Question

The following information is available for the Johnson Corporation: Beginning inventory $ 37,000 Inventory purchases (on...

The following information is available for the Johnson Corporation:

Beginning inventory $ 37,000
Inventory purchases (on account) 167,000
Freight charges on purchases (paid in cash) 22,000
Inventory returned to suppliers (for credit) 24,000
Ending inventory 42,000
Sales (on account) 262,000
Cost of inventory sold 160,000


Required:
Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.

  • Record merchandise purchased on account for $167,000.
  • Record the payment of $22,000 in cash for freight charges.
  • Record merchandise returned to supplier for credit of $24,000.
  • Record sales on account of $262,000.
  • Record cost of merchandise sold of $160,000.
  • Record the end-of-period adjusting entry. Ending inventory is $42,000.

Homework Answers

Answer #1

Please Upvote If You Really Helped

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018: John’s purchased merchandise on account for $6,500. Freight charges of $1,050 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,350 and John’s account was credited by the supplier. Merchandise costing $3,550 was sold for $6,700 in cash. Required: Prepare the necessary journal entries to record these transactions. 1.) Record...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May 2018: John’s purchased merchandise on account for $6,800. Freight charges of $1,200 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,500 and John’s account was credited by the supplier. Merchandise costing $3,700 was sold for $7,000 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no...
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2018: John's purchased merchandise on account for $5,100. Freight charges of $350 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $650 and John’s account was credited by the supplier. Merchandise costing $2,850 was sold for $5,300 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no...
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May: John's purchased merchandise on account for $5,900. Freight charges of $750 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,050 and John’s account was credited by the supplier. Merchandise costing $3,250 was sold for $6,100 in cash. Required: Prepare the necessary journal entries to record these transactions.
The following information applies to the questions displayed below.] James Company began the month of October...
The following information applies to the questions displayed below.] James Company began the month of October with inventory of $20,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $29,500 on October 12. Terms of the purchase were 2/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $550 were paid in cash. On October 31, James paid for the merchandise purchased on...
Required information [The following information applies to the questions displayed below.] James Company began the month...
Required information [The following information applies to the questions displayed below.] James Company began the month of October with inventory of $29,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $43,000 on October 12. Terms of the purchase were 3/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $640 were paid in cash. On October 31, James paid for the merchandise...
james Company began the month of October with inventory of $21,000. The following inventory transactions occurred...
james Company began the month of October with inventory of $21,000. The following inventory transactions occurred during the month: The company purchased merchandise on account for $31,000 on October 12, 2018. Terms of the purchase were 1/10, n/30. James uses the net method to record purchases. The merchandise was shipped f.o.b. shipping point and freight charges of $560 were paid in cash. On October 31, James paid for the merchandise purchased on October 12. During October, merchandise costing $18,900 was...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the...
John’s Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: John’s purchased merchandise on account for $6,100. Freight charges of $850 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,150 and John’s account was credited by the supplier. Merchandise costing $3,350 was sold for $6,300 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no entry...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after...
Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $400,000. During 2021, Halifax sold merchandise on account for $12,500,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $613,000 in sales for credit, with...
[The following information applies to the questions displayed below.] At the beginning of Year 2, the...
[The following information applies to the questions displayed below.] At the beginning of Year 2, the Redd Company had the following balances in its accounts: Cash $ 15,300 Inventory 5,500 Land 2,300 Common stock 12,000 Retained earnings 11,100 During Year 2, the company experienced the following events: Purchased inventory that cost $11,500 on account from Ross Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $830 were paid in cash. Returned $600 of the...