Required:Prepare Merchandising Journal Entries using Perpetual and Periodic Inventory System. PracticeTransactionsGeneral JournalOctDateItemDescriptionParticularsP.R.DebitCredit20-Source Document: Purchase InvoiceFor the following:124An advertisement placed in the local paper.23Amount:PHP 1,020.00 plus HST|Рayment:|Cash Tendered6.5 Source Document: Purchase InvoiceFor the following: Advance payment for a year's rental of the company's store retroactive to the 1st.Amount:PHP 800.00 plus HSTPayment:Cash Tendered1010111112126 Source Document:Sales Return Slip1313For the following: Damaged merchandise was received from the customer.1414Amount:PHP 820.00 plus HST1515Payment:Credit TransactionNOTE: goods have already been paid for.161617171818Source Document: Cheque CopyFor the following:71919Payment on account to Hong Kong Toy Suppliers Inc.2020Amount:PHP 130.00| 2121| Рayment:Cash Paid Out22222 /10, n/30Terms we took:23232424Source Document: Memo from owner, J. Boulton25825For the following:Owner withdrew pencils and erasers from the business to write her first novel.2626Amount:PHP 260.00 plus HST2727|Раyment:N/A282829293030Source Document: Sales InvoiceFor the following: Goods purchased by Sarita Guardado.31313232Amount:PHP 7,300.00 plus HST3333Payment:Cash Tendered3434Terms we offered:2 /10, n/303535363610 Source Document: Vendor's Credit MemoFor the following: Inventory damaged upon arrival from the vendor was returned.3710373838Amount:PHP 295.00 plus HST3939Payment:Credit TransactionNOTE: goods have not yet been paid for.40404141

Merchandise Inventory Journal Entry There are mainly two types of merchandise inventory system are…

Answered: Required: Prepare Merchandising Journal…

Business

Accounting

Required: Prepare Merchandising Journal Entries using Perpetual and Periodic Inventory System.

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

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Required: Prepare Merchandising Journal Entries using Perpetual and Periodic Inventory System.

Practice
Transactions
General Journal
Oct
Date
Item
Description
Particulars
P.R.
Debit
Credit
20-
Source Document: Purchase Invoice
For the following:
1
2
4
An advertisement placed in the local paper.
2
3
Amount:
PHP 1,020.00 plus HST
|Рayment:
|Cash Tendered
6.
5 Source Document: Purchase Invoice
For the following: Advance payment for a year's rental of the company's store retroactive to the 1st.
Amount:
PHP 800.00 plus HST
Payment:
Cash Tendered
10
10
11
11
12
12
6 Source Document:
Sales Return Slip
13
13
For the following: Damaged merchandise was received from the customer.
14
14
Amount:
PHP 820.00 plus HST
15
15
Payment:
Credit Transaction
NOTE: goods have already been paid for.
16
16
17
17
18
18
Source Document: Cheque Copy
For the following:
7
19
19
Payment on account to Hong Kong Toy Suppliers Inc.
20
20
Amount:
PHP 130.00
| 21
21
| Рayment:
Cash Paid Out
22
22
2 /10, n/30
Terms we took:
23
23
24
24
Source Document: Memo from owner, J. Boulton
25
8
25
For the following:
Owner withdrew pencils and erasers from the business to write her first novel.
26
26
Amount:
PHP 260.00 plus HST
27
27
|Раyment:
N/A
28
28
29
29
30
30
Source Document: Sales Invoice
For the following: Goods purchased by Sarita Guardado.
31
31
32
32
Amount:
PHP 7,300.00 plus HST
33
33
Payment:
Cash Tendered
34
34
Terms we offered:
2 /10, n/30
35
35
36
36
10 Source Document: Vendor's Credit Memo
For the following: Inventory damaged upon arrival from the vendor was returned.
37
10
37
38
38
Amount:
PHP 295.00 plus HST
39
39
Payment:
Credit Transaction
NOTE: goods have not yet been paid for.
40
40
41
41

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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