CONNECT ONLINE ACCESS FOR INTERMEDIATE
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ISBN: 9781264798834
Author: SPICELAND
Publisher: MCG
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Chapter 2, Problem 2.2BE
• LO2–2
Prepare journal entries for each of the transactions listed in BE 2–1.
BE 2–1
Transaction analysis
• LO2–1
The Marchetti Soup Company entered into the following transactions during the month of June: (1) purchased inventory on account for $165,000 (assume Marchetti uses a perpetual inventory system); (2) paid $40,000 in salaries to employees for work performed during the month; (3) sold merchandise that cost $120,000 to credit customers for $200,000; (4) collected $180,000 in cash from credit customers; and (5) paid suppliers of inventory $145,000. Analyze each transaction and show the effect of each on the
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Question 5 of 8
Current Attempt in Progress
The records of Vaughn's Boutique report the following data for the month of April.
Sales revenue
Sales returns
Additional markups
Markup cancellations
Markdowns
Markdown cancellations
Freight on purchases
$197,000
Purchases (at cost)
4,000
Purchases (at sales price)
20,900
Purchase returns (at cost)
2,800
Purchase returns (at sales price)
19,900
Beginning inventory (at cost)
5,600 Beginning inventory (at sales price)
1,800
Compute the ending inventory by the conventional retail inventory method.
Ending inventory using conventional retail inventory method $
$101,000
176,000
4,000
6,100
66.990
93,000
!!!!
Exercise 5-4 Recording journal entries for merchandise sales transactions-perpetual LO3
Journalize each of the following transactions assuming a perpetual inventory system. You are not required to identify the account number in your journal entries.
April
May
5 Sold merchandise to a customer for $6,400; terms 3/10, n/30 (cost of sales $3,680).
7
Made a cash sale of $4,700 of merchandise to a customer today (cost of sales $2,660).
8
Sold merchandise for $12,000; terms 3/10, n/30 (cost of sales $7,040).
15
4
Feb.
Collected the amount owing from the credit customer of April 5.
The customer of April 8 paid the balance owing.
The company's chart of accounts include the following:
101
106
119
201
401 Sales
414 Sales returns and allowances
415 Sales discounts
500 Cost of goods sold
Cash
Accounts Receivable
Merchandise inventory
Accounts Payable
Exercise 5-5 Recording journal entries for merchandise sales transactions-perpetual LO3
Journalize each of the following transactions assuming a…
Chapter 2 Solutions
CONNECT ONLINE ACCESS FOR INTERMEDIATE
Ch. 2 - Explain the difference between external events and...Ch. 2 - Each economic event or transaction will have a...Ch. 2 - What is the purpose of a journal? What is the...Ch. 2 - Explain the difference between permanent accounts...Ch. 2 - Describe how debits and credits affect assets,...Ch. 2 - Describe how debits and credits affect temporary...Ch. 2 - What is the first step in the accounting...Ch. 2 - Prob. 2.8QCh. 2 - Prob. 2.9QCh. 2 - Prob. 2.10Q
Ch. 2 - What is an unadjusted trial balance? An adjusted...Ch. 2 - Define adjusting entries and discuss their...Ch. 2 - Define closing entries and their purpose.Ch. 2 - Define prepaid expenses and provide at least two...Ch. 2 - Deferred revenues represent liabilities recorded...Ch. 2 - Define accrued liabilities. What adjusting journal...Ch. 2 - Prob. 2.17QCh. 2 - [Based on Appendix A] What is the purpose of a...Ch. 2 - [Based on Appendix B] Define reversing entries and...Ch. 2 - [Based on Appendix C] What is the purpose of...Ch. 2 - Prob. 2.21QCh. 2 - Transaction analysis LO21 The Marchetti Soup...Ch. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Prob. 2.3BECh. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; income determination LO24,...Ch. 2 - Prob. 2.12BECh. 2 - Journal entries LO22 Prepare journal entries to...Ch. 2 - T-accounts and trial balance LO23 Post the...Ch. 2 - Prob. 2.5ECh. 2 - Debits and credits LO22 Indicate whether a debit...Ch. 2 - Prob. 2.7ECh. 2 - Prob. 2.8ECh. 2 - Reversing entries Appendix 2B The employees of...Ch. 2 - Special journals Appendix 2C The White Companys...Ch. 2 - Prob. 2.24ECh. 2 - Prob. 2.3PCh. 2 - Prob. 2.4PCh. 2 - Prob. 2.8PCh. 2 - Prob. 2.12PCh. 2 - Judgment Case 21 Cash versus accrual accounting;...Ch. 2 - Communication Case 23 Adjusting entries LO24 I...Ch. 2 - Prob. 2.1DA
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