Exam_2_Homework_Solutions - E5-2E5-2Information related to...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: E5-2E5-2Information related to Steffens Co. is presented below. 1.On April 5, purchased merchandise from Bryant Company for $25,000 terms 2/10, net/30, FOB shipping point. 2.On April 6 paid freight costs of $900 on merchandise purchased from Bryant. 3.On April 7, purchased equipment on account for $26,000. 4.On April 8, returned damaged merchandise to Bryant Company and was granted a $4,000 credit for returned merchandise. 5.On April 15 paid the amount due to Bryant Company in full Instructions (a) Prepare the journal entries to record these transactions on the books of Steffens Co. under a perpetual inventory system. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.) DateAccount / DescriptionDebitCreditApr. 5Merchandise Inventory$ 25,000 Accounts Payable $ 25,000Apr. 6Merchandise Inventory$ 900 Cash $ 900Apr. 7Equipment$ 26,000 Accounts Payable $ 26,000Apr.8Accounts Payable$ 4,000 Merchandise Inventory $ 4,000Apr. 15Accounts Payable$ 21,000 Cash $ 20,580 Merchandise Inventory $ 420(b) Assume that Steffens Co. paid the balance due to Bryant Company on May 4 instead of April 15. Prepare the journal entry to record this payment. DateAccount / DescriptionDebitCreditMay 4Accounts Payable$ 21,000 Cash $ 21,000P52-AOlaf Distributing Company completed the following merchandising transactions in the month of April. At the beginning of April, the ledger of Olaf showed Cash of $9,000 and Common Stock of $9,000. April2Purchased merchandise on account from Dakota Supply Co. $6,900, terms 1/10, n/30. 4Sold merchandise on account $5,500, FOB destination, terms 1/10, n/30.The cost of themerchandise sold was $4,100. 5Paid $240 freight on April 4 sale. 6Received credit from Dakota Supply Co. for merchandise returned $500. 11Paid Dakota Supply Co. in full, less discount. 13Received collections in full, less discounts, from customers billed on April 4. 14Purchased merchandise for cash $3,800. 16Received refund from supplier for returned goods on cash purchase of April 14, $500. 18Purchased merchandise from Skywalker Distributors $4,500, FOB shipping point, terms 2/10, n/30. 20Paid freight on April 18 purchase $100. 23Sold merchandise for cash $6,400.The merchandise sold had a cost of $5,120....
View Full Document

This note was uploaded on 09/09/2011 for the course ACCT 100 taught by Professor Ftom during the Spring '08 term at S.F. State.

Page1 / 20

Exam_2_Homework_Solutions - E5-2E5-2Information related to...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online