Question
Anacoluthon, Inc. is a retail company in Boston, MA. These are the transaction made during the month of September 2023: September 3rd: Anacoluthon buys merchandise
Anacoluthon, Inc. is a retail company in Boston, MA. These are the transaction made during the month of September 2023:
September 3rd: Anacoluthon buys merchandise on credit for $2,000.00 to a manufacturer. The terms of the transaction are 3/10,n/60. They decided it will be FOB shipping point. Transportation costs are $50.00 and paid directly in cash to the carrier the same day.
September 7th: Merchandise arrives at the companys warehouse and is placed in the store. That same day, the company sells $1,200.00 on credit with the following terms: 2/10,n/30. The gross margin on all sells is 25%.
September 8th: You return $100.00 pre-tax of defective merchandise bought on September 3rd.
September 12th: You pay the invoice from September 3rd and take the discount. September 17th: Your client from Sep 7th pays the invoice and takes the discount.
September 22nd: You make a $1,500.00 purchase to another manufacturer, but this time you agreed that he will pay for transportation costs. The terms of credit are 3/10,n/60.
September 25th: You sell 1.500.00 on credit without discount option.
Also, consider the following additional information:
Suppose the company uses a perpetual inventory system.
Sales taxes are 6.25% and are remitted on December 31st.
Period costs for the month of September are the following (paid on Sep 30th):
o SG&A = $500
o Depreciation = $50.00
o Interest expense: $20.00
Income Taxes are 15% and are paid to the tax authorities on December 31st. The company doesnt distribute dividends.
Aside from taxes and depreciation, you dont have to record any other accruals in the journal and statements.
Please fill out the following table
Taxes Payable \begin{tabular}{l|lr} Dr & Cr \\ \hline & & \\ & & \\ & & \\ \hline & Bal. & $600.00 \\ & & \end{tabular} Interest Expense Bal. \$Step by Step Solution
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