# Sailor's Suits makes custom and wholesale Halloween costumes for pets. Prepare individual journal entries for each...

Sailor's Suits makes custom and wholesale Halloween costumes for pets. Prepare individual journal entries for each of the following transaction that occurred in September. For example, if you want to debit cash for \$500 and credit sales revenue for \$500 for transaction #1, type "1. Debit Cash 500; Credit Sales Revenue 500" in the answer box.

1. Sailor issues 10,000 shares of \$5 par value common stock for \$50,000 in cash.

2. Sailor acquires merchandise inventories with a list price of \$15,000 on account from suppliers.

3. Sailor signs a contract with a customer for \$5,000 of merchandise that she plans to deliver in the future. The customer advances \$1,500 toward the contract price.

4. Sailor pays in cash wage expenses of \$1,000 for hours works by her employees in September.

5. Sailor delivers the costumes to the customer from transaction (3). The customer pays, in cash, the remainder that she owed. The merchandise cost Sailor \$2,750.

6. What is the amount of net income that Sailor will report on the Income Statement dated September 30? (do not prepare a journal entry for this question - simply type the amount of net income)

 Account title and explanation Debit Credit 1 Cash \$50,000 Common stock \$50,000 [To record issuance of common stock for cash] 2 Inventory \$15,000 Accounts payable \$15,000 [To record purchase of inventory on account] 3 Cash \$1,500 Unearned revenue \$1,500 [To record advance taken from customers] 4 Wages expense \$1,000 Cash \$1,000 [To record payment of wages] 5 Cash \$3,500 Unearned revenue \$1,500 Sales revenue \$5,000 [To record sales revenue]

6.Net income = \$5,000 revenue - \$2,750 cost of goods sold - \$1,000 wages expense = \$1,250

##### Add Answer of: Sailor's Suits makes custom and wholesale Halloween costumes for pets. Prepare individual journal entries for each...
Similar Homework Help Questions
• ### Record adjusting journal entries for each of the following for year ended December 31 Assume no...

Record adjusting journal entries for each of the following for year ended December 31 Assume no other adjusting entries are made during the year. a. Unearned Rent Revenue. The Krug Company collected \$7.800 rent in advance on November 1. debiting Cash and crediting Unearned Rent Revenue. The tenant was paying 12 months' rent in advance and occupancy began November 1. b. Unearned Services Revenue. The company charges \$90 per insect treatment. A customer paid \$360 on October 1 in advance...

• ### Journalizing Business Transactions Prepare journal entries for each of the following transactions (a) through () If...

Journalizing Business Transactions Prepare journal entries for each of the following transactions (a) through () If transaction requires no entry, select "No entry" as the drop-down answer option a. Receive merchandise inventory costing \$9,000, purchased with cash. General Journal Description Debit Credit b. Sell half of inventory in (a) for \$7,500 on credit. Description Credit To record cost of inventory sold Fo 4 5 8 9 lackboard.chapman.edu/webapps/blackboard/content/contentWrapper jsp?course jde 46700 1ådisplay amesmyB Menu To record sale of merohandise c. Place...

• ### Dude Duds, Inc. is a clothing retailer specializing in affordable family apparel. Prepare journal entries and...

Dude Duds, Inc. is a clothing retailer specializing in affordable family apparel. Prepare journal entries and related adjusting entries (if any) for the transaction below for the first quarter ending March 31 of the current year. Received an order from a customer for \$158,727 at the end of the quarter. The company expects to receive the merchandise from a supplier next month. The customer advanced \$31,700 toward the contract price. Select one: O a. Dr. Cash \$158,727; Dr. Cost of...

• ### Please help, this is wrong Prepare journal entries to record each of the merchandising transactions assuming...

Please help, this is wrong Prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the gross method and a periodic inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Apr. 1 Sold merchandise for \$4,800, with credit terms n/30; invoice dated April 1. The cost of the merchandise is \$2,880. Apr. 4 The customer in the April 1 sale returned \$560...

• ### For each of the following independent situations, prepare journal entries to record the initial transaction on...

For each of the following independent situations, prepare journal entries to record the initial transaction on September 30 and the adjustment required on October 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 2.5 points Skipped a. Hockey Helpers paid \$4,000 cash on September 30 to rent an arena for the months of October and November. b. Super Stage Shows received \$16,000 on September 30 for season tickets that admit...

• ### Record adjusting journal entries for each of the following for year ended December 31. Assume no...

Record adjusting journal entries for each of the following for year ended December 31. Assume no other adjusting entries are made during the year. a. Unearned Rent Revenue. The Krug Company collected \$15,000 rent in advance on November 1, debiting Cash and crediting Unearned Rent Revenue. The tenant was paying 12 months' rent in advance and occupancy began November 1. b. Unearned Services Revenue. The company charges \$150 per insect treatment. A customer paid \$600 on October 1 in advance...

• ### Prepare journal entries to record each of the following sales transactions of a merchandising company. The...

Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual Inventory system and the gross method. Apr. 1 Sold merchandise for \$6,600, with credit terms 1/30; invoice dated April 1. The cost of the merchandise is \$3.960. apr. The customer in the April 1 sale returned \$740 of merchandise for full credit. The merchandise, which had cost \$444, is returned to inventory. Npr. 8 Sold merchandise for \$2,800, with credit...

• ### Prepare journal entries to record each of the following sales transactions of a merchandising company. The...

Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Apr. 1 Sold merchandise for \$6,800, with credit terms n/30; invoice dated April 1. The cost of the merchandise is \$4,080. Apr. The customer in the April 1 sale returned \$760 of merchandise for full credit. The merchandise, which had cost \$456, is returned to inventory. Apr. & Sold merchandise for \$2,900, with credit...

• ### Prepare journal entries to record each of the following sales transactions of a merchandising company. The...

Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual Inventory system and the gross method Apr. 1 Sold merchandise for \$6,400, with credit terns n/30; invoice dated April 1. The cost of the merchandise is \$3,840. Apr. 4 The customer in the April 1 sale returned \$720 of merchandise for full credit. The merchandise, which had cost \$432, is returned to inventory. Apr. 8 Sold merchandise for \$2,700, with...

• ### Prepare journal entries to record each of the merchandising transactions assuming that the company records purchases...

Prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the gross method and a periodic inventory system. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Apr. 1 Sold merchandise for \$4,200, with credit terms n/30; invoice dated April 1. The cost of the merchandise is \$2,520. Apr. 4 The customer in the April 1 sale returned \$500 of merchandise for full credit....

Free Homework App