College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN: 9781305666160
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 11, Problem 9SPB
PURCHASES TRANSACTIONS Ann Benton, owner of Benton’s Galleria, made the following purchases of merchandise on account during the month of October:
Oct. 2 Purchase Invoice No. 321, $1,950, from Boggs Distributors.
7 Purchase Invoice No. 152, $2,915, from Wolfs Wholesaler.
10 Purchase Invoice No. 634, $3,565, from Komuro & Co.
16 Purchase Invoice No. 349, $2,845, from Fritz & McCord, Inc.
24 Purchase Invoice No. 587, $3,370, from Boggs Distributors.
26 Purchase Invoice No. 764, $2,240, from Sanderson Company.
31 Purchase Invoice No. 672, $1,630, from Wolfs Wholesaler.
Required
- 1. Record the transactions starting with page 16 of a general journal.
- 2. Post from the general journal to the general ledger accounts and to the accounts payable ledger accounts. Use general ledger account numbers as shown in the chapter.
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Journalizing Purchases Transactions
Journalize the following transactions in a general journal:
May 3 Purchased merchandise from Reed, $6,540. Invoice No. 321, dated May 1, terms
n/30.
' Purchased merchandise from Omana, $2,430. Invoice No. 614, dated May 8, terms
2/10, n/30.
18 Purchased merchandise from Yao Distributors, $2,030. Invoice No. 180, dated May
15, terms 1/15, n/30.
23 Purchased merchandise from Brown, $5,460. Invoice No. 913, dated May 22, terms
1/10, n/30.
Page:
DOC. POST.
NO. REF.
DATE ACCOUNT TITLE
DEBIT
CREDIT
20--
May 3
3.
Invoice No. 321
3.
4
9.
4
5
6.
Invoice No. 614
7 18
9
Invoice No. 180
9
10 23
10
11
11
12
Invoice No. 913
12
Journal Entries for Merchandise Transactions on Seller’s and Buyer’s Records—Periodic System
The following are selected transactions for Jefferson, Inc., during the month of April:
April 20
Sold and shipped on account to Lind Stores merchandise for $3,000, with terms of 1/10, n/30.
April 27
Lind Stores returned defective merchandise billed at $300 on April 20.
April 29
Received from Lind Stores a check for full settlement of the April 20 transaction.
Required
Prepare the necessary journal entries for (a) Jefferson, Inc., and (b) Lind Stores. Both companies use the periodic inventory system.
Sellers journal entries
Buyer's journal entries
JEFFERSON, INC. GENERAL JOURNAL
Date
Description
Debit
Credit
Apr.
20
Answer
Answer
Answer
Answer
Answer
Answer
Sold merchandise to Lind Stores terms 1/10, n/30.
27
Answer
Answer
Answer
Answer
Answer
Answer
Merchandise returned by Lind Stores.
29…
Recording Purchase Transactions
Jeet Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April:
On April 1, Jeet purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the merchandise sold was $2,225.
On April 1, Jeet paid freight charges of $250 cash to have the goods delivered to its warehouse.
On April 8, Jeet returned $800 of the merchandise. The cost of the merchandise returned was $500.
On April 10, Jeet paid Reece the balance due.
Assume that Jeet uses a periodic inventory system.
Required:
1. Prepare the journal entry to record the April 1 purchase of merchandise and payment of freight by Jeet.
2. Prepare the journal entry to record the April 8 return of merchandise.
3. Prepare the journal entry to record the April 10 payment to Reece. For those boxes in which no entry is required, leave the box blank.
Chapter 11 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 11 - Prob. 1TFCh. 11 - Prob. 2TFCh. 11 - A trade discount is a reduction from the list or...Ch. 11 - Prob. 4TFCh. 11 - FOB shipping point means that transportation...Ch. 11 - Prob. 1MCCh. 11 - In the income statement, Freight-In is (a) added...Ch. 11 - Prob. 3MCCh. 11 - The difference between merchandise available for...Ch. 11 - Prob. 5MC
Ch. 11 - Prob. 1CECh. 11 - Prob. 2CECh. 11 - Prob. 3CECh. 11 - Prob. 4CECh. 11 - Identify the major documents commonly used in the...Ch. 11 - Prob. 2RQCh. 11 - Describe how each of the following accounts is...Ch. 11 - How are cost of goods sold and gross profit...Ch. 11 - Prob. 5RQCh. 11 - Prob. 6RQCh. 11 - What steps are followed in posting purchases...Ch. 11 - What steps are followed in posting cash payments...Ch. 11 - Prob. 9RQCh. 11 - If the total of the schedule of accounts payable...Ch. 11 - Prob. 1SEACh. 11 - Prob. 2SEACh. 11 - Prob. 3SEACh. 11 - Prob. 4SEACh. 11 - JOURNALIZING PURCHASES TRANSACTIONS Journalize the...Ch. 11 - JOURNALIZING PURCHASES RETURNS AND ALLOWANCES AND...Ch. 11 - Prob. 7SEACh. 11 - SCHEDULE OF ACCOUNTS PAYABLE Ryans Express, a...Ch. 11 - PURCHASES TRANSACTIONS J. B. Speck, owner of...Ch. 11 - CASH PAYMENTS TR ANS ACTIONS Sam Santiago operates...Ch. 11 - PURCHASES AND CASH PAYMENTS TRANSACTIONS Emily...Ch. 11 - SCHEDULE OF ACCOUNTS PAYABLE Based on the...Ch. 11 - Prob. 1SEBCh. 11 - TRADE DISCOUNT AND CASH DISCOUNTS Merchandise was...Ch. 11 - PURCHASE TRANSACTIONS AND T ACCOUNTS Using T...Ch. 11 - COMPUTING GROSS PROFIT The following data were...Ch. 11 - JOURNALIZING PURCHASES TRANSACTIONS Journalize the...Ch. 11 - JOURNALIZING PURCHASES RETURNS AND ALLOWANCES AND...Ch. 11 - Prob. 7SEBCh. 11 - SCHEDULE OF ACCOUNTS PAYABLE Crystals Candles, a...Ch. 11 - PURCHASES TRANSACTIONS Ann Benton, owner of...Ch. 11 - CASH PAYMENTS TRANSACTIONS Kay Zembrowski operates...Ch. 11 - PURCHASES AND CASH PAYMENTS TRANSACTIONS Debbie...Ch. 11 - SCHEDULE OF ACCOUNTS PAYABLE Based on the...Ch. 11 - You are working as a summer intern at a rapidly...Ch. 11 - Prob. 1ECCh. 11 - Michelle French owns and operates Books and More,...Ch. 11 - Prob. 1CP
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