ACC205 WEEK 3 ASSIGNMENT 1.pdf - Course ACC205 Principles...

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10/22/2020 1/19 1. Consider the following transactions for Drug Store:Seacost(Click the icon to view the transactions.)1Requirements1.Journalize the purchase transactions. Explanations are not required. 2.In the final analysis, how much did the inventory cost Course: ACC205: Principles of Accounting I (BAG2039B) Assignment: Week 3 – Assignment 1 Review Only ? Seacost Click the icon to see the Worked Solution. Requirement 1. Journalize the purchase transactions. Explanations are not required. (Assume the company uses a perpetual inventory system. Round the answers to the nearest whole dollar. Record debits first, then credits. Exclude explanations from journal entries.) : buys worth of inventory on account with credit terms of FOB shipping point. Oct. 2 Seacost $23,500 3 15, n 30, Date Accounts Debit Credit Oct. 2 Merchandise Inventory 23,500 Accounts Payable 23,500 : pays a freight charge. Oct. 4 Seacost $140 Date Accounts Debit Credit Oct. 4 Merchandise Inventory 140 Cash 140 : returns of the merchandise due to damage during shipment. Oct. 8 Seacost $5,600 Date Accounts Debit Credit Oct. 8 Accounts Payable 5,600 Merchandise Inventory 5,600 : paid the amount due, less return and discount. Oct. 14 Seacost Date Accounts Debit Credit Oct. 14 Accounts Payable 17,900 Cash 17,363 Merchandise Inventory 537
10/22/2020 2/19 1: More Info Requirement 2. In the final analysis, how much did the inventory cost ? Seacost The inventory cost for Seacost is $ 17,503 . Oct. 2 buys worth of inventory on account with credit terms of FOB shipping point. Seacost $23,500 3 15, n 30, 4 pays a freight charge. Seacost $140 8 returns of the merchandise due to damage during shipment. Seacost $5,600 14 paid the amount due, less return and discount. Seacost
10/22/2020 3/19 2. Journalize the following sales transactions for Sportswear. Explanations are not required. The company estimates sales returns at the end of each month. (Assume the company uses a perpetual inventory system and records sales at the net amount.)Peter(Click the icon to view the transactions.) Review Only 2 Click the icon to see the Worked Solution. Journalize the sales transactions. Explanations are not required. (Record debits first, then credits. Exclude explanations from journal entries.) : sold of men's sportswear for cash. Cost of goods sold is . Feb. 1 Peter $25,000 $16,000 Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Accounts Debit Credit Feb. 1 Cash 25,000 Sales Revenue 25,000 Now journalize the expense related to the sale Cost of goods sold, . February 1 $16,000 Date Accounts Debit Credit Feb. 1 Cost of Goods Sold 16,000 Merchandise Inventory 16,000 : sold of women's sportswear on account, credit terms are /10, n/ . Cost of goods is . Feb. 3 Peter $67,000 2 60 $37,000 Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale.

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