Preparing journal entries for merchandising activities, Accounting Basics

Assignment Help:

Can you explain to me how you did it? As well as putting it in a excel format but make it not take a lot of papers to print it out. A girl in my class said you can use a paint program to do that.

Preparing journal entries for merchandising activities- perpetual system

Prepare journal entries to record the following merchandising transactions of Stone Company ‘which piles the perpetual inventory system. (Hint. It will help to identify each receivable & payable for example, record the purchase on August 1 in accounts payable - Abilene)

August 1 purchased merchandise from Abilene Company for $6,000 under credit terms of 1/10, n/30, FOB destination. Invoice dated August 1.

4 At Abilene's request. Stone paid $100 cash for freight charges on the August 1 purchase, reducing the amount owed to Abilene
5 Sold merchandise to Lux Corp. for $4,200 under credit terms of 2/10, n/60 FOB destination invoice dated August 5. The merchandise had cost $3,000

8 Purchased merchandise from Welch Corporation for $5,300 under credit terms of 1/10, n/45 FOB shipping point invoice dated August 8. The invoice showed that at Stone's request. Welch paid the $240 shipping charges and added the amount to the bill. (Hint. Discounts are not applied to freight and shipping charges.)

9 Paid $120 cash for shipping charges related to the August 5 sale to Lux Corp.

10 Lux returned merchandise from the August 5 sale that had cost Stone $500 and been sold for $700. The merchandise was restored to inventory.

12 After negotiations with Welch Corporation concerning problems with the merchandise purchased on August 8 Stone received a credit memorandum from Welch granting a price reduction of $800

15 Received balance due from Lux Corp for the August 5 sale less the return on August 10
18 Paid the amount due to Welch Corporation for the August 8 purchase less the price reduction granted

19 Sold merchandise to Trax Co for $3,60 under credit terms of 1/10, n/30 FOB shipping point, invoice dated August 19. The merchandise had cost $2,500

22 Trax requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Stone sent Trax a $600 credit memorandum to resolve the issue.

29 Received Trax's cash payment for the amount due from the August 19 sale.

30 Paid Abilene Company the amount due from the August 1 purchase.


Related Discussions:- Preparing journal entries for merchandising activities

Example of statement of retained earnings, Q. Example of Statement of retai...

Q. Example of Statement of retained earnings? Statement of retained earnings The statement of retained earnings as you remind is a financial statement that summarizes the trans

Development stage entities, The Development Stage Entities Topic specifies ...

The Development Stage Entities Topic specifies the guidelines for identifying an entity in the development stage, addresses the applicability of generally accepted accounting princ

Journalizing payroll transactions, journalizing payroll transactions, for K...

journalizing payroll transactions, for Keller Systems;Inc, paid cash for april's payroll tax liability. withheld taxes from april payrolls; employee income tax,$532.00; social se

An invoice for product x totals $1, An invoice for product X totals $1,200 ...

An invoice for product X totals $1,200 and is dated July 6, 2000 with terms 2/10-60X. If the invoice is paid on September 3, 2000, what is the net amount of payment? A. $912

Trial balanc, AL MASA a sole trader,decided to install a new machine to use...

AL MASA a sole trader,decided to install a new machine to use within her sole trader business

Enumerate about the income summary account, INCOME SUMMARY ACCOUNT This...

INCOME SUMMARY ACCOUNT This is a temporary account which used to summarize the balances of temporary revenue and expense accounts. This is also known as a clearing account. The

Distributions to owners, Distributions to owners are reducing in equity of ...

Distributions to owners are reducing in equity of a particular business enterprise resulting from transferring rendering services, assets or incurring liabilities by the enterprise

Under and over absorption, A company absorbs overheads on machine hours tha...

A company absorbs overheads on machine hours that are budgeted at 11,250. The budgeted overhead is $281 250.  Results illustrate actual hours of 10 980 and overhead of $276 652.

A good purchased for $480 sells for $700, A good purchased for $480 sells f...

A good purchased for $480 sells for $700. If the store's operating expenses are 30% of cost, what is the percentage markup on cost? A. 1.5% B. 10.57% C. 15.83% D. 4

Gearing, Remedies of overtrading

Remedies of overtrading

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd