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1.) X sold Y merchandise on account FOB shipping point, 3/10,net 30, for $10,000. X prepaid the $200 shipping charge. Using theperpetual inventory method, which of the following entries will Ymake if Y pays within the discount period?

Accounts Payable-X, debit $9,900; Cash, credit $9,900

Accounts Payable-X, debit $10,000; Transportation In, credit$200; Cash, credit $9,800

Accounts Payable-X, debit $9,700; Merchandise Inventory, debit$200; Cash, credit $9,900

Accounts Payable-X, debit $9,700; Transportation In, debit $200;Cash, credit $9,900

2.) Merchandise with an invoice price of $4,000 is purchasedsubject to terms of 2/10, n/30, FOB destination. Transportationcosts paid by the seller totaled $150. What is the cost of themerchandise, assuming the discount is taken?

$4,070

$3,920

$4,067

$4,150

3.) A sales invoice included the following information:merchandise price, $1,000; transportation, $200; terms 1/10, n/eom,FOB shipping point. Assuming that a credit for merchandise returnedof $300 is granted prior to payment, that the transportation isprepaid by the seller, and that the invoice is paid within thediscount period, what is the amount of cash received by theseller?

$693

$893

$990

$700

4.) X sold Y merchandise on account FOB shipping point, 2/10,net 30, for $10,000. X prepaid the $200 shipping charge. Which ofthe following entries does X make to record this sale?

Accounts Receivable debit $9,800; Sales credit $9,800; AccountsReceivable debit $200; Cash credit $200

Accounts Receivable debit $10,400; Sales credit $10,400

Accounts Receivable debit $10,000; Sales credit $10,000

Accounts Receivable debit $10,000; Sales credit $10,000;Transportation Out debit $200; Cash credit $200

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Collen Von
Collen VonLv2
28 Sep 2019

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1. The following selected transactions were completed by Capers Company during October of the current year:

Oct.

1

Purchased merchandise from UK Imports Co., $14,448, terms FOB destination, n/30.

3

Purchased merchandise from Hoagie Co., $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice.

4

Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30.

6

Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4.

13

Paid Hoagie Co. for invoice of October 3.

14

Paid Taco Co. for invoice of October 4, less debit memo of October 6.

19

Purchased merchandise from Veggie Co., $27,300, terms FOB shipping point, n/eom.

19

Paid freight of $400 on October 19 purchase from Veggie Co.

20

Purchased merchandise from Caesar Salad Co., $22,000, terms FOB destination, 1/10, n/30.

30

Paid Caesar Salad Co. for invoice of October 20.

31

Paid UK Imports Co. for invoice of October 1.

31

Paid Veggie Co. for invoice of October 19.

Journalize the entries to record the transactions of Capers Company for October. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Capers Company

General Ledger

ASSETS

LIABILITIES

110

Cash

120

Accounts Receivable

125

Notes Receivable

130

Merchandise Inventory

131

Estimated Returns Inventory

140

Office Supplies

141

Store Supplies

142

Prepaid Insurance

180

Land

192

Store Equipment

193

Accumulated Depreciation-Store Equipment

194

Office Equipment

195

Accumulated Depreciation-Office Equipment

211

Accounts Payable-Caesar Salad Co.

212

Accounts Payable-Hoagie Co.

213

Accounts Payable-Taco Co.

214

Accounts Payable-UK Imports Co.

215

Accounts Payable-Veggie Co.

216

Salaries Payable

218

Sales Tax Payable

219

Customer Refunds Payable

221

Notes Payable

EQUITY

310

Common Stock

311

Retained Earnings

312

Dividends

313

Income Summary

REVENUE

EXPENSES

410

Sales

610

Interest Revenue

510

Cost of Merchandise Sold

521

Delivery Expense

522

Advertising Expense

524

Depreciation Expense-Store Equipment

525

Depreciation Expense-Office Equipment

526

Salaries Expense

531

Rent Expense

533

Insurance Expense

534

Store Supplies Expense

535

Office Supplies Expense

536

Credit Card Expense

539

Miscellaneous Expense

710

Interest Expense

My professor wants us to journal these.

Jan 2. Sold merchandise on account, $8000, terms FOB shippingpoint, n/eom. The
cost was $6000.
Jan 8. Sold merchandise on account $ 20,000, terms FOB destination,1/10, n/30. The
cost was 14,000
16- sold merch on acc 12,000 terms FOB shipping point, 1/10, n/30.cost was 7,200
18- received check for amount due for sale on Jan 8
19 issued credit memo and for 3000 for merch returned from sale jan16. the cost of
merch returned, 1,800
26-received check for amount due for sale on jan 16 less creditmemo of jan 19 and discount
31- paid gallatin delivery service 1,500 for merch delivered duringJan to customers under
shipping terms of FOB destination
31 received check for amount due for sale on jan 2.

BUYER POV

Silvergate Co.

May 3. purchased merch for, 16,000m terms FOB destination, 2/10,n/30.
6- issed debit memo for 4000 of merch returned from purchase on may3
10 purchased merch, 25000 terms FOB shipping point, n/eom
10-paid freight of 600 on many 10 purchase
13- paid for invoice of may 3 less debit memo of may 6 anddiscount
31 paid for invoice of may 10

Problem 7-1A Special journals, subsidiary ledgers, trialbalance-perpetual LO C3, P1, P2

[The following information applies to the questionsdisplayed below.]

Church Company completes these transactions and events during Marchof the current year (terms for all its credit sales are 3/10,n/30).

Mar. 1 Purchased $40,000 of merchandisefrom Van Industries, invoice dated March 1, terms 3/15, n/30.
2 Sold merchandise on credit to MinCho, Invoice No. 854, for $16,000 (cost is $8,000).
3 (a) Purchased $1,200 of office supplieson credit from Gabel Company, invoice dated March 3, terms n/10EOM.
3 (b) Sold merchandise on credit to LindaWitt, Invoice No. 855, for $8,000 (cost is $4,000).
6 Borrowed $72,000 cash from FederalBank by signing a long-term note payable.
9 Purchased $20,000 of officeequipment on credit from Spell Supply, invoice dated March 9, termsn/10 EOM.
10 Sold merchandise on credit toJovita Albany, Invoice No. 856, for $4,000 (cost is $2,000).
12 Received payment from Min Cho forthe March 2 sale less the discount.
13 (a) Sent Van Industries Check No. 416in payment of the March 1 invoice less the discount.
13 (b) Received payment from Linda Wittfor the March 3 sale less the discount.
14 Purchased $34,000 of merchandisefrom the CD Company, invoice dated March 13, terms 3/10, n/30.
15 (a) Issued Check No. 417, payable toPayroll, in payment of sales salaries expense for the first half ofthe month, $15,200. Cashed the check and paid the employees.
15 (b) Cash sales for the first half ofthe month are $64,000 (cost is $51,200). (Cash sales are recordeddaily, but are recorded only twice here to reduce repetitiveentries.)
16 Purchased $1,720 of store supplieson credit from Gabel Company, invoice dated March 16, terms n/10EOM.
17 Received a $3,400 credit memorandumfrom CD Company for the return of unsatisfactory merchandisepurchased on March 14.
19 Received a $600 credit memorandumfrom Spell Supply for office equipment received on March 9 andreturned for credit.
20 Received payment from Jovita Albanyfor the sale of March 10 less the discount.
23 Issued Check No. 418 to CD Companyin payment of the invoice of March 13 less the March 17 return andthe discount.
27 Sold merchandise on credit toJovita Albany, Invoice No. 857, for $12,000 (cost is $4,800).
28 Sold merchandise on credit to LindaWitt, Invoice No. 858, for $4,800 (cost is $1,920).
31 (a) Issued Check No. 419, payable toPayroll, in payment of sales salaries expense for the last half ofthe month, $15,200. Cashed the check and paid the employees.
31 (b) Cash sales for the last half of themonth are $70,400 (cost is $42,240).
31 (c) Verify that amounts impactingcustomer and creditor accounts were posted and that any amountsthat should have been posted as individual amounts to the generalledger accounts were posted. Foot and crossfoot the journals andmake the month-end postings.


Assume the following ledger account amounts Inventory (March 1 beg.bal. is $63,000), Z. Church, Capital (March 1 beg. bal. is $63,000)and Church Company uses the perpetual inventory system.

Post information from the journals in Part 2 to the generalledger and the accounts receivable and accounts payable subsidiaryledgers.

GENERAL LEDGER
Cash Accounts Receivable
Date Debit Credit Balance Date Debit Credit Balance
Inventory Office Supplies
Date Debit Credit Balance Date Debit Credit Balance
Mar.01
Store Supplies Office Equipment
Date Debit Credit Balance Date Debit Credit Balance
Accounts Payable Long-Term Notes Payable
Date Debit Credit Balance Date Debit Credit Balance
Z. Church, Capital Sales
Date Debit Credit Balance Date Debit Credit Balance
Mar.01
Sales Discounts Cost of Goods Sold
Date Debit Credit Balance Date Debit Credit Balance
ACCOUNTS RECEIVABLE LEDGER
Sales Salaries Expense Jovita Albany
Date Debit Credit Balance Date Debit Credit Balance
Min Cho Linda Witt
Date Debit Credit Balance Date Debit Credit Balance
ACCOUNTS PAYABLE LEDGER
CD Company Gabel Company
Date Debit Credit Balance Date Debit Credit Balance
Spell Supply Van Industries
Date Debit Credit Balance Date Debit Credit Balance

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