When Sheffield counted its inventory on June 30, it determined that there were 120 books with a total cost of $1,385. Record theadjusting entry for the inventory theft or shrinkage. (List all debit entries before credit entries. Credit account titles are automaticallyindented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O forthe amounts.)DateAccount Titles and ExplanationDebitCreditJune 30 Sheffield Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Sheffield's inventory consists of 230books purchased at $17 each. Sheffield uses a perpetual inventory system. Return rates in the book industry are high, with Sheffieldexperiencing a 15% return rate historically.During the month of June, the following merchandise transactions occurred:June1Purchased 160 books on account for $15 each from Reader's World Publishers, terms n/45.3Sold 220 books on account to The Book Nook for $25 each, with an assumed average cost of $16, terms n/45.Received a $150 credit for 10O books returned to Reader's World Publishers.8Sold 81 books on account to Read-A-Lot Bookstore for $25 each, with an assumed average cost of $16, terms n/45.Issued a $300 credit memorandum to Read-A-Lot Bookstore for the return of 12 damaged books. The books weredetermined to be no longer saleable and were destroyed.11Purchased 130 books on account for $16 each from Read More Publishers, terms n/45.12Received payment in full from The Book Nook.17Received payment in full from Read-A-Lot Bookstore.22Sold 125 books on account to Reader's Bookstore for $23 each, with an assumed average cost of $16, terms n/45.25Granted Reader's Bookstore a $322 credit for 14 returned books. These books were restored to inventory.29Paid Reader's World Publishers in full.

Journal entry is a primary entry that records the financial transactions initially. The company…

Answered: When Sheffield counted its inventory on…

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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Record the June transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when theamount is entered. Do not indent manually. if no entry is required, select "No Entry” for the account titles and enter O for the amounts.Round your answers to O decimal places, eg. 5,275.)
of Goods Sold year-end account balances of Sales Revenue $833,235, Interest Revenue $12,7 Administrative Expenses $203,880, Income Tax Expense $32,408, and Dividends $20,388. Prepare the year-end closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation 1 (To close revenue accounts.) (To close expense accounts.) Debit Credit [
King Enterprises is a book wholesaler. King hired a new accounting clerk on January 1 of the current year. The new clerk does not understand accrual accounting and recorded the following transactions based on when cash receipts and disbursements changed hands rather than when the transaction occurred. King uses a perpetual inventory system, and its accounting policy calls for inventory purchases to be recorded net of any discounts offered. Jan. 10 Paid Aztec Enterprises $9,900 for books that it received on December 15. (This purchase was recorded as a debit to Inventory and a credit to Accounts Payable on December 15 of last year, but the accounting clerk ignores that fact.) Dec. 27 Received books from McSaw Inc. for $20,500; terms 2/10, n/30. Dec. 30 Sold books to Booksellers Unlimited for $31,000; terms 1/10, n/30. The cost of these books to King was $25,000. Required:a. As a result of the accounting clerk's errors, compute the amount by which the following…
Credit Prepare separate entries for each transaction for Sandhill Company. The merchandise purchased by Teal Mountain on June 10 cost Sandhill $2,090, and the goods returned cost Sandhill $280. (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. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date く Account Titles and Explanation > (To record credit sale) > (To record cost of goods sold) > Debit To record credit for recoint of goods returned)
Splish Company sold $8,950 of its specialty shelving to Elkins Office Supply Co. on account. Prepare the entries ignoring cost of goods sold entries when (a) Splish makes the sale. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) (b) Splish grants an allowance of $658 when some of the shelving does not meet exact specifications but still could be sold by Elkins. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List debit entry before credit entry.) (c) at year-end; Splish estimates that an additional $200 in allowances will be granted to Elkins. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account…
On April 5, a customer returns 25 bicycles with a sales price of $300 per bike to Barrio Bikes. Each bike cost Barrio Bikes $120. The customer had yet to pay on their account. The bikes are in sellable condition. Assume the perpetual and periodic methods are used. A. Prepare the journal entries to recognize this return if the company uses the perpetual inventory system. If an amount box does not require an entry, leave it blank.
Discount Mart utilizes the allowance method of accounting for uncollectible receivables. On December 12 the company receives a $590 check from Chad Thomas in settlement Thomas's $1,210 outstanding accounts receivable. Due to Thomas's failing health he is closing his company and is expecting to make no further payments to Discount Mart. Journalize this declaration. If an amount box does not require an entry, leave it blank. Dec. 12
On March 2, Riverbed Company sold $832,000 of merchandise on account to Swifty Corporation, terms 2/10, n/30. The cost of the merchandise sold was $603,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation (b) Your answer is correct. (c) Inventory Accounts Payable e Textbook and Media List of Accounts ✓ Your answer is correct. Inventory eTextbook and Media On March 6, Swifty Corporation returned $83,200 of the merchandise purchased on March 2. The cost of the returned merchandise was $60,300. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) Account Titles and Explanation Accounts Payable List of Accounts ➡ Your answer is partially correct. Account Titles and Explanation…
9
Crane Company has the following merchandise account balances at its September 30 year end: Cost of goods sold Delivery expense Merchandise inventory Salaries expense Date Sept. 30 $120,000 Sept. 30 2,300 22,000 40,000 Sales Sales discounts Sales returns and allowances Supplies Prepare the entries to close the appropriate accounts to the Income Summary account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Account Titles and Explanation | $187,500 (To close income statement account with credit balance.) 970 3,100 2,300 Debit Credit TOU
On June 10, Riverbed Company purchased $7,850 of merchandise on account from Pronghorn Company, FOB shipping point, terms 2/10, n/30. Riverbed pays the freight costs of $490 on June 11. Goods totaling $650 are returned to Pronghorn for credit on June 12. On June 19, Riverbed pays Pronghorn Company in full, less the discount. Both companies use a perpetual inventory system.
Swifty Company has the following account balances: Sales Revenue $209,200, Sales Discounts $3,110, Cost of Goods Sold $128,900, and Inventory $57,500.Prepare the necessary closing entries for Swifty Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit (To close accounts with credit balances) (To close accounts with debit balances)

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