Question
[The following information applies to the questions displayed below.] The following trial balance pertains to Benjis Grocery as of January 1, 2016: Account Title Debit
[The following information applies to the questions displayed below.] |
The following trial balance pertains to Benjis Grocery as of January 1, 2016: |
Account Title | Debit | Credit | ||||
Cash | $ | 64,000 | ||||
Accounts receivable | 12,000 | |||||
Merchandise inventory | 90,000 | |||||
Accounts payable | $ | 7,500 | ||||
Common stock | 89,000 | |||||
Retained earnings | 69,500 | |||||
Total | $ | 166,000 | $ | 166,000 | ||
The following events occurred in 2016. Assume that Benjis uses the periodic inventory method. |
1. | Purchased land for $30,000 cash. | |
2. | Purchased merchandise on account for $230,000, terms 1/10 n/45. | |
3. | Paid freight of $2,100 cash on merchandise purchased FOB shipping point. | |
4. | Returned $8,600 of defective merchandise purchased in Event 2. | |
5. | Sold merchandise for $186,000 cash. | |
6. | Sold merchandise on account for $236,000, terms 2/10 n/30. | |
7. | Paid cash within the discount period on accounts payable due on merchandise purchased in Event 2. | |
8. | Paid $28,500 cash for selling expenses. | |
9. | Collected $156,000 of the accounts receivable from Event 6 within the discount period. | |
10. | Collected $56,000 of the accounts receivable but not within the discount period. | |
11. | Paid $17,100 of other operating expenses. | |
12. | A physical count indicated that $48,300 of inventory was on hand at the end of the accounting period. Record these transactions in a general journal. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Prepare a schedule of costs of goods sold. (Amounts to be deducted should be indicated with minus sign.)
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started