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Chapter-6-Periodic-AK by lanyuehua

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									                         Supplemental Instruction Handouts
                         Financial Accounting
                                  Chapter 6:
                         Accounting for Merchandising
                                  Activities:
                                   Periodic

Required:

Prepare general journal entries to record the following periodic merchandising transactions of
Carmen’s Antique Shop. Use a separate account for each receivable and payable.

June 1st purchased merchandise from Dave’s Wholesalers for $2,500 under credit terms of 2/10,
n/30, and FOB shipping point.

                                General Journal                                      Page ____
 Date    Account Titles and Explanations                         PR      Debit          Credit
June 1   Purchases                                                         2,500
             Accounts Payable – Dave’s Wholesalers                                           2,500


June 2nd received the merchandise and a bill for shipping of $150 from Ron’s Shipping Company.
The bill was paid when received.

                                General Journal                                      Page ____
  Date   Account Titles and Explanations                         PR      Debit          Credit
June 2   Transportation – In                                                 150
              Cash                                                                               150


June 3rd sold $500 worth of antiques for cash. The cost of the antiques was $300.

                                General Journal                                      Page ____
 Date    Account Titles and Explanations                         PR      Debit          Credit
June 3   Cash                                                                500
             Sales                                                                               500




                 Learning Assistance Centre       www.rrc.mb.ca/lac
    This answer key was created by Mike Reimer for the Learning Assistance Centre.
For more questions and links to Wise Guys tutoring videos go to blogs.rrc.ca/michael
June 5th sold $750 worth of antiques on credit to Mrs. Burns with credit terms of 3/10, n/30 FOB
destination. The antiques cost $400.

                                 General Journal                                       Page ____
 Date     Account Titles and Explanations                        PR      Debit            Credit
June 5    Accounts Receivable – Mrs. Burns                                   750
               Sales                                                                           750


June 6th paid $100 for the delivery of antiques to Mrs. Burns.

                                 General Journal                                       Page ____
 Date     Account Titles and Explanations                        PR      Debit            Credit
June 6    Delivery Expense                                                       100
               Cash                                                                            100


June 6th received a $500 credit memo from Dave’s Wholesalers for a return of unsatisfactory
antiques.

                                 General Journal                                       Page ____
 Date     Account Titles and Explanations                        PR      Debit            Credit
June 6    Accounts Payable – Dave’s Wholesalers                              500
               Purchase Returns and Allowances                                                 500


June 10th purchased merchandise from Angie’s Antique Dealers for $1,750 with credit terms of
1/10, n/20, and FOB destination.

                               General Journal                                         Page ____
 Date   Account Titles and Explanations                          PR      Debit            Credit
June 10 Purchases                                                          1,750
             Accounts Payable – Angie’s Antique Dealers                                       1,750


June 11th made a payment to Dave Wholesalers less the return and applicable discount.

                                General Journal                                         Page ____
 Date   Account Titles and Explanations                            PR       Debit          Credit
June 11 Accounts Payable – Dave’s Wholesalers (2,500 – 500)                   2,000
             Purchase Discounts (2,000 x 0.02)                                                    40
             Cash (2,000 – 40)                                                                 1,960




                 Learning Assistance Centre       www.rrc.mb.ca/lac
    This answer key was created by Mike Reimer for the Learning Assistance Centre.
For more questions and links to Wise Guys tutoring videos go to blogs.rrc.ca/michael
June 12th made a sale to Mr. Ireland for $600 with credit terms of 3/10, n/30 FOB shipping point.
The antiques cost $350.

                               General Journal                                         Page ____
 Date   Account Titles and Explanations                          PR         Debit         Credit
June 12 Accounts Receivable – Mr. Ireland                                       600
              Sales                                                                              600


June 15th received payment from Mrs. Burns regarding the June 5th sale.

                                General Journal                                        Page ____
 Date   Account Titles and Explanations                          PR         Debit         Credit
June 15 Cash (750 – 22.50)                                                   727.50
        Sales Discounts (750 x 0.03)                                          22.50
              Accounts Receivable – Mrs. Burns                                                   750


June 16th after negotiations with Angie’s Antique Dealers we received an allowance of $450 for
merchandise that had some problems with it upon arrival to our store.

                                 General Journal                                       Page ____
  Date    Account Titles and Explanations                        PR         Debit         Credit
June 16   Accounts Receivable – Angie’s Antique Dealers                         450
               Purchase Returns and Allowances                                                   450


June 18th issued a credit memo for $200 to Mr. Ireland for return of unsatisfactory antiques.
The antiques were destroyed beyond repair and were thrown out.

                               General Journal                                         Page ____
 Date   Account Titles and Explanations                          PR         Debit         Credit
June 18 Sales Returns and Allowances                                            200
             Accounts Receivables – Mr. Ireland                                                  200


June 22nd received payment from Mr. Ireland regarding the June 12th sale.

                                  General Journal                                      Page ____
  Date    Account Titles and Explanations                        PR         Debit         Credit
June 18   Cash (400 – 12)                                                       388
          Sales Discount (400 x 0.03)                                             12
                Accounts Receivable – Mr. Ireland (600 – 200)                                    400




                 Learning Assistance Centre       www.rrc.mb.ca/lac
    This answer key was created by Mike Reimer for the Learning Assistance Centre.
For more questions and links to Wise Guys tutoring videos go to blogs.rrc.ca/michael
June 30th made a payment to Angie’s Antique Dealers less the allowance.

                               General Journal                                      Page ____
 Date   Account Titles and Explanations                        PR         Debit        Credit
June 30 Accounts Payable – Angie’s Antique Dealers                          1,300
             Cash                                                                         1,300
        (1,750 – 450)




                 Learning Assistance Centre       www.rrc.mb.ca/lac
    This answer key was created by Mike Reimer for the Learning Assistance Centre.
For more questions and links to Wise Guys tutoring videos go to blogs.rrc.ca/michael

								
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