Required: Journalize the transactions (regular, adjusting and closing entries) using Periodic Method. Transactions for the 1st year 200y: January 3 Owner invested $ 1,000,000 cash February 1 Purchased fumiture worth $120,000 with 8 years useful life and no salvage value February 12 Purchases on account, $600,000; terms: 2/20; n/30. FOB shipping point, freight prepaid, $2,000. March 2 Sold merchandise on account, $900,000; terms 10; 5/15, n/30. FOB shipping point, freight prepaid, $25.000 March 7 Collected 80% of receivable on March 2 March 12 Paid purchases made on Feb. 12 March 23 Received sales returns, $25,000 from sales on Mar 2 April 2 Collected remaining receivables on Mar 2. December 30 Paid Rent, $80,000 and utilities, $16,000 December 31 Accrued salary. $120,000 and merchandise inventory per count $60,000 Transactions for the 2nd year 200z: January 15 Paid accrued salary of 200y April 27 Purchased goods on account $ 480,000. FOB destination, freight prepaid $14,000 May 22 Sold goods for cash to various customers, $450,000 November 26 Sold goods on account, $560,000. FOB, destination, freight collect, $36,000 December 30 Paid Rent S80,000 and utilities, $12,000 December 31 Accrued salary, $140,000 and merchandise inventory per count $66,000
Required: Journalize the transactions (regular, adjusting and closing entries) using Periodic Method. Transactions for the 1st year 200y: January 3 Owner invested $ 1,000,000 cash February 1 Purchased fumiture worth $120,000 with 8 years useful life and no salvage value February 12 Purchases on account, $600,000; terms: 2/20; n/30. FOB shipping point, freight prepaid, $2,000. March 2 Sold merchandise on account, $900,000; terms 10; 5/15, n/30. FOB shipping point, freight prepaid, $25.000 March 7 Collected 80% of receivable on March 2 March 12 Paid purchases made on Feb. 12 March 23 Received sales returns, $25,000 from sales on Mar 2 April 2 Collected remaining receivables on Mar 2. December 30 Paid Rent, $80,000 and utilities, $16,000 December 31 Accrued salary. $120,000 and merchandise inventory per count $60,000 Transactions for the 2nd year 200z: January 15 Paid accrued salary of 200y April 27 Purchased goods on account $ 480,000. FOB destination, freight prepaid $14,000 May 22 Sold goods for cash to various customers, $450,000 November 26 Sold goods on account, $560,000. FOB, destination, freight collect, $36,000 December 30 Paid Rent S80,000 and utilities, $12,000 December 31 Accrued salary, $140,000 and merchandise inventory per count $66,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required: Journalize the transactions (regular, adjusting and closing entries) using
Periodic Method.
Transactions for the 1st year 200y:
January 3 Owner invested $ 1,000,000 cash
February 1 Purchased fumiture worth $120,000 with 8 years useful life and no salvage value
February 12 Purchases on account, $600,000; terms: 2/20; n/30. FOB shipping point, freight
prepaid, $2,000.
March 2 Sold merchandise on account, $900,000; terms 10; 5/15, n/30. FOB shipping point,
freight prepaid, $25,000
March 7 Collected 80% of receivable on March 2
March 12 Paid purchases made on Feb. 12
March 23 Received sales returns, $25,000 from sales on Mar 2
April 2 Collected remaining receivables on Mar 2.
December 30 Paid Rent, $80,000 and utilities, $16,000
December 31 Accrued salary, $120,000 and merchandise inventory per count $60,000
Transactions for the 2nd year 200z:
January 15 Paid accrued salary of 200y
April 27 Purchased goods on account $ 480,000. FOB destination, freight prepaid S14,000
May 22 Sold goods for cash to various customers, $450,000
November 26 Sold goods on account, $560,000. FOB, destination, freight collect, $36,000
December 30 Paid Rent $80,000 and utilities, $12,000
December 31 Accrued salary, $140,000 and merchandise inventory per count $66,000
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