Question

Problems: Set A instructions Record the September transactions on Norlan's books b) Assume that Norlandid not October 3 instead of September 2 Norlan did not take advantage of the purchase discount offered by Hillary Corp. and paid Hillary on tead of September 20. Record the entry that Norlan would make on October 3 and determine the cost of missing this purchase discount to Norlan. PS-4A At the beginning of the Recor an prepo (LO2 ne beginning of the current golf season, on April 1, 2018, the general ledger of In the Pines Golf Shop showed perpetual inventory system. Enventory $19.500, Common Shares $12.000, and Retained Earnings $11.700. In the Pines Golf Shop uses a The following transactions occurred in April: Apr 3 Purchased golf bags, clubs, and balls on account from Balata Corp. for $3,200, terms 1/10, n/JO, FOB shipping point. 5 Freight of $286 was paid by the appropriate party on the April 3 purchase from Balata. 7 Sold merchandise on account to members for $9.750, terms 1/30. The cost of the merchandise sold was $5,850. 9 Received a $320 purchase allowance from Balata for returned merchandise. 11 Paid Balata in full. 14 Received payments on account from members, $4,150. 16 Purchased golf shoes, sweaters, and other accessories on account from Arrow Sportswear Limited for $1,300, terms 2/10, n/30. 17 Received a $100 credit from Arrow Sportswear for returned merchandise. 20 Sold merchandise on account to members for $11.100, terms n/30. The cost of the merchandise sold was $6,200. 24 Paid Arrow Sportswear in full. 25 Received payments on account from members, $4,375. 27 Granted an $85 sales allowance to a member for a flaw in the clothing they had purchased. No merchandise was returned. Instructions (a) Record the April transactions. (b) Set up T accounts, enter the opening balances, and post the transactions recorded in part(a) (c) Prepare a trial balance as at April 30. PSSA Eagle Hardware Store Lid. completed the following merchandising transactions in the month of May 2018. At the beginning of May. Eagle's ledger showed Cash $7.000; Accounts Receivable $1,500; Inventory $3,500; Common Shares $8,000; and Retained Earnings $4.000. Eagle Hardware uses a perpetual inventory system. May 1 Purchased merchandise on account from Depot Wholesale Supply Lid. for $5,800, terms 1/10, n/30, FOB shipping point. 3 Freight charges of $145 were paid by the appropriate party on the merchandise purchased on May 1 4 Sold merchandise on account to Shep Ltd. for $3,500, terms 2/10, n/30, FOB destination. The cost of the merchandise was $2,100. 7 Freight charges of S90 were paid by the appropriate party on the May 4 sale. A Received a $200 credit from Depot Wholesale Supply when merchandise was returned 9 Paid Depot Wholesale Supply in full. 11 Purchased supplies for $400 cash. 14 Received payment in full from Shep Ltd. for merchandise sold on account on May 4 15 Collected $1,000 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30, with no sales discounts. 14 Purchased merchandise from Harlow Distributors Inc. for $2,000, terms n/30, FOB destination 21 Freight of $50 was paid by the appropriate party on the May 18 purchase of merchandise

Answer 1

1	Journal
	In the books of
S No	Particulars	Dr/Cr.	Dr ($)	Cr ($)
3-Apr	Purchases A/c	Dr	3,200
	To Balata Corp	Cr		3,200
	(Being purchases recorded)
5-Apr	Freight expenses A/c	Dr	286
	To Cash A/c	Cr		286
	(Being freight paid)
7-Apr	Accounts Receivable A/c	Dr	9,750
	To Sale A/c			9,750
	(Being sale recorded)
9-Apr	Balata Corp	Dr	320
	To Purchase return A/c	Cr		320
	(Being Purchase return recorded)
11-Apr	Balata Corp	Dr	2,880
	To Cash A/c	Cr		2,880
	(Being payment made to Balata)
14-Apr	Cash A/c	Dr	4,150
	To Accounts Receivable A/c	Cr		4,150
	(Being amount received)
16-Apr	Purchases A/c	Dr	1,300
	To Arrow Sportswear Limited	Cr		1,300
	(Being purchases recorded)
17-Apr	Arrow Sportswear Limited	Dr	100
	To Purchase return A/c	Cr		100
	(Being Purchase return recorded)
20-Apr	Accounts Receivable A/c	Dr	11,100
	To Sale A/c			11,100
	(Being sale recorded)
24-Apr	Arrow Sportswear Limited	Dr	1,200
	To Cash A/c	Cr		1,200
	(Being payment made to Balata)
25-Apr	Cash A/c	Dr	4,375
	To Accounts Receivable A/c	Cr		4,375
	(Being amount received)
27-Apr	Loss on account of flaw	Dr	85
	To Accounts Receivable A/c	Cr		85
	(Being loss recorded)

		Accounts Receivable A/c
Date	Particulars	Dr	Date	Particulars	Cr
7-Apr	To Sale A/c	9,750	14-Apr	By Cash A/c	4,150
20-Apr	To Sale A/c	11,100	25-Apr	By Cash A/c	4,375
			27-Apr	By Loss on account of flaw	85
			30-Apr	By Balance c/f	12,240
		20,850			20,850
		Sales A/c
Date	Particulars	Dr	Date	Particulars	Cr
30-Apr	To Profit and Loss A/c	20,850	7-Apr	By Accounts Receivable A/c	9,750
			20-Apr	By Accounts Receivable A/c	11,100
		20,850			20,850
		Balata Corp
Date	Particulars	Dr	Date	Particulars	Cr
9-Apr	To Purchase return A/c	320	3-Apr	By Purchases A/c	3,200
11-Apr	To Cash A/c	2,880
		3,200			3,200
		Purchases Return A/c
Date	Particulars	Dr	Date	Particulars	Cr
30-Apr	To Profit and Loss A/c	420	9-Apr	By Balata Corp	320
			17-Apr	By Arrow Sportswear Limited	100
		420			420
		Arrow Sportswear Limited
Date	Particulars	Dr	Date	Particulars	Cr
17-Apr	To Purchase return A/c	100	16-Apr	By Purchases	1,300
24-Apr	To Cash A/c	1,200
		1,300			1,300
		Loss on account of flaw
Date	Particulars	Dr	Date	Particulars	Cr
27-Apr	To Accounts Receivable A/c	85	30-Apr	By Profit and Loss A/c	85
		85			85
		Profit and Loss A/c
Date	Particulars	Dr	Date	Particulars	Cr
30-Apr	To Purchases	3,200	30-Apr	By Sales	20,850
30-Apr	To Freight	286	30-Apr	By Purchase return	420
30-Apr	To Loss on account of flaw	85
31-Jan	To Retained Earnings	17,699
		21,270			21,270

Trial balance
Particulars	Dr ($)	Cr ($)
Cash	8,359
Freight	286
Accounts Receivable	12,240
Sales		20,850
Loss on account of flaw	85
Inventory	23,580
Common Shares		12,000
Retained Earnings		11,700
	44,550	44,550