Raymond Company and Geeslin Company both use a periodic inventory system. The following transactions occurred during the month of January: Jan. 1 Raymond purchased $5,000 of merchandise on account from Geeslin with credit terms of 2/10, n/30. The cost of the merchandise was $3,750. Assume that Geeslin uses the net method to record sales discounts. 8 Raymond returned $500 of the merchandise to Geeslin. The cost of the merchandise returned was $375. 10 Raymond paid invoices totaling $3,000 to Geeslin for the merchandise purchased on January 1. 30 Raymond paid Geeslin the balance due. Required: Prepare the journal entries to record these transactions on the books of Raymond Company. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 1 - Select - - Select - (Purchased inventory on credit) Jan. 8 - Select - - Select - (Returned merchandise) Jan. 10 - Select - - Select - - Select - - Select - - Select - - Select - (Recorded payment within discount period) Jan. 30 - Select - - Select - (Recorded payment outside of discount period)
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Raymond Company and Geeslin Company both use a periodic inventory system. The following transactions occurred during the month of January:
| Jan. 1 | Raymond purchased $5,000 of merchandise on account from Geeslin with credit terms of 2/10, n/30. The cost of the merchandise was $3,750. Assume that Geeslin uses the net method to record sales discounts. | |
| 8 | Raymond returned $500 of the merchandise to Geeslin. The cost of the merchandise returned was $375. | |
| 10 | Raymond paid invoices totaling $3,000 to Geeslin for the merchandise purchased on January 1. | |
| 30 | Raymond paid Geeslin the balance due. |
Required:
Prepare the
| Jan. 1 |
|
- Select - | |
|
|
- Select - | ||
| (Purchased inventory on credit) | |||
| Jan. 8 |
|
- Select - | |
|
|
- Select - | ||
| (Returned merchandise) | |||
| Jan. 10 |
|
- Select - | - Select - |
|
|
- Select - | - Select - | |
|
|
- Select - | - Select - | |
| (Recorded payment within discount period) | |||
| Jan. 30 |
|
- Select - | |
|
|
- Select - | ||
| (Recorded payment outside of discount period) |
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Prepare the
| Jan. 1 |
|
||
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Sales Revenue | ||
| (Record sale to customer) | |||
| Jan. 1 |
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Cost of Goods Sold | |
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Inventory | ||
| (Recorded cost of merchandise sold) | |||
| Jan. 8 |
|
Sales Revenue | |
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|
Accounts Receivable | ||
| (Recorded return of merchandise) | |||
| Jan. 8 |
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Inventory | |
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|
Cost of Goods Sold | ||
| (Recorded cost of merchandise returned) | |||
| Jan. 10 |
|
Cash | |
|
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Accounts Receivable | ||
| (Recorded receipt within discount period) | |||
| Jan. 30 |
|
Cash | Cash |
|
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Accounts Receivable | Accounts Receivable | |
|
|
Sales Revenue |
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