Question
Problem 5-01A (Video) Cranes Book Warehouse distributes hardcover books to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At
Problem 5-01A (Video)
Cranes Book Warehouse distributes hardcover books to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of May, Cranes inventory consisted of books purchased for $1,900. During June, the following merchandising transactions occurred.
June 1 | Purchased books on account for $1,800 from Binsfeld 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 | Sold books on account to Reading Rainbow for $3,000. The cost of the books sold was $1,500. | |
6 | Received $100 credit for books returned to Binsfeld Publishers. | |
9 | Paid Binsfeld Publishers in full, less discount. | |
15 | Received payment in full from Reading Rainbow. | |
17 | Sold books on account to Rapp Books for $2,400. The cost of the books sold was $1,440. | |
20 | Purchased books on account for $2,400 from McGinn Publishers, FOB destination, terms 1/15, 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 Baeten Bookstore for $1,400. The cost of the books sold was $970. | |
30 | Granted Baeten Bookstore $130 credit for books returned costing $78. |
Crane'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. Journalize the transactions for the month of June for Cranes Book Warehouse using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
(To record credit sale.) (To record cost of merchandise sold.) > (To record credit sale.) (To record cost of merchandise sold.) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEXT LINK TO TEXT Enter the beginning balances in the ledger accounts and post the April transactions. (Post entries in the order of journal entries presented in the previous part.) Cash Explanation Ref. No. 101 Balance Date Debit Credit Balance J1 V J1 > J1 J1 Accounts Receivable Explanation Ref. Debit No. 112 Balance Date Credit J1 31 01 01 Inventory Explanation Ref. Debit No. 120 Balance Date Credit V Balance 01 31 31 J1 31 31 J1 J1 01 Accounts Payable Explanation Ref. Debit No. 201 Balance Date Credit 31 > 31 31 31 31 31 No. 301 Date Owner's Capital Explanation Ref. Debit Balance Credit Balance No. 401 Sales Revenue Explanation Ref. Debit Date Credit Balance J1 J1 Sales Returns and Allowances Explanation Ref. Debit No. 412 Balance Date Credit J1 Cost of Goods Sold Explanation Ref. Debit No. 505 Balance Date Credit J1 J1Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started