Purchase-Related Transactions Using Perpetual Inventory System

Instructions

Chart of Accounts

Journal

Instructions

The following selected transactions were completed by Capers Company during October of the current year:

Oct.	1	Purchased merchandise from UK Imports Co., $14,448, terms FOB destination, n/30.
	3	Purchased merchandise from Hoagie Co., $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice.
	4	Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30.
	6	Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4.
	13	Paid Hoagie Co. for invoice of October 3.
	14	Paid Taco Co. for invoice of October 4 less debit memo of October 6.
	19	Purchased merchandise from Veggie Co., $27,300, terms FOB shipping point, n/eom.
	19	Paid freight of $400 on October 19 purchase from Veggie Co.
	20	Purchased merchandise from Caesar Salad Co., $22,000, terms FOB destination, 1/10, n/30.
	30	Paid Caesar Salad Co. for invoice of October 20.
	31	Paid UK Imports Co. for invoice of October 1.
	31	Paid Veggie Co. for invoice of October 19.

Chart of Accounts

CHART OF ACCOUNTS

Capers Company

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Merchandise Inventory
131	Estimated Returns Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment

	LIABILITIES
211	Accounts Payable-Caesar Salad Co.
212	Accounts Payable-Hoagie Co.
213	Accounts Payable-Taco Co.
214	Accounts Payable-UK Imports Co.
215	Accounts Payable-Veggie Co.
216	Salaries Payable
218	Sales Tax Payable
219	Customers Refunds Payable
221	Notes Payable
	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue
	EXPENSES
510	Cost of Merchandise Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
526	Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense