Question

GLO4-01 - Based on Problem 4-1A Cabela's Company LO P1, P2 Prepare journal entries to record the following merchandising transactions of Cabela'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 July 1 in Accounts Payable-Boden.) of 1/15, n/30, FOB shipping point, Jul 1 Purchased merchandise from Boden Company for $6,000 under credit invoice dated July 1 terms Jul 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500 Jul 3 Paid $125 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,300 for $1,700 cash. 9 Purchased merchandise from Leight Co. dated July 9 Jul Jul for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice Jul. 11 Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9. Jul. 12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount o Boden Jul, 19 Sold andise at cost $800 to Art Co. for unde: credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Jul. 21 Issued a $100 credit memorandum to Art Co. for an allowance on goods sold on July 19. Jul. 24 Paid Leight Co. the balance due, net of discount. Jul. 30 Received the balance due from Art Co. for the invoice dated July 19, net of discount. Jul. 31 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Schedule of Receivables General General Schedule of Income Impact on Requirement Trial Balance Journal Ledger Payables Statement Income For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as minus sign. Upon completion, compare the gross profit with the amount reported on the partial income statement Increase (decrease) to income Impact on income July 1) Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1 invoice dated July 1 July 2) Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2 July 2) The cost of the merchandise sold to Creek Co. was $500 July 3) Paid $125 cash for freight charges on the purchase of July 1 July 8) Sold merchandise for $1,700 cash. f the merchandise sold was $1,300. July 8) The cost July 9) Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15. n/60, FOB destination, invoice dated July 9. July 11) Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9 July 12) Received the balance due from Creek Co. for the invoice dated July 2, net of the discount. July 16) Paid the balance due discount period Boden Company within the July 19) Sold merchandise to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 19) The cost of the merchandise sold to Art Co. was $800 July 21) Issued a $100 credit memorandum to Art Co. for an allowance on goods sold on July 19. July 24) Paid Leight Co. the balance due, net of discount. July 30) Received the balance due from Art Co. for the invoice dated July 19, net of discount July 31) Sold merchandise to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31 July 31) The cost of the merchandise sold to Creek Co. was $4,800 Total gross profit 0

Answer 1

July 1 Purchase Dr						$6,000
To Boden Company							$6,000
July 2 Creek Co.						$900
To Sales( Revenue )							$900
July 3 Freight   Dr						$125
To	Cash						$125
July 8 Cash Dr						$1,700
To Sales ( Revenue )							$1,700
July 9 Purchase Dr						$2,200
To Leight Co.							$2,200
July 11 Leight Co.						$200
To Purchase return							$200
July 12 Cash Dr						882
Discount Dr(900*2% )						18
To Creek Co.							900
July 16   Boden   Dr						6000
To Cash							5940
To Discount Income							60
July 19 Art Co.						$1,200
To Sales( Revenue )							$1,200
July 21   Allowance /Discount   Dr						$100
		To Art CO.					$100
July 24 Boden   Dr						2200
To Cash							2156
To Discount Income							44
July 30    Cash Dr						1078
Discount Dr(900*2% )						22
To Art & Co.							1100
July 31 Creek Co.						$7,000
To Sales( Revenue )							$7,000

Impact on Profits :

	Impact On Income	Increase /Decrease
July 1 Purchase Merchandise $6000	No Impact
July 2 Sold Merchandise $ 900	Increase	$ 900
July 2 Cost of Merchandise was $500	Decrease	($ 500)
July 3 Paid $ 125 for freight	Decrease	($ 125)
July 8 Sold Merchandise For $ 1700	Increase	$ 1700
July 8 Cost of merchandise was $ 1300	Decrease	($ 1300)
July 9 Purchase Merchandise for $ 2200	No Impact
July 11 Goods return $ 200	No Impact
July 12 Recd the balance net of discount	Decrease	($ 18)
July 16 Paid the balance net of discount	Increase	$ 60
July 19 Sold Merchandise for $ 1200	Increase	$ 1200
July 19 Cost of merchandise was $ 800	Decrease	($ 800)
July 21 Issue a memorandum for $ 100	Decrease	($100)
July 24 Paid net of discount	Increase	$ 44
July 30 Received balance net of discount	Decrease	($ 22)
July 31 Sold merchandise for $ 7000	Increase	$ 7000
July 31 Cost of merchandise was $ 4800	Decrease	($ 4800)
	Gross Profit	$ 3239

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