it's financial accounting course

1. Mercury Company has the following opening account balances in its subsidiary ledgers on May 1 and uses the periodic inventory system. All ledger accounts have normal debit and credit balances. The company completed the following transactions during the month. The cost of all merchandise sold was 64% of the sales price. A/R Subsidiary Ledger Beginning Balances A/P Subsidiary Ledger Beginning Balances Smith 1,500 Davidof 9,000 Minnie 7,500 Rasputin 20,000 Merkel 4000 Oklo 13,000 1 Purchased merchandise on account from Little Company $12,000, Invoice no. 260, terms 2/10, n/30. 3 Sold merchandise on account to Soho $2,800, Invoice no. 520, and Danube $2,400, invoice no. 511. 5 Purchase merchandise on account from Bennet $5,000 and Gasby $4,700. 9 Issued credit of $300 to Danube for merchandise returned. 10 Purchased merchandise on account from Frankle Corp. $2,600. 13 Receive payment in full from Soho and Danube. 18 Purchased merchandise for cash $1,600. 21 Issued $20,000 note to Rasputin in payment of balance due. 21 Made cash sales for the week totaling $6,000. 22 Sold merchandise on account to Soho for $3,700, invoice no. 514, and to Smith for $800, invoice no. 515. 25 Purchased supplies on account from Francisco Co. $190. 25 Received payment from Soho for invoice no. 514 and from Smith for invoice no. 515. 25 Sold merchandise on account to Mestis Corp. $3,800, invoice no. 206, terms 2/10, n/30. 26 Purchased for cash a small parcel of land and a building on the land to use as a storage facility. The total cost of $26,000 was allocated $16,000 to the land and $10,000 to the building. 28 Paid $1,600 for employee salaries and wages. 30 Sold merchandise on account to Billy's Co.$3,400, invoice no. 207, terms 2/10, n/30. Instructions 1 a. Record the month's transactions in the appropriate journal-sales, purchases, cash receipts, cash payments, and general. b. Post the journals to the general and subsidiary ledgers. 2. At December 31, Belle Inc. had to take its ending inventory to prepare its annual financial report. You are their new accountant and it's your responsibility to decide whether the following items should be counted as their inventory or not. a. Belle shipped goods costing $1000 to a customer and charged the customer $1,000 on December 25. The goods were shipped with terms FOB destination and the receiving report indicates that the customer will receive the goods on January 4. b. Merryland Inc. shipped goods to Belle under terms FOB shipping point. The invoice price was $500 plus $75 for freight on December 27. The receiving report indicates that the goods will be received by Belle on January 3. C. $1400 of inventory that Harold's Inc. shipped to Belle on consignment is in Belle's warehouse. d. Belle issued a purchase order to acquire goods costing $850. The goods were shipped with terms FOB destination on December 28. Belle will receive the goods on January 9. e. Belle shipped goods to a customer under terms FOB shipping point on December 24. The invoice price was $500 plus $55 for freight; the cost of the items was $350. The receiving report indicates that the goods will be received by the customer on December 31