Part 1: Prepare journal entries to record the following perpetual system merchandising transactions of Belton Company. Use a separate account for each receivable and payable; for example, record the sale on June 1 in Accounts Receivable - Avery & Weist. 4 June 1 Sold merchandise to Avery & Weist for $9,500; terms 2/5, n/15, FOB destination (cost of sales $6,650) 2 Purchased $4,900 of merchandise from Angolac Suppliers; terms 1/10, n/20, FOB shipping point Purchased merchandise inventory from Bastille Sales for $11,400; terms 1/15, n/45, FOB Bastille Sales. 5 Sold merchandise to Gelgar for $11,000; terms 2/5, n/15, FOB destination (cost of sales $7,700) 6 Collected the amount owing from Avery & Weist regarding the June 1 sale. 12 Paid Angolac Suppliers for the June 2 purchase. 20 Collected the amount owing from Gelgar regarding the June 5 sale. 30 Paid Bastille Sales for the June 4 purchase. Part 2: Based on the information provided above, calculate (a) net sales, (b) cost of goods sold, and (c) gross profit for the month ended June 30, 2020. Problem 5-8A Income Statements - perpetual (20 marks) The following adjusted trial balance for Bell Servicing was prepared at the end of the fiscal year, December 31, 2020: Debit Credit 101 $ 8,000 16,200 10,000 4,000 51.000 $ 46,800 69,000 119 125 128 165 166 167 168 201 301 302 413 415 505 Cash Merchandise inventory. Supplies............ Prepaid insurance Store equipment Accumulated depreciation, store equipment Office equipment Accumulated depreciation office equipment Accounts payable.. Jonah Bell, capital. Jonah Bell, withdrawals Sales Sales discounts Cost of goods sold Depreciation expense, store equipment 34,200 16,000 29,000 *** 41.000 291,800 2,000 74.800 5.200 612 SUZ 291,800 413 415 505 612 613 622 623 637 638 640 641 651 652 655 Sales. Sales discounts Cost of goods sold Depreciation expense, store equipment. Depreciation expense, office equipment Sales salaries expense. Office salaries expense Insurance expense, store Insurance expense, office Rent expense, office space. Rent expense, selling space. Office supplies expense Store supplies expense. Advertising expense Totals 2,000 74,800 5.200 3,800 46,000 32,000 2,000 1,600 13,000 17.000 1,200 2,400 17,600 $417,800 $417.800 Required 1. Prepare a multi-step income statement that would be used by external users (like Exhibit 5.14) 2 Pro that todoci 638 640 641 651 652 655 Insurance expense, office Rent expense. office space Rent expense, selling space Office supplies expense Store supplies expense. Advertising expense. Totals 1,600 13,000 17,000 1.200 2,400 17,600 $417,800 $417.800 Required 1. Prepare a multi-step income statement that would be used by external users (like Exhibit 5.14). 2. Prepare a single-step income statement that would be provided to decision makers outside the company (like Exhibit 5-15)
