Part 1
In the books of Belton Company
General Journal
Date |
Account Title |
Debit ($) |
Credit ($) |
June 1 |
Accounts Receivable – Avery and Wiest A/C DR. |
10,000 |
|
To Sales Revenue A/C |
10,000 |
||
(Being sold merchandise to Avery and Wiest ) |
|||
June 2 |
Merchandise A/C DR. |
5,400 |
|
To Accounts Payable – Angolac Suppliers A/C |
5,400 |
||
(Being purchased merchandise from Angolac Suppliers) |
|||
June 4 |
Merchandise A/C DR. |
12,400 |
|
To Accounts Payable – Bastile Sales A/C |
12,400 |
||
(Being purchased merchandise from Bastile Sales) |
|||
June 5 |
Accounts Receivable – Gelgar A/C DR. |
12,000 |
|
To Sales Revenue A/C |
12,000 |
||
(Being sold merchandise to Gelgar) |
|||
June 6 |
Cash A/C DR. |
9,900 |
|
Discount allowed A/C DR. |
100 |
||
To Accounts Receivable – Avery and Wiest A/C |
10,000 |
||
(Being collected the amount owing from Avery and Wiest ) |
|||
June 12 |
Accounts Payable – Angolac Suppliers A/C DR. |
5,400 |
|
To Cash A/C |
5,238 |
||
To Discount Received A/C |
162 |
||
(Being paid Angolac Suppliers) |
|||
June 20 |
Cash A/C DR. |
12,000 |
|
To Accounts Receivable – Gelgar A/C |
12,000 |
||
(Being collected the amount owing from Gelgar) |
|||
June 30 |
Accounts Payable – Bastille Sales A/C DR. |
12,400 |
|
To Cash A/C |
12,400 |
||
(Being paid Bastille Sales) |
|||
Part 2
a. Net Sales: $ 22,000 ($ 10,000+ $ 12,000)
b. Cost of goods sold: $ 15,350 ($ 7,150+ $ 8,200)
c. Gross profit from sales = $ 6,650 ($ 22,000 - $ 15,350)
Check my work Part 1: Consider the following perpetual system merchandising transactions of Belton Company. Use...
Check my work Part 1: Consider the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the sale on June 1 in Accounts Receivable-Avery & Wiest. June 1 Sold merchandise to Avery & Wiest for $10,000; terms 1/5, n/15, FOB destination (cost of sales $7,150). 2 Purchased $5,400 of merchandise from Angolac Suppliers; terms 3/10, n/20, FOB shipping point. 4 Purchased merchandise inventory from Bastille Sales for $12,400; terms...
Sales-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to other businesses and occasionally to retail customers. Green Lawn uses the net method under a perpetual inventory system. July 1. Sold merchandise on account to Landscapes Co., $53,740, terms FOB shipping point, n/eom. The cost of the goods sold was $36,020. 2. Sold merchandise for $11,450 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,150. 5....
Sales-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Mar. 2. Sold merchandise on account to Equinox Co., $17,000, terms FOB destination, 1/10, 1/30. The cost of the goods sold was $14,380. 3. Sold merchandise for $12,450 plus 6% sales tax to retail cash customers. The cost of the goods sold was $6,700. 4. Sold merchandise on account to Empire Co.,...
Sales-Related Transactions Using the Perpetual Inventory System The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Mar. 2. Sold merchandise on account to Equinox Co., $20,600, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,670. 3. Sold merchandise for $10,350 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,150. 4. Sold merchandise on account to Empire...
Prepare journal entries to record the following merchandising transactions of Horus company, which uses the perpetual inventory system. All the transportation charges are paid in cash. July 1 Purchased merchandise from Osiris Company for $6,500 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Anubis Co. for $950 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $542. Transportation charges is $50. 3 Paid...
Sales-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Mar. 2. Sold merchandise on account to Equinox Co., $18,800, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,090. 3. Sold merchandise for $11,000 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,210. 4. Sold merchandise on account to Empire Co.,...
Sales-Related and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions completed by Babcock Company during November of the current year: Nov. 3. Purchased merchandise on account from Moonlight Co., list price $89,000, trade discount 30%, terms FOB destination, 2/10, n/30. 4. Sold merchandise for cash, $40,040. The cost of the goods sold was $20,620. 5. Purchased merchandise on account from Papoose Creek Co., $47,400, terms FOB shipping point, 2/10, n/30, with prepaid freight of...
PR 6-2A Sales-related transactions using perpetual inventory system The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Mar. 2. Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, OBJ. 2 3. sold merchandise for $11,350 plus 6% sales tax to retail cash customers. 4. Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, 5. sold merchandise for $30,000 plus 6% sales tax...
D Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the perpetual inventory system and the gross method. Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable-Aron. Aug. 1 Purchased merchandise from Aron Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 5 Sold merchandise to Baird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination,...
Record the following transactions into com Inc.'s joumal. Assume a perpetual inventory system Enter the transaction letter as the description when preparing a journal entry. When a transaction requires two separate journal entries, use the same letter for both descriptions Dates must be entered in the format ad mmm , 15 Jan General Journal Account Explanation F Debit Page GJE Credit (a) January 1: Zoom Inc.'s merchandise that cost $2.880 was sold to Stake Technology Inc. for $3.500 under credit...