Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 Prepare journal entries to record the following merchandising transactions of Lee's, which uses the perpetual inventory system and the gross method. opped Book July

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
1 Prepare journal entries to record the following merchandising transactions of Lee's, which uses the perpetual inventory system and the gross method. opped Book July 1 Purchased merchandise from Clark Company for $8,000 under credit terms of 1/15, 1/30, po shipping point, invoice dated July 1. July 2 sold merchandise to Clinton Company for $1,900 under credit terms of 2/10, n/60, POB shipping point, Invoice dated July 2. The merchandise had cost $1,140. July 3 Paid $525 cash for freight charges on the purchase of July 1. July 8 sold merchandise that had cost $2,200 for $3,700 cash. July 9 Purchased merchandise from Griffin Company tor $3,200 under credit torms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $600 of merchandise purchased on July 9 from Griffin Company and debited its account payable for that amount. July12 Received the balance due from Clinton Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Clark Company within the discount period. July 19 Sold merchandise that cost $2,200 to Knight Company for $3,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $600 to Knight Company for merchandise sold on July 19 and credited Knight's accounts receivable for that amount. July 24 Paid Griffin Company the balance due, net of discount. July 30 Received the balance due from Knight Company for the invoice dated July 19, not of discount. July 31 sold merchandise that cost $5,400 to Clinton Company for $9.000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Print 0 erences General Requirement General Schedule of Income Schedule of Trial Balance Journal Impact on Ledger Receivables Payables Statement Income General Journal tab - Journalize the merchandising transactions. The General Ledger, trial balance and schedules of accounts receivable and accounts payable will be updated based on your entries. General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total Prey 1 of 1 !!! Next General Journal General Schedule of Income Schedule of Impact on Requirement Ledger Trial Balance Receivables Payables Statement Income General Journal tab - Journalize the merchandising transactions. The General Ledger, trial balance and schedules of accounts receivable and accounts payable will be updated based on your entries. General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Schedule of Receivables tab - General ledger software automates the balances for each of the customers' accounts. Schedule of Payables tab - General ledger software automates the balances for each of the suppliers' accounts. Income Statement tab - Prepare the income statement through the calculation of gross profit Impact on Income tab - Indicate the impact each transaction had on net income. Requirement General Journal > Prey 1 of 1 !!! Next Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries. View transaction list Journal entry worksheet Purchased merchandise from Clark Company for $8,000 under credit terms of 1/15, 1/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits Date Account Title Debit Credit Jul 01 Record entry Clear entry View general Journal Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedulesc payable will be updated based on your entries. View transaction list Journal entry worksheet 1 20 3 4 5 6 7 8 ..... 17 Sold merchandise to Clinton Company for $1,900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. Note: Enter debits before credits. Account Title Debit Date Jul 02 Credit Record entry Clear entry View general Journal Prey 1 of 1 : Next General General Schedule of Income Requirement Schedule of Journal Ledger Trial Balance Receivables Payables Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of ac payable will be updated based on your entries. View transaction list Journal entry worksheet Paid $525 cash for freight charges on the purchase of July 1. Note: Enter debits before credits. Account Title Debit Credit Date Jul 03 Record entry Clear entry View general Journal Prey 1 of 1 Next Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of ac payable will be updated based on your entries. View transaction list Journal entry worksheet Sold merchandise for $3,700 cash. Note: Enter debits before credits. Account Title Debit Credit Date Jul 08 Record entry Clear entry View general journal General General Schedule of Schedule of Income Requirement Journal Ledger Trial Balance Receivables Payables Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of ac payable will be updated based on your entries. View transaction list Journal entry worksheet The cost of the merchandise sold was $2,200. Note: Enter debits before credits. Date Account Title Debit Credit Jul 08 Record entry Clear entry View general Journal Purchased merchandise from Griffin Company for $3,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Note: Enter debits before credits. Account Title Debit Credit Date Jul 09 Record entry Clear entry View general journal General Requirement General Schedule of Trial Balance Schedule of Journal Income Ledger Receivables Payables Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of payable will be updated based on your entries. View transaction list Journal entry worksheet Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of ac payable will be updated based on your entries. View transaction list Journal entry worksheet Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of a payable will be updated based on your entries. View transaction list Journal entry worksheet 1 ... 10 11 12 13 14 15 16 17 Sold merchandise to Clinton Company for $9,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Note: Enter debits before credits. Account Title Debit Credit Date Jul 31 Record entry Clear entry View general journal BB Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of a payable will be updated based on your entries. View transaction list Journal entry worksheet 1 .... 10 11 12 13 14 15 16 17 The cost of the merchandise sold to Clinton Company was $5,400. Note: Enter debits before credits. Account Title Debit Credit Date Jul 31 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Each journal entry is posted automatically to the general ledger. Think of the general ledger as sorting all of your journal entries by account title. Click on any of the individual amounts to return to the underlying journal entry. General Ledger Account Cash Merchandise inventory Debit Credit No. Debit Credit No. Date Jul 01 Balance 25,500 Date Jul 01 Balance 8,000 Leo, Capital Debit No. Date Credit Balance 33,500 Prey 1 of 1 Next > Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income The trial balance is a listing of all account balances from the General Ledger as of a specific date. Click on any individual account balance to return to the General Ledger. The trial balance is only as accurate as the underlying journal entries. If the total debits do not equal the total credits, you have a journal entry that is out of balance. If you have an abnormal ending balance (indicated with brackets in the general ledger), you should review the journal entries that affected that account to ensure that the journal entries are correct. Show less Leo's Company Trial Balance July 31, 2021 Account Title Debit Credit . $ T 1 25,500 8,000 Cash Merchandise inventory Lee, Capital Total 33,500 33,500 $ 33,500 5 General Journal General Ledger Requirement Trial Balance Schedule of Receivables Income Statement Schedule of Payables Impact on Income No input required Dates: Jul 01 to: Jul 31 $ 0 Lee's Company Schedule of Accounts Receivable Accounts receivable - Knight Accounts receivable - Clark Accounts receivable - Clinton Accounts receivable - Griffin 0 9,000 0 0 9,000 $ Total accounts receivable Prey 1 of 1 Next Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income No input required Dates: Jul 01 to: Jul 31 $ $ 0 Lee's Company Schedule of Accounts Payable Accounts payable - Knight Accounts payable - Clark Accounts payable - Clinton Accounts payable - Griffin 0 0 0 0 Total accounts payable 0 . Prey 1 of 1 !!! Next Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries. View transaction list Journal entry worksheet Purchased merchandise from Clark Company for $8,000 under credit terms of 1/15, 1/30, FOB shipping point, invoice dated July 1. Note: Enter debits before credits Date Account Title Debit Credit Jul 01 Record entry Clear entry View general Journal Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedulesc payable will be updated based on your entries. View transaction list Journal entry worksheet 1 20 3 4 5 6 7 8 ..... 17 Sold merchandise to Clinton Company for $1,900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. Note: Enter debits before credits. Account Title Debit Date Jul 02 Credit Record entry Clear entry View general Journal Prey 1 of 1 : Next General General Schedule of Income Requirement Schedule of Journal Ledger Trial Balance Receivables Payables Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of ac payable will be updated based on your entries. View transaction list Journal entry worksheet Paid $525 cash for freight charges on the purchase of July 1. Note: Enter debits before credits. Account Title Debit Credit Date Jul 03 Record entry Clear entry View general Journal Prey 1 of 1 Next Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of ac payable will be updated based on your entries. View transaction list Journal entry worksheet Sold merchandise for $3,700 cash. Note: Enter debits before credits. Account Title Debit Credit Date Jul 08 Record entry Clear entry View general journal General General Schedule of Schedule of Income Requirement Journal Ledger Trial Balance Receivables Payables Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of ac payable will be updated based on your entries. View transaction list Journal entry worksheet The cost of the merchandise sold was $2,200. Note: Enter debits before credits. Date Account Title Debit Credit Jul 08 Record entry Clear entry View general Journal Purchased merchandise from Griffin Company for $3,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Note: Enter debits before credits. Account Title Debit Credit Date Jul 09 Record entry Clear entry View general journal General Requirement General Schedule of Trial Balance Schedule of Journal Income Ledger Receivables Payables Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of payable will be updated based on your entries. View transaction list Journal entry worksheet Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of ac payable will be updated based on your entries. View transaction list Journal entry worksheet Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of a payable will be updated based on your entries. View transaction list Journal entry worksheet 1 ... 10 11 12 13 14 15 16 17 Sold merchandise to Clinton Company for $9,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Note: Enter debits before credits. Account Title Debit Credit Date Jul 31 Record entry Clear entry View general journal BB Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of a payable will be updated based on your entries. View transaction list Journal entry worksheet 1 .... 10 11 12 13 14 15 16 17 The cost of the merchandise sold to Clinton Company was $5,400. Note: Enter debits before credits. Account Title Debit Credit Date Jul 31 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Each journal entry is posted automatically to the general ledger. Think of the general ledger as sorting all of your journal entries by account title. Click on any of the individual amounts to return to the underlying journal entry. General Ledger Account Cash Merchandise inventory Debit Credit No. Debit Credit No. Date Jul 01 Balance 25,500 Date Jul 01 Balance 8,000 Leo, Capital Debit No. Date Credit Balance 33,500 Prey 1 of 1 Next > Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income The trial balance is a listing of all account balances from the General Ledger as of a specific date. Click on any individual account balance to return to the General Ledger. The trial balance is only as accurate as the underlying journal entries. If the total debits do not equal the total credits, you have a journal entry that is out of balance. If you have an abnormal ending balance (indicated with brackets in the general ledger), you should review the journal entries that affected that account to ensure that the journal entries are correct. Show less Leo's Company Trial Balance July 31, 2021 Account Title Debit Credit . $ T 1 25,500 8,000 Cash Merchandise inventory Lee, Capital Total 33,500 33,500 $ 33,500 5 General Journal General Ledger Requirement Trial Balance Schedule of Receivables Income Statement Schedule of Payables Impact on Income No input required Dates: Jul 01 to: Jul 31 $ 0 Lee's Company Schedule of Accounts Receivable Accounts receivable - Knight Accounts receivable - Clark Accounts receivable - Clinton Accounts receivable - Griffin 0 9,000 0 0 9,000 $ Total accounts receivable Prey 1 of 1 Next Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income No input required Dates: Jul 01 to: Jul 31 $ $ 0 Lee's Company Schedule of Accounts Payable Accounts payable - Knight Accounts payable - Clark Accounts payable - Clinton Accounts payable - Griffin 0 0 0 0 Total accounts payable 0 .

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting A Practical Approach Chapters 1-25

Authors: Jeffrey Slater, Mike Deschamps

15th Edition

0137504284, 9780137504282

More Books

Students also viewed these Accounting questions

Question

Determine miller indices of plane X z 2/3 90% a/3

Answered: 1 week ago

Question

is particularly relevant to these questions.)

Answered: 1 week ago