Problem 8.4A (Static) Journalizing purchases and cash payment transactions. LO 8-1NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 20X1. The company purchasesmerchandise for cash and on open account. In June 20X1, NewTech Medical Devices engaged in the following purchasing and cashpayment activities:DATETRANSACTIONS20X1June 1 Issued Check 101 to purchase merchandise, $4,500.3 Purchased merchandise for $1,700 from BioCenter Inc., Invoice 606; terms 2/10, n/30.5 Purchased merchandise for $5,850, plus a freight charge of $110, from New Concepts Corporation, Invoice 1011;terms 2/10, n/30.9 Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.10 Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $150 that wasreturned; the goods were purchased on Invoice 1011, dated June 5.11 Purchased merchandise for $1,680 from BioCenter Inc., Invoice 612; terms 2/10, n/30.14 Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less thecash discount, Check 103.15 Purchased merchandise with a list price of $9, 200 and trade discounts of 20 percent and 15 percent from ParkResearch, Invoice 1029, terms n/30.20 Issued Check 104 to purchase merchandise, $3,000.25 Returned merchandise purchased on June 20 as defective, receiving a cash refund of $280.30 Purchased merchandise for $3,200, plus a freight charge of $85, from New Concepts Corporation, Invoice 1080;terms 2/10, n/30.Required:Journalize the transactions in a general journal.Analyze:What was the amount of trade discounts received on the June 15 purchase from Park Research?Complete this question

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Description: Problem 8.4A (Static) Journalizing purchases and cash payment transactions. LO 8-1NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 20X1. The company purchasesmerchandise for cash and on open account. In June

The amount of discount allowed to the customer at the time of payment of cash immediately at the…

Answered: Required: Journalize the transactions…

Business

Accounting

Required: Journalize the transactions in a general journal. Analyze: What was the amount of trade discounts received on the June 15 purchase from Park Research?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Problem 8.4A (Static) Journalizing purchases and cash payment transactions. LO 8-1
NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 20X1. The company purchases
merchandise for cash and on open account. In June 20X1, NewTech Medical Devices engaged in the following purchasing and cash
payment activities:
DATE
TRANSACTIONS
20X1
June 1 Issued Check 101 to purchase merchandise, $4,500.
3 Purchased merchandise for $1,700 from BioCenter Inc., Invoice 606; terms 2/10, n/30.
5 Purchased merchandise for $5,850, plus a freight charge of $110, from New Concepts Corporation, Invoice 1011;
terms 2/10, n/30.
9 Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.
10 Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $150 that was
returned; the goods were purchased on Invoice 1011, dated June 5.
11 Purchased merchandise for $1,680 from BioCenter Inc., Invoice 612; terms 2/10, n/30.
14 Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the
cash discount, Check 103.
15 Purchased merchandise with a list price of $9, 200 and trade discounts of 20 percent and 15 percent from Park
Research, Invoice 1029, terms n/30.
20 Issued Check 104 to purchase merchandise, $3,000.
25 Returned merchandise purchased on June 20 as defective, receiving a cash refund of $280.
30 Purchased merchandise for $3,200, plus a freight charge of $85, from New Concepts Corporation, Invoice 1080;
terms 2/10, n/30.
Required:
Journalize the transactions in a general journal.
Analyze:
What was the amount of trade discounts received on the June 15 purchase from Park Research?
Complete this question

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