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trapecia [35]
3 years ago
8

Sales and purchase-related transactions using perpetual inventory system The following were selected from among the transactions

completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system.
July 3. Purchased merchandise on account from Hamling Co., list price $85,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $960 added to the invoice.
5. Purchased merchandise on account from Kester Co., $47,550, terms FOB destination, 2/10, n/30.
6. Sold merchandise on account to Parsley Co., $16,680, terms n/15. The cost of the goods sold was $9,440.
7. Returned merchandise with an invoice amount of $13,500 purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3.
15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co.
21. Sold merchandise on MasterCard, $212,670. The cost of the goods sold was $144,350.
22. Sold merchandise on account to Tabor Co., $60,200, terms 2/10, n/30. The cost of the goods sold was $33,820.
23. Sold merchandise for cash, $38,610. The cost of the goods sold was $22,180. 28. Paid Parsley Co. a cash refund of $6,070 for returned merchandise from sale of July 6.
The cost of the returned merchandise was $3,630. 31.
Paid MasterCard service fee of $3,510.
Instructions Journalize the transactions.
Business
1 answer:
ioda3 years ago
7 0

Answer:

July 3. Purchased merchandise on account from Hamling Co., list price $85,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $960 added to the invoice.

Dr Merchandise inventory 63,435

    Cr Accounts payable 63,435

July 5. Purchased merchandise on account from Kester Co., $47,550, terms FOB destination, 2/10, n/30.

Dr Merchandise inventory 46,599

    Cr Accounts payable 46,599

July 6. Sold merchandise on account to Parsley Co., $16,680, terms n/15. The cost of the goods sold was $9,440.

Dr Accounts receivable 16,680

    Cr Sales revenue 16,680

Dr Cost of goods sold 9,440

    Cr Merchandise inventory 9,440

July 7. Returned merchandise with an invoice amount of $13,500 purchased on July 5 from Kester Co.

Dr Accounts payable 13,230

    Cr Merchandise inventory 13,230

July 13. Paid Hamling Co. on account for purchase of July 3.

Dr Accounts payable 63,435

    Cr Cash 63,435

July 15. Paid Kester Co. on account for purchase of July 5, less return of July 7.

Dr Accounts payable 33,369

    Cr Cash 33,369

July 21. Received cash on account from sale of July 6 to Parsley Co.

Dr Cash 16,680

    Cr Accounts receivable 16,680

July 21. Sold merchandise on MasterCard, $212,670. The cost of the goods sold was $144,350.

Dr Cash (assuming MasterCard pays immediately) 212,670

    Cr Sales revenue 212,670

Dr MasterCard fee expense 3,510

    Cr MasterCard fee payable 3,510

Dr Cost of goods sold 144,350

    Cr Merchandise inventory 144,350

I recorded the transaction this way because on July 31, a payment to MasterCard is recorded. Generally the transaction should have been recorded differently since MasterCard withholds its fee automatically, you do not pay it.

Dr Cash (assuming MasterCard pays immediately) 209,160

Dr MasterCard fee expense 3,510

    Cr Sales revenue 212,670

 

July 22. Sold merchandise on account to Tabor Co., $60,200, terms 2/10, n/30. The cost of the goods sold was $33,820.

Dr Accounts receivable 58,996

    Cr Sales revenue 58,996

Dr Cost of goods sold 33,820

    Cr Merchandise inventory 33,820

July 23. Sold merchandise for cash, $38,610. The cost of the goods sold was $22,180.

Dr Cash 38,610

    Cr Sales revenue 38,610

Dr Cost of goods sold 22,180

    Cr Merchandise inventory 22,180

July 28. Paid Parsley Co. a cash refund of $6,070 for returned merchandise from sale of July 6.  The cost of the returned merchandise was $3,630.

Dr Sales revenue 6,070

    Cr Cash 6,070

Dr Merchandise inventory 3,630

    Cr Cost of goods sold 3,630

July 31.  Paid MasterCard service fee of $3,510.

Dr MasterCard fee payable 3,510

    Cr Cash 3,510

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VladimirAG [237]

Answer:

Demon Deacons Corporation

Adjusted Trial Balance:

Demon Deacons Corporation is presented below.

Accounts                                 Debit     Credit

Cash                                     $ 9,400

Accounts Receivable             14,400

Prepaid Rent                           4,320

Supplies                                     740

Deferred Revenue                                   $ 1,800

Salaries Payable                                            700

Common Stock                                          11,000

Retained Earnings                                     5,400

Service Revenue                                     47,480

Salaries Expense                 32,700

Rent Expense                         2,160

Supplies Expense                 2,660

                                         $ 66,380   $ 66,380

Explanation:

a) Data and Calculations:

The December 31, 2021, unadjusted trial balance for

Demon Deacons Corporation is presented below.

Accounts                                 Debit     Credit

Cash                                     $ 9,400

Accounts Receivable             14,400

Prepaid Rent                           6,480

Supplies                                  3,400

Deferred Revenue                                  $ 2,400

Common Stock                                          11,000

Retained Earnings                                     5,400

Service Revenue                                     46,880

Salaries Expense                 32,000

                                         $ 65,680   $ 65,680

Adjustments:

DR Rent Expense $2,160         CR Prepaid Rent $2,160

DR Deferred Revenue $600   CR Service Revenue $600

DR Salaries Expense $700      CR Salaries Payable $700

DR Supplies Expense $2,660 CR Supplies $2,660

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Goshia [24]

Answer: D. When an organization is planning for mass casualty incidents, an effective approach is to request law enforcement personnel to develop a separate plan for mass casualty incidents for the organization.

Explanation:

Mass casualty incident refers to a situation in which medical services are overwhelmed by the number of casualties.

From the options given, the false statement is that "When an organization is planning for mass casualty incidents, an effective approach is to request law enforcement personnel to develop a separate plan for mass casualty incidents for the organization".

This is incorrect. In a mass casualty, a separate plan cannot be developed for an organization. All the casualties are entitled to same plan.

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Seattle Inc. identifies an investment opportunity, which will yield cash flows of $30,000 per year in Years 1 through 4, $35,000
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Answer:

the payback period = 4.86 years

Explanation:

Seattle's cash flows are as following:

Year                Cash flow                         Accumulated cash flows

0                     -$150,000                                -$150,000

1                         $30,000                                -$120,000

2                        $30,000                                 -$90,000

3                        $30,000                                 -$60,000

4                        $30,000                                 -$30,000

5                        $35,000                                    $5,000

6                        $35,000                                  $40,000

etc.

The payback period is between year 4 and 5:

  • 4 years + ($30,000 / $35,000) = 4.86 years or
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Answer: No, 40 is a composite number. :)

Explanation:

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