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 $3,500 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 Received $200 credit for books returned to Binsfield Publishers.

6 Sold books on account to Reading Rainbow for $2,500. The cost of the books sold was $1,440.

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.

Heading Heading Paragraph Styles Joumalize purchase and sales transactions under a perpetual and periodic inventory system Kem's Book Warehouse distributes hardcover books to retail stores and extend credit terms of 2/10, 1/30 to all of its customers. At the end of May, Kerr's inventory consisted of books purchased for $1,800. During June, the bllowing merchandising transactions occurred. June 1Purchased books on account for $3,500 from Binsfield Publishers, FOB destination, terms 2/10,n/30. The appropriate party also made a cash payment of $50 for the feight on this date. 3 Received $200 credit or books retumed to Binsfeld Publishers. 6 Sold books on account to Reading Rainbow for $2,500. The cost ofthe books sold was $1,440. 9 Paid Binsfeld Publishers in till 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 or $1,800 from McGinn Publishers, FOB destination, terms 2/15,1/30. The appropriate party also made a cash payment of $60 for the feight 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 ofthe books sold was $970 30 Granted Baeton Bookstore $120 credit for books retumed costing $72 Kem'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 Allovances, No. 414 Sales Discounts, and No. 505 Cost ofGoods Sold Instructions (a) Journalize the transactions for the month of June for Kem's Book Warehouse using a perpetual inventory system. Value 66 pts. b) Journalize the transactions for the month of June for Kem'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 "?" (a) Journalize the transactions for the month of June for Kern's Book Warehouse using a perpetual inonta 53 eferences Mailings Review View Help Tell me what you want to do A A Aa- E- 21 AaBbCcDc AalbCcDc AaBbc AabbCcc Aa I Normal 1 No Spac... Heading 1 Heading 2 A aby - A EEE Paragraph Styles NOTE Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?" (a) Journalize the transactions for the month of June for Kern's Book Warehouse using a perpetual inventory system. GENERAL JOURNAL Account Title and Explanation Date Ref Debit Credit (53 Aa. A ALT AaBbCcDc AaBbCcDc AaBbC( AaBbcc 1 Normal 1 No Spac... Heading 1 Heading 2 x A-ay-A- ent Paragraph Styles (b) Journalize the transactions for the month of June for Kern's Book Warehouse using a periodic inventory system. GENERAL JOURNAL J- Date Account Title and Explanation Ref Debit Credit Rico) W EXCERCISE - Word References Mailings Review View Help Tell me what you want to do VAA Aa - T | . Aal 1 Normal 1 No Spac... Heading 1 Heading 2 Title X A-A- SE DE ont Paragraph Styles c. Use the following accounts to prepare a multiple step income statement of Magaly's Cake LLC for the year ended December 31, 2018 Beginning Inventory Depreciation Expense Ending Inventory Freight out Freight-In Gain on sale of equipment Insurance Expense Interest Expense Interest Revenue Loss on sale of building Property Tax Expense Purchase Discounts Purchases Purchases Return and Allowances Rent Expense Salaries and Wages Expense Sales Sales Commission Expense Sales Discounts Sales Return and Allowances Utilities Expense $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 375,000.00 14,000.00 413,000.00 7,800.00 21,000.00 18,000.00 8,500.00 8,900.00 3,600.00 95,600.00 15,600.00 18,900.00 680,000.00 28,000.00 3,600.00 98,500.00 2,500,000.00 12,500.00 4,500.00 12,000.00 15,600.00 I Rico) W References Mailings Review View Help Tell me what you want to do 11 VA A Aa-po ALT x x A-ay-A- . . 11 Normal 1 No Spac... Heading 1 Heading 2 SE E- Tr Font Paragraph Styles Sales Return and Allowances Utilities Expense $ $ 12,000.00 15,600.00 Answer Sheet to prepare the multiple step income statement uerto Rico) W