The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 30,000 shares of common stock in exchange for $300,000 in cash. 2. Purchased equipment at a cost of $40,00O. $10,000 cash was paid and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. 5. Paid $5,000 in rent on the warehouse building for the month of March. 6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018. 7. Paid $70,000 on account for the merchandise purchased in 3. 8. Collected $55,000 from customers on account. 9. Recorded depreciation expense of $1,000 for the month on the equipment. Required: Analyze each transaction and show the effect of each on the accounting equation for a corporation. (Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation.) Assets Liabilities Paid-In Capital Retained Earnings %3D + 1. 2. 3. 4. 5. 6. 7. 8. 9.

The following transactions occurred during March 2018 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 30,000 shares of common stock in exchange for $300,000 in cash. 2. Purchased equipment at a cost of $40,00O. $10,000 cash was paid and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. 5. Paid $5,000 in rent on the warehouse building for the month of March. 6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2018. 7. Paid $70,000 on account for the merchandise purchased in 3. 8. Collected $55,000 from customers on account. 9. Recorded depreciation expense of $1,000 for the month on the equipment. Required: Analyze each transaction and show the effect of each on the accounting equation for a corporation. (Amounts to be deducted should be indicated by a minus sign. Enter the net change on the accounting equation.) Assets Liabilities Paid-In Capital Retained Earnings %3D + 1. 2. 3. 4. 5. 6. 7. 8. 9.

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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4. LHR Company had the following transactions for 2022, the first year of operations: 1) Issued common stock for $50,000 cash. 2) Purchased merchandise on account, $40,000. 3) Sold merchandise on account for $25,000. The inventory sold had cost $14,000. 4) Paid for the merchandise purchased within the discount period. 5) Collected $20,000 on the merchandise sold on account. 6) Paid operating expense of $5,000. Required: Answer the following questions. Show your work.
(B) Zeal Inc. Incorporation completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Zeal Inc. showed Cash of $8,000 and Zeal Inc., Capital of $45,000. Zeal Inc. incorporation follows the perpetual inventory system. May 3: Sold merchandise for cash to Seliece Co., $5,400. The cost of the merchandise sold was $4,800. May 6: Purchased merchandise on account from Rendick Co., $8,000, terms FOB Destination, 5/10, n/30, The relevant company paid the freight charge of $100. May 7: Purchased Equipment on credit $45,000. The equipment will be used by the business. May 8: Received $500 credit for merchandise inventory returned to Rendick Co. May 12: Paid Rendick Co. in full. May 15: Made refunds to Seliece Co. for defective merchandise $400. The returned merchandise had a scrap value of $50 only. Instructions: Journalize the above transactions
James Company began the month of October with inventory of $33,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $49,000 on October 12, 2018. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $680 were paid in cash. On October 31, James paid for the merchandise purchased on October 12. During October, merchandise costing $20,700 was sold on account for $31,600. It was determined that inventory on hand at the end of October cost $61,000. Required: 1. Assuming that the James Company uses a periodic inventory system, prepare journal entries for the above transactions including the adjusting entry at the end of October to record cost of goods sold. 2. Assuming that the James Company uses a perpetual inventory system, prepare journal entries for the above transactions.
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am. 186.
The following are selected ledger accounts of Spock Corporation at December 31, 2020. Cash $ 185,000 Salaries and wages expense (sales) $284,000 Inventory 535,000 Salaries and wages expense (office) 346,000 Sales revenue 4,275,000 Purchase returns 15,000 Unearned sales revenue 117,000 Sales returns and allowances 79,000 Purchases 2,786,000 Freight-in 72,000 Sales discounts 34,000 Accounts receivable 142,500 Purchase discounts 27,000 Sales commissions 83,000 Selling expenses 69,000 Telephone and Internet expense (sales) 17,000 Accounting and legal services 33,000 Utilities expense (office) 32,000 Insurance expense (office) 24,000 Miscellaneous office expenses 8,000 Advertising expense 54,000 Rent revenue 240,000 Delivery expense 93,000 Casualty loss (before tax) 70,000 Depreciation expense (office equipment) 48,000 Interest expense 176,000 Depreciation expense (sales equipment)…
On November 1, 2025, Kingbird Inc. had the following account balances. The company uses the perpetual inventory method. Debit Credit Accounts Receivable 6,272 Accounts Payable 9,520 Supplies 2.408 Unearned Service Revenue 11.200 Equipment 70.000 Salaries and Wages Payable 4.760 Common Stock 56,000 Total $103.880 Retained Earnings 19.600 Total $103,880 During November, the following summary transactions were completed. Nov.8 Paid $9,940 for salaries due employees, of which $5,180 is for November and $4,760 is for October. 10. Received $5,320 cash from customers in payment of account. 11. Purchased merchandise on account from Dimas Discount Supply for $22,400, terms 2/10, n/30. 12. Sold merchandise on account for $15,400, terms 2/10, n/30. The cost of the merchandise sold was $11,200. 15. Received credit from Dimas Discount…
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At the beginning of the current season on April 1, the ledger of Novak's Discorama showed Cash $1,900, Inventory $2,600, and Owner's Capital $4,500. The following transactions were completed during April 2022. Apr.5 7 Paid freight on the Mumford purchase $50. Received credit from Mumford Co. for merchandise returned $200. 10 Sold merchandise on account for $900, terms n/30. The merchandise sold had a cost of $540. Purchased disc golf shirts and other accessories on account from Saucer Sportswear $620, terms 1/10, n/30. 14 Paid Mumford Co. in full, less discount. 17 Received credit from Saucer Sportswear for merchandise returned $20. 20 Made sales on account for $560, terms n/30. The cost of the merchandise sold was $350. 21 Paid Saucer Sportswear in full, less discount. 27 Granted an allowance to customers for clothing that did not fit $20. 30 Received payments on account from customers $910. 9 Purchased golf discs, bags, and other inventory on account from Mumford Co. $1,050, FOB…
Bates uses Periodic Inventory system . following transactions. a. bates invested additional $70000 cash in the business. b. Received $125,000 in advance from the state of iowa for service which is be performed at a later. c. Received merchandise (will be resold to customers ) purchases on account for $19,000.the terms were 2/10: n/30 ,FOB origination and the invoice included a $100 freight charge .Invoice is for $19,100. d. paid a six month insurance premium of $1800. e. Purchased a $45000 short term certificate of deposit from Home Saving Bank . The CD is considered a short term investment . f. Performed services for dane country and immediately received $50,000. g. Made a $1,050 mortgage payment was for interest nthe remainder was applied toward the loan principal. h. Returned a return of $2500 of the merchandise received in"C" above. i. sold merchandise on account for $12,000 terms were 2/10, n/30 " FOB origination j. Received a return of $3000 of the…
A merchandiser uses a perpetual inventory system. The beginning Retained Earnings balance of the merchandiser was $140,000. During the year, Sales Revenue amounted to $75,000, Cost of Goods Sold was $45,000, and all other expenses totaled $10,000. The company declared and paid $25,000 as dividends. The ending balance of Retained Earnings would be OA. $160,000 OB. $135,000 OC. $140,000 OD. $185,000 GOVE
On 1 September 2022, inventory had a balance of R6 000 in the general ledger of BB Enterprises. The entity uses the perpetual inventory system and the mark-up on cost is 50%. Below are the transactions for the month of September: 5 September: Bought goods on credit for R4 000 and paid R300 cash for delivery fees. 11 September: Sold inventory with a selling price of R1 200. 19 September: The owner took inventory with a cost price of R200 for his own use. 24 September: Goods with a selling price of R900 was returned by a customer and BB Enterprises issued a credit note. 29 September: Inventory with a cost price of R300 was damaged and cannot be sold. You are required to: a) List (in date order) the entries that will appear on the DEBIT side of the INVENTORY general ledger account. For each entry list the date, the contra account (account that will be credited) and the amount. b) List (in date order) the entries that will appear on the CREDIT side of the INVENTORY general ledger account.…