Question

On April 25, 2017, Ayayai ships 100 augers to Pina Depot, a farm supply dealer in Nebraska, on consignment. By June 30, 2017, Pina Depot has sold 50 of the consigned augers at the listed price of $1,100 per unit. Pina Depot notifies Ayayai of the sales, retains a 10% commission, and remits the cash due Ayayai. Prepare the journal entries for Ayayai and Pina Depot for the consignment arrangement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Entries for Ayayai Apr. 25, 2017 No Entry Jun 30, 2017 Payable to Consignor Cash :49500 .............. Sales Revenue (To record payment received) Sales Revenue (To record sales) Entries for Pina Depot TApr. 25, 2017 Inventory on Consignment 5500 5 Revenue from Consignment Sales 5500 (To record consignment sales) tash 49500 .................. (To record payment) ..................... ... Pun. 30, 2017 SE

Answer 1

Entries for ayiyal

Particulars                         Amount (Dr.)     Amount (Cr.)

Date  Apr 25,2017

1.Entry for sending goods

                Consignment a/c             Dr.         110000  

To Goods send on consignment a/c                                        110000

(Being goods sent on the consignment basis)

Date June 30,2017

.Entry for sale

                Consignee a/c   Dr.        55000

To Consignment a/c                                    55000

(Being sale of goods)    

Entry for remittance            

Bank a/c              Dr.        49500

To Consignee                                    49500

(Being payment to consignee)    

                              

6.Entry for commission

Consignment a/c             Dr.         5500  

To Consignee                                  5500

(Being commission recorded)                    

Entries for Pina Depot

june 30,2017

For cash sales:

Bank Account Dr. 55000

To Consignor Account 55000

(Being the cash sales of consignment)

When commission is received and sale amount remitted

Consignor Account 55000

To commission income account 5500

to Bank a/c 49500