Supplemental Instruction Handouts Financial Accounting Chapter 7: Accounting Information Systems: Perpetual

Transcription

1 Supplemental Instruction Handouts Financial Accounting Chapter 7: Accounting Information Systems: Perpetual Walby Antiques completed the following transactions for the month of July All sales are on terms of 2/10, n/30. Walby Antiques uses a perpetual inventory system. Required: Enter all transactions into the appropriate special journals. July 2 Purchased equipment costing $45,000 from ; terms n/30. July 2 Purchases Journal Date of Terms PR Merchandise Office Invoice Inventory Supplies Payable Dr July 2 n/30 45,000 45,000 July 3 Purchased a collection of antiques for $85,000 from Whitby Co; terms 1/5, n/15. Purchases Journal Date of Terms PR Merchandise Office Invoice Inventory Supplies Payable Dr July 2 July 2 n/30 45,000 45,000 July 3 Whitby Co July 3 1/5,n/15 85,000 85,000

2 July 5 Sold a group of antiques to Mrs. Stohart for $102,000 on credit; invoice #347 (cost $51,000). Journal Accts Rec Dr COGS Dr Merch Inv July 6 Sold an antique to Carol Larsen for $8,200 on credit; invoice #348 (cost $5,700). Journal Accts Rec Dr July 6 C. Larsen 348 8,200 5,700 COGS Dr Merch Inv July 7 Received an allowance of $4,800 regarding the July 3 purchase due to damages that occurred during delivery. General Journal Page Titles and Explanations PR Debit edit July 7 Payable Whitby Co. 4,800 Merchandise Inventory 4,800 July 8 Purchased office supplies of $1,800 from Suppliers Unlimited; terms 2/10, n/30. Purchases Journal Date of Terms PR Merchandise Office Invoice Inventory Supplies Payable Dr July 2 n/30 45,000 45,000 July 2 July 3 Whitby Co July 3 1/5,n/15 85,000 85,000 July 8 Suppliers Unlimited July 8 1,800 1,800

3 Sold a group of antiques for $4,500 cash; invoice #349 (cost $2,200). Cash COGS Inv. July 11 Paid for the purchase of July 3 using cheque #101. No discount because we did not pay within 5 days Date Ch. No. Payee Account PR Cash Purchases Payable July 12 Received payment from Carol Larsen regarding the sale of July 6. $8,200 (Sale) x 0.02 = $164 () $8,200 - $164 = $8.036 (Cash Received) Cash July 12 C. Larsen C. Larsen 8, ,200 COGS Inv.

4 July 14 Paid the mid month salaries of $15,000 using cheque #102. Date Ch. Payee Account PR Cash Purchases No. Payable July 18 Sold an antique to Lars Wilson for $6,000 on credit; invoice #350 (cost $4,900). Journal Accts Rec Dr July 6 C. Larsen 348 8,200 5,700 July 18 Lars Wilson 350 4,900 4,900 COGS Dr Merch Inv July 24 Received a payment regarding the sale of July 5. Cash July 12 C. Larsen Invoice # 8, ,200 July 24 Mrs. Stohart 348 Invoice # , ,000 COGS Inv.

5 July 25 Sold a group of antiques to Nathan Blythe for $28,000 on credit; invoice #351 (cost $14,500). Journal Accts Rec Dr July 6 C. Larsen 348 8,200 5,700 July 18 Lars Wilson 350 4,900 4,900 July 25 Nathan Blythe ,000 14,500 COGS Dr Merch Inv July 26 Nathan Blythe returned one of the antiques purchased on July 25 for $2,800 because it was not suited to his home (cost $2.200). The item was returned to inventory. General Journal Page Titles and Explanations PR Debit edit July 26 Returns and Allowances 2,800 Nathan Blythe 2,800 July 26 Merchandise Inventory 2,200 Cost of Goods Sold 2,200 July 27 Received payment on the sale of July 18. $4,900 (Sale) x 0.02 = $98 () $4,900 - $98 = $4,802 (Cash Received) Cash July 12 C. Larsen Invoice # 8, ,200 July 24 Mrs. Stohart July 27 Lars Wilson 348 Invoice # 347 Invoice # , ,000 4, ,900 COGS Inv.

6 July 28 Paid for the purchase of July 2 using cheque #103. Date Ch. Payee Account PR Cash Purchases No. Payable July ,000 45,000 July 29 Paid the month end salaries of $15,000 using cheque #104. Date Ch. Payee Account PR Cash Purchases No. Payable July ,000 45,000 July Salaries

7 July 31 Paid for the purchase of July 8 using cheque #105. Date Ch. Payee Account PR Cash Purchases No. Payable July ,000 45,000 July Salaries July ,800 1,800 Suppliers Unlimited Suppliers Unlimited