Purchases Transactions—Gross-Price and Net-Price MethodsRomero's Heating and Cooling had the following transactions during April:Apr. 2 Purchased merchandise on account from Alanon Valve for $860, terms 2/10, n/30.5 Purchased merchandise on account from Leon’s Garage for $1,480, terms 1/10, n/30.11 Paid the amount due to Alanon Valve for the purchase on April 2.25 Paid the amount due to Leon's Garage for the purchase on April 5. 1. Prepare general journal entries for these transactions using the gross-price method.Page: DATEACCOUNT TITLEDOC.NO.POST.REF.DEBITCREDIT 120--Apr. 2 fill in the blank 6c7f68fb1f84077_2fill in the blank 6c7f68fb1f84077_312 fill in the blank 6c7f68fb1f84077_5fill in the blank 6c7f68fb1f84077_623 Purchased merchandise 345 fill in the blank 6c7f68fb1f84077_8fill in the blank 6c7f68fb1f84077_945 fill in the blank 6c7f68fb1f84077_11fill in the blank 6c7f68fb1f84077_1256 Purchased merchandise 6711 fill in the blank 6c7f68fb1f84077_14fill in the blank 6c7f68fb1f84077_1578 fill in the blank 6c7f68fb1f84077_17fill in the blank 6c7f68fb1f84077_1889 fill in the blank 6c7f68fb1f84077_20fill in the blank 6c7f68fb1f84077_21910 Paid invoice within discount period 101125 fill in the blank 6c7f68fb1f84077_23fill in the blank 6c7f68fb1f84077_241112 fill in the blank 6c7f68fb1f84077_26fill in the blank 6c7f68fb1f84077_271213 Paid invoice 13 Feedback Under this method, purchases are recorded at the gross amount, regardless of available cash discounts. Purchase discounts are recorded when paid within the discount period. 2. Prepare general journal entries for these transactions using the net-price method.Page: DATEACCOUNT TITLEDOC.NO.POST.REF.DEBITCREDIT 120--Apr. 2 fill in the blank 574477fdcfc2fe3_312 fill in the blank 574477fdcfc2fe3_5fill in the blank 574477fdcfc2fe3_623 Purchased merchandise 345 fill in the blank 574477fdcfc2fe3_8fill in the blank 574477fdcfc2fe3_945 fill in the blank 574477fdcfc2fe3_11fill in the blank 574477fdcfc2fe3_1256 Purchased merchandise 6711 fill in the blank 574477fdcfc2fe3_14fill in the blank 574477fdcfc2fe3_1578 fill in the blank 574477fdcfc2fe3_17fill in the blank 574477fdcfc2fe3_1889 Paid invoice within discount period 91025 fill in the blank 574477fdcfc2fe3_20fill in the blank 574477fdcfc2fe3_211011 fill in the blank 574477fdcfc2fe3_23fill in the blank 574477fdcfc2fe3_241112 fill in the blank 574477fdcfc2fe3_26fill in the blank 574477fdcfc2fe3_271213 Paid invoice 13

Journal entry is the act of recording all the identified transactions in the book of accounts.

Answered: Romero's Heating and Cooling had the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Purchases Transactions—Gross-Price and Net-Price Methods

Romero's Heating and Cooling had the following transactions during April:

Apr. 2		Purchased merchandise on account from Alanon Valve for $860, terms 2/10, n/30.
5		Purchased merchandise on account from Leon’s Garage for $1,480, terms 1/10, n/30.
11		Paid the amount due to Alanon Valve for the purchase on April 2.
25		Paid the amount due to Leon's Garage for the purchase on April 5.

1. Prepare general journal entries for these transactions using the gross-price method.

Page:

	DATE	ACCOUNT TITLE	DEBIT	CREDIT
1	20-- Apr. 2		fill in the blank 6c7f68fb1f84077_2	fill in the blank 6c7f68fb1f84077_3	1
2			fill in the blank 6c7f68fb1f84077_5	fill in the blank 6c7f68fb1f84077_6	2
3		Purchased merchandise			3
4	5		fill in the blank 6c7f68fb1f84077_8	fill in the blank 6c7f68fb1f84077_9	4
5			fill in the blank 6c7f68fb1f84077_11	fill in the blank 6c7f68fb1f84077_12	5
6		Purchased merchandise			6
7	11		fill in the blank 6c7f68fb1f84077_14	fill in the blank 6c7f68fb1f84077_15	7
8			fill in the blank 6c7f68fb1f84077_17	fill in the blank 6c7f68fb1f84077_18	8
9			fill in the blank 6c7f68fb1f84077_20	fill in the blank 6c7f68fb1f84077_21	9
10		Paid invoice within discount period			10
11	25		fill in the blank 6c7f68fb1f84077_23	fill in the blank 6c7f68fb1f84077_24	11
12			fill in the blank 6c7f68fb1f84077_26	fill in the blank 6c7f68fb1f84077_27	12
13		Paid invoice			13

Feedback

Under this method, purchases are recorded at the gross amount, regardless of available cash discounts. Purchase discounts are recorded when paid within the discount period.

2. Prepare general journal entries for these transactions using the net-price method.

Page:

	DATE	ACCOUNT TITLE	DEBIT	CREDIT
1	20-- Apr. 2			fill in the blank 574477fdcfc2fe3_3	1
2			fill in the blank 574477fdcfc2fe3_5	fill in the blank 574477fdcfc2fe3_6	2
3		Purchased merchandise			3
4	5		fill in the blank 574477fdcfc2fe3_8	fill in the blank 574477fdcfc2fe3_9	4
5			fill in the blank 574477fdcfc2fe3_11	fill in the blank 574477fdcfc2fe3_12	5
6		Purchased merchandise			6
7	11		fill in the blank 574477fdcfc2fe3_14	fill in the blank 574477fdcfc2fe3_15	7
8			fill in the blank 574477fdcfc2fe3_17	fill in the blank 574477fdcfc2fe3_18	8
9		Paid invoice within discount period			9
10	25		fill in the blank 574477fdcfc2fe3_20	fill in the blank 574477fdcfc2fe3_21	10
11			fill in the blank 574477fdcfc2fe3_23	fill in the blank 574477fdcfc2fe3_24	11
12			fill in the blank 574477fdcfc2fe3_26	fill in the blank 574477fdcfc2fe3_27	12
13		Paid invoice			13

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