Inventory: Merchandising Transactions Chapter 7 AP-20A 10 Glent Company prepared the following trial balance at its year end of September 30, 2019. The company is owned by Wayne Glent. Glent Company Trial Balance September 30, 2019 Account Title Cash Accounts Receivable Merchandise Inventory Prepaid Expenses Store Equipment Accumulated Depreciation --Store Equipment Accounts Payable Unearned Revenue Bank Loan Glent, Capital Glent. Withdrawal Sales Revenue Gain on Sale of Equipment Cost of Goods Sold Depreciation Expense-Store Equipment Interest Expense Advertising Expense Rent Expense Retail Space Rent Expense Office Space Sales Sales Experts Othce Sales Expense Total DR CR $14,600 6.000 6,600 2,000 40.000 $2,500 8,000 6000 9.000 38.750 1.000 61.750 4.000 30,000 500 600 1200 10,000 5,000 8.000 4.500 500.00 310000 Notes: Assume the balance of owner's equity is the opening balance 2. The bank loans payable over the next nine years in equal annual installments O Required Prepare a multi-step income statement using the trial balances. Prepare a statement of owner's equity 302 Chiper Predamdeseting the trial balance o ht 302 Chapter 7 Inventory Merchandising Transactions Prepare a classified balance sheet using the trial balances. 303 APTA in B AP-16A LO 34 The following information pertains to Wicked Kitchen Supplies for March 2019. Mar 1 Purchased merchandise for $16,000 on credit from Hotel Supplies, terms 1/20/30, FOB shipping point Mar 1 Wicked paid $35 cash to have the merchandise from Hotel Supplies delivered Mar 5 Sold merchandise on credit to Four Boars Restaurant for $8.000, terms 2/10, 1/30 cost of goods was $5,500 Mar 5 Paid $25 cash to ship the goods to Four Boars Restaurant (FOB destination) Mar 8 Four Boars returned $1,900 (sales price) worth of merchandise purchased on March 5; cost of goods was $800, there was nothing wrong with the merchandise and it will be resold Mar 12 Returned $500 of the merchandise purchased on March 1 as it was the wrong design Mar 15 Received payment from Four Boars Restaurant for the March 5 sale Mar 15 Paid for merchandise purchased from Hotel Supplies on March 1 Mar 23 Sold merchandise on credit to Black Kettle Kitchen for $4,000, terms 2/10, 1/30, cost of goods was $2,000 Mar 26 Black Kettle Kitchen returned $200 (sales price) of merchandise purchased on March 23; cost of goods was $50. Merchandise was returned to inventory Mar 31 Received payment from Black Kettle Kitchen for the March 23 sale Journalize the above transactions assuming that Wicked Kitchen Supplies uses a perpetual inventory system, Round all calculations to the nearest whole dollar. Date Account Title and Explanation Debit Credit 297 bory Merchandirung Transactions Date Account Title and Explanation Debit Credit O Chapter Intory Mechando Date Account Title and Explanation Debet Credit O Date Account Title and Laplanation Debit Credit 29 Det Att Tiled planeti Det o T E
