HotRod_Company_Solution (perpetual inventory)

HotRod_Company_Solution (perpetual inventory) - Solution:...

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Solution: HotRod Company Journal Entries: Debit Credit 1. 01.01.2007 Cash 56.000 Marketable Securities 98.000 Accounts Receivable 140.000 Inventory 42.000 Land 224.000 S.T. Bank Loan 112.000 Accounts Payable 22.400 Accrued Expenses 5.600 Capital 336.000 Retained Earnings 84.000 Opening Entry 2. 02.01.2007 Rent Expense 1.000 Cash 1.000 Rent for January 3. 03.01.2007 Cash 33.000 Sales 33.000 1 "HD Type 2" sold in cash to Mototree invoice #????? 4. 03.01.2007 Cost of Goods Sold 21.000 Inventory 21.000 Cost of of the HD Type 2 model bike 5. 03.01.2007 Freight-Out Expense 450 Cash 450 Transportation paid in FOB Destination Point Sale 6. 05.01.2007 Sales Returns and Allowances 200 Cash 200 Discount given for the repair work 7. 10.01.2007 Inventory 200.000 Accounts Payable 200.000 Purchase of 5 units of "HD Type 5" motorbikes from producer (HD) 8. 10.01.2007 Inventory 2000 Cash 2000 Transportation is paid (FOB Shipping Point) subtotal 817.650 1
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Debit Credit 9. 12.01.2007 Accounts Payable
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This note was uploaded on 06/03/2009 for the course FIN 5308 taught by Professor Mckenzie during the Spring '07 term at Youngstown State University.

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HotRod_Company_Solution (perpetual inventory) - Solution:...

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