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Continuing Problem
P7-3D Using aft journals
This problem continues the Canyon Canoe Company situation. At the beginning oF the new year, Canyon Canoe Company decided to carry and sell T-shirts with its logo printed on them Canyon Canoe Company uses the perpetual Inventory system to account for the Inventory During January 2019. Canyon Canoe Company completed the blowing merchandising transactions.
Jan. 1 Purchased 10 T-shirts at $4 each and paid cash.
2 Sold 6 T-shirts for $10 each, total? cost of $24. Received cash.
3 Purchased 50 T-shirts on account at SS each. Terms 2/10, &30.
7 Paid the supplier for the T-Shirts purchased on January 3, less discount.
8 Realized 4 T-shirts from the January 1 order were printed wrong and returned them
for a cash refund.
10 Sold 40 T-shirts on account for $10 each, total cost of $200. Terms 3/15, n/45.
12 Received payment for the T-shirts sold on account on January 10, less discount.
14 Purchased 100 T-shirts on account at $4 each. Terms 4/15, n/30.
18 Canyon Company called the supplier from the January 14 purchase and told them
that some of the T-shirts were the wrong color, The supplier offered a $50 purchase
allowance.
20 Paid the supplier for the T-shirts purchased on January 14. less the allowance and
discount.
21 Sold 60 T-shirts on account for $10 each, total cost of $220. Terms 2120, n130.
23 Received a payment on account for the T-shirts sold on January 21. less discount.
25 Purchased 320 T-shirts on account at 55 each. Terms 2/10. n/30. FOB shipping point.
27 Paid freight associated with the January 25 purchase, $48.
29 Paid for the January 25 purchase, less discount.
30 Sold 275 T-shirts on account for $10 each, total cost of $1,300. Terms 2/10, n/30.
31 Received payment for the T-shirts sold on January 30, less discount.
Requirements
1 Enter the transactionin a sales journal (page 2), a cash receipts journal (page 5, omit Sales Discounts Forfeited column), a purchases journal (page 7), a cash payments journal (page 6), and a general journal (page 4), as appropriate.
2 Total each column of the special journals Show that total đeb4s equal total credits ri each special journal.
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Chapter 7 Solutions
Horngren's Accounting (12th Edition)
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