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

What is posting reference column, Q. What is Posting reference column? ...

Q. What is Posting reference column? This column demonstrates the account number of the debited or credited account. For example in Exhibit 8 the number 100 in the first entry

What is fob destination, Q. What is FOB destination? FOB destination si...

Q. What is FOB destination? FOB destination signifies free on board at destination. The seller ships the goods to their destination with no charge to the buyer. Therefore the s

How does asset cash increase, Q. How does asset cash increase? An asset...

Q. How does asset cash increase? An asset cash increases (debited) as well as a liability unearned service revenue increases (credited) by USD 4500. The credit is to Unearned S

Transactions affecting only the balance sheet, Q. Transactions affecting on...

Q. Transactions affecting only the balance sheet? Since every transaction affecting a business entity must be recorded in the accounting records analyzing a transaction before

Explain interest revenue, Q. Explain Interest revenue? Interest revenue...

Q. Explain Interest revenue? Interest revenue Savings accounts exactly earn interest moment by moment. Hardly ever is payment of the interest made on the last day of the accoun

On aug 14th, On Aug 14th, One of our Partner's ( Compuville ) cash book sho...

On Aug 14th, One of our Partner's ( Compuville ) cash book showed a debit balance of $4,000.00. His bank statement showed a balance of $4,270.00. On comparison the following we

Tips to keep in mind while making financial statements, Tips to be keep in ...

Tips to be keep in mind while preparing the Financial Statements : 1. Objects given in the trial balance must be revealed only once as it is assumed that they are already adjust

Efficiency variances , Jackson Corporation uses a standard cost system, con...

Jackson Corporation uses a standard cost system, concerned manufacturing overhead on the basis of machine hours. The company's overhead standards per unit are given below. Varia

What are fixed asset, Fixed asset are assets which provides the business fu...

Fixed asset are assets which provides the business future benefit Fixed assets are those which are tangible in nature and is not meant for sale in the near future and from whi

Preparing a separate trial balance, Q. Preparing a separate trial balance? ...

Q. Preparing a separate trial balance? As an alternative of preparing a separate trial balance as accountants uses the Trial Balance columns on a work sheet. The numbers and ti

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