E5 - E5-3 This information relates to Prophet Co. 1. 2. 3....

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Unformatted text preview: E5-3 This information relates to Prophet Co. 1. 2. 3. 4. 5. On April 5 purch Lombard Compa 2/10, n/30. On April 6 paid freight costs of $900 on merchandise purc On April 7 purchased equipment on account for $30,000. On April 8 returned some of April 5 merchandise to Lomb $3,600. On April 15 paid the amount due to Lombard Company in Hint: Journalize purchase transactions. (SO 2) Instructions (a) Prepare the journal entries to record the transactions listed a Co. Prophet Co. uses a perpetual inventory system. (b) Assume that Prophet Co. paid the balance due to Lombard C April 15. Prepare the journal entry to record this payment. Perpetual April 5 April 6 April 7 April 8 April 15 Periodic April 5 April 6 April 7 April 8 April 15 Merchandise Inventory Account Payable Merchandise inventory Cash Equipment Account payable Account payable Merchandise inventory Account payable (25-3) Cash Merchandise inventory (21,400x2%) 25,000 25,000 900 900 30,000 30,000 3,600 3,600 21,400 20,972 428 Purchases Account payable Freight-in Cash Equipment Account payable Account payable purchase return& allowance Account payable Cash 25,000 25,000 900 900 30,000 30,000 3,600 3,600 21,400 20,972 Purchase discount 428 ...
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E5 - E5-3 This information relates to Prophet Co. 1. 2. 3....

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