Journalize purchase and sales transactions under a perpetual and periodic inventory system
Kern's Book Warehouse distributes hardcover books to retail stores and extend credit terms of 2/10, n/30 to all of its customers.
At the end of May, Kern's inventory consisted of books purchased for $1,800. During June, the following merchandising transactions
occurred.
June 1	Purchased books on account for $1,600 from Binsfield Publishers, FOB destination, terms 2/10, n/30.
	The appropriate party also made a cash payment of $50 for the freight on this date.
3	Sold books on account to Reading Rainbow for $2,500. The cost of the books sold was $1,440.
6	Received $100 credit for books returned to Binsfield Publishers.
9	Paid Binsfield Publishers in full, less discount.
15	Received payment in full from Reading Rainbow.
17	Sold books on account to Rapp Books for $1,800. The cost of the books sold was $1,080.
20	Purchased books on account for $1,800 from McGinn Publishers, FOB destination, terms 2/15,n/30.
	The appropriate party also made a cash payment of $60 for the freight on this date.
24	Received payment in full from Rapp Books.
26	Paid McGinn Publishers in full, less discount.
28	Sold books on account to Baeton Bookstore for $1,600. The cost of the books sold was $970.
30	Granted Baeton Bookstore $120 credit for books returned costing $72.
Kern's Book Warehouse's chart of accounts includes the following: No.101 Cash, No.112, Accounts Receivable,
No.120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No.412 Sales Returns and Allowances, No. 414
Sales Discounts, and No. 505 Cost of Goods Sold.
Instructions
(a) Journalize the transactions for the month of June for Kern's Book Warehouse using a perpetual inventory system. Value 66 pts.
(b) Journalize the transactions for the month of June for Kern's Book Warehouse using a periodic inventory system. Value 66 pts.
NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" .

Use the following accounts to prepare a multiple step income statement of Magaly's Cake LLC for the year ended December 31, 2018 Value 55 pts.
								Answer Sheet to prepare the multiple step income statement
	Beginning Inventory				$250,000.00
	Depreciation Expense				$ 11,000.00
	Ending Inventory				$362,000.00
	Freight out				$ 6,500.00
	Freight-In				$ 16,300.00
	Gain on sale of equipment				$ 3,500.00
	Insurance Expense				$ 7,000.00
	Interest Expense				$ 6,400.00
	Interest Revenue				$ 2,000.00
	Loss on sale of building				$125,000.00
	Property Tax Expense				$ 12,500.00
	Purchase Discounts				$ 12,500.00
	Purchases				$509,000.00
	Purchases Return and Allowances				$ 12,000.00
	Rent Expense				$ 2,500.00
	Salaries and Wages Expense				$ 96,000.00
	Sales				###########
	Sales Commission Expense				$ 11,000.00
	Sales Discounts				$ 2,000.00
	Sales Return and Allowances				$ 8,000.00
	Utilities Expense				$ 8,500.00