The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. Issued 20,000 shares of no-par common stock in exchange for $200,000 in cash. Purchased equipment at a cost of $20,000. Cash of $5,000 was paid and a note payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $62,000. The company uses the perpetual inventory system. Credit sales for the month totaled $70,000. The cost of the goods sold was $42,000. Paid $3,000 in rent on the warehouse building for the month of March. Paid $5,200 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. Paid $42,000 on account for the inventory purchased in transaction 3. Collected $31, 500 from customers on account. Recorded depreciation expense of $500 for the month on the equipment. Prepare journal entries to record each of the transactions listed above. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field.

The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. Issued 20,000 shares of no-par common stock in exchange for $200,000 in cash. Purchased equipment at a cost of $20,000. Cash of $5,000 was paid and a note payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $62,000. The company uses the perpetual inventory system. Credit sales for the month totaled $70,000. The cost of the goods sold was $42,000. Paid $3,000 in rent on the warehouse building for the month of March. Paid $5,200 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. Paid $42,000 on account for the inventory purchased in transaction 3. Collected $31, 500 from customers on account. Recorded depreciation expense of $500 for the month on the equipment. Prepare journal entries to record each of the transactions listed above. Note: If no entry is required for a transaction/event, select "No journal entry required in the first account field.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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.
Answer full question please.
am. 186.
Levchenko Company purchased inventories from a vendor for $16,000 on July 1. The purchase was financed through a $10,000 note with the remainder paid in cash. The vendor charged an additional $400 for shipping, on account. Levchenko paid a moving company $700 cash to move the inventory to a different warehouse. Interest on the note totaled $50, payable in August. a. Determine the cost to be assigned to the inventory. $ b. Record the transactions using the financial statement effects template. Note: Use negative signs with your answers, when appropriate. Select "N/A" as your answer if a part of the accounting equation is not affected. Transaction a. Inventory purchase b. Shipping charge c. Moving cost d. Interest incurred Totals Cash Asset ♦ ◆ ◆ ◆ 0 + Noncash Asset ◆ ◆ ◆ ◆ 0 Balance Sheet Liabilities ◆ ◆ ◆ 0 Contributed + Capital + Earned Capital ♦ ◆ ♦ ♦ 0 Revenues Income Statement Expenses ◆ ◆ ◆ 0 Net = Income 0
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)…
The following items were selected from among the transactions completed by Sherwood Co. during the current year: Mar. 1 Purchased merchandise on account from Kirkwood Co., $225,000, terms n/30. 31 Issued a 30-day, 8% note for $225,000 to Kirkwood Co., on account. Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31. Jun. 1 Borrowed $600,000 from Triple Creek Bank, issuing a 45-day, 6% note. Jul. 1 Purchased tools by issuing a $50,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%. 16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 7% note for $600,000. (Journalize both the debit and credit to the notes payable account.) Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16. 30 Paid Poulin Co. the amount due on the note of July 1. Dec. 1 Purchased equipment from Greenwood Co. for $280,000, paying $80,000 cash and issuing a series of ten 9% notes for…
Bevo Corp. started 2022 with $101,000 of inventory on hand. During 2022, $500,000 in inventory was purchased on account with credit terms of 3/15, n/45. Purchases were all made f.o.b. shipping point. All discounts were taken. Cost of goods sold for the year was $366,000. Inventory with an invoice amount of $3,200 was returned for credit. Bevo Corp. paid freight charges of $9,300. Bevo Corp. uses a perpetual inventory system. Calculate the cost of goods available for sale, assuming Bevo Corp. uses the gross method to record purchases. a) 592,100 b) 592,196 c) 607,100 d) 606,700
Ankaran Enterprises currently has $800 in cash, and total assets of $20,400. The company owes $1,400 to suppliers for merchandise and $5, 100 to the bank for a long-term loan. Customers owe Ankaran's $1,100. The inventory has a book value of $4, 400 and an estimated market value of $5,500. If Ankaran's compiled a financial statement today, how much would it show as the value of the current assets?
Required information [The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $39,500 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 8%, $35,000 note payable along with paying $4,500 in cash. July 8 Borrowed $63,000 cash from NBR Bank by signing a 120-day, 12%, $63,000 note payable. Paid the amount due on the note to Locust at the _?- maturity date. ? November 28 December 31 Paid the amount due on the note to NBR Bank at the maturity date. Borrowed $24,000 cash from Fargo Bank by signing a 60-day, 7%, $24,000 note payable. Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 _ ? Paid the amount due on the note to Fargo Bank at the maturity date. 5. Prepare journal entries for all the preceding transactions and events. Note: Do not round your intermediate…
Required information [The following information applies to the questions displayed below.] Tyrell Company entered into the following transactions involving short-term liabilities. Year 1 April 20 Purchased $40,250 of merchandise on credit from Locust, terms n/30. May 19 Replaced the April 20 account payable to Locust with a 90-day, 10%, $35,000 note payable along with paying $5,250 in cash. July 8 Borrowed $80,000 cash from NBR Bank by signing a 120-day, 9%, $80,000 note payable. Paid the amount due on the note to Locust at the maturity date. Paid the amount due on the note to NBR Bank at the maturity date. November 28 Borrowed $42,000 cash from Fargo Bank by signing a 60-day, 88, $42,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank. Year 2 ? Paid the amount due on the note to Fargo Bank at the maturity date. 4. Determine the interest expense recorded in Year 2. Note: Do not round your Intermediate calculations. Use 360 days a…
Described below are certain transactions of Sandhill Corporation. The company uses the periodic inventory system. 1. 2. 3. On February 2, the corporation purchased goods from Martinez Company for $73,500 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. On April 1, the corporation bought a truck for $55,000 from Blossom Motors Company, paying $3,000 in cash and signing a 1- year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $86,000 from Chicago National Bank by signing a $94,640 zero interest bearing note due 1 year from May 1. (a) Your answer is correct. Make all the journal entries necessary to record the transactions above using appropriate dates. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered.…
The following transactions occurred during March 2024 for the Right Corporation. The company operates a wholesale warehouse. Issued 41,000 shares of no-par common stock in exchange for $410,000 in cash. Purchased equipment at a cost of $51,000. Cash of $15,500 was paid and a note payable to the seller was signed for the balance owed. Purchased inventory on account at a cost of $100,000. The company uses the perpetual inventory system. Credit sales for the month totaled $175,000. The cost of the goods sold was $81,000. Paid $6,100 in rent on the warehouse building for the month of March. Paid $7,100 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2024. Paid $81,000 on account for the inventory purchased in transaction 3. Collected $66,000 from customers on account. Recorded depreciation expense of $2,100 for the month on the equipment. Post the above transactions to the below T-accounts. Assume that the opening balances in each of the…