ACC 100 Lecture 7: CHapter 7

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apricottoad69

3 Mar 2017

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Office supplies inc. (osi) added a new inventory item in may an oak desk designed for home offices. Below are some of the business activities regarding the sale of oak desks for the month of may. Opening balances are as follows: cash, ,496, accounts receivable, ,769, inventory, ,428, owner"s capital, ,803, and retained earnings, ,890. Osi purchased 300 desks at each, credit terms 2/10, n/35, shipping terms fob. The appropriate party paid shipping costs of . Osi returned 10 desks to the supplier because they were slightly damaged. The appropriate party paid shipping costs of . Osi sold 30 desks for each to haliburton furniture, credit terms 2/10, net 30, shipping terms fob destination. (you already know what the desks cost!!) The appropriate party paid shipping costs of . May 12 osi pays for the inventory they purchased on may 4. Haliburton furniture found they had over-ordered so that asked to return 5 desks.

Related Questions

Palisade Creek Co. is a merchandising business that uses theperpetual inventory system. The account balances for Palisade CreekCo. as of May 1, 2016 (unless otherwise indicated), are asfollows:

110	Cash	$ 83,600
112	Accounts Receivable	233,900
115	Merchandise Inventory	624,400
116	Estimated Returns Inventory	28,000
117	Prepaid Insurance	16,800
118	Store Supplies	11,400
123	Store Equipment	569,500
124	Accumulated Depreciation-Store Equipment	56,700
210	Accounts Payable	96,600
211	Salaries Payable	â
212	Customers Refunds Payable	50,000
310	Lynn Tolley, Capital, June 1, 2015	685,300
311	Lynn Tolley, Drawing	135,000
312	Income Summary	â
410	Sales	5,069,000
510	Cost of Merchandise Sold	2,823,000
520	Sales Salaries Expense	664,800
521	Advertising Expense	281,000
522	Depreciation Expense	â
523	Store Supplies Expense	â
529	Miscellaneous Selling Expense	12,600
530	Office Salaries Expense	382,100
531	Rent Expense	83,700
532	Insurance Expense	â
539	Miscellaneous Administrative Expense	7,800

During May, the last month of the fiscal year, the followingtransactions were completed:

Record the following transactions on page 20 of the journal.Refer to the Chart of Accounts for exact wording of accounttitles.

May	1	Paid rent for May, $5,000.
	3	Purchased merchandise on account from Martin Co., terms 2/10,n/30, FOB shipping point, $36,000.
	4	Paid freight on purchase of May 3, $600.
	6	Sold merchandise on account to Korman Co., terms 2/10, n/30,FOB shipping point, $68,500. The cost of the merchandise sold was$41,000.
	7	Received $22,300 cash from Halstad Co. on account.
	10	Sold merchandise for cash, $54,000. The cost of the merchandisesold was $32,000.
	13	Paid for merchandise purchased on May 3.
	15	Paid advertising expense for last half of May, $11,000.
	16	Received cash from sale of May 6.
	19	Purchased merchandise for cash, $18,700.
	19	Paid $33,450 to Buttons Co. on account.
	20	Paid Korman Co. a cash refund of $13,230 for returnedmerchandise from sale of May 6. The invoice amount of the returnedmerchandise was $13,500 and the cost of the returned merchandisewas $8,000.

Record the following transactions on page 21 of the journal.Refer to the Chart of Accounts for exact wording of accounttitles.

May	20	Sold merchandise on account to Crescent Co., terms 1/10, n/30,FOB shipping point, $110,000. The cost of the merchandise sold was$70,000.
	21	For the convenience of Crescent Co., paid freight on sale ofMay 20, $2,300.
	21	Received $42,900 cash from Gee Co. on account.
	21	Purchased merchandise on account from Osterman Co., terms 1/10,n/30, FOB destination, $88,000.
	24	Returned of damaged merchandise purchased on May 21, receivinga credit memo from the seller for $5,000.
	26	Refunded cash on sales made for cash, $7,500. The cost of themerchandise returned was $4,800.
	28	Paid sales salaries of $56,000 and office salaries of$29,000.
	29	Purchased store supplies for cash, $2,400.
	30	Sold merchandise on account to Turner Co., terms 2/10, n/30,FOB shipping point, $78,750. The cost of the merchandise sold was$47,000.
	30	Received cash from sale of May 20 plus freight paid on May21.
	31	Paid for purchase of May 21, less return of May 24.

orchidhound945

Palisade Creek Co. is a merchandising business that uses theperpetual inventory system. The account balances for Palisade CreekCo. as of May 1, 2016 (unless otherwise indicated), are asfollows:

110	Cash	$ 83,600
112	Accounts Receivable	233,900
115	Merchandise Inventory	624,400
116	Estimated Returns Inventory	28,000
117	Prepaid Insurance	16,800
118	Store Supplies	11,400
123	Store Equipment	569,500
124	Accumulated Depreciation-Store Equipment	56,700
210	Accounts Payable	96,600
211	Salaries Payable	â
212	Customers Refunds Payable	50,000
310	Lynn Tolley, Capital, June 1, 2015	685,300
311	Lynn Tolley, Drawing	135,000
312	Income Summary	â
410	Sales	5,069,000
510	Cost of Merchandise Sold	2,823,000
520	Sales Salaries Expense	664,800
521	Advertising Expense	281,000
522	Depreciation Expense	â
523	Store Supplies Expense	â
529	Miscellaneous Selling Expense	12,600
530	Office Salaries Expense	382,100
531	Rent Expense	83,700
532	Insurance Expense	â
539	Miscellaneous Administrative Expense	7,800

During May, the last month of the fiscal year, the followingtransactions were completed:

Record the following transactions on page 20 of the journal.Refer to the Chart of Accounts for exact wording of accounttitles.

May	1	Paid rent for May, $5,000.
	3	Purchased merchandise on account from Martin Co., terms 2/10,n/30, FOB shipping point, $36,000.
	4	Paid freight on purchase of May 3, $600.
	6	Sold merchandise on account to Korman Co., terms 2/10, n/30,FOB shipping point, $68,500. The cost of the merchandise sold was$41,000.
	7	Received $22,300 cash from Halstad Co. on account.
	10	Sold merchandise for cash, $54,000. The cost of the merchandisesold was $32,000.
	13	Paid for merchandise purchased on May 3.
	15	Paid advertising expense for last half of May, $11,000.
	16	Received cash from sale of May 6.
	19	Purchased merchandise for cash, $18,700.
	19	Paid $33,450 to Buttons Co. on account.
	20	Paid Korman Co. a cash refund of $13,230 for returnedmerchandise from sale of May 6. The invoice amount of the returnedmerchandise was $13,500 and the cost of the returned merchandisewas $8,000.

Record the following transactions on page 21 of the journal.Refer to the Chart of Accounts for exact wording of accounttitles.

May	20	Sold merchandise on account to Crescent Co., terms 1/10, n/30,FOB shipping point, $110,000. The cost of the merchandise sold was$70,000.
	21	For the convenience of Crescent Co., paid freight on sale ofMay 20, $2,300.
	21	Received $42,900 cash from Gee Co. on account.
	21	Purchased merchandise on account from Osterman Co., terms 1/10,n/30, FOB destination, $88,000.
	24	Returned of damaged merchandise purchased on May 21, receivinga credit memo from the seller for $5,000.
	26	Refunded cash on sales made for cash, $7,500. The cost of themerchandise returned was $4,800.
	28	Paid sales salaries of $56,000 and office salaries of$29,000.
	29	Purchased store supplies for cash, $2,400.
	30	Sold merchandise on account to Turner Co., terms 2/10, n/30,FOB shipping point, $78,750. The cost of the merchandise sold was$47,000.
	30	Received cash from sale of May 20 plus freight paid on May21.
	31	Paid for purchase of May 21, less return of May 24.

Required:

Download the spreadsheet in the Ledger panel and save the Excelfile to your computer. Use the spreadsheet to post the Maytransactions from the journal to a ledger of four-column accounts.Be sure to save your work in Excel as it will be used to completethe following steps in Part 1 of this problem as well as steps inPart 2 of this problem. Your input into the spreadsheet will not beincluded in your grade in CengageNOW on this problem.

A.	Enter the May 1 balances of each of the accounts in theappropriate balance column of a four-column account. Enter May 1 inthe date column. Write Balance in the item section, and enter âXâin the Posting Reference column.
B.	Journalize the transactions for May, starting on Page 20 of thejournal.*

Post the journal to the general ledger, extending the month-endbalances to the appropriate balance columns after all posting iscompleted. In this problem, you are not required to update or postto the accounts receivable and accounts payable subsidiary ledgers.Add the appropriate posting reference to the journal.

Prepare an unadjusted trial balance. Accounts with zerobalances can be left blank.

At the end of May, the following adjustment data wereassembled. Analyze and use these data to complete (5) and (6).

â¢

Merchandise inventory on May 31, $570,000

â¢

Insurance expired during the year, $12,000

â¢

Store supplies on hand on May 31, $4,000

â¢

Depreciation for the current year, $14,000

â¢

Accrued salaries on May 31:

Sales salaries, $7,000

Office salaries, $6,600

Total accrued salaries: $13,600

â¢

The adjustment for customer returns and allowances is $60,000for sales and $35,000 for cost of merchandise sold.

(Optional) On your own paper or spreadsheet, enter theunadjusted trial balance on a 10-column end-of-period spreadsheet(work sheet), and complete the spreadsheet. Find a blankend-of-period work sheet in the Excel spreadsheet you previouslydownloaded.

A.	Journalize the adjusting entries. Record the adjusting entrieson Page 22 of the journal.*
B.	Post the adjusting entries. Add the appropriate postingreference to the journal.

Prepare an adjusted trial balance. Accounts with zero balancescan be left blank.

* Refer to the Chart of Accounts for exact wording of accounttitles.

sapphirecod7

1. The following selected transactions were completed by Capers Company during October of the current year:

Oct.	1	Purchased merchandise from UK Imports Co., $14,448, terms FOB destination, n/30.
	3	Purchased merchandise from Hoagie Co., $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice.
	4	Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30.
	6	Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4.
	13	Paid Hoagie Co. for invoice of October 3.
	14	Paid Taco Co. for invoice of October 4, less debit memo of October 6.
	19	Purchased merchandise from Veggie Co., $27,300, terms FOB shipping point, n/eom.
	19	Paid freight of $400 on October 19 purchase from Veggie Co.
	20	Purchased merchandise from Caesar Salad Co., $22,000, terms FOB destination, 1/10, n/30.
	30	Paid Caesar Salad Co. for invoice of October 20.
	31	Paid UK Imports Co. for invoice of October 1.
	31	Paid Veggie Co. for invoice of October 19.

Journalize the entries to record the transactions of Capers Company for October. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Capers Company

General Ledger

	ASSETS
	LIABILITIES
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Merchandise Inventory
131	Estimated Returns Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment
211	Accounts Payable-Caesar Salad Co.
212	Accounts Payable-Hoagie Co.
213	Accounts Payable-Taco Co.
214	Accounts Payable-UK Imports Co.
215	Accounts Payable-Veggie Co.
216	Salaries Payable
218	Sales Tax Payable
219	Customer Refunds Payable
221	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
	EXPENSES
410	Sales
610	Interest Revenue
510	Cost of Merchandise Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
526	Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense

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ACC 100 Lecture 7: CHapter 7

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