Question

Practice Problem Set 1 Your answer is partially correct. Try again. Novak Warehouse distributes hardback books to retail stores and extends credit to all of its customers. During the month of June, the following merchandising transactions occurred. June 1 3 6 9 15 17 20 24 26 28 30 Purchased books on account for $2,580 from Catlin Publishers. Sold books on account to Garfunkel Bookstore for $1,150. The cost of the merchandise sold was $850. Received $80 credit for books returned to Catlin Publishers. Paid Catlin Publishers in full. Received payment in full from Garfunkel Bookstore. Sold books on account to Bell Tower for $1,150. The cost of the merchandise sold was $950. Purchased books on account for $850 from Priceless Book Publishers. Received payment in full from Bell Tower. Paid Priceless Book Publishers in full. Sold books on account to General Bookstore for $1,150. The cost of the merchandise sold was $760. Granted General Bookstore $170 credit for books returned costing $30. Prepare a tabular summary to record the transactions for the month of June for Novak Warehouse using a perpetual inventory system. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answer 1

	Assets	Liabilities		Stockholder's Equity
											Retained earnings
	Cash	+	A/c's Rec.	+	Inventory	=	Accnts Payable	+	Common Stock	+	Rev.	-	Expenses
Jun 1					2580		2580
3			1150								1150
					-850								-850
6					-80		-80
9	-2500						-2500
15	1150		-1150
17			1150								1150
					-950								-950
20					850		850
24	1150		-1150
26	-850						-850
28			1150								1150
					-760								-760
30			-170								-170
					30								30
	-1050		980		820						3280		-2530