The following selected transactions were completed during August between Summit Co. and Beartooth Co.:
Aug. | 1 | Summit Co. sold merchandise on account to Beartooth Co., $47,600, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $27,760. |
2 | Summit Co. paid freight of $1,265 for delivery of merchandise sold to Beartooth Co. on August 1. | |
5 | Summit Co. sold merchandise on account to Beartooth Co., $63,980, terms FOB shipping point, n/eom. The cost of the merchandise sold was $43,180. | |
9 | Beartooth Co. paid freight of $2,450 on August 5 purchase from Summit Company. | |
15 | Summit Co. sold merchandise on account to Beartooth Co., $60,300, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,725, which was added to the invoice. The cost of the merchandise sold was $34,360. | |
16 | Beartooth Co. paid Summit Company for purchase of August 1. | |
20 | Summit Company paid Beartooth Co. a refund of $1,800 for defective merchandise in the August 1 purchase. Beartooth Co. agreed to keep the merchandise. | |
25 | Beartooth Co. paid Summit Company on account for purchase of August 15. | |
31 | Summit Company granted a customer allowance (credit memo) to Beartooth Co. for $6,000 (invoiced amount) for merchandise that was returned from the August 1 purchase. The cost of the merchandise returned was $3,200. |
Required:
Journalize the August transactions for (1) Summit Co. and (2) Beartooth Co. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles. |
JOURNAL
(1) Journalize the August transactions for Summit Co.. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles.
PAGE 10
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 |
||||||||
2 |
||||||||
3 |
||||||||
4 |
||||||||
5 |
||||||||
6 |
||||||||
7 |
||||||||
8 |
||||||||
9 |
||||||||
10 |
||||||||
11 |
||||||||
12 |
||||||||
13 |
||||||||
14 |
||||||||
15 |
||||||||
16 |
||||||||
17 |
||||||||
18 |
||||||||
19 |
||||||||
20 |
||||||||
21 |
||||||||
22 |
||||||||
23 |
||||||||
24 |
||||||||
25 |
||||||||
26 |
(2) Journalize the August transactions for Beartooth Co. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles.
PAGE 15
JOURNAL
ACCOUNTING EQUATION
DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY | |
---|---|---|---|---|---|---|---|---|
1 |
||||||||
2 |
||||||||
3 |
||||||||
4 |
||||||||
5 |
||||||||
6 |
||||||||
7 |
||||||||
8 |
||||||||
9 |
||||||||
10 |
||||||||
11 |
||||||||
12 |
||||||||
13 |
||||||||
14 |
||||||||
15 |
||||||||
16 |
Summit Co.
Date | Account title and Explanation | Debit | Credit |
Aug.1 | Accounts receivable-Beartooth Co. | $47,600 | |
Sales revenue | $47,600 | ||
[To record credit sales] | |||
Cost of goods sold | $27,760 | ||
Inventory | $27,760 | ||
[To record cost of goods sold] | |||
Aug.2 | Delivery expense | $1,265 | |
Cash | $1,265 | ||
[To record payment of freight] | |||
Aug.5 | Accounts receivable-Beartooth Co. | $63,980 | |
Sales revenue | $63,980 | ||
[To record credit sales] | |||
Cost of goods sold | $43,180 | ||
Inventory | $43,180 | ||
[To record cost of goods sold] | |||
Aug.9 | No entry | ||
Aug.15 | Accounts receivable-Beartooth Co. [60300+1725 freight] | $62,025 | |
Sales revenue | $60,300 | ||
Cash | $1,725 | ||
[To record credit sales and payment of freight on behalf of Beartooth]] | |||
Cost of goods sold | $34,360 | ||
Inventory | $34,360 | ||
[To record cost of goods sold] | |||
Aug.16 | Cash | $46,648 | |
Sales discount [47600 x 2%] | $952 | ||
Accounts receivable-Beartooth Co. | $47,600 | ||
[To record collections from customers] | |||
Aug.20 | Sales returns and allowance | $1,800 | |
Cash | $1,800 | ||
[To record refund given for defective merchandise] | |||
Aug.25 | Cash | $61,422 | |
Sales discount [60300 x 1%] | $603 | ||
Accounts receivable-Beartooth Co. | $62,025 | ||
[To record collections from customers] | |||
Aug.31 | Sales returns and allowance | $6,000 | |
Accounts receivable-Beartooth Co. | $6,000 | ||
[To record sales returns] |
Beartooth Co.
Date | Account title and Explanation | Debit | Credit |
Aug.1 | Inventory | $47,600 | |
Accounts payable-Summit Co. | $47,600 | ||
[To record purchase of inventory on account] | |||
Aug.2 | No Entry | ||
Aug.5 | Inventory | $63,980 | |
Accounts payable-Summit Co. | $63,980 | ||
[To record purchase of inventory on account] | |||
Aug.9 | Inventory | $2,450 | |
Cash | $2,450 | ||
[To record payment of freight] | |||
Aug.15 | Inventory [60300+1725] | $62,025 | |
Accounts payable-Summit Co. | $62,025 | ||
[To record purchase of inventory on account] | |||
Aug.16 | Accounts payable-Summit Co. | $47,600 | |
Inventory [47600 x 2%] | $952 | ||
Cash | $46,648 | ||
[To record cash paid for accounts payable] | |||
Aug.20 | Cash | $1,800 | |
Inventory | $1,800 | ||
[To record refund from seller for defective merchandise] | |||
Aug.25 | Accounts payable-Summit Co. [60300+1725] | $62,025 | |
Inventory [60,300 x 1%] | $603 | ||
Cash | $61,422 | ||
[To record cash paid for accounts payable] | |||
Aug.31 | Accounts payable-Summit Co. | $6,000 | |
Inventory | $6,000 | ||
[To record purchase returns] |
The following selected transactions were completed during August between Summit Co. and Beartooth Co.: Aug. 1...
The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug. 1 Summit Company sold merchandise on account to Beartooth Co., $43,500, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $29,330. 2 Summit Company paid freight of $1,110 for delivery of merchandise sold to Beartooth Co. on August 1. 5 Summit Company sold merchandise on account to Beartooth Co., $69,400, terms FOB shipping point, n/eom. The cost of the goods sold was...
instucions The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug 1 2 5 Summit Company sold merchandise on account to Beartooth Co., 348,000, terrs FOB destination. 2/15, n/eom. The cost of the goods sold was $28,800. Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1 Summit Company sold merchandise on account to Beartooth Co., 566,000, terms FOB shipping point n/eom. The cost of the goods sold...
Instructions The following selected transactions were completed during August between Summit Company and Beartooth Co.: 1 Summit Company sold merchandise on account to Beartooth Co., $52,150, terms Aug. FOB destination, 2/15, nleom. The cost of the goods sald was $25,940. 2 Summit Company paid freight of $1,235 for delivery of merchandise sold to Beartooth Co. on August 1. 5 Summit Company sold merchandise on account to Beartooth Co., $60,090, terms FOB shipping.point, n/eom. The cost of the goods sold was...
The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug. 1 Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $28,800. 2 Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1. 5 Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/45. The cost of the merchandise sold was...
The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug. 1 2 5 Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $28,800. Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1. Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/eom. The cost of the goods sold was...
The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug. 1 Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $28,800. 2 Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1. 5 Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point, n/eom. The cost of the goods sold was...
The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies use the net method under a perpetual inventory system. Aug. 1 Summit Company sold merchandise on account to Beartooth Co., $52,150, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $25,940. 2 Summit Company paid freight of $1,235 for delivery of merchandise sold to Beartooth Co. on August 1. 5 Summit Company sold merchandise on account to Beartooth Co., $60,090, terms...
The following selected transactions were completed during August between Summit Co. and Beartooth Co. Aug. 1 Summit Co. sold merchandise on account to Beartooth Co., $52,150, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $25,940. 2 Summit Co. paid freight of $1,235 for delivery of merchandise sold to Beartooth Co. on August 1. 5 15 16 20 Summit Co. sold merchandise on account to Beartooth Co., $60,090, terms FOB shipping point, n/eom. The cost of the...
The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies use the net method under a perpetual inventory system. Aug. 1 Summit Company sold merchandise on account to Beartooth Co., $49,050, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $28,370. 2 Summit Company paid freight of $1,160 for delivery of merchandise sold to Beartooth Co. on August 1. 5 Summit Company sold merchandise on account to Beartooth Co., $68,590, terms...
Instructions Chart of Accounts-Summit Company Chart of Accounts-Beartooth Co. structions Aug. 1 2 5 9 15 Summit Company sold merchandise on account to Beartooth Co., $48,000, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $28,800. Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1. Summit Company sold merchandise on account to Beartooth Co., $66,000, terms FOB shipping point. neom. The cost of the goods sold was $40,000. Beartooth...