Question

The ledger accounts given below, with an identification number for each, are used by Kiner Company which uses a perpetual inventory system.

Instructions: Prepare appropriate entries for the month of August by placing the appropriate identification number(s) in the debit and credit columns provided and the dollar amounts pertaining to each account in the adj9ining columns.

1. Cash	7. Accounts Payable
2. Accounts Receivable	8. Sales Returns and Allowances
3. Notes Receivable	9. Sales Discounts
4. Inventory	10. Sales. Revenue

5. Supplies   1 1. Cost of Goods Sold

6. Land	12. Freight-out
Entry Information Amount(s)	Account(s) Account(s) Debit Credit Debited Credited Amount(s)

1. Aug. 1 Sold merchandise for cash $300. 1 10 $300 $300 The cost of the merchandise sold was $200. 11   4 200 200
2. Aug. 2 Purchased merchandise from ABC Co. on account for $4,000; terms 1/10, n/30.
3. Aug. 4 Sold excess land for $10,000 accepting a 2-year, 12% note. The land was purchased for $10,000 last year.
4. Aug. 6 Sold merchandise to D. Riley on account for $1 ,400, terms 1/10, n/30. D. Riley will pay $50 freight costs per the shipping terms. The merchandise sold cost $700.
5. Aug. 8 Accepted a sales return of defective merchandise from D. Riley—credit granted was $200. The returned merchandise cost $100.
6. Aug. 11 Purchased merchandise from Tanner Hardware on account for $3,000; terms 2/10, n/30.
7. Aug. 12 Paid freight of $300 on the shipment from ABC Co. per the shipping terms.
8. Aug. 15 Received payment in full from D. Riley.
9. Aug.19 Paid ABC co. in full.
10. Aug. 20 Paid Tanner Hardware in full.
11. Aug. 27 Purchased office supplies for $300 cash.

Answer 1

1. Entry Information -

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