Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1) Transactions that took place during the month of June 2021 for Red John Merchandising Company are as follows: Journalize the transactions of Red
1) Transactions that took place during the month of June 2021 for Red John Merchandising Company are as follows: Journalize the transactions of Red John Merchandising Company. Don't take VAT into account. June 3, 2021 June 7, 2021 June 9, 2021 June 13, 2021 June15, 2021 June17,2021 Purchased merchandise for $16,000 on account with terms 3/15 net 30, FOB Destination. Returned $5,000 of merchandise which was purchased on June 3, 2021. Sold merchandise for $5,000 in cash, FOB Destination. Paid $500 for transportation. Cost of the merchandise sold was $2,500. Paid for the merchandise purchased on June 3. $500 of merchandise which was sold on January 9, 2021 was returned by the customer. Cost of the merchandise returned was $250. Sold merchandise for $10,000 with terms 5/10 net 45, FOB Shipping Point. Cost of the merchandise sold was $6,000. June 20, 2021 Purchased merchandise for $15,000 in cash, FOB Shipping Point. Paid $1,200 for transportation. June 22, 2021 June 27, 2021 Returned $450 of merchandise purchased on January 20, 2021 Customer paid for the merchandise which was sold on June 27. 2) Below are the merchandise transactions of Orange Company for the month of January 2021 January 1, 2021 January 5, 2021 January 10, 2021 January 15, 2021 January 20, 2021 January 25, 2021 Beginning Inventory, 10.000 units purchased at TL10 per unit. Purchased 10,000 units at TL12 per unit. Sold 15.000 units at TL12 per unit. Purchased 5,000 units for TL15 per unit. Purchased 10.000 units at TL17 per unit Sold 16.000 units at TL 20 per unit A) Prepare the Inventory Card according to both FIFO and WAC system and calculate the following: a) Gross Profit b) Gross Margin, c) Cost of Ending Inventory B) Journalize transactions on January 10 and January 25. 3) Journalize the following transactions by taking VAT into account. January 5,2022: Our firm purchased 236.000 merchandise including 18% VAT. Paid 100.000 cash and signed a promissory note for the remaining amount. January 10,2022: We sold 100.000 of merchandise for 150.000+18% VAT on account. January 15,2022: We sold 50.000 of merchandise for 82.600 including 18% VAT. The custormer paid 40.000 cash and gave a promissory note for the remaining amount.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started