Question
3. These are the events occurred in a service company during the year xxx1, using perpetual inventory and net method for the accounting transactions. Prepare
3. These are the events occurred in a service company during the year xxx1, using perpetual inventory and net method for the accounting transactions. Prepare the Journal Entry for each transaction (identify the general ledger accounts and the dollars amount for each event).
Example: Purchased merchandise on account for $1,500 (list price).
| Account Name | Increase or Decrease | Amount |
| Inventory | Increase | 1,500 |
| Accounts Payable | Increase | 1,500 |
| Explanation: merchandise inventory asset account and the liabilities increased in the Balance Sheet. | ||
- February 3-Purchased merchandise inventory for $4,000, credit terms 2/10, n/30 and FOB Shipping Point.
| Account Name | Increase or Decrease | Amount |
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| Explanation:
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- February 5-paid $90 in cash for shipping charges regarding the purchases realized on February 3.
| Account Name | Increase or Decrease | Amount |
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| Explanation:
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Financial Accounting A Business Perspective
Authors: Jefferson Williams, Roger Hermanson, James Don Edwards
10th Edition
1930789793, 978-1930789791
