Accounting exam 1.docm - 1.) Prepare journal entries to...

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1.)Prepare journal entries to record the following merchandising transactions of Cabela’s,which uses the perpetual inventory system and the gross method. (Hint: It will help toidentify each receivable and payable; for example, record the purchase on July 1 inAccounts Payable—Boden.)July1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shippingpoint, invoice dated July 1.2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoicedated July 2. The merchandise had cost $500.3 Paid $125 cash for freight charges on the purchase of July 1.8 Sold merchandise that had cost $1,300 for $1,700 cash.9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB destination,invoice dated July 9.11 Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchasedon July 9.12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.16 Paid the balance due to Boden Company within the discount period.19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shippingpoint, invoice dated July 19.21 Issued a $100 credit memorandum to Art Co. for an allowance on goods sold on July 19.24 Paid Leight Co. the balance due, net of discount.30 Received the balance due from Art Co. for the invoice dated July 19, net of discount.31 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOBshipping point, invoice dated July 31.NoDateGeneral JournalDebitCredit1July 01Merchandise inventory6,000Accounts payable—Boden6,0002July 02Accounts receivable—Creek900Sales9003July 02Cost of goods sold500Merchandise inventory5004July 03Merchandise inventory125Cash1255July 08Cash1,700Sales1,7006July 08Cost of goods sold1,300Merchandise inventory1,3007July 09Merchandise inventory2,200Accounts payable—Leight2,2008July 11Accounts payable—Leight200Merchandise inventory2009July 12Cash882Sales discounts18Accounts receivable—Creek90010July 16Accounts payable—Boden6,000Merchandise inventory60Cash5,94011July 19Accounts receivable—Art1,200Sales1,20012July 19Cost of goods sold800Merchandise inventory80013July 21Sales returns and allowances100

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Term
Spring
Professor
Dr.SusanEason
Tags
Accounting, Revenue, Sales, Generally Accepted Accounting Principles, NELSON COMPANY

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