Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

MERCHANDISING ACOUNTING Joe Blink an his brother Paul opened Blink's Partnership Company Merchandising business on July 1. The company applies the perpetual inventory system. July

image text in transcribed
image text in transcribed
image text in transcribed
MERCHANDISING ACOUNTING Joe Blink an his brother Paul opened Blink's Partnership Company Merchandising business on July 1. The company applies the perpetual inventory system. July Joc and Paul each invest $48,000 cash in a new partnership 1 Purchased merchandise form Boden Company for $8,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1 On account. n/60 FOB shipping point, Invoice dated July 2, subject to a 9% sales tax. 2 Purchased used truck from Carter for $8,000, paying S3,000 cash and the balance 2 Sold merchandise that cost $3,500 to Rivera's Co. for $9,000 under credit terms of 2/10, 2 Received $9,054 in advance for merchandise to take place on July 12. 3 Bink's asked Carter, Co. to accept a 60-day, 15% note to replace its existing $5,000 account payable to Carter. 4. Paid $125 cash for freight charges on the purchase of July 1 4. Paid $2,800 cash on one-year insurance policy effective July 1. 4- Bink's issued a $150,000, 4-year, 12% note at face value to Forest Hills Bank and received $150,000 cash. The note requires annual interest payments each December 31. Bink's pays the note plus interest to Carter. (July 3) Bink's borrows $75,000 from American Bank. The note bears interest at 9% per year. Principal and interest are due in 30 days. 5- 6 8. Sold merchandise that cost $800 to customers for $1,500 cash,FOB shipping point. Invoice dated July12, subject to a 9% sales tax. 12 Sold merchandise that cost $7,000 to Rivera's Co. for $9,000 cash received on July 2. Invoice dated July12, subject to a 9% sales tax

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

More Books

Students also viewed these Accounting questions