Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hill Merchandising Company provided you with the following transactions for the month of June 2000. Hills policy is to sell all merchandise at 50% markup

Hill Merchandising Company provided you with the following transactions for the month of June 2000. Hills policy is to sell all merchandise at 50% markup on cost. Hill Company reported inventory costing $500 on May 30, 2000, cash $8,500, capital $6,000 and retained earnings $3,000.

Purchased $5,000 in products on account from George Company, F.O.B shipping point 3/10, n/30, freight charges of $250 were paid by Hill.

Returned merchandise purchased from George Company costing $75 two days after the purchase.

Sold merchandise costing $2,000. Terms 2/10, n/30. Paid $200 to transport the merchandise to the customer.

Paid George Company in full within the discount period. (Note: you must deduct the merchandise returned).

Customers returned merchandise costing $80 because they were defective.

Received payment for merchandise sold after the discount period.

Required:

Record the following transactions for Hill Company in the general journal and post to the ledger. Assume Hill uses the perpetual method to account for its inventory.

Prepare the worksheet

Prepare the income statement for June 2000

Close the book at end of June. (Perpetual)

Repeat 1, 2 and 3 above this time assume that Hill Company uses the periodic method to account for its inventory.

Prepare the income statement for June 2000.

Close the book at end of June (periodic)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Budgeting Auditing And Evaluation Functions And Integration In Seven Governments

Authors: Andrew Gray

1st Edition

0765807246, 9780765807243

More Books

Students also viewed these Accounting questions

Question

It can be physically harmful.

Answered: 1 week ago