Required information Problem 6-9B Record transactions and prepare a partial income statement using a periodic inventory system (LO6-8) [The following information applies to the questions displayed below.] At the beginning of June, Circuit Country has a balance in inventory of $2,550. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $2,250, terms 2/15, n/45. June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $310. June 8 Return defective radios to Radio World and receive credit, $400. June 10 Pay Radio World in full. June 11 Selil radios to customers on account, $4,100, that had a cost of $2,750. June 18 Receive payment on account from customers, $3,100. June 20 Purchase radios on account from Sound Unlimited for $3,350, terms 2/10, n/30. June 23 Sell radios to customers for cash, $4,850, that had a cost of $3,150. June 26 Return damaged radios to Sound Unlimited and receive credit of $500. June 28 Pay Sound Unlimited in full. roblem 6-9B Part 2
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.
![Required information
Problem 6-9B Record transactions and prepare a partial income statement using a periodic inventory
system (LO6-8)
[The following information applies to the questions displayed below.]
At the beginning of June, Circuit Country has a balance in inventory of $2,550. The following transactions occur during the
month of June.
2 Purchase radios on account from Radio World for $2,250, terms 2/15, n/45.
4 Pay cash for freight charges related to the June 2 purchase from Radio World, $310.
8 Return defective radios to Radio World and receive credit, $400.
June
June
June
June 10 Pay Radio World in full.
June 11 Sell radios to customers on account, $4,100, that had a cost of $2,750.
June 18 Receive payment on account from customers, $3,100.
June 20 Purchase radios on account from Sound Unlimited for $3,350, terms 2/10, n/30.
June 23 Sell radios to customers for cash, $4,850, that had a cost of $3,150.
June 26 Return damaged radios to Sound Unlimited and receive credit of $500.
June 28 Pay Sound Unlimited in full.
Problem 6-9B Part 2
2.
Record the month-end adjustment to inventory, assuming that a final count reveals ending inventory with a cost of $1,566. (If no entry
is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
No
Date
General Journal
Debit
Credit
1
June 30
Inventory (ending)
1,566
Purchase Returns
900
Purchase Discounts
94
Freight-In
310
Inventory (beginning)
2,550
Purchases
5,600
*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcc35bfef-1e1d-4e62-a745-481127990680%2F3bf3259c-5505-4f44-a928-e53cfd0777c9%2F3yjzyu_processed.png&w=3840&q=75)
Under periodic inventory system, the cost of goods sold is not recorded with every sale transaction and hence, at end of accounting period, the cost of goods sold is estimated with adjustment entry.
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