Question

exercise 5-02 a-b Information related to Flounder Co is presented below

om/edugen/lti/main.uni JS Weygandt, Accounting Principles, 13e Help System Announcements Exercise 5-02 a-b (Part Level Submission) (Video) Information related to Flounder Co. is presented below. 1. On April 5, purchased merchandise on account from Shamrock Company for $33,200, terms 3/10, 2. On April 6, paid freight costs of $890 on merchandise purchased from Shamrock. 3. On April 7, purchased equipment on account for $44,800. 4. On April 8, returned damaged merchandise to Shamrock Company and was granted a $5,400 credit 5. On April 15, paid the amount due to Shamrock Company in full. (a) Prepare the journal entries to record these transactions on the books of Flounder Co. under a perpetual inv are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. April 5 INVENTORY 33200 33200 2. April 6 890 3. April .

Answer 1

No.	Date	Accounts Titles and Explanation	Debit	Credit
1)	Apr-05	Inventory	$ 33,200
		Accounts payable		$ 33,200
		( to record purchase merchandise from shamrock company )
2)	Apr-06	Inventory	$ 890
		Cash		$ 890
		( to record Freight paid on merchandise )
3)	Apr-07	Equipment	$ 44,800
		Accounts payable		$ 44,800
		( To record purchase equipment for credit )
4)	Apr-08	Accounts payable	$ 5,400
		Inventory		$ 5,400
		(To record damaged goods returned to shamrock company )
5)	Apr-15	Accounts payable ($33,200 -$5,400)	$ 27,800
		Inventory {($33,200-$5,400 )*3 %}		$ 834
		Cash    {$ 27,800 -$ 834 }		$ 26,966
		(To record amount due to shamrock company in full)