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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Textbook Question
Chapter 13, Problem 2SEA
JOURNAL ENTRIES—PERIODIC INVENTORY Paul Nasipak owns a business called Diamond Distributors. The following transactions took place during January of the current year. Journalize the transactions in a general journal using the periodic inventory method.
| Jan. 5 | Purchased merchandise on account from Prestigious Jewelers, $3,300. |
| 8 | Paid freight charge on merchandise purchased, $300. |
| 12 | Sold merchandise on account to Diamonds Unlimited, $4,500. |
| 15 | Received a credit memo from Prestigious Jewelers for merchandise returned, $700. |
| 22 | Issued a credit memo to Diamonds Unlimited for merchandise returned, $900. |
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Journal Entries-Periodic Inventory
Paul Nasipak owns a business called Diamond Distributors. The following transactions
took place during January of the current year.
Jan. 5 Purchased merchandise on account from Prestigious Jewelers, $3,190.
8 Paid freight charge on merchandise purchased, $340.
12 Sold merchandise on account to Diamonds Unlimited, $4,380.
15 Received a credit memo from Prestigious Jewelers for merchandise returned, $660.
22 Issued a credit memo to Diamonds Unlimited for merchandise returned, $900.
Journalize the transactions in a general journal using the periodic inventory method.
Page:
DOC. POST.
NO. REF.
DATE ACCOUNT TITLE
DEBIT CREDIT
20--
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Jan. 5
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4
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10 15
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Journal Entries-Perpetual Inventory
Joan Ziemba owns a small variety store. The following transactions took place during
March of the current year.
Mar. 3 Purchased merchandise on account from City Galleria, $3,100.
7 Paid freight charge on merchandise purchased, $200.
Sold merchandise on account to Amber Specialties, $3,500. The cost of the
13
merchandise was $2,100.
18 Received a credit memo from City Galleria for merchandise returned, $650.
Issued a credit memo to Amber Specialties for merchandise returned, $600. The
22
cost of the merchandise was $280.
Journalize the transactions in a general journal using the perpetual inventory method.
Page:
DOC. POST.
DATE
ACCOUNT TITLE
DEBIT CREDIT
NO. REF.
20--
1
Mar. 3
Merchandise inventory -
1.
Accounts pavable/City Galleria -
2
3
Merchandise inventory -
4 7
4
Cash-
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7 13
Accounts receivable/Amber Specialties -
7.
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Sales-
8
Record Sale
Cost of goods sold E
Merchandise inventory -
10 13
10
11
11
12
Record Cost
12
Accounts payable/City…
Journalize the transactions using perpetual inventory system
Chapter 13 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 13 - An overstatement of ending inventory in the year...Ch. 13 - An understatement of ending inventory in the year...Ch. 13 - LO2 Under the perpetual system of accounting for...Ch. 13 - LO3 A fiscal year that starts and ends at the time...Ch. 13 - LO3 If goods are shipped FOB shipping point, the...Ch. 13 - An understatement of ending inventory in the year...Ch. 13 - Prob. 2MCCh. 13 - In rimes of rising prices, the inventory cost...Ch. 13 - In rimes of rising prices, the inventory cost...Ch. 13 - In the application of lower-of-cost-or-market,...
Ch. 13 - LO1 If the ending inventory is overstated by...Ch. 13 - Using the following information, compute the...Ch. 13 - Use the following information to compute cost of...Ch. 13 - Kulsrud Company would like to estimate the current...Ch. 13 - What financial statements are affected by an error...Ch. 13 - What is the main difference between the periodic...Ch. 13 - Is a physical inventory necessary under the...Ch. 13 - Is a physical inventory necessary under the...Ch. 13 - In a period of rising prices, which inventory...Ch. 13 - What two factors are taken into account by the...Ch. 13 - Which inventory method always follows the actual...Ch. 13 - When lower-of-cost-or-market is assigned to the...Ch. 13 - List the three steps followed under the gross...Ch. 13 - List the five steps followed under the retail...Ch. 13 - INVENTORY ERRORS Assume that in year 1, the ending...Ch. 13 - JOURNAL ENTRIESPERIODIC INVENTORY Paul Nasipak...Ch. 13 - JOURNAL ENTRIESPERPETUAL INVENTORY Joan Ziemba...Ch. 13 - ENDING INVENTORY COSTS Sandy Chen owns a small...Ch. 13 - LOWER-OF-COST-OR-MARKET Stalberg Companys...Ch. 13 - SPECIFIC IDENTIFICATION, FIFO, LIFO, AND...Ch. 13 - COST ALLOCATION AND LOWER-OF-COST-OR-MARKET...Ch. 13 - Prob. 8SPACh. 13 - RETAIL INVENTORY METHOD The following information...Ch. 13 - INVENTORY ERRORS Assume that in year 1, the ending...Ch. 13 - JOURNAL ENTRIESPERIODIC INVENTORY Amy Douglas owns...Ch. 13 - JOURNAL ENTRIESPERPETUAL INVENTORY Doreen Woods...Ch. 13 - ENDING INVENTORY COSTS Danny Steele owns a small...Ch. 13 - LOWER-OF-COST-OR-MARKET Bouie Companys beginning...Ch. 13 - SPECIFIC IDENTIFICATION, FIFO, LIFO, AND...Ch. 13 - COST ALLOCATION AND LOWER-OF-COST-OR-MARKET Hall...Ch. 13 - GROSS PROFIT METHOD A flood completely destroyed...Ch. 13 - RETAIL INVENTORY METHOD The following information...Ch. 13 - Hurst Companys beginning inventory and purchases...Ch. 13 - Bhushan Company has been using LIFO for inventory...
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- JOURNAL ENTRIESPERIODIC INVENTORY Amy Douglas owns a business called Douglas Distributors. The following transactions took place during January of the current year. Journalize the transactions in a general journal using the periodic inventory method. Jan. 5 Purchased merchandise on account from Elite Warehouse, 4,100. 8 Paid freight charge on merchandise purchased, 300. 12 Sold merchandise on account to Memories Unlimited, 5,200. 15 Received a credit memo from Elite Warehouse for merchandise returned, 700. 22 Issued a credit memo to Memories Unlimited for merchandise returned, 400.arrow_forwardC. R. McIntyre Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year: Required 1. Journalize the transactions for May in the cash receipts journal and the sales journal. Assume the periodic inventory method is used. 2. Total and rule the journals. 3. Prove the equality of the debit and credit totals.arrow_forwardPreston Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year: Required 1. Journalize the transactions for May in the cash receipts journal and the sales journal. Assume the periodic inventory method is used. 2. Total and rule the journals. 3. Prove the equality of the debit and credit totals.arrow_forward
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