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 14, Problem 7SEB
May | 1 | Purchased merchandise on account from Anju Enterprises, $200,000. |
8 | Purchased merchandise for cash, $100,000. | |
15 | Sold merchandise on account to Salil’s Pharmacy for $8,000. The merchandise cost $5,000. |
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Prepare journal entries to record the following transactions for a retail store. The company uses a
perpetual inventory system and the gross method.
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Apr.
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Apr.
2 Purchased $6,100 of merchandise from Lyon Company with credit terms of 2/15,
n/60, invoice dated April 2, and FOB shipping point.
Paid $280 cash for shipping charges on the April 2 purchase.
Returned to Lyon Company unacceptable merchandise that had an invoice price of
$650.
Apr.
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18
Apr. 21
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Sent a check to Lyon Company for the April 2 purchase, net of the discount and the
returned merchandise.
Purchased $11,500 of merchandise from Frist Corp. with credit terms of 1/10, n/30,
invoice dated April 18, and FOB destination.
After negotiations, received from Frist a $600 allowance toward the $11,500 owed
on the April 18 purchase.
Sent check to Frist paying for the April 18 purchase, net of the allowance and the
discount.
Peachtree Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal,and general journal. Prepare a purchases journal. Journalize the followingtransactionsthat should be recorded in the purchases journal.May 1 Purchased $10,100 of merchandise on credit from Krause, Inc., terms n/30.8 Sold merchandise costing $900 to G. Seles for $1,500 on credit subject to a $30 sales discountif paid by the end of the month.14 Purchased $240 of store supplies from Chang Company on credit, terms n/30.17 Purchased $260 of office supplies on credit from Monder Company, terms n/30.24 Sold merchandise costing $400 to D. Air for $650 cash.28 Purchased store supplies from Porter’s for $90 cash.29 Paid Krause, Inc., $10,100 cash for the merchandise purchased on May 1.
A Retail Merchandiser was using Perpetual inventory method. The business bought OMR 40,000 of Merchandise under the credit terms of 2/10, n/30. Which account will be Credited in the books of retailer?
a.
Purchase
b.
Merchandise inventory
c.
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d.
Accounts receivable
Chapter 14 Solutions
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Ch. 14 - Under the periodic inventory system, the beginning...Ch. 14 - Under the periodic inventory system, the ending...Ch. 14 - The cash received in advance before delivering a...Ch. 14 - Unearned revenue is adjusted into an expense...Ch. 14 - Sales Returns and Allowances is classified as a...Ch. 14 - Prob. 1MCCh. 14 - Prob. 2MCCh. 14 - Prob. 3MCCh. 14 - Prob. 4MCCh. 14 - Prob. 5MC
Ch. 14 - Prepare the cost of goods sold section for Josephs...Ch. 14 - The Venice Theatre sold and collected cash of...Ch. 14 - Prob. 3CECh. 14 - Using the partial work sheet provided below,...Ch. 14 - Prob. 5CECh. 14 - A firm is preparing to make adjusting entries at...Ch. 14 - Prob. 2RQCh. 14 - Prob. 3RQCh. 14 - What is an unearned revenue?Ch. 14 - Give three examples of unearned revenue.Ch. 14 - Prob. 6RQCh. 14 - Prob. 7RQCh. 14 - A firm is preparing to make adjusting entries at...Ch. 14 - ADJUSTMENT FOR MERCHANDISE INVENTORY USING T...Ch. 14 - CALCULATION OF COST OF GOODS SOLD: PERIODIC...Ch. 14 - ADJUSTMENT FOR UNEARNED REVENUES USING T ACCOUNTS...Ch. 14 - WORK SHEET EXTENSIONS FOR MERCHANDISE INVENTORY...Ch. 14 - DETERMINING THE BEGINNING AND ENDING INVENTORY...Ch. 14 - JOURNALIZE ADJUSTING ENTRIES FOR A MERCHANDISING...Ch. 14 - JOURNAL ENTRIES UNDER THE PERPETUAL INVENTORY...Ch. 14 - Prob. 8SEACh. 14 - COMPLETION OF A WORK SHEET SHOWING A NET INCOME...Ch. 14 - COMPLETION OF A WORK SHEET SHOWING A NET LOSS The...Ch. 14 - WORKING BACKWARD FROM ADJUSTED TRIAL BALANCE TO...Ch. 14 - Prob. 12SPACh. 14 - ADJUSTMENT FOR MERCHANDISE INVENTORY USING T...Ch. 14 - CALCULATION OF COST OF GOODS SOLD: PERIODIC...Ch. 14 - ADJUSTMENT FOR UNEARNED REVENUES USING T ACCOUNTS...Ch. 14 - WORK SHEET EXTENSIONS FOR MERCHANDISE INVENTORY...Ch. 14 - Prob. 5SEBCh. 14 - Prob. 6SEBCh. 14 - JOURNAL ENTRIES UNDER THE PERPETUAL INVENTORY...Ch. 14 - JOURNALIZE ADJUSTING ENTRY FOR A MERCHANDISING...Ch. 14 - COMPLETION OF A WORK SHEET SHOWING A NET INCOME A...Ch. 14 - Prob. 10SPBCh. 14 - WORKING BACKWARD FROM ADJUSTED TRIAL BALANCE TO...Ch. 14 - WORKING BACKWARD FROM THE INCOME STATEMENT AND...Ch. 14 - A friend of yours recently opened Abracadabra, a...Ch. 14 - Jason Tierro, an inventory clerk at Lexmar...Ch. 14 - John Neff owns and operates Waikiki Surf Shop. A...Ch. 14 - Block Foods, a retail grocery store, has agreed to...
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