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Prepare journal entries to record the following merchandising transactions of Zhang's, which uses the perpetual inventory system and the gross method. (Hint: It will
Prepare journal entries to record the following merchandising transactions of Zhang's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Turner.) July 1 Purchased merchandise from Turner Company for $11,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Hall Company for $3,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $2,280. July 3 Paid $1,285 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $4,500 for $7,500 cash.. July 9 Purchased merchandise from Clinton Company for $5,100 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $1,000 of merchandise purchased on July 9 from Clinton Company and debited its account payable for that amount. July 12 Received the balance due from Hall Company for the invoice dated July 2, net of the discount.. July 16 Paid the balance due to Turner Company within the discount period. July 19 Sold merchandise that cost $4,900 to Thompson Company for $7,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $1,400 to Thompson Company for merchandise sold on July 19 and credited Thompson's accounts receivable for that amount. July 24 Paid Clinton Company the balance due, net of discount. July 30 Received the balance due from Thompson Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $7,700 to Mall Company for $12,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. General Journal General Ledger Requirement Trial Balance General Journal tab- Journalize the merchandising transactions. The General Ledger, trial balance and schedules of accounts receivable and accounts payable will be updated based on your entries. Schedule of Receivables Schedule of Payables Income Statement Impact on Income Journal entry worksheet < 1 2 Date July 01 3 Note: Enter debits before credits. Purchased merchandise from Turner Company for $11,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Record entry 4 5 6 7 Account Title 8 ..... 17 Clear entry Debit Credit View general journal 7 Journal entry worksheet 1 2 3 Note: Enter debits before credits. Date July 02 Record entry 4 5 Sold merchandise to Hall Company for $3,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. Account Title 6 7 8 Clear entry ***** 17 Debit Credit View general journal > View transaction list Journal entry worksheet 2 3 Note: Enter debits before credits. Date July 02 Record entry 4 5 The cost of the merchandise sold to Hall Company was $2,280. Account Title 6 Clear entry 7 8 ..... Debit 17 Credit View general journal Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Date July 03 5 Record entry Paid $1,285 cash for freight charges on the purchase of July 1. Account Title 6 7 Clear entry 8 ***** Debit 17 Credit View general Journal Journal entry worksheet 1 2 3 < Sold merchandise for $7,500 cash. Note: Enter debits before credits. Date July 08 4 Record entry 5 Account Title Clear entry 6 7 8 ..... 17 Debit Credit View general Journal Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Date July 08 4 The cost of the merchandise sold was $4,500. Record entry 5 Account Title CO Clear entry 7 8 ..... Debit 17 Credit View general journal < 1 entry worksheet Date July 09 2 3 Note: Enter debits before credits. Record entry 5 Purchased merchandise from Clinton Company for $5,100 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Account Title 6 Clear entry 7 8 .*.*.. 17 Debit Credit View general journal Journal entry worksheet 1 2 < 3 Note: Enter debits before credits. Date July 11 Record entry 4 5 6 7 Returned $1,000 of merchandise purchased on July 9 from Clinton Company and debited its account payable for that amount. Account Title Clear entry **** Debit 17 Credit View general journal Journal entry worksheet < 1 ... 4 Note: Enter debits before credits. Date July 12 5 Record entry 6 Received the balance due from Hall Company for the invoice dated July 2, net of the discount. Account Title 7 8 Clear entry 9 .... 17 Debit Credit View general journal > Journal entry worksheet 1 ... 5 6 7 8 9 Note: Enter debits before credits. Paid the balance due to Turner Company within the discount period. Date July 16 Record entry Account Title 10 Clear entry **** Debit 17 Credit View general Journal > < 1 ..... 6 7 Note: Enter debits before credits. Date July 19 8 Record entry Account Title 9 Sold merchandise to Thompson Company for $7,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Clear entry 10 11 .... 17 Debit Credit View general journal Journal entry worksheet < 1 ..... 7 8 9 10 The cost of the merchandise sold to Thompson Company was $4,900. Note: Enter debits before credits. Date July 19 Record entry Account Title Clear entry 11 12 .... Debit 17 Credit View general Journal > Journal entry worksheet < 1 ..... 8 Note: Enter debits before credits. Date July 21 9 10 11 12 Record entry Gave a price reduction (allowance) of $1,400 to Thompson Company for merchandise sold on July 19 and credited Thompson's accounts receivable for that amount. Account Title 13 Clear entry **** 17 Debit Credit View general journal View transaction list Journal entry worksheet 1 ..... 9 Note: Enter debits before credits. Paid Clinton Company the balance due, net of discount. Date July 24 10 11 12 Record entry Account Title 13 Clear entry 14 www. Debit 17 Credit View general journal > Journal entry worksheet 1 ..... 10 11 < Note: Enter debits before credits. Date July 30 12 Record entry Received the balance due from Thompson Company for the invoice dated July 19, net of discount. Account Title 13 14 15 Clear entry .... 17 Debit Credit View general Journal Journal entry worksheet 1 ... 10 Note: Enter debits before credits. Date July 31 11 12 13 Record entry Sold merchandise to Hall Company for $12,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.- Account Title 14 15 Clear entry 16 17 Debit Credit View general journal > Journal entry worksheet < 1 ..... 10 Note: Enter debits before credits. Date July 31 11 Record entry 12 The cost of the merchandise sold to Hall Company was $7,700. Account Title 13 14 Clear entry 15 Debit 16 17 Credit View general journal Prepare journal entries to record the following merchandising transactions of Zhang's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Turner.) July 1 Purchased merchandise from Turner Company for $11,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Hall Company for $3,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $2,280. July 3 Paid $1,285 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $4,500 for $7,500 cash.. July 9 Purchased merchandise from Clinton Company for $5,100 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $1,000 of merchandise purchased on July 9 from Clinton Company and debited its account payable for that amount. July 12 Received the balance due from Hall Company for the invoice dated July 2, net of the discount.. July 16 Paid the balance due to Turner Company within the discount period. July 19 Sold merchandise that cost $4,900 to Thompson Company for $7,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $1,400 to Thompson Company for merchandise sold on July 19 and credited Thompson's accounts receivable for that amount. July 24 Paid Clinton Company the balance due, net of discount. July 30 Received the balance due from Thompson Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $7,700 to Mall Company for $12,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. General Journal General Ledger Requirement Trial Balance General Journal tab- Journalize the merchandising transactions. The General Ledger, trial balance and schedules of accounts receivable and accounts payable will be updated based on your entries. Schedule of Receivables Schedule of Payables Income Statement Impact on Income Journal entry worksheet < 1 2 Date July 01 3 Note: Enter debits before credits. Purchased merchandise from Turner Company for $11,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Record entry 4 5 6 7 Account Title 8 ..... 17 Clear entry Debit Credit View general journal 7 Journal entry worksheet 1 2 3 Note: Enter debits before credits. Date July 02 Record entry 4 5 Sold merchandise to Hall Company for $3,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. Account Title 6 7 8 Clear entry ***** 17 Debit Credit View general journal > View transaction list Journal entry worksheet 2 3 Note: Enter debits before credits. Date July 02 Record entry 4 5 The cost of the merchandise sold to Hall Company was $2,280. Account Title 6 Clear entry 7 8 ..... Debit 17 Credit View general journal Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Date July 03 5 Record entry Paid $1,285 cash for freight charges on the purchase of July 1. Account Title 6 7 Clear entry 8 ***** Debit 17 Credit View general Journal Journal entry worksheet 1 2 3 < Sold merchandise for $7,500 cash. Note: Enter debits before credits. Date July 08 4 Record entry 5 Account Title Clear entry 6 7 8 ..... 17 Debit Credit View general Journal Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Date July 08 4 The cost of the merchandise sold was $4,500. Record entry 5 Account Title CO Clear entry 7 8 ..... Debit 17 Credit View general journal < 1 entry worksheet Date July 09 2 3 Note: Enter debits before credits. Record entry 5 Purchased merchandise from Clinton Company for $5,100 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Account Title 6 Clear entry 7 8 .*.*.. 17 Debit Credit View general journal Journal entry worksheet 1 2 < 3 Note: Enter debits before credits. Date July 11 Record entry 4 5 6 7 Returned $1,000 of merchandise purchased on July 9 from Clinton Company and debited its account payable for that amount. Account Title Clear entry **** Debit 17 Credit View general journal Journal entry worksheet < 1 ... 4 Note: Enter debits before credits. Date July 12 5 Record entry 6 Received the balance due from Hall Company for the invoice dated July 2, net of the discount. Account Title 7 8 Clear entry 9 .... 17 Debit Credit View general journal > Journal entry worksheet 1 ... 5 6 7 8 9 Note: Enter debits before credits. Paid the balance due to Turner Company within the discount period. Date July 16 Record entry Account Title 10 Clear entry **** Debit 17 Credit View general Journal > < 1 ..... 6 7 Note: Enter debits before credits. Date July 19 8 Record entry Account Title 9 Sold merchandise to Thompson Company for $7,000 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Clear entry 10 11 .... 17 Debit Credit View general journal Journal entry worksheet < 1 ..... 7 8 9 10 The cost of the merchandise sold to Thompson Company was $4,900. Note: Enter debits before credits. Date July 19 Record entry Account Title Clear entry 11 12 .... Debit 17 Credit View general Journal > Journal entry worksheet < 1 ..... 8 Note: Enter debits before credits. Date July 21 9 10 11 12 Record entry Gave a price reduction (allowance) of $1,400 to Thompson Company for merchandise sold on July 19 and credited Thompson's accounts receivable for that amount. Account Title 13 Clear entry **** 17 Debit Credit View general journal View transaction list Journal entry worksheet 1 ..... 9 Note: Enter debits before credits. Paid Clinton Company the balance due, net of discount. Date July 24 10 11 12 Record entry Account Title 13 Clear entry 14 www. Debit 17 Credit View general journal > Journal entry worksheet 1 ..... 10 11 < Note: Enter debits before credits. Date July 30 12 Record entry Received the balance due from Thompson Company for the invoice dated July 19, net of discount. Account Title 13 14 15 Clear entry .... 17 Debit Credit View general Journal Journal entry worksheet 1 ... 10 Note: Enter debits before credits. Date July 31 11 12 13 Record entry Sold merchandise to Hall Company for $12,800 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.- Account Title 14 15 Clear entry 16 17 Debit Credit View general journal > Journal entry worksheet < 1 ..... 10 Note: Enter debits before credits. Date July 31 11 Record entry 12 The cost of the merchandise sold to Hall Company was $7,700. Account Title 13 14 Clear entry 15 Debit 16 17 Credit View general journal
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