Question

Please complete P5-31A, 32A, and 33A.

302 chapter 5 > Problems Group A Learning Objectives 1, 2, 3 For all problems, assume the perpetual inventory system is wred nless stated otherwise. Rownd all numbers to the nearest whole dollar unless stated other P5-31A Journalizing purchase and sale transactions Journalize the following transactions that occurred in September 2016 forc No explanations are needed. Identify each accounts payable and accounts with the vendor or customer name. Sep. 10 Cash $2,871 2016 for Cardin accounts receivable Sep 3 4 4 6 8 9 10 12 13 15 Purchased merchandise inventory on account from Sherry Wholesalers Terms 1/15, VEOM, FOB shipping point Paid freight bill of $75 on September 3 purchase Purchased merchandise inventory for cash of $1,900. Returned $1,100 of inventory from September 3 purchase. Sold merchandise inventory to Houston Company, 55,500, on account. Terms TV35. Cost of goods, $2,365. Purchased merchandise inventory on account from Tarin Wholesalers, $12.000 Terms 3/10, 1/30, FOB destination Made payment to Sherry Wholesalers for goods purchased on September 3, les return and discount Received payment from Houston Company, less discount. After negotiations, received a $200 allowance from Tarin Wholesalers. Sold merchandise inventory to Java Company, $3,300, on account. Terms 2/10, TVEOM. Cost of goods, $1,320 Made payment, less allowance, to Tarin Wholesalers for goods purchased on September 9. Java Company returned $900 of the merchandise sold on September 15 Cost of goods, $360. Sold merchandise inventory to Smecker for $1,900 on account that cost 5722 Terms of 1/10, 1/30 was offered, FOB shipping point. As a courtesy to Smecker $85 of freight was added to the invoice for which cash was paid by Cardinal After negotiations, granted a $200 allowance to Smecker for merchandise purchased on September 25. Received payment from Smecker, less allowance and discount Received payment from Java Company, less return 22 23 26 29 30

why?

Answer 1

Req 1

Cardinal Journal entries Date Accounts Name 3-Sep Inventory Accounts Payable - Sherry Credit Calculation Debit 4,000 4,000 4-Sep Inventory Cash 75 1,900 4-Sep Inventory Cash 1,900 1,100 6-Sep Accounts Payable - Sherry Inventory 1,100 5,500 5,500 8-Sep Accounts Receivable - Houston Sales Revenue Cost of goods sold Inventory 2,365 2,365 12,000 9-Sep Inventory Accounts Payable - Tarin 12,000 2,900 -4,000-1,100 10-Sep Accounts Payable - Sherry Cash Inventory 2,871 29 =2,900*1% 5,335 12-Sep Cash Sales Discounts Accounts Receivable - Houston 165 =5,500*3% 5,500 200 13-Sep Accounts Payable - Tarin Inventory 200 3,300 3,300 15-Sep Accounts Receivable - Java Sales Revenue Cost of goods sold Inventory 1,320 1,320 11,800 =12,000-200 22-Sep Accounts Payable - Tarin Cash 11,800 900 900 23-Sep Sales Returns & Allowances Accounts Receivable - Java Inventory Cost of goods sold 360 1,985 =1,900+85 1,900 25-Sep Accounts Receivable - Smecker Sales Revenue Cash Cost of goods sold Inventory 722 722 200 26-Sep Sales Returns & Allowances Accounts Receivable - Smecker 200 1,768 29-Sep Cash Sales Discounts Accounts Receivable - Smecker =(1,900-200)*1% -1,985-200 1,785 2,400 =3,300-900 30-Sep Cash Accounts Receivable - Java 2,400

Req 2

May's Adventure Park Journal entries Date Account 4-Nov Inventory Accounts Payable - Valera Company Credit Calculation Debit $ 8,000 $ 8,000 $ 160 6-Nov Inventory Cash $ 160 $ 4,000 =8,000/2 8-Nov Accounts Payable - Valera Company Inventory $ 4,000 $ 1,700 10-Nov Cash Sales $ 1,700 $ 680 10-Nov Cost of goods sold Inventory $ 680 $ 10,300 11-Nov Accounts Receivable - Garrison Corporation Sales $ 10,300 $ 5,150 11-Nov Cost of goods sold Inventory $ 5,150 $ 30 12-Nov Freight out expenses Cash $ 30 $ 9,000 13-Nov Accounts Receivable - Cain Company Sales $ 9,000 $ 4,500 13-Nov Cost of goods sold Inventory $ 4,500 $ 4,000 14-Nov Accounts Payable - Valera Company Cash Inventory $ $ =8,000-4,000 3,960 40 -4,000*1% $ 200 16-Nov Sales Returns & Allowances Accounts Receivable - Garrison Corporation $ 200 $ 400 17-Nov Sales Returns & Allowances Accounts Receivable - Cain Company $ 400 $ 200 17-Nov Inventory Cost of goods sold $ 200 $ 3,700 18-Nov Inventory Accounts Payable - Regan Corporation $ 3,700 20-Nov Cash Sales Discounts Accounts Receivable - Garrison Corporation $ $ 9,797 303 =10,100*3% =10,300-200 $ 10,100 $ 3,700 26-Nov Accounts Payable - Regan Corporation Cash Inventory $ $ 3,626 74 -3,700*2% 28-Nov Cash Sales Discounts Accounts Receivable - Cain Company $ $ 8,514 86 $ 8,600 =9,000-400 $ 12,000 29-Nov Inventory Accounts Payable - Sanders Corporation $ 12,000 $ 200 29-Nov Inventory Cash $ 200

Req 3

187,000 (4,500) (3,500) Big Rita's Music Company Income Statement For the year ended June 30, 2016 Net Sales Revenue Sales Revenue Sales Returns and Allowances Sales Discounts Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Selling Expense Administrative Expense Total Operating Expenses Operating Income Non-Operating Expenses Interest Expense Net Income (Loss) 179,000 84,150 94,850 18,800 17,000 35,800 59,050 1,000 58,050

Credit Calculation Big Rita's Music Company Closing Journal entries Date Account 31-Dec Sales Revenue Clos. (1) Income Summary To close revenue Debit $ 187,000 $ 187,000 $ 128,950 31-Dec Income Summary Clos. (2) Sales Returns and Allowances Sales Discounts Cost of Goods Sold Selling Expense Administrative Expense Interest Expense To close expenses $ $ $ $ $ $ 4,500 3,500 84,150 18,800 17,000 1,000 $ 58,050 =187,000-128,950 31-Dec Income Summary Clos. (3) Rita, Capital To close income summary $ 58,050 $ 42,500 31-Dec Rita, Capital Clos. (4) Rita, Withdrawals To close withdrawals $ 42,500

Big Rita's Music Company Account Names Cash Accounts Receivable Merchandise Inventory Office Supplies Furniture Accumulated Depreciation-Furniture Accounts Payable Salaries Payable Unearned Revenue Notes Payable, long-term Rita, Capital Totals Post Closing TB Debit Credit 3,700 38,500 17,100 850 39,800 8,800 13,100 800 7,400 15,000 54,850 99,950 99,950