Prepare journal entries to record the following merchandising transactions of Cabela'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-Boden.) Jul. 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Jul. 2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500. Jul. 3 Paid $125 cash for freight charges on the purchase of July 1. Jul. 8 Sold merchandise that had cost $1,300 for $1,700 cash Jul. 9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, 1/60, F08 destination Jul. 11 Received a $200 credit memorandure from Leight color the return invoice dated July 9. part of the merchandise purchased on July 9. Jul 12 Received the balance due from Creek Co. for the involce dated July 2net of the discount. Jul 16 Paid the balance due to Boden company within the discount period Jul. 19 Sold merchandise that cost $800 to Art Co. for $1.200 under e tterms of 2/15, 1/60, FOB shipping point, Invoice dated July 19. Jul 21 Issued a $100 credit remorandu to Art Coran 11ance an d Jul. 24 Pald Leight Co the balance due, net of drount. Jul 30 Received the balance due from Art Co. for the dated July 1 ht c ount Jul 31 Sold merchandise that cost $4,000 ta o n 0 und 2 /0, FB shipping point, invoice dated July 31. Requirement General Journal General Ledger cedule Schedule of al Balance Income Statement can Income Each journal entry is posted automatically to the general ledger Think of the generand o rting all of your journal entries by account title Click on any of the individual amounts to return to the underlying journal entry Requirenjent General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income 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. General Ledger Tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance Tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits Income Statement tab - Prepare the income statement through the calculation of gross profit Impact on Income tab - Indicate the impact each transaction had on net income. General Journal > sequirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receiv payable will be updated based on your entries. View transaction list Journal entry worksheet Rer Irement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income The trial balance is a listing of all account balances from the General Ledger as of a specific date. Click on any individual account balance to return to the General Ledger. The trial balance is only as accurate as the underlying journal entries. If the total debits do not equal the total credits, you have a journal entry that is out of balance. If you have an abnormal ending balance indicated with brackets in the general ledger), you should review the journal entries that affected that account to ensure that the journal entries are correct. Show less Cabela's Company Trial Balance July 31, 2017 Account Title Credit Debit 25 000 5,000 Merchandise inventory Common stock 30.000 30 000 30,000 $ Requirement General Journal General Ledger Trial Balance Schedule of | Schedule of Receivables Payables Income Statement Impact on Income No input required Dates: Jul 01 - to: Jul 31 Cabela's Company Schedule of Accounts Receivable Accounts receivable - Art Accounts receivable - Boden Accounts receivable - Creek Accounts receivable - Leight Total accounts receivable Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income No input required Dates: Jul 01 to: Jul 31 Cabela's Company Schedule of Accounts Payable Accounts payable - Art Accounts payable - Boden Accounts payable - Creek Accounts payable - Leight Total accounts payable Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statemen Impact on Income Prepare a multiple-step income statement through the calculation of gross profit. Cabela's Company Partial Income Statement For the Month Ended July 31, 2017 Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income For each transaction, indicate the impact each item had on income and the dollar amount of the change in income, if any. Input decreases to net income as minus sign. Upon completion, compare the gross profit with the amount reported on the partial income statement. Impact on income Increase (decrease) to income July 1) Purchased merchandise from Boden Company for 56.000 under Credit terms of 1/15, 130, FOB shipping point invoice dated July 1. July 2) Sold merchandise to Creek Co. for $900 under credit terms of 2/10, 1/60 FOB shipping point invoice dated July 2 July 2) The cost of the merchandise sold to Creek Co. was 5500 July 3) Paid $125 cash for freight charges on the purchase of July 1 July 8) Sold merchandise for $1.700 cash July 8) The cost of the merchandise sold was 51 300 July 9) Purchased merchandise from Leight Co for $2 200 under credit terms of 2/15. n/60. FOB destination Invoice dated July 11 Received a 5200 credit memorandum from Leigt erms of 2/10, n60, FOB shipping point, invoice dated July 2 Buly 2) The cost of the merchandise sold to Creek Co. was 5500 July 3) Paid $125 cash for freight charges on the purchase of July 1 July 8) Sold merchandise for $1,700 cash. July 8) The cost of the merchandise sold was $1,300 July 9) Purchased merchandise from Leight Co. for $2.200 under credit torms of 2/15, n/60. FOB destination, invoice dated July 9. July 11) Received a $200 credit memorandum from Leight Co for the return of part of the merchandise purchased on July 9. July 12) Received the balance due from Creek Co. for the invoice dated July 2. net of the discount July 16) Paid the balance due to Boden Company within the discount period July 19) Sold merchandise to Art Co for $1.200 under credit terms of 2/15, 1/60 FOB shipping point invoice dated July 19. July 19 The cost of the merchandise sold to Art Co was 5800 July 21) issued a 5100 credit memorandum to Art Co. for an Blowance on goods sold on July 19 July 24) Pald Leight Co the balance due not of discount 30) Rowed the balance due from Art Co for the 1 of 1 18 Nex July 12) Received the balance due from Creek Co. for the invoice dated July 2. net of the discount. July 6) Paid the balance due to Boden Company within the discount period. July 19) Sold merchandise to Art Co. for $1.200 under credit terms of 2/15, 1/60. FOB shipping point, Invoice dated July July 19) The cost of the merchandise sold to Art Co. was $800. July 21) Issued a $100 credit memorandum to Art Co. for an allowance on goods sold on July 19. July 24) Paid Leight Co the balance due, net of discount July 30) Received the balance due from Art Co. for the invoice dated July 19, net of discount July 31) Sold merchandise to Creek Co. for $7.000 under credit terms of 2/10, 1/60 FOB shipping point invoice dated July 31 July 31) The cost of the merchandise sold to Creek Co. was $4.800 Total gross profit