Question

Exercise 5-02 a-b (Part Level Submission) Information related to Pina Colada Corp. is presented below. 1. On April 5, purchased merchandise on account from Flint Company for $33,500, terms 2/10, net/30, FOB shipping point. 2. On April 6, paid freight costs of $910 on merchandise purchased from Flint. 3. On April 7, purchased equipment on account for $44,400. 4. On April 8, returned damaged merchandise to Flint Company and was granted a $5,700 credit for returned merchandise. 5. On April 15, paid the amount due to Flint Company in full.

(a) Prepare the journal entries to record these transactions on the books of Pina Colada Corp. under a perpetual inventory system. (Credit account titles are automatically indented when 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.) No. Date Account Titles and Explanation Debit Credit 1. April 5April 6April 7April 8April 15May 4 2. April 5April 6April 7April 8April 15May 4 3. April 5April 6April 7April 8April 15May 4 4. April 5April 6April 7April 8April 15May 4 5. April 5April 6April 7April 8April 15May 4

Answer 1

April 5

Dr Inventory $33,500

Cr Accounts Payable $33,500

April 6

Dr Inventory $910

Cr Cash $910

April 7

Dr Equipment $44,400

Cr Accounts Payable $44,400

April 8

Dr Accounts Payable $5,700

Cr Inventory $5,700

April 15

Dr Cash $27,800

Cr Accounts payable $27,800