Requirements 1. Journalise the following transactions: a. Purchase of the goods on 8 January 2016. b. Return of the damaged goods on 12 January 2016. c. Payment on 15 January 2016. 2. What is the final balance of Wonderland Toys inventory account?
Requirements 1. Journalise the following transactions: a. Purchase of the goods on 8 January 2016. b. Return of the damaged goods on 12 January 2016. c. Payment on 15 January 2016. 2. What is the final balance of Wonderland Toys inventory account?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Suppose
Wonderland Toys
buys
$160 000
worth of
ConnectABlock
toys on credit terms of
2/10,
n/60.
Some of the goods are damaged in shipment, so
Wonderland Toys
returns
$15 950
of the merchandise to
ConnectABlock.
The business uses a perpetual inventory system. All amounts are inclusive of GST at the rate of 10%.Requirements
|
1.
|
Journalise the following transactions:
|
|
|
a. Purchase of the goods on 8
January
2016.
|
|
|
b.
Return of the damaged goods on 12
January
2016.
|
|
|
c. Payment on 15
January
2016.
|
|
2.
|
What is the final balance of
Wonderland Toys
inventory account? |
Question content area bottom
Part 1
Requirement 1a. Journalise the
purchase
of the goods on 8
January
2016.
(Record debits first, then credits. Explanations aren't required. Round amounts to the nearest dollar.)|
|
||||
|
Date
|
Accounts
|
Debit
|
Credit
|
|
|
Jan
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Part 2
Requirement 1b. Journalise the
return
of the damaged goods on 12
January
2016.
(Record debits first, then credits. Explanations aren't required. Round amounts to the nearest dollar.)|
Journal Entry
|
||||
|
Date
|
Accounts
|
Debit
|
Credit
|
|
|
Jan
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Part 3
Requirement 1c. Journalise the
payment
on 15
January
2016.
(Record debits first, then credits. Explanations aren't required. Round amounts to the nearest dollar.)|
Journal Entry
|
||||
|
Date
|
Accounts
|
Debit
|
Credit
|
|
|
Jan
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Part 4
Requirement 2. What is the final balance of
Wonderland Toys
inventory account?|
Inventory
|
||||||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
Net cost
|
|
|
|
|
|
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education