An analysis of the transactions made by K. T. Lang & Co., a law firm, for the month of July is shown below. Each increase and decrease in owner?s equity is explained... All questions I attached in one file.
Question 5 (a) Kelso Company purchased merchandise on account from Office Suppliers for $86,000, with terms of 2/10, n/30. During the discount period, Kelso returned some merchandise and paid $78,400 as payment in full. Kelso uses a perpetual inventory system. Prepare the journal entries that Kelso Company made to record: (1) the purchase of merchandise. (2) the return of merchandise. (3) the payment on account. (b)Noble Company sold merchandise to Fugate Company on account for $73,000 with credit terms of ?/10, n/30. The cost of the merchandise sold was $43,800. During the discount period, Fugate Company returned $3,000 of merchandise and paid its account in full (minus the discount) by remitting $69,300 in cash. Both companies use a perpetual inventory system. Prepare the journal entries that Noble Company made to record: (1) the sale of merchandise. (2) the return of merchandise. (3) the collection on account. Question 5 (a) Kelso Company purchased merchandise on account from Office Suppliers for $86,000, with terms of 2/10, n/30. During the discount period, Kelso returned some merchandise and paid $78,400 as payment in full. Kelso uses a perpetual inventory system. Prepare the journal entries that Kelso Company made to record: (1) the purchase of merchandise. (2) the return of merchandise. (3) the payment on account. (b)Noble Company sold merchandise to Fugate Company on account for $73,000 with credit terms of ?/10, n/30. The cost of the merchandise sold was $43,800. During the discount period, Fugate Company returned $3,000 of merchandise and paid its account in full (minus the discount) by remitting $69,300 in cash. Both companies use a perpetual inventory system. Prepare the journal entries that Noble Company made to record: (1) the sale of merchandise. (2) the return of merchandise. (3) the collection on account. Question 5 (a) Kelso Company purchased merchandise on account from Office Suppliers for $86,000, with terms of 2/10, n/30. During the discount period, Kelso returned some merchandise and paid $78,400 as payment in full. Kelso uses a perpetual inventory system. Prepare the journal entries that Kelso Company made to record: (1) the purchase of merchandise. (2) the return of merchandise. (3) the payment on account. (b)Noble Company sold merchandise to Fugate Company on account for $73,000 with credit terms of ?/10, n/30. The cost of the merchandise sold was $43,800. During the discount period, Fugate Company returned $3,000 of merchandise and paid its account in full (minus the discount) by remitting $69,300 in cash. Both companies use a perpetual inventory system. Prepare the journal entries that Noble Company made to record: (1) the sale of merchandise. (2) the return of merchandise. (3) the collection on account
