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Enter the beginning cash and common stock balances and post transactions Wildhorse Co. completed the following merchandising transactions in the month of May. At the
Enter the beginning cash and common stock balances and post transactions
Wildhorse Co. completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Wildhorse showed Cash of $5,000 and Common Stock of $5,000 May 1 2 5 9 10 11 12 15 Purchased merchandise on account from Gray's Wholesale Supply $4,500, terms 2/10,6/30. Sold merchandise on account $2,400, terms 1/10./30. The cost of the merchandise sold was $1,000, Received credit from Gray's Wholesale Supply for merchandise returned $400. Received collections in full, less discounts, from customers billed on sales of $2,400 on May 2. Pald Gray's Wholesale Supply in full less discount Purchased supplies for cash $400. Purchased merchandise for cash $1,300. Received refund for poor quality merchandise from supplier on cash purchase $100, Purchased merchandise from Amland Distributors $1,200, FOB shipping point, terms 2/10,n/30, Paid freight on May 17 purchase $120. Sold merchandise for cash $3,300. The merchandise sold had a cost of $2,000. Purchased merchandise on account from Horvath, Inc $750, FOB destination, terms 2/10,6/30 Paid Amland Distributors in full, less discount Made refunds to cash customers for defective merchandise $60. The returned merchandise had a fair value of $40, Sold merchandise on account $1,500, terms n/30. The cost of the merchandise sold was $500 17 19 24 25 27 29 31 29 a Made refunds to cash customers for defective merchandise $60. The returned merchandise had a fair value of $40. Sold merchandise on account $1,500, terms n/30. The cost of the merchandise sold was $500. 31 Wildhorse Co's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No 201 Accounts Payable, No 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold Credit Det S4 500 $4,500 $2.400 $2.400 $1,000 $1.000 $400 $400 S2376 $34 $2.400 54.100 $82 $4.018 S600 $400 $1300 $1,300 $100 $100 $1.200 Answer: Account Tities and Explanation May 01 Inventory Accounts payable (To record merchandise purchased on account) May-02 Accounts receivable Sales revenue To record credit sale May 02 Cost of yoods sold Inventory to record cost of merchandise sold) May 05 Accounts payable Inventory To record credit for merchandise returned) May-09 Cash Sales discounts ($2.400 Accounts receivable (To record collection on account) May 10 Accounts payable 1545005400 Inventory (2x 54,100) Cash (To record payment on account) May 11 Supplies Cash Ito record supplies purchased for cash) May 12 Inventory Cash To record merchandise purchased for cash) Mar 15 Cash Inventory To record refund received on merchandise returned) May 17 Inventory Accounts payable (to record merchandise purchased on account) Continue, May-19 Inventory Cash To record freight paid for merchandise purchased May 24 Cash Sales revenue To record cash sales May 24 Cost of goods sold Inventory (to record cost of merchandise sold May 25 Inventory Accounts payable To record merchandise purchased on account May-27 Accounts payable Inventory ( 2x $1,200 Cash To record payment on account) May-29 Sales returns and allowances Cash To record refunden for merchandise returned May 29 Inventory Cost of oods sold To record cost of merchandise returned) May-31 Accounts receivable Sales revenue To record credit sale) May-31 Cost of goods sold Inventory To record cost of merchandise sold) $1.200 $120 $120 $3,300 $2,300 $2.000 $2.000 $750 5750 $1,200 $24 51.176 560 S60 SAD 540 $1.500 $1.500 $500 S900 Cash N Date Explanation Ref. Debit Credit Balance May 9 Balance May 9 Ji 2,376 May 10 31 4.018 May 11 J1 400 May 12 J1 1300 May 15 31 100 May 19 11 1 120 May 24 31 May 27 31 1.176 May 29 31 N Accounts Receivable Date Explanation Ref. Debit Credit Balance May 2 JI 2.400 2.400 May 9 31 2.400 May 31 31 400 N Inventory Date Explanation Ref. Debit Credit Balance May 1 31 4.500 4.500 May 2 31 May 5 31 400 May 10 31 82 May 12 31 1300 May 15 31 100 May 17 J1 1200 May 19 31 120 May 24 31 2000 May 25 31 750 May 27 J1 24 May 29 11 40 May 31 31 500 N Supplies Date Explanation Ref. Debit Credit Balance May 11 31 400 400 Accounts Payable Date Explanation Ref. 31 Debit Credit Balance May 1 4,500 4.500 N Accounts Payable Date Explanation Ref. Debit Credit Balance May 1 4,500 31 4,500 May 5 400 J1 400 May 10 J1 4,100 31 May 17 1.200 1,200 750 750 31 May 25 May 27 31 1.200 1200 N Common Stock Explanation Ref. Date Debit Credit Balance Mave Balance Sales Revenue Date Explanation Ref. May 2 31 Debit Credit Balance 2,400 2400 No. Sales Revenue Date Explanation Ref. Debit Credit Balance May 2 31 2400 2.400 May 24 31 3,300 May 31 31 1,500 1,500 No. Sales Returns and Allowances Date Explanation Ref. Debit Credit Balance May 29 31 60 60 No. Sales Discounts Date Explanation Ref. Debit Credit Balance May 31 24 24 No. Cost of Goods Sold Date Explanation Ref. Debit Credit Balance May 2 01 1.000 1.000 No. Cost of Goods Sold Date Explanation Ref. Debit Credit Balance May 2 31 1,000 1.000 May 24 31 2,000 May 29 J1 40 May 31 J1 500
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