Question
CKL Limited Inc. uses a perpetual inventory system. During the month of April 2020, the following transactions occurred. On April 2, CKL purchased $300 of
CKL Limited Inc. uses a perpetual inventory system. During the month of April 2020, the following transactions occurred.
On April 2, CKL purchased $300 of office supplies on account, terms net 30 days.
On April 5, CKL sold $3,500 of merchandise to Wong Enterprises on credit terms
of 2/15 net 30 days. The of the inventory was $1,750.
On April 7, CKL Limited purchased $4,900 of inventory from VanCity
Wholesalers on terms of 1/15 net 30, FOB destination.
On April 7, CKL made a $4,250 mortgage payment to the bank. Of this amount,
$3,780 was for interest and $470 was to reduce the balance of the loan.
On April 9, CKL returned $500 of inventory purchased on April 7 to VanCity
Wholesalers.
On April 13, Wong Enterprises who purchased goods on April 5, returned some
stock to CKL Limited. The selling price of the inventory returned was $800 and
the cost was $400. The returned items was returned to CKL Limiteds inventory.
On April 14, CKL received payment from Wong Enterprises for its April 5
purchase.
On April 20, CKL paid its April 7 purchase from VanCity Wholesalers.
Question: Prepare journal entries to record the above transactions. Record
your calculations instead of explanations. Do not abbreviate the names of the
ledger accounts.
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