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The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system. July 3. Purchased merchandise on account from Hamling Co., list price $89,000, trade discount 30%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $850 added to the invoice. 5. Purchased merchandise on account from Kester Co., $42,950, terms FOB destination, 2/10, n/30. 6. Sold merchandise on account to Parsley Co., $16,400, terms n/15. The cost of the goods sold was $9,390. 7. Returned merchandise with an invoice amount of $12,600 purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3. 15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $218,410. The cost of the goods sold was $152,110. 22. Sold merchandise on account to Tabor Co., $56,600, terms 2/10, n/30. The cost of the goods sold was $33,160. 23. Sold merchandise for cash, $34,560. The cost of the goods sold was $20,590. 28. Paid Parsley Co. a cash refund of $6,160 for returned merchandise from sale of July 6. The cost of the returned merchandise was $3,090. 31. Paid MasterCard service fee of $3,730.

The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system. July 3. Purchased merchandise on account from Hamling Co., list price $89,000, trade discount 30%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $850 added to the invoice. 5. Purchased merchandise on account from Kester Co., $42,950, terms FOB destination, 2/10, n/30. 6. Sold merchandise on account to Parsley Co., $16,400, terms n/15. The cost of the goods sold was $9,390. 7. Returned merchandise with an invoice amount of $12,600 purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3. 15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $218,410. The cost of the goods sold was $152,110. 22. Sold merchandise on account to Tabor Co., $56,600, terms 2/10, n/30. The cost of the goods sold was $33,160. 23. Sold merchandise for cash, $34,560. The cost of the goods sold was $20,590. 28. Paid Parsley Co. a cash refund of $6,160 for returned merchandise from sale of July 6. The cost of the returned merchandise was $3,090. 31. Paid MasterCard service fee of $3,730.

FINANCIAL ACCOUNTING
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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The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system. July 3. Purchased merchandise on account from Hamling Co., list price $89,000, trade discount 30%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $850 added to the invoice. 5. Purchased merchandise on account from Kester Co., $42,950, terms FOB destination, 2/10, n/30. 6. Sold merchandise on account to Parsley Co., $16,400, terms n/15. The cost of the goods sold was $9,390. 7. Returned merchandise with an invoice amount of $12,600 purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3. 15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $218,410. The cost of the goods sold was $152,110. 22. Sold merchandise on account to Tabor Co., $56,600, terms 2/10, n/30. The cost of the goods sold was $33,160. 23. Sold merchandise for cash, $34,560. The cost of the goods sold was $20,590. 28. Paid Parsley Co. a cash refund of $6,160 for returned merchandise from sale of July 6. The cost of the returned merchandise was $3,090. 31. Paid MasterCard service fee of $3,730.
Transcribed Image Text:The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system. July 3. Purchased merchandise on account from Hamling Co., list price $89,000, trade discount 30%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $850 added to the invoice. 5. Purchased merchandise on account from Kester Co., $42,950, terms FOB destination, 2/10, n/30. 6. Sold merchandise on account to Parsley Co., $16,400, terms n/15. The cost of the goods sold was $9,390. 7. Returned merchandise with an invoice amount of $12,600 purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3. 15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $218,410. The cost of the goods sold was $152,110. 22. Sold merchandise on account to Tabor Co., $56,600, terms 2/10, n/30. The cost of the goods sold was $33,160. 23. Sold merchandise for cash, $34,560. The cost of the goods sold was $20,590. 28. Paid Parsley Co. a cash refund of $6,160 for returned merchandise from sale of July 6. The cost of the returned merchandise was $3,090. 31. Paid MasterCard service fee of $3,730.
Date Jan. 15 2. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 15. Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $32,400. Mar. 15 Date Mar. 15. Sold all of the treasury stock for $17 per share. Date Account Apr. 13 Stock Dividends Distributable Stock Dividends Apr. 13. Issued 45,000 shares of common stock for $720,000 Account Date Cash Dividends June 14 Account Date July 16 Account July 16. Issued stock for stock dividend declared on June 14. Debit June 14. Declared a 4% on common stock, to be capitalized at the market price of the stock, which is $18 per share. Account Debit Debit Debit Credit Debit Credit Credit Credit Credit
Transcribed Image Text:Date Jan. 15 2. Journalize the entries to record the transactions. For a compound transaction, if an amount box does not require an entry, leave it blank. Jan. 15. Paid cash dividends of $0.15 per share on the common stock. The dividend had been properly recorded when declared on December 1 of the preceding fiscal year for $32,400. Mar. 15 Date Mar. 15. Sold all of the treasury stock for $17 per share. Date Account Apr. 13 Stock Dividends Distributable Stock Dividends Apr. 13. Issued 45,000 shares of common stock for $720,000 Account Date Cash Dividends June 14 Account Date July 16 Account July 16. Issued stock for stock dividend declared on June 14. Debit June 14. Declared a 4% on common stock, to be capitalized at the market price of the stock, which is $18 per share. Account Debit Debit Debit Credit Debit Credit Credit Credit Credit
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