Question
At the beginning of 2012, D & L Enterprises had the following balances in its accounts: Cash $8,400 Inventory 2,000 Common stock 8,000 Retained earnings
At the beginning of 2012, D & L Enterprises had the following balances in its accounts: |
Cash | $8,400 |
Inventory | 2,000 |
Common stock | 8,000 |
Retained earnings | 2,400 |
During 2012, D & L Enterprises experienced the following events: |
1. | Purchased inventory costing $5,600 on account from Smoot Company under terms 2/10, n/30. The merchandise was delivered FOB shipping point. Freight costs of $500 were paid in cash. |
2. | Returned $400 of the inventory that it had purchased because the inventory was damaged in transit. The freight company agreed to pay the return freight cost. |
3. | Paid the amount due on its account payable to Smoot Company within the cash discount period. |
4. | Sold inventory that had cost $6,000 for $9,000. The sale was on account under terms 2/10, n/45. |
5. | Received returned merchandise from a customer. The merchandise had originally cost $520 and had been sold to the customer for $840 cash. The customer was paid $840 cash for the returned merchandise. |
6. | Delivered goods in Event 4 FOB destination. Freight costs of $600 were paid in cash. |
7. | Collected the amount due on accounts receivable within the discount period. |
8. | Took a physical count indicating that $1,800 of inventory was on hand at the end of the accounting period . Record each event in a horizontal statements model |
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