Question

Problem 1 The following transactions took place for Joe’s TV Shop for the month of April...

Problem 1

The following transactions took place for Joe’s TV Shop for the month of April 2018. Joe’s TV shop uses the perpetual inventory system.  

Step 1: Record the following transactions in journal entry format.  

  1. April 3 - Purchased televisions from Samsung on account at a total cost of $650,000, terms 2/10, n/30. The televisions were shipped FOB shipping point, and the freight cost was $1,000, which was paid in cash.  







  1. April 5 - Sold televisions costing $250,000 for $390,000 to ABC Company on account.  






  1. April 7 - ABC Company returned 10 televisions that were damaged. The televisions had cost Joe’s TV shop $5,000 and were sold for $7,750. Joe’s TV Shop issued a credit to ABC Company.    







  1. April 8 - Purchased additional televisions from Samsung on account at a total cost of $30,000, terms 1/10, n/30. The televisions were shipped FOB destination, and the freight cost was $500, which was paid in cash.  




  1. April 9 - Returned televisions to Samsung because they were damaged (from April 3 purchase). Received a credit of $15,000 from Samsung.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Keiler Motorcycle Shop completed the following transactions during the month of October. Keiler uses a perpetual...
Keiler Motorcycle Shop completed the following transactions during the month of October. Keiler uses a perpetual inventory system. Any freight paid was paid with cash. Oct.    3   Purchased 20 bikes at a cost of $1,150 each from the Lyons Bike Company, under credit terms 2/10, N/45. FOB shipping point.           4   The correct company paid $150 cash freight for above shipment           6   Sold 10 bikes to Doug’s Bicycle for $1,500 each, terms n/30. Terms FOB destination.           7  ...
Pronghorn Corp. uses a perpetual inventory system. The company had the following inventory transactions in April:...
Pronghorn Corp. uses a perpetual inventory system. The company had the following inventory transactions in April: April 3 Purchased merchandise from DeVito Ltd. for $25,700, terms 1/10, n/30, FOB shipping point. 6 The appropriate company paid freight costs of $700 on the merchandise purchased on April 3. 7 Purchased supplies on account for $5,450. 8 Returned damaged merchandise to DeVito and was given a purchase allowance of $3,400. The merchandise was repaired by DeVito and returned to inventory for future...
Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions...
Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during April between Swan Company and Bird Company: Apr.2. Swan Company sold merchandise on account to Bird Company, $18,600, terms FOB shipping point, 1/10, n/30. Swan Company paid freight of $480, which was added to the invoice. The cost of the merchandise sold was $11,700. 8. Swan Company sold merchandise on account to Bird Company, $31,000, terms FOB destination, 2/15, n/30. The...
the guardian Gift shop (GGS) started in 2018, GGS experienced the following transactions: 1) April 1...
the guardian Gift shop (GGS) started in 2018, GGS experienced the following transactions: 1) April 1 - Purchased $12,000 of merchandise on account under terms 2/10, n/30 2) April 3 - Returned $1,500 of goods purchased in event 1 3) April 5 - Paid the balance due on Accounts Payable within the discount period 4) April 20 - The company recognized $18,000 of cash revenue from the sale of the merchandise purchased above. A) record the jornal entry for transactiom...
The following information applies to the questions displayed below.] The trial balance for Terry’s Auto Shop...
The following information applies to the questions displayed below.] The trial balance for Terry’s Auto Shop as of January 1, Year 2, follows: Account Titles Debit Credit Cash $ 14,760 Inventory 3,170 Common Stock $ 7,310 Retained Earnings 10,620 Total $ 17,930 $ 17,930 The following events affected the company during the Year 2 accounting period: Purchased merchandise on account that cost $4,140. The goods in Event 1 were purchased FOB shipping point with freight cost of $215 cash. Returned...
Journalize the April transactions using the periodic ineventory system At the beginning of the current season...
Journalize the April transactions using the periodic ineventory system At the beginning of the current season on April 1, the ledger of Granite Hills Pro Shop showed Cash $3,095; Inventory $4,095; and Common Stock $7,190. The following transactions occurred during April 2017. Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. $1,785, terms 3/10, n/60. 7 Paid freight on Arnie Co. purchases $95. 9 Received credit from Arnie Co. for merchandise returned $485. 10 Sold merchandise...
Swifty Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of...
Swifty Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Swifty Warehouse uses a perpetual inventory system the earnings approach. At the end of June its inventory consisted of 35 suitcases purchased at $30 each. During the month of July, the following merchandising transactions occurred: July 1 Purchased 50 suitcases on account for $30 each from Trunk Manufacturers, terms n/30, FOB destination. 2 The correct company paid $135 freight on the July...
Bimbo experienced the following transactions during Year 2: Purchased $16,000 of inventory on account. Terms were...
Bimbo experienced the following transactions during Year 2: Purchased $16,000 of inventory on account. Terms were 2/10, net 30. The inventory purchased above was delivered FOB Shipping Point. Freight costs totaled $600. Returned $500 of the inventory purchased above. Recorded the cash discount on the goods purchased above and paid the balance due in Accounts Payable within the discount period. Recognized $21,000 of cash revenue from the sale of inventory and recognized $15,000 of costs of goods sold. The inventory...
Smith Shoes completed these merchandising transactions in the month of November. Prepare the journal entries (in...
Smith Shoes completed these merchandising transactions in the month of November. Prepare the journal entries (in the proper format on journal paper) for Smith Shoes for the transactions listed below. OMIT EXPLANATIONS. 11/1 Smith Shoes purchased $3,800 of merchandise on account; terms n / 30 - FOB shipping point. 11/6 Paid freight charges of $100 on the merchandise purchased on 11/1. 11/8 Smith Shoes sold merchandise on account for $2,400, terms 1/10, n/30. The merchandise had an inventory cost of...
Cost of Merchandise Sold Based on the following data, determine the cost of merchandise sold for...
Cost of Merchandise Sold Based on the following data, determine the cost of merchandise sold for November: Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during April between Swan Company and Bird Company: Apr.2. Swan Company sold merchandise on account to Bird Company, $32,000, terms FOB shipping point, 2/10, n/30. Swan Company paid freight of $330, which was added to the invoice. The cost of the merchandise sold was $19,200....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT