Prepare stellar stores journal entries

Assignment Help Accounting Basics

Reference no: EM131225217

Stellar Stores is a new company that started operations on March 1, 2014. The company has decided to use a perpetual inventory system. The following purchase transactions occurred in March:

Mar. 1 Stellar Stores purchases $9,000 of merchandise for resale from Octagon Wholesalers terms 2/10, n/30, FOB shipping point.
2 The correct company pays $155 for the shipping charges.
3 Stellar returns $1,000 of the merchandise purchased on March 1 because it was the wrong colour. Octagon gives Stellar a $1,000 credit on its account
21 Stellar Stores purchases an additional $13,000 of merchandise for resale from Octagon Wholesalers terms 2/10, n/30, FOB destination.
22 The correct company pays $170 for freight charges.
23 Stellar returns $400 of the merchandise purchased on March 21 because it was damaged.
Octagon gives Stellar a $400 credit on its account.
30 Stellar paid Octagon the amount owing for the merchandise purchased on March 1.
31 Stellar paid Octagon the amount owing for the merchandise purchased on March 21.

Instruction

Prepare Stellar Stores' journal entries to record the above transactions.

Post the transactions to the merchandise inventory account. Compare the total in this account with the total of the cash paid during March by Stellar for the purchase of inventory.

Reference no: EM131225217

Questions Cloud

What is the essence of the business case : What is the essence of the business case for why a company should engage in socially responsible actions and environmentally sustainable business practices?

Do you think the argument presented is a good one : An evaluation of the argument for its overall strength: Is it clear, credible, relevant, complete, and sound? Based on this evaluation, do you think the argument presented is a good one? Briefly explain why or why not.

Determine the change in closed loop gain : Determine the change in closed-loop gain, Af = Vo/Vi, for the two feedback circuits. - Which feedback configuration will result in less distortion in the output signal?

Treatment of internal and external customers : In a short essay explain how you see the treatment of internal and external customers. Is one more important than the other? How does this affect "quality" in the organization?

Prepare stellar stores journal entries : Prepare Stellar Stores' journal entries to record the above transactions - Compare the total in this account with the total of the cash paid during March by Stellar for the purchase of inventory.

Refer to appropriate legislation and case law : Refer to appropriate legislation and case law in your explanation. Whether there is any regulation or legal assistance available to parties in a dispute

What impact did the sales strategy have on your revenue : SITXFIN401 Interpret financial information Projects. Complete both variance columns of the following Profit and Loss statement ensuring that you signify negative variances by placing brackets around the calculated variance figures. What impact did ..

Determine the 3 db frequency of each closed loop network : Determine the 3 dB frequency of each closed-loop network. - What conclusion can be made as to the "better" closed-loop system?

Examine these two publications for audience : Examine these two publications for their audience, editorial scope and their point of view. Then write up a brief report on each publication. In your report, you may want to address the following:

User Account

All Pages