E5-20 , 22, & 24. Journalizing purchase and sales transactions

E5-20 Journalizing purchase and sales transactions Journalize the following transactions for Soul Art Gift Shop. Explanations are not required. Feb. 3 Purchased $2,700 of merchandise inventory on account under terms 4/10, n/EOM and FOB shipping point 7 Returned $400 of defective merchandise purchased on February 3. Paid freight bill of $100 on February 3 purchase. 9 Sold merchandise inventory on account for $4,350. Payment terms were 2/15, n/30. These goods cost the company $2,300 Paid amount owed on credit purchase of February 3, less the return and the 10 12 discount. Granted a sales allowance of $500 on the February 10 sale. 16 Received cash from February 10 customer in full settlement of their debt, less the allowance and the discount. 23 E5-20 Date Accounts and Explanation Debit Credit Feb. 3 Feb. 7 Feb. 9 Feb. 10 Feb. 12 Feb. 16 Feb. 23 Ie thefollowing inforationto series E-22 tbrough E5.24 The adjusted trial balanc of Budget Busincs Sytcms at March 31,2015,fllo BUDGET BUSINESS SYSTEMS djusted Trial Balance March 31, 2015 Debit Credit Account Title 2-400 Cash ccounts Receivabe 11,400 1,700 Mechandse Imentory ffice Supplie 400 Acumulated Depeciation Eauoment 13,900 Accounts Payable 9,200 1,000 Salaries Payable ,900 Bizes, Capta 4000 Bitzes Withdrawa Sales Revenue 34500 ales Returns and Allowances 1,000 ales Dscounts ost of Goods Sold 16.300 seling Expense 7 200 Administratve Expese 14800 nterest Experse 2.300 lotal 300,500 $300,50 E5-22 Journalizing closing entries Requirements 1. Journalize the required closing entries at March 31. 2015. 2. Set up T-accounts for Income Summary: Bitzes, Capital: and Bitzes, Withdrawals. Post the closing entries to the T-accounts and calculate their ending balances. 3. How much was Budget's net income or net loss? E5-22 Requirement 1 Date Accounts and Explanation Debit Credit Mar. 31 Mar. 31 Mar. 31 Mar. 31 Requirement 2 Requirement 3 E5-24 Preparing a multi-step income statement Prepare Budget's wulei-step income statement for the year cnded March 31.201 E5-24 BUDGET BUSINESS SYSTEMS Income Statement Year Ended March 31, 2015 Sales Revenue Less: Sales Discounts Sales Returns and Allowances Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses Administrative Expenses Total Operating Expenses Operating Income Other Revenues and (Expenses) Interest Expense Total Other Revenues and (Expenses) Net Income