Concept explainers
Exercise 5-10 Preparing adjusting and closing entries for a merchandiser P3
The following list includes selected permanent accounts and all of the temporary accounts from the December 31 unadjusted
Merchandise inventory .......... $30,000
Prepaid selling expenses......... 5,600
K. Emiko. Withdrawals........... 33,000
Sales......................... $529,000
Sales returns and allowances..... 17,500
Sales discounts................. 5,000
Check Dr. 184.500 to close Income Summary
Additional Information
Debit | |
Cost of goods sold....... | $212,000 |
Sales salaries expense | 48,000 |
Utilities expense......... | 15,000 |
Selling expenses......... | 36,000 |
Administrative expenses .. | 105,000 |
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Accrued and unpaid sales salaries amount to SI.700. Prepaid selling expenses of S3.000 have expired. A physical count of year-end merchandise inventory is taken to determine shrinkage and shows S2S.700 of goods still available.
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Fundamental Accounting Principles
- Appendix 2 Sales and purchase-related transactions for buyer and seller using periodic inventory system Selected transactions during April between Swan Company and Bird Company are listed in Problem 5-4B. Instructions Journalize the entries to record the transactions for (1) Swan Company and (2) Bird Company assuming that both companies use the periodic inventory system.arrow_forwardProblem c-3 Sales related and purchase related transactions for seller and buyer periodic inventory system the following selected transaction were completed during may between simkins company and burk com may 6 simkins company sold merchandise on account to burk com. $18,500 6, Simkins Company paid transportation costs of $600 for delivery of merchandise sold O Burk Co. on May 6 Simkins Company sold merchandise on account to Burk Co., $15,750. termsFOB shipping point, n/eom Burk Go. returned merchandise purchased on account on May 6 from Simkins Company. $5,500 Burk Co. paid transportation charges of $300 on May 10 purchase from Simkins Company Simkins Company sold merchandise on account to Burk Co., $30,000, terms FOB shipping point 1/10, n/30. Simkins prepaid transportation costs of $1,750, which were added to the invoice. Burk Go. paid Simkins Company for purchase of May 6, less discount and less return of May 11. Burk Co. paid Simkins Company on account for purchase of…arrow_forwardMcGovern Distributing is a merchandising company. Record each of the following transactions related to the company's purch and selling of merchandise: March 1- Purchased merchandise on account for $6,800; terms were 1/10,n/30 March 3 - Paid $200 cash for freight on the March 1 purchase March 6 - Returned merchandise costing $400 (part of the March 1st purchase) March 10 - Paid for merchandise purchased on March 1 March 12 - Sold merchandise on account costing $7,500 for $10,000 March 15 - Accepted returned merchandise from a customer costing $300 that had been sold on account for $400 March 20 - Received payment from customer for merchandise sold on March 12 View transaction list Journal entry worksheet 1 4 6 7 9. March 1 - Purchased merchandise on account for $6,800; terms were 1/10,n/30 Note: Enter debits before credits.arrow_forward
- Instructions Journalize the following merchandise transactions. Refer to the chart of accounts for the exact wording of the account itles. CNOW journals do not use ines for jounal explanations. Every Nne on a journal page is used for debit or aredit ents. CNOW journals will automaticaly indent a credit entry when a credit amount s entered. 1 Sold merchandise on account, $94,800 with terms 2/10, n30. The sost.ot the merchandise nold was Mar. $56,900. Received payment les the discount. 13 Issued a $500 oredit memo for damaged merchandise. The customer agreed to keep the merchandisearrow_forwardb Answered: A X PB Analyze and X /u1/v2/assessment-player/index.html?launchld=73f9082f-68e7-46db-a4b3-509e5b6e0e6d#/question/0 was A 5 Homework Assignment Question 1 of 2 <. 4.43 / 5 E View Policies Show Attempt History Current Attempt in Progress Ayayai Mowers Ltd. agreed to sell the City of Halifax four riding mowers and 20 push lawn mowers. The contract price was $72,000. Ayayai normally sells its riding mowers for $14,400 and its push lawn mowers for $960. The contract required the City of Halifax to pay Ayayai once all of the merchandise has been delivered to the city's public works yard. Ayayai's management does not expect any returns or any issues with payment. Ayayai delivered all four of the riding mowers and 14 of the push mowers on April 26. The remaining six push mowers were delivered on May 5. Ayayai received payment from the city on May 18. Ayayai's cost for each riding mower is $9,960, while the push mowers cost the company $620 each. (a) V Your answer is correct.…arrow_forwardProblem 5-10A Journal entries for merchandising transactions-periodic LO7 Prepare General Journal entries to record the following periodic system merchandising transactions for Safety Merchandising. Use separate account for each receivable and payable: October 1 Purchased merchandise from Zeon Company on credit, terms 2/10, n/30, $15,800. 2 Sold merchandise for cash, $2,100. 7 Purchased merchandise on credit from Billings Co., terms 2/10, n/30, $11,600, FOB the seller's factory. 7 Paid $450 cash for freight charges on the merchandise shipment of the previous transaction. 8 Purchased delivery equipment from Finlay Supplies on credit, $24,000. 12 Sold merchandise on credit to Comry Holdings, terms 2/15, 1/30, n/60, $5,800. 13 Received a $1,500 credit memo for merchandise purchased on October 7 and returned for credit. 13 Purchased office supplies on credit from Staples, $620, n/30. 15 Sold merchandise on credit to Tom Willis, terms 2/10, 1/30, n/60, $4,650. 15 Paid for the merchandise…arrow_forward
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