Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem P5.41BPGB
Journalizing purchase and sale transaction
Learning Objective 2, 3
Joumalize the following transactions that occurred in February 2018 for Oceanic. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Oceanic estimates sales returns at the end of each month.
Sep. 3 | Purchased merchandise inventory on account from Silton wholesalers, $5,200. Terms 2/15, n/EOM, FOB shipping point. |
4 | Paid freight bill of $70 on February 3 purchase. |
4 | Purchased merchandise inventory for cash of $1,500. |
6 | Returned $900 of inventory from February 3 purchase. |
8 | Sold merchandise inventory to Herenda Company, $5,600, on account. Terms 3/15, n/35. Cost of goods, $2,352. |
9 | Purchased merchandise inventory on account from Teddy Wholesalers, $7,000. Term 3/10, n/30, FOB destination. |
10 | Made payment to Silton Wholesalers for goods purchased on February 3, less return and discount. |
12 | Received payment from Herenda Company, less discount. |
13 | After negotiations, received a $500 allowance from Teddy Wholesalers. |
15 | Sold merchandise inventory to Jerde Company, $3,400, on account. Terms n/EOM. Cost of goods, $1,496. |
22 | Made payment, less allowance, to Teddy Wholesalers for goods purchased on February 9. |
23 | Jordon Company returned $1,000 of the merchandise sold on February 15. Cost of goods, $440. |
25 | Sold merchandise inventory to Smith for $1,700 on account that cost $663. Terms of 2/10, n/30 was offered, FOB shipping point. As a courtesy to Smith, $70 of freight was added to the invoice for which case was paid by Oceanic. |
27 | Received payment from Smith, less discount. |
28 | Received payment from Jerdoe Company, less return. |
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Task 1 : Journalizing using Perpetual Inventory System
Directions: Prepare the general journal entries to record these transactions using a perpetual inventory system. (Record all purchases initially at the gross invoice amount) Please use Journal sheets for this task.
Wong's Company had the following transactions during December 2020:
December 1 – Sold merchandise for credit for $5,000 terms 3/10,n/30. The items sold had a cost of $3,500.
2 – Purchased merchandise for cash, $720.
4 – Purchased merchandise on credit for $2,600, terms 1/20,n/40.
10- Issued a credit memorandum for $300 to a customer who returned merchandise purchased on November 29. The return items had a cost of $210.
14- Received payment for merchandise sold on December 1.
12 – Received a credit memorandum for the return of faulty merchandise purchased on December 4 for $600.
13 – Paid freight charges of…
LESSON 10: THE PERPETUAL SYSTEM
ACTIVITY L. Give the necessary journal entries under the periodic inventory system and the
perpetual inventory system.
Bum Supplies purchases P 150,000 worth of merchandise from Clumsy Traders on account,
terms 1/10, n/30 on August 15. P 20,000 worth of damage goods were returned to Clumsy
Traders the following day. Full payment was made on August 25.
Periodic Inventory
Perpetual Inventory
Aug 15
16
25
exercise
Prepare journal entries to record the following merchandising transactions of Gonzalez's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable—King.)
July 1
Purchased merchandise from King Company for $6,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1.
July 2
Sold merchandise to Wright Company for $1,300 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $780.
July 3
Paid $285 cash for freight charges on the purchase of July 1.
July 8
Sold merchandise that had cost $1,500 for $2,500 cash.
July 9
Purchased merchandise from Lee Company for $2,600 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.
July 11
Returned $500 of merchandise purchased on July 9 from Lee Company and debited its account payable for that amount.
July 12…
Chapter 5 Solutions
Horngren's Accounting (12th Edition)
Ch. 5 - Which account does a merchandiser use that a...Ch. 5 - 2. The two main inventory accounting system are...Ch. 5 - The journal entry for the purchase of inventory on...Ch. 5 - JC manufacturing purchased inventory for $5,300...Ch. 5 - Austin sold inventory for $2/10, n/30. Cost of...Ch. 5 - Prob. 6QCCh. 5 - Which of the following accounts would be closed at...Ch. 5 - What is the order of the subtotals that appear on...Ch. 5 - Assume Juniper Natural Dyes made Net Sales Revenue...Ch. 5 - Prob. 10AQC
Ch. 5 - (
11B_ The journal entry for the purchase of...Ch. 5 - Prob. 1RQCh. 5 - Prob. 2RQCh. 5 - Describe the operating cycle of a merchandiser.Ch. 5 - What is Cost of Goods (COGS), and where is it...Ch. 5 - How is gross profit calculated, and what does it...Ch. 5 - Prob. 6RQCh. 5 - Prob. 7RQCh. 5 - 8. What account is debited when recording a...Ch. 5 - Prob. 9RQCh. 5 - Prob. 10RQCh. 5 - Prob. 11RQCh. 5 - Prob. 12RQCh. 5 - Prob. 13RQCh. 5 - Prob. 14RQCh. 5 - Prob. 15RQCh. 5 - Prob. 16RQCh. 5 - 17. What is freight out and how is it recorded by...Ch. 5 - Prob. 18RQCh. 5 - Prob. 19RQCh. 5 - Prob. 20RQCh. 5 - Prob. 21RQCh. 5 - What financial statement is merchandise inventory...Ch. 5 - Prob. 23RQCh. 5 - Prob. 24ARQCh. 5 - Prob. 25BRQCh. 5 - Prob. 26BRQCh. 5 - Prob. 27BRQCh. 5 - Prob. 28BRQCh. 5 - Prob. 29BRQCh. 5 - Prob. 30BRQCh. 5 - Prob. 31BRQCh. 5 - Comparing periodic and perpetual inventory systems...Ch. 5 - Journalizing purchase transactions Learning...Ch. 5 - Prob. S5.3SECh. 5 - Journalizing sales transactions Learning Objective...Ch. 5 - Estimating sales returns Learning Objective 3 On...Ch. 5 - Journalizing purchase and sales transactions...Ch. 5 - Journalizing purchase and sales transactions...Ch. 5 - Adjusting for inventory shrinkage Learning...Ch. 5 - ournalizing closing entries Learning Objective 4...Ch. 5 - Preparing a merchandiser’s income statement...Ch. 5 - Preparing a merchandiser’s statement of owner’s...Ch. 5 - Computing the gross profit percentage Learning...Ch. 5 - Prob. S5A.13SECh. 5 - Journalizing purchase transactions—periodic...Ch. 5 - Journalizing sales transactions—periodic inventory...Ch. 5 - Journalizing closing entries-periodic inventory...Ch. 5 - Computing cost of goods sold in a periodic...Ch. 5 - E5-18 Using accounting vocabulary Learning...Ch. 5 - Prob. E5.19ECh. 5 - Howie Jewelers had the following purchase...Ch. 5 - E5-21 Journalizing sales transactions Learning...Ch. 5 - Journalizing purchase and sales transactions...Ch. 5 - Journalizing closing entries Learning Objective 4...Ch. 5 - Preparing a single-step income statement Learning...Ch. 5 - Preparing a multi-step income statement. Learning...Ch. 5 - Journalizing adjusting entries including estimate...Ch. 5 - Prob. E5.27ECh. 5 - Journalizing multiple performance obligations and...Ch. 5 - Prob. E5B.29ECh. 5 - Prob. E5B.30ECh. 5 - Prob. E5B.31ECh. 5 - Prob. E5B.32ECh. 5 - Prob. E5B.33ECh. 5 - Prob. P5.34APGACh. 5 - Journalizing purchase and sale transaction...Ch. 5 - P5-36A Preparing a multi-step income statement,...Ch. 5 - Journalizing adjusting entries, preparing adjusted...Ch. 5 - Preparing Single-Step income statement, preparing...Ch. 5 - Journalizing purchase and sale...Ch. 5 - Preparing a multi-step income statement and...Ch. 5 - Journalizing purchase and sale transaction...Ch. 5 - Prob. P5.42BPGBCh. 5 - Prob. P5.43BPGBCh. 5 - Prob. P5.44BPGBCh. 5 - Prob. P5.45BPGBCh. 5 - Journalizing purchase and sale transation-periddic...Ch. 5 - Preparing a multi-step income statement and...Ch. 5 - Using Excel to prepare a multi-step income...Ch. 5 - Journalizing and posting purchase and sale...Ch. 5 - Prob. P5.50CP2Ch. 5 - Prob. P5.51PSCh. 5 - Tying It All Together Case 5-1 Before you begin...Ch. 5 - Prob. 5.1DCCh. 5 - Prob. 5.1EICh. 5 - Prob. 5.1FCCh. 5 - Financial Statement Case 51 This cause uses both...
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