Question

Medugen.wileyplus.com Netflix Desmos Khan Academy Mastering Bio Google Docs Google Classroom rin Ray-R.. Forgot Pass... Information... Reset Passw.. WileyPLUS Kimmel, Financial Accounting, se tice Assignment Gradebook ORION Downloadable eTextbook WebAssign inbox (3,31 FINANCIAL ACCOUNTING (A ment FULL SCREEN PRINTER VERSION BACK Question 3 This information relates to Carla Vista Co.. 1. 2. 3. 4. 5. On April 5, purchased merchandise from Wildhorse Company for $28,200, terms 2/10, 1/30. On April 6, paid freight costs of $710 on merchandise purchased from Wildhorse Company On April 7, purchased equipment on account for $33,200. On April 8, returned $3,800 of April 5 merchandise to Wildhorse Company. On April 15, paid the amount due to Wildhorse Company in full. (a) Prepare the journal entries to record the transactions listed above on Carla Vista Co.'s books. Carla Vista Co. uses a perpetual Inventory system. (If no entry is required, select "No Entry" for the account tities and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) No. Date Account Titles and Explanation Debit Credit Sons, Inc. Version 4.2.16 Privacy Policy I 2000-2019 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley

Answer 1

Journal

April 5 Inventory Dr. $28200

To Wildhorse Company $ 28,200

(Being inventory of merchandise purchased from Wildhorse)

April 6 Inventory Dr. $710

To Bank Cr. $710

(Being freight inward paid on purchase of merchandise being a directly attributable cost of inventory added to cost of inventory as per IFRS-2)

April 7 Equipment Dr. $33,200

To Bank Cr. $33,200

(Being equipment purchased capitalized as capital asset)

April 8  Wildhorse Company Dr. $ 3,800

To Inventory Cr. $ 3,800

(Being inventory returned to Wildhorse Company)

April 15 Wildhorse Company Dr. $24,400

To Bank Cr. $ 23,912

To Discount on purchase of merchandise Cr.  {(28200-3800)*0.02} Cr. $488

(Being payment made to Wildhorse Company within 10 days and discount availed of 2% on the payment)

Note: In Perpetual inventory, on purchase of goods, inventory is debited and not Purchase account.