Question
Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System. The following selected transactions were completed during April between Swan Company and Bird
Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System.
The following selected transactions were completed during April between Swan Company and Bird Company:
| Apr.2. | Swan Company sold merchandise on account to Bird Company, $17,700, terms FOB shipping point, 2/10, n/30. Swan Company paid freight of $420, which was added to the invoice. The cost of the merchandise sold was $11,200. |
| 8. | Swan Company sold merchandise on account to Bird Company, $27,000, terms FOB destination, 1/15, n/30. The cost of the merchandise sold was $16,200. |
| 8. | Swan Company paid freight of $840 for delivery of merchandise sold to Bird Company on April 8. |
| 12. | Bird Company paid Swan Company for purchase of April 2. |
| 18. | Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise. |
| 23. | Bird Company paid Swan Company for purchase of April 8. |
| 24. | Swan Company sold merchandise on account to Bird Company, $8,900, terms FOB shipping point, n/45. The cost of the merchandise sold was $5,300. |
| 26. | Bird Company paid freight of $370 on April 24 purchase from Swan Company. |
| 30. | Swan Company granted a customer allowance (credit memo) to Bird Company for $11,300 for merchandise that was returned from the August 24 purchase. The cost of the merchandise returned was $6,500. |
Required:
1. Journalize the April transactions for Bird Company (the buyer).
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 2 | Merchandise Inventory | ||
| Accounts Payable-Swan Company |
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 8 | Merchandise Inventory | ||
| Cash |
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 12 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 18 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 23 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 24 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 26 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 30 | |||
2. Journalize the April transactions for Swan Company (the seller).
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 2-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 2-freight | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 2-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 8-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 8-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 8-freight | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 12 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 18 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 23 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 24-sale | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 24-cost | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 30 | |||
| Date | Account | Debit | Credit |
|---|---|---|---|
| Apr. 30 | |||
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Principles Of Accounting Volume 1 Financial Accounting
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
1st Edition
1593995946, 978-1593995942
