Serial Problem

Serial Problem - SERIAL PROBLEM — SP 5 Serial Problem —...

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Unformatted text preview: SERIAL PROBLEM — SP 5 Serial Problem — SP 5, Success Systems (150 minutes) Part 1 Journal entries Jan. 4 Wages Expense ..............................................623 150 Wages Payable ...............................................210 600 Cash .........................................................101 750 Paid employee. 5 Cash .................................................................101 10,000 A. Lopez, Capital......................................301 10,000 Additional investment by owner. 7 Merchandise Inventory ..................................119 5,700 Accounts Payable ...................................201 5,700 Purchased merchandise on credit. 9 Cash .................................................................101 3,500 Accounts Receivable—Gomez Co. .......106.6 3,500 Collected accounts receivable. 11 Accounts Receivable—Alex’s Eng. Co............106.1 6,500 Unearned Computer Services Revenue..........236 2,500 Computer Services Revenue .................403 9,000 Completed work on project. 13 Accounts Receivable—Chang Corp..............106.5 6,000 Sales .........................................................413 6,000 Sold merchandise on credit. 13 Cost of Goods Sold ........................................502 4,080 Merchandise Inventory ...........................119 4,080 To record cost of Jan. 13 sale. 15 Merchandise Inventory ..................................119 400 Cash..........................................................101 400 Paid freight on incoming merchandise. 16 Cash .................................................................101 5,600 Computer Services Revenue .................403 5,600 Collected cash revenue from customer. Serial Problem — SP 5 (Continued) Jan. 17 Accounts Payable ..........................................201 5,700 Merchandise Inventory ...........................119 57 Cash .........................................................101 5,643 Paid account payable within discount period. (Discount taken = $5,700 x .01 = $57) 20* Sales Returns and Allowances .....................414 500 Accounts Receivable—Chang Corp......106.5 500 Customer returned defective goods. * Success Systems leaves the cost of defective products in its costs of goods sold. If it did not, the following entry would have been recorded: Loss from Defective Merchandise.....................808 340 Cost of Goods Sold........................................502 340 22 Cash .................................................................101 5,445 Sales Discounts ..............................................415 55 Accounts Receivable—Chang Corp......106.5 5,500 Collected accounts receivable. January 13 sale .................................................................
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This note was uploaded on 02/15/2010 for the course ACCT 201 taught by Professor Carlahogan during the Spring '09 term at Shoreline.

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Serial Problem - SERIAL PROBLEM — SP 5 Serial Problem —...

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