Question

Prepare journal entries for April, 2014 to record the following transactions for Holden Corp. Assume a perpetual inventory system.
Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan).

1. April 2: Holden Corp. purchased merchandise from Stake Technology Inc. for $9,700 under credit terms of 2/10, n/60, FOB destination.
2. April 18: Received a credit memorandum in the amount of $1,300 acknowledging the return of merchandise purchased from Stake Technology Inc. on April 2.
3. April 21: Holden Corp. purchased merchandise on credit from Segura Corporation, terms 2/15, n/60, $8,000, FOB destination.
4. April 24: Paid the balance due to Stake Technology Inc.
5. April 24: After negotiations with Segura Corporation concerning problems with the merchandise purchased on April 21, received a credit memorandum granting a price reduction of $3,600.
6. April 28: Holden Corp. purchased supplies by paying $9,800.
7. April 30: Paid Segura Corporation the balance due.

Answer 1

Date	General Journal	Debit	credit
Apr-02	Merchandise invenotry	9700
	Accounts payable-stake technology		9700
Apr-18	Accounts payable-stake technology	1300
	Merchandise invenotry		1300
Apr-21	Merchandise invenotry	8000
	Accounts payable-segura corporaion		8000
Apr-24	Cash	8400
	Accounts payable-stake technology		8400
	(no discount since payment made after
	10 days)
Apr-24	Accounts payable-segura corporaion	3600
	Merchandise invenotry		3600
Apr-28	Supplies	9800
	cash		9800
Apr-30	Accounts payable-segura corporaion	4400
	Merchandise invenotry(4400*2%)		88
	Cash		4312