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The company has been set up for 12 year on June 2018. The company make adjustment to the account on monthly basis at the end
The company has been set up for 12 year on June 2018. The company make adjustment to the account on monthly basis at the end of each year. The account balance at June 2018 as below: Cash Accounts Receivable Merchandise Inventory Supply Previous Rent Office Equipment Depreciation Provision - Office Equipment Notes Outstanding Accounts Payable Unpaid Salary Yusuff Capital Joseph, Take Sales Returns and Sales Allowances Salary Spend Cost of Goods Sold Utility Spend Rental Spend Shipping Expenses Depreciation Expenses - Office Equipment Supply Spend $ 43,400 17.800 50.150 4,500 21,000 110.000 16,500 50,000 24,000 13,900 109,000 11,000 698,800 2,000 135,000 464,250 10,000 11.100 25,000 5,500 1,500 The company used continuous inventory system and the following transactions for July 2018. July 3 July 7 July 15 Merchandise sold (credit) to John Enterprise for $ 30,000 terms 2/15. n/30, FOB destination. Cost for merchandise sold is $ 27,200 Purchase merchandise (credit) from Inno Lab for $ 29,000, terms 2/15. n/30, FOB point of delivery. Pay shipping cost $ 500. Selling merchandise (cash) for total amount $ 8.800. Cost for merchandise sold is $ 8000 Receive damage merchandise $ 1200 from John Enterprise for merchandise on 3 July. Cost for damage merchandise is $ 1,050. Get payment from customers for merchandise sold on July 3. Payment to Inno Lab for items on July 7. July 16 July 17 July 23 - 10% per annum depreciation for cost of office equipment. - Physical calculation of supply indicates balance of supply of $ 2000 on 31 July 2018 - $ 13,900 salary expenses not yet pay at 31 July 2018. - July rent is $ 7,000. a) Journal entries transaction in July 2018. b) Adjustment entries in July 2018. c) Income statement and balance sheet 31 July 2018 d) What difference between FOB destination and FOB point of delivery (ownership transfer and responsibility for transportation cost)
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