Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The company buys coasters from one supplier. All amounts In Accounts Payable on December 1 are owed to that supplier. The Inventory on December 1

image text in transcribed
image text in transcribed
The company buys coasters from one supplier. All amounts In Accounts Payable on December 1 are owed to that supplier. The Inventory on December 1 consisted of 800 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.40. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below 3. Purchased 500 coasters on account from the regular supplier on 1211 at a unit cost of $0.42 with terms of 1/60 b. Purchased 900 coasters on account from the regular supplier on 122 at a unit cost of $0 45. with terms of n 60 Sold 1.700 coasters on account on 12/3 at a unit price of $1.00 d. Collected $860 from Customers on account on 12/4 e. Paid the supplier $1,570 cash on account on 12/18 * Paid employees $470 on 12.23. of which $260 related to work done in November and $210 was for wages up to December 22 g. Loaded 80 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona, Hawall. The sale was made FOB destination with terms of n160 Other relevant information includes the following at 12/31 n College Coasters has not yet recorded $190 of office expenses incurred in December on account The company estimates that the equipment depreciates at a rate of $8 per month One month of depreciation needs to be recorded. Wages for the period from December 23-31 are $100 and will be paid on January 15, k. The $660 of Prepaid Rent relates to a six-month period ending on May 31 of next year The company incurred $700 of income tax but has made no tax payments this year m. No shrinkage or damage was discovered when the inventory was counted on December 31. n. The company did not declare dividends and there were no transactions involving common stock Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Analysis Prepare the journal entries to record the transactions (a) through (n). Review the accounts as shown in the General Ledger and Trial Balance tabs. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Viow transaction lit Journal entry worksheet 1 2 3 5 7 3. 15 > Purchased 500 coasters on account from the regular supplier on 12/1 x a unit cost of $0.42. with terms of n/60. Record the transaction. Senter cette General Journal Debit Credit December 01 cordantry Clear entry View general Journal

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Analysis With Microsoft Excel

Authors: Conrad Carlberg

3rd Edition

0789736640, 9780789736642

More Books

Students also viewed these Accounting questions