purchase and received full credit. November 15 Paid the amount due from the November 5 purchase, minus the return on November 7.
Q: Provide Correct Solutions with explanation
A: Step 1: To record the purchase of merchandise on account. DateGeneral JournalDebitCreditMay 2,…
Q: View Policies Current Attempt in Progress On January 1, 2022, Wildhorse Co. purchased 1,400 shares…
A: Earnings available for common stockholders' equity = Net Income − Dividends on preferred stockFor…
Q: Please check the answer and add explanation properly at every steps and solve steps wise Compute…
A: We can compute the missing amounts by using the simple interest formula:* I = PRT / 100Where: * I is…
Q: K Corporation Inc. owns a restaurant business that it carries on in rented premises. The lease was…
A: Calculations: Class 13 asset rate = 20% To get the maximum CCA, simply: Maximum CCA = Opening…
Q: Direct Method of Support Department Cost Allocation Chekov Company has two support departments,…
A: 1. The allocation ratios for the Human Resources (HR) and General Factory departments using the…
Q: Skywalker Ltd uses a periodic inventory system to track its droid inventory. The following…
A: The objective of the question is to calculate the gross profit, ending inventory, cost of goods…
Q: Give me three steps solution and explanation.
A: Step 1: to get the value of lease liability in the POV of the lessee. We must get the sum of the…
Q: Exercise 10-6A (Algo) Determining net present value LO 10-2 Aaron Heath is seeking part-time…
A: Let's compute:a. Calculate the net present value (NPV):- Year 1: PV =…
Q: The following data are accumulated by Waiola Company in evaluating the purchase of $118,000 of…
A: The objective of the question is to calculate the net present value (NPV) of the proposal for the…
Q: Give it correctly please and typed
A: Apportioning Service Department Costs with Detailed ExplanationUnderstanding the Problem:Imagine a…
Q: am.111.
A: Step 1: Free cash flow can be calculated by subtracting the Capital expenditures and cash dividend…
Q: QUESTION 1 A company manufactures and sells a single product. Budgeted data per unit of the product…
A: Using Absorption Costing:Period 1:DescriptionAmount (Units)Amount (ZAR)Sales (11,600 units *…
Q: Problem 10-20 (Algo) (LO 10-6) The following balance sheet is for a partnership in which the…
A: The proposed schedule of liquidation is provided hereunder:…
Q: Am. 114.
A: Approach to solving the question: To solve this question, follow these steps: 1. Calculate Variable…
Q: Less: Cost of goods sold Gross margin Less: Operating expenses (includes $8,550 depreciation and…
A: To compute the net cash flow from operating activities using the direct method, we need to adjust…
Q: On January 1, Haymark Corporation signs a six-year lease for a truck that is accounted for as a…
A: (a) The January 1 journal entry to record the lease involves recognizing the leased asset and the…
Q: A project has an NPV of $47,000. Calculate the cost of capital of this project if it generates the…
A: Step 1:We have to calculate the cost of capital of the project.We will use the Goal seek function in…
Q: The Peric Manufacturing Shop produces motorcycle parts. Typically, 12 pieces out of a job lot of…
A: The correct journal entry is c. Dr. Work-in-Process Control 288; Cr. Materials Control 288.Here's…
Q: None
A: Step 1: Find the net income Under the indirect method, the cash flows are calculated by adjusting…
Q: Give me step by step solution and explanation.
A: The objective of this question is to calculate the basic and diluted earnings per share (EPS) for…
Q: please answer in text form with proper workings and explanation for each and every part and steps…
A: Part A.Jackson County Senior Services is a nonprofit organization offering various services to…
Q: Please correct answer and don't use hend raiting and step by step solutions
A: To find the price of a call option with the same exercise price, we can use put-call parity, which…
Q: please answer in text form and in proper format answer with must explanation , calculation for each…
A: Part (a): Budgeted Operating Profits Following Allocation Calculate total revenue: Total revenue…
Q: Need Help please
A: 1. Discounted Payback Period CalculationThe goal is to determine how many years it takes for the…
Q: None
A: Step 1: Preparation of journal entries.Jones Junkyard Corp.Journal EntriesSr. No.DateAccounts…
Q: At Blossom Electronics, it costs $33 per unit ($15 variable and $18 fixed) to make an MP3 player…
A: Step 1: Given that offered 4520 units at price of $26 If we reject the order, there is income or…
Q: ABC Residential Investors, LLP, is considering the purchase of a 120-unit apartment complex in Steel…
A: The Oaks:Sale price: $9,000,000Units: 140Average rent per unit: $598Price per unit: $9,000,000 / 140…
Q: OBJECTIVE 2456 sout cost behavior that you would like to have? Explain. Problem 3-28 HIGH-LOW…
A: The high-low method is a way of attempting to separate out fixed and variable costs given a limited…
Q: Evaluate the integral. Check your answer by differentiating. (Remember the constant of integration.)…
A: To evaluate the integral ∫(16−8x+21x6)dx , we can use the power rule for integration:…
Q: Gadubhai
A: To compute Dow's earnings per share for the year ended December 31, 2024, we need to find the…
Q: Sagar
A: Step 1: Calculation of Interest expense.Interest expense = Principal amount * Interest rate *…
Q: Direct Labor Standards for Nonmanufacturing Expenses Englert Hospital began using standards to…
A: A) Actual Labor Cost Calculation:Calculate the total actual hours worked:There are three full-time…
Q: please answer in text form with proper workings and explanation for each and every part and steps…
A: Detailed explanation:1.Revenue is the amount of money that will be received from any of the…
Q: A project is estimated to cost $219,835 and provide annual net cash flows of $77,000 for four years.…
A: The objective of this question is to calculate the internal rate of return (IRR) for a project using…
Q: am.147.
A: Sure, I can help you answer the question in the image. The question is whether Wildhorse Inc. should…
Q: 2 0/1 point Operating profit is £1,000,000, Interest if £50,000, Tax is £100,000, Preference…
A: Approach to solving the question:1. Identify the components affecting earnings: Operating profit,…
Q: Rahul
A: Step 1: Calculate Standard Costs for Actual ProductionDirect Materials: Standard cost = 5 pounds per…
Q: prepare a statement of cash flow under the Indirect Method. Determine net cash proided?used by…
A: Solution: To prepare a statement of cash flow under the Indirect Method, we first need to determine…
Q: Please step by step solutions
A: Please comment down for any doubt. I hope my answer helps you.
Q: A professional service firm at the end of the current fiscal year had a Total Revenue of $8,500,000…
A: 1) Formulas for both RT and DC are given by:RT=AverageAccountsReceivableTotalRevenueDC=RT3652) To…
Q: Through the classifieds of the Miami Herald Rhonda Brennan found her first job after graduating from…
A: To calculate Rhonda's take-home pay for her first check, we need to determine her gross pay,…
Q: ! Required information [The following information applies to the questions displayed below.] Tim has…
A: The objective of the question is to calculate the amount of distribution Tim will have remaining…
Q: Need answer
A: To find the value of the building, we need to use the accounting equation: Assets = Liabilities +…
Q: Dengar
A: Step 1:Computation of the manufacturing cost per unit under absorption costing: Per unitDirect…
Q: ces Cardinal Company is considering a five-year project that would require a $2,855,000 investment…
A: 1. Calculate the Average Annual Profit:Given the net operating income for each year, sum up the net…
Q: Tovar Toasters is considering an equipment investment that will cost $930,000. Projected net cash…
A: Determining the IRR of Tovar Toasters' Equipment InvestmentWe can find the IRR of the equipment…
Q: Hardev
A: ExplanationSolutions: Let's first use the additional information to uncover the values of other…
Q: To illustrate an accounting system, we use an approach. This approach facilitates analyzing,…
A: The integrated financial statement approach is a method used in accounting to present financial…
Q: Granger Products recorded the following transactions for the just-completed month. The company had…
A: Granger Products, a manufacturing company, recorded several transactions for the just-completed…
Q: Hardev
A: Intro: Finding Timberline Corporation's maximum depreciation deduction for the year 2023 assuming no…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Patterson Appliance uses a three-column purchases journal. The company is located in Fresno, California. In addition to a general ledger, Patterson Appliance also uses an accounts payable ledger. Transactions for January related to the purchase of merchandise are as follows: Jan. 2 Bought eighty 12-inch, 3-speed Brighton Oscillating Fans from Snyder and Jordan, 1,890, invoice no. 268J, dated January 2; terms net 60 days; FOB Fresno. 4 Bought ten 35-pint-capacity Crystal Humidifiers from Simpson Company, 2,300, invoice no. 39426, dated January 2; terms 2/10, n/30; FOB Durango, freight prepaid and added to the invoice, 90 (total 2,390). 7 Bought ten 16-inch Axel Window Fans from Tran, Inc., 360, invoice no. 452AD, dated January 6; terms 1/10, n/30; FOB Fresno. 10 Bought twenty-four 4-blade Tiempo Ceiling Fans, Model 2760, from Ukele Company, 3,550, invoice no. D7742, dated January 7; terms 2/10, n/30; FOB Sacramento, freight prepaid and added to the invoice, 84 (total 3,634). 14 Bought four Charger Electric Hedge Trimmers from Fernandez Products Company, 186, invoice no. 2542, dated January 13; terms net 30 days; FOB Fresno. 22 Bought 40 Lindon Electric Bug Killers from Snyder and Jordan, 2,265, invoice no. 392J, dated January 22; terms net 60 days; FOB Fresno. 28 Bought ten Charger Electric Blowers from Fernandez Products Company, 830, invoice no. 2691, dated January 27; terms net 30 days; FOB Fresno. 30 Bought ten Kole Powered Attic Ventilators from Porter Company, 446, invoice no. 664CC, dated January 27; terms 2/10, n/30; FOB Seattle, freight prepaid and added to the invoice, 48 (total 494). Required 1. If using Working Papers, open the following accounts in the accounts payable ledger and record the January 1 balances, if any, as given: Fernandez Products Company; Porter Company, 163.17; Simpson Company, 167.19; Snyder and Jordan; Tran, Inc., 228.70; Ukele Company. For the accounts having balances, write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow or CLGL. 2. If using Working Papers, record the balance of 559.06 in the Accounts Payable 212 controlling account as of January 1. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow or CLGL. 3. Record the transactions in the purchases journal. If using Working Papers, begin on page 81. 4. Post to the accounts payable ledger daily. Skip this step if using CLGL. 5. Post to the general ledger at the end of the month. Skip this step if using CLGL. 6. Prepare a schedule of accounts payable and compare the balance of the Accounts Payable controlling account with the total of the schedule of accounts payable.Journalize the following transactions in general journal form. a. Bought merchandise on account from Brewer, Inc., invoice no. B2997, 914; terms net 30 days; FOB destination. b. Received credit memo no. 96 from Brewer, Inc., for merchandise returned, 238.Lowerys Pet Depot records purchase transactions in the general journal. The company is located in Cleveland, Ohio. In addition to a general ledger, Lowerys Pet Depot also uses an accounts payable ledger. Transactions for October related to the purchase of merchandise are as follows: Oct. 3Bought 12 Automatic Fish Feeders from Barrera Company, 959.88, invoice no. 5493, dated October 2; terms net 30 days; FOB shipping point, freight prepaid and added to the invoice, 79.45 (total 1,039.33). 4Bought two 18 x 18 Terrarium Stands from Hickman Company, 259.98, invoice no. 2JYX, dated October 2; terms 2/10, n/30; FOB destination. 7Bought four Chinchilla Bath Houses from Baldwin, Inc., 67.96, invoice no. 4183, dated October 6; terms 1/10, n/30; FOB destination. 10Received credit memo no. 123 from Baldwin, Inc., for merchandise returned, 13.94. Oct. 14Bought 20 Zoo Slider Hoods from Douglas, Inc., 2,599.80, invoice no. X431, dated October 12; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, 140.50 (total 2,740.30). 15Bought four Hanging Bird Baths from Krause, Inc., 71.96, invoice no. A499, dated October 11; terms net 60 days; FOB destination. 24Bought eight Automatic Cat Litter Boxes from Villa Manufacturing, 2,399.92, invoice no. 4429, dated October 21; terms net 30 days; FOB destination. 27Received credit memo no. 452 from Villa Manufacturing for merchandise returned, 346.78. Required 1. If using Working Papers, open the following accounts in the accounts payable ledger and record the October 1 balances, if any, as given: Baldwin, Inc., 46.57; Barrera Company, 743.15; Douglas, Inc., 615.20; Hickman Company; Krause, Inc., 23.45; Villa Manufacturing, 725.64. For the accounts having balances, write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 2. If using Working Papers, record the October 1 balances in the general ledger as given: Accounts Payable 212 controlling account, 2,154.01; Purchases 511, 2,485.12; Purchases Returns and Allowances 512, 287.52; Freight In 514, 48.57. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 3. Record the transactions in the general journal. If using Working Papers, begin on page 95. 4. Post to the general ledger and the accounts payable ledger. 5. Prepare a schedule of accounts payable, and compare the balance of the Accounts Payable controlling account with the total of the schedule of accounts payable.
- JOURNAL ENTRIES UNDER THE PERPETUAL INVENTORY SYSTEM Sunita Computer Supplies entered into the following transactions. Prepare journal entries under the perpetual inventory system. May 1 Purchased merchandise on account from Anju Enterprises, 200,000. 8 Purchased merchandise for cash, 100,000. 15 Sold merchandise on account to Salils Pharmacy for 8,000. The merchandise cost 5,000.PURCHASES JOURNAL J. B. Speck, owner of Specks Galleria, made the following purchases of merchandise on account during the month of September: Sept. 3Purchase Invoice No. 415, 2,650, from Smith Distributors. 8Purchase Invoice No. 132, 3,830, from Michaels Wholesaler. 11Purchase Invoice No. 614, 3,140, from J. B. Sanders Co. 18Purchase Invoice No. 329, 2,250, from Bateman Jones, Inc. 23Purchase Invoice No. 867, 4,160, from Smith Distributors. 27Purchase Invoice No. 744, 1,980, from Anderson Company. 30Purchase Invoice No. 652, 2,780, from Michaels Wholesaler. Required 1. Record the transactions in the purchases journal. Total and rule the journal. 2. Post from the purchases journal to the general ledger and accounts payable ledger accounts. Use account numbers as shown in the chapter.Berrys Pet Store records purchase transactions in the general journal. The company is located in Boston, Massachusetts. In addition to a general ledger, Berrys Pet Store also uses an accounts payable ledger. Transactions for April related to the purchase of merchandise are as follows: Apr. 2Bought ten Carefree Pet Bedding bags from Blackburn Company, 399.90, invoice no. 4R48, dated April 1; terms net 30 days; FOB destination. 5Bought seven Marine Betta Kits from Herrera Company, 83.93, invoice no. 4851, dated April 3; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, 15 (total 98.93). 6Bought 15 Two Door Deluxe Kennels from Barrett, Inc., 719.85, invoice no. 1845R, dated April 5; terms 1/10, n/30; FOB destination. 8Bought five Dome Top Bird Cages from Faulkner Company, 1,849.95, invoice no. 1485, dated April 7; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, 76 (total 1,925.95). 13Received credit memo no. 415 from Faulkner Company for merchandise returned, 589.13. 23Bought three Five Tiered Cat Trees from Rhodes Manufacturing, 1,107, invoice no. 246J, dated April 21; terms net 60 days; FOB destination. 27Bought 30 Glitter Collection Leashes from Solomon Products Company, 299.70, invoice no. 2675, dated April 25; terms net 30 days; FOB destination. 30Received credit memo no. 861 from Solomon Products Company for merchandise returned, 76.25. Required 1. If using Working Papers, open the following accounts in the accounts payable ledger and record the April 1 balances, if any, as given: Barrett, Inc., 185.25; Blackburn Company, 254.64; Faulkner Company, 485.12; Herrera Company; Rhodes Manufacturing, 452.31; Solomon Products Company, 1,785.23. For the accounts having balances, write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 2. If using working papers, record the April 1 balances in the general ledger as given: Accounts Payable 212 controlling account, 3,162.55; Purchases 511, 559.06; Purchases Returns and Allowances 512, 123.50; Freight In 514, 15.20. Write Balance in the Item column and place a check mark in the Post. Ref. column. Skip this step if using CengageNow. 3. Record the transactions in the general journal. If using Working Papers, begin on page 115. 4. Post to the general ledger and the accounts payable ledger. 5. Prepare a schedule of accounts payable and compare the balance of the Accounts Payable controlling account with the total of the schedule of accounts payable.
- PURCHASES TRANSACTIONS Ann Benton, owner of Bentons Galleria, made the following purchases of merchandise on account during the month of October: Oct. 2Purchase Invoice No. 321, 1,950, from Boggs Distributors. 7Purchase Invoice No. 152, 2,915, from Wolfs Wholesaler. 10Purchase Invoice No. 634, 3,565, from Komuro Co. 16Purchase Invoice No. 349, 2,845, from Fritz McCord, Inc. 24Purchase Invoice No. 587, 3,370, from Boggs Distributors. 26Purchase Invoice No. 764, 2,240, from Sanderson Company. 31Purchase Invoice No. 672, 1,630, from Wolfs Wholesaler. Required 1. Record the transactions starting with page 16 of a general journal. 2. Post from the general journal to the general ledger accounts and to the accounts payable ledger accounts. Use general ledger account numbers as shown in the chapter.Recording Sale and Purchase Transactions Jordan Footwear sells athletic shoes and uses the perpetual inventory system. During June, Jordan engaged in the following transactions its first month of operations: a. On June1, Jordan purchased, on credit, 100 pairs of basketball shoes and 210 pairs of running shoes with credit terms of 2/10, n/30. The basketball shoes were purchased at a cost of $85 per pair, and the running shoes were purchased at a cost of $60 per pair. Jordan paid Mole Trucking $310 cash to transport the shoes from the manufacturer to Jordans warehouse, shipping terms were F.O.B. shipping point, and the items were shipped on June 1 and arrived on June 4. b. On June 2, Jordan purchased 88 pairs of cross-training shoes for cash. The shoes cost Jordan $65 per pair. c. On June 6, Jordan purchased 125 pairs of tennis shoes on credit. Credit terms were 2/10, n/25. The shoes were purchased at a cost of $45 per pair. d. On June 10, Jordan paid for the purchase of the basketball shoes and the running shoes in Transaction a. e. On June 12, Jordan determined that $585 of the tennis shoes were defective. Jordan returned the defective merchandise to the manufacturer. f. On June 18, Jordan sold 50 pairs of basketball shoes at $116 per pair, 92 pairs of running shoes for S85 per pair, 21 pairs of cross-training shoes for $100 per pair, and 48 pairs of tennis shoes for $68 per pair. All sales were for cash. The cost of the merchandise sold was $13,295. No sales returns are expected. g. On June 21, customers returned 10 pairs of the basketball shoes purchased on June 18. The cost of the merchandise returned was $850. h. On June 23, Jordan sold another 20 pairs of basketball shoes, on credit, for $116 per pair and 15 pairs of cross-training shoes for $100 cash per pair. The cost of the merchandise sold was $2,675. i. On June 30, Jordan paid for the June 6 purchase of tennis shoes minus the return on June 12. j. On June 30, Jordan purchased 60 pairs of basketball shoes, on credit, for S85 each. The shoes were shipped F.O.B. destination and arrived at Jordan on July 3. Required: 1. Prepare the journal entries to record the sale and purchase transactions for Jordan during June 2019. 2. Assuming operating expenses of $5,300 and income taxes of $365, prepare Jordans income statement for June 2019.A-5
- QS 4-8 (Algo) Recording sales, returns, and discounts taken LO P2 Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. April 1 Sold merchandise for $6,000, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $3,600. April 4 The customer in the April 1 sale returned $680 of merchandise for full credit. The merchandise, which had cost $408, is returned to inventory. April 8 Sold merchandise for $2,500, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $1,750. April 11 Received payment for the amount due from the April 1 sale less the return on April 4. View transaction list Journal entry worksheet 1 2 3 4 5 6O MERCHANDISING ACCOUNTING Buyer's retail entries: Problem type 3 Journalize the following transactions for the buyer, Evans Company, using the gross method to account for purchase discounts. Assume a perpetual invertory system. June 6 Purchased merchandise from Cook Company on account, $10,000, terms 2/10, n/30. The goods are shipped FOB shipping point, freight prepaid by seller, $420. Returned to Cook Company merchandise previously purchased on account, $2,000. June 12 June 17 Paid the amount due to Cook Company. E Account Title Credit E Open Grammarly 2022 McGraw Hill LLC All Rights Reserved. Teams of the Date Explanation Check Debit X MacBook AirCreate General Journal entries