GL0401 (Algo) - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Mitchell's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Taylor.) July 1 Purchased merchandise from Taylor Company for $10,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Lane Company for $2,900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,740. July 3 Paid $925 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $3,400 for $5,700 cash. July 9 Purchased merchandise from Cabela Company for $4,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $800 of merchandise purchased on July 9 from Cabela Company and debited its account payable for that amount. July 12 Received the balance due from Lane Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Taylor Company within the discount period. July 19 Sold merchandise that cost $3,600 to Walker Company for $5,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $1,000 to Walker Company for merchandise sold on July 19 and credited Walker's accounts receivable for that amount. July 24 Paid Cabela Company the balance due, net of discount. July 30 Received the balance due from Walker Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $6,600 to Lane Company for $11,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income General Journal tab - Journalize the merchandising transactions. The General Ledger, trial balance and schedules of accounts receivable and accounts payable will be updated based on your entries. General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Schedule of Receivables tab - General Ledger sofware automates the balances for each of the customer's accounts. Schedule of Payables tab - General Ledger sofware automates the balances for each of the supplier's accounts. Income Statement tab - Prepare the income statement through the calculation of gross profit. Impact on Income tab - Indicate the impact each transaction had on net income. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries. View transaction list View journal entry worksheet No Date Account Title 1 July 01 Merchandise inventory Accounts payable - Taylor 2 July 02 Accounts receivable - Lane Sales 3 July 02 Cost of goods sold Merchandise inventory 4 July 03 Merchandise inventory Cash 5 July 08 Cash Sales Debit Credit 10,000 10,000 2,900 2,900 1,740 Done 1,740 925 925 5,700 5,700 6 July 08 Cost of goods sold Merchandise inventory 3,400 3,400 7 July 09 Merchandise inventory 4,200 Accounts payable - Cabela 4,200 8 July 11 Accounts payable - Cabela 800 7 July 09 Merchandise inventory Accounts payable - Cabela 8 July 11 Accounts payable - Cabela Merchandise inventory 9 July 12 Cash Sales discounts Accounts receivable - Lane 10 July 16 Accounts payable - Taylor Merchandise inventory Cash 4,200 800 2,842 58 4,200 800 2,900 10,000 100 Done 9,900 11 July 19 Accounts receivable - Walker 5,200 Sales 5,200 12 July 19 Cost of goods sold 3,600 Merchandise inventory 3,600 13 July 21 Sales returns and allowances 1,000 Accounts receivable - Walker 1,000 14 July 24 Accounts payable - Cabela Merchandise inventory Cash 3,400 68 3,332 15 July 30 Cash Sales discounts Accounts receivable - Walker 16 July 31 Accounts receivable - Lane Sales 4,116 84 4,200 11,000 11,000 merchandise had cost $1,740. July 3 Paid $925 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $3,400 for $5,700 cash. July 9 Purchased merchandise from Cabela Company for $4,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $800 of merchandise purchased on July 9 from Cabela Company and debited its account payable for that amount. July 12 Received the balance due from Lane Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Taylor Company within the discount period. July 19 Sold merchandise that cost $3,600 to Walker Company for $5,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $1,000 to Walker Company for merchandise sold on July 19 and credited Walker's accounts receivable for that amount. July 24 Paid Cabela Company the balance due, net of discount. July 30 Received the balance due from Walker Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $6,600 to Lane Company for $11,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income No input required Mitchell's Company Schedule of Accounts Receivable Accounts receivable - Walker Accounts receivable - Taylor Accounts receivable - Lane Accounts receivable - Cabela Total accounts receivable $ 0 0 11,000 0 0 $ 11,000 < Trial Balance Dates: July 01 to: July 01 Schedule of Payables > July 2 Sold merchandise to Lane Company for $2,900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,740. July 3 Paid $925 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $3,400 for $5,700 cash. July 9 Purchased merchandise from Cabela Company for $4,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $800 of merchandise purchased on July 9 from Cabela Company and debited its account payable for that amount. July 12 Received the balance due from Lane Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Taylor Company within the discount period. July 19 Sold merchandise that cost $3,600 to Walker Company for $5,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $1,000 to Walker Company for merchandise sold on July 19 and credited Walker's accounts receivable for that amount. July 24 Paid Cabela Company the balance due, net of discount. July 30 Received the balance due from Walker Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $6,600 to Lane Company for $11,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income No input required Mitchell's Company Schedule of Accounts Payable Accounts payable - Walker 0 Accounts payable - Taylor Accounts payable Lane Accounts payable - Cabela Total accounts payable 0 0 0 $ 0 < Schedule of Receivables Dates: July 01 to: July 01 Income Statement Prepare journal entries to record the following merchandising transactions of Mitchell's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Taylor.) July 1 Purchased merchandise from Taylor Company for $10,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Lane Company for $2,900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,740. July 3 Paid $925 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $3,400 for $5,700 cash. July 9 Purchased merchandise from Cabela Company for $4,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $800 of merchandise purchased on July 9 from Cabela Company and debited its account payable for that amount. July 12 Received the balance due from Lane Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Taylor Company within the discount period. July 19 Sold merchandise that cost $3,600 to Walker Company for $5,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $1,000 to Walker Company for merchandise sold on July 19 and credited Walker's accounts receivable for that amount. July 24 Paid Cabela Company the balance due, net of discount. July 30 Received the balance due from Walker Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $6,600 to Lane Company for $11,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Prepare a multiple-step income statement through the calculation of gross profit. Mitchell's Company Partial Income Statement For the Month Ended July 31, 2021 $ 0 $ 0 0 0 0 0 $ 0 wwwww Input decreases to net income as minus sign. Upon completion, compare the gross profit with the amount reported on the partial income statement. Impact on income Increase (decrease) to income July 1) Purchased merchandise from Taylor Company for $10,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2) Sold merchandise to Lane Company for $2,900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2 July 2) The cost of the merchandise sold to Lane Company was $1,740. July 3) Paid $925 cash for freight charges on the purchase of July 1. July 8) Sold merchandise for $5,700 cash. July 8) The cost of the merchandise sold was $3,400. July 9) Purchased merchandise from Cabela Company for $4,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11) Received a $800 credit memorandum from Cabela Company for the return of part of the merchandise purchased on July 9. July 12) Received the balance due from Lane Company for the invoice dated July 2, net of the discount. July 16) Paid the balance due to Taylor Company within the discount period. July 19) Sold merchandise to Walker Company for $5,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 19) The cost of the merchandise sold to Walker Company was $3,600. July 21) Issued a $1,000 credit memorandum to Walker Company for an allowance on goods sold on July 19. July 24) Paid Cabela Company the balance due, net of discount. July 30) Received the balance due from Walker Company for the invoice dated July 19, net of discount. July 31) Sold merchandise to Lane Company for $11,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. July 31) The cost of the merchandise sold to Lane Company was $6,600. Total gross profit 000: Increases net income 000: Decreases net income 000: No impact on income $ 0 < Income Statement Impact on Income