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Sales and Purchase$-$Related Transactions for Seller and Buyer

The following selected transactions were completed during June between Snipes Company and Beejoy Company:

Instructions:

$1.$ Illustrate the effects on the accounts and financial statements of recording the following transactions for Snipes Company. Identify each transaction by date.

If no account or activity is affected, select $"$No effect" from the dropdown and leave the corresponding number entry box blank.

June $8.$ Snipes Company sold merchandise on account to Beejoy Company, $$18,250,$ terms FOB destination, $2/15,$ n$/$eom$.$ The cost of the merchandise sold was $$10,000.$

June $8.$ Snipes Company paid transportation costs of $$400$ for delivery of merchandise sold to Beejoy Company on June $8.$

Statement of Cash Flows Balance Sheet Income Statement

Assets $=$ Liabilities $+$ Stockholders' Equity

Cash

$+$

Accounts Receivable

$+$

Inventory

$=$

No Effect

$+$

Retained Earnings

June $8.$ fill in the blank $6$

$-400$

fill in the blank $7$

$17,885$

fill in the blank $8$

$-10,000$

fill in the blank $9$

$0$

fill in the blank $10$

$7,485$

June $8.$

Statement of Cash Flows Income Statement

Operating

fill in the blank $12$

$-400$

Sales

fill in the blank $14$

$17,885$

Cost of goods sold

fill in the blank $16$

$-10,000$

Delivery expense

fill in the blank $18$

$-400$

Net income

fill in the blank $20$

$7,485$

June $12.$ Beejoy Company returned merchandise with a selling price of $$5,000($$$4,900$ net of discount$)$ purchased on June $8$ from Snipes Company. The cost of the merchandise returned was $$3,000.$

Statement of Cash Flows Balance Sheet Income Statement

Assets $=$ Liabilities $+$ Stockholders' Equity

Accounts Receivable

$+$

Inventory

$+$

Est. Return Inventory

$=$

Cust. Refunds Payable

$+$

No Effect

June $12.$ fill in the blank $26$

fill in the blank $27$

$3,000$

fill in the blank $28$

$-3,000$

fill in the blank $29$

fill in the blank $30$

$0$

June $12.$

Statement of Cash Flows Income Statement

No effect

fill in the blank $32$

$0$

No effect

fill in the blank $34$

$0$

June $23.$ Beejoy Company paid Snipes Company for purchase of June $8,$ less refund on return of June $12.$

Statement of Cash Flows Balance Sheet Income Statement

Assets $=$ Liabilities $+$ Stockholders' Equity

Cash

$+$

Accounts Receivable

$=$

No Effect

$+$

No Effect

June $23.$ fill in the blank $39$

fill in the blank $40$

fill in the blank $41$

fill in the blank $42$

June $23.$

Statement of Cash Flows Income Statement

Operating

fill in the blank $44$

No effect

fill in the blank $46$

June $24.$ Snipes Company sold merchandise on account to Beejoy Company, $$15,000,$ terms FOB shipping point, n$/$eom$.$ The cost of the merchandise sold was $$9,000.$

Statement of Cash Flows Balance Sheet Income Statement

Assets $=$ Liabilities $+$ Stockholders' Equity

Accounts Receivable

$+$

Inventory

$=$

No Effect

$+$

Retained Earnings

June $24.$ fill in the blank $51$

fill in the blank $52$

fill in the blank $53$

$0$

fill in the blank $54$

June $24.$

Statement of Cash Flows Income Statement

No effect

fill in the blank $56$

Sales

fill in the blank $58$

Cost of goods sold

fill in the blank $60$

Net income

fill in the blank $62$

June $30.$ Beejoy Company paid Snipes Company on account for purchase of June $24.$

Statement of Cash Flows Balance Sheet Income Statement

Assets $=$ Liabilities $+$ Stockholders' Equity

Cash

$+$

Accounts Receivable

$=$

No Effect

$+$

No Effect

June $30.$ fill in the blank $67$

fill in the blank $68$

fill in the blank $69$

fill in the blank $70$

Statement of Cash Flows Income Statement

Operating

fill in the blank $72$

No effect

fill in the blank $74$

$2.$ Illustrate the effects on the accounts and financial statements of recording the following transactions for Beejoy Company. Identify each transaction by date.

June $8.$ Snipes Company sold merchandise on account to Beejoy Company, $$18,250,$ terms FOB destination, $2/15,$ n$/$eom$.$ The cost of the merchandise sold was $$10,000.$

June $8.$ Snipes Company paid transportation costs of $$400$ for delivery of merchandise sold to Beejoy Company on June $8.$

Statement of Cash Flows Balance Sheet Income Statement

Assets $=$ Liabilities $+$ Stockholders' Equity

No Effect

$+$

Inventory

$=$

Accounts Payable

$+$

No Effect

June $8.$ fill in the blank $79$

fill in the blank $80$

fill in the blank $81$

fill in the blank $82$

Statement of Cash Flows Income Statement

No effect

fill in the blank $84$

No effect

fill in the blank $86$

June $12.$ Beejoy Company returned merchandise with a selling price of $$5,000($$$4,900$ net of discount$)$ purchased on June $8$ from Snipes Company. The cost of the merchandise returned was $$3,000.$

Statement of Cash Flows Balance Sheet Income Statement

Assets $=$ Liabilities $+$ Stockholders' Equity

No Effect

$+$

Inventory

$=$

Accounts Payable

$+$

No E