Question
Small Kine Company closes its books and prepares financial statements at the end of each month.Small Kine uses the perpetual inventory system. The company completed
Small Kine Company closes its books and prepares financial statements at the end of each month.Small Kine uses the perpetual inventory system. The company completed the following transactions during August, 2019:
Aug 2Issued check no. 683 for $1,240 to pay salaries, which includes salary payable
of $930 from July 31 (ignore payroll deductions).
2Sold inventory on account to G. Whiz, issuing invoice no. 503 for $600. Small Kine's cost of goods sold was $190.
3Purchased inventory on credit terms of 1/15, n/60 from Squid, Inc., $1,400
4Received full payment from Good Company, $2,156, within the discount period.
4Sold inventory for cash, $330 (cost, $104)
7Sold inventory issuing invoice no. 504 for sale on account to P.B. Jay, $2,400 (cost, $759)
8Issued check no. 685 to pay Badd Company $2,600 of the amount owed at July 31. This payment occurred after the discount period.
11Issued check no. 686 to pay Squid, Inc. the net amount owed from August 3
12Received cash from G. Whiz in full settlement of her account receivable from August 2 (received within the discount period)
19Received a total of $10,000 ($200 was forfeited discount) from the July 31 amount receivable from P.B. Jay
22Purchased furniture on credit terms of 3/15, n/60 from Inn Corporation, $500
30Issued check no. 687 to Yu Smaht, owner of the business, for personal withdrawal, $1,700
- Journalize the August transactions in the general journal. Do not include the explanations.Small Kine makes all credit sales on terms of 2/10, n/30 unless otherwise indicated.
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