$101$ A$--$Financial Accounting

NAME: $q,$

EXAM:

Chapters $4-8$

Write your answers in the appropriate space provided in this test packet. If you choose to unstaple the papers, then be sure you staple them back together in numerical order.

Packets stapled out of order will receive a lower grade.

Problem $1$ Purchases$-$related Transactions and Accounts Payable:

Janet Evans's Co$.$ purchased merchandise from Guest Products, Inc. with credit terms of $\frac{3}{10},\frac{n}{60}$ and an invoice price of $$24,000.$ The merchandise had cost Guest Products, Inc. $$16,000.$ Assume that both buyer and seller use a perpetual inventory system and the gross method.

Prepare entries that the buyer records for the $($a$)$ purchase $($use today's date$),($b$)$ cash payment within the discount period, and $($c$)$ cash payment after the discount period.

Prepare entries that the seller records for the $($a$)$ sale $($use today's date$),($b$)$ cash collection within the discount period, and $($c$)$ cash collection after the discount period.

Record the necessary journal entries for both companies. Use page numbers and dates that are reasonable and consistent with the problem listed above. $($It probably can't be page $1.$ Today is today.$)$

Do NOT skip lines

General Journal $($Janet Evans's Co$.)$

Page.

$\backslash$table$[[$General Journal $($Janet Evans's Co$.),$Page$],[$Date$,$Description,$\backslash$table$[[$Post$],[$Ref$.]],$Debit,Credit,,,,$],[,,,,,,,,],[,,,,,,,,],[,,,,,,,,],[,,,,,,,,],[,,,,,,,,],[,,,,,,,,],[,,,,,,,,],[,,,,,,,,]]$

Do NOT skip lines

General Journal $($Guest Products, Inc.$)$

Page

$\backslash$table$[[$Date$,$Description,$\backslash$table$[[$Post$],[$Ref$.]],$Debit,Credit,$],[,,,,,],[,,,,,],[,,,,,],[,,,,,],[,,,,,],[,,,,,],[,,,,,],[,,,,,]]$

Page $1$