The following selected transactions were completed by Capers Company during October of the current year Oct 1 Purchased merchandise from UK Imports Co , $14,448, terms FOB destination, n 30 3 Purchased merchandise from Hoagie Co , $9,950, terms FOB shipping point, 2 10, n eom Prepaid freight of $220 was added to the invoice 4 Purchased merchandise from Taco Co , $13,650, terms FOB destination, 2 10, n 30 6 Issued debit memo to Taco Co for $4,550 of merchandise returned from purchase on October 4 13 Paid Hoagie Co for invoice of October 3 14 Paid Taco Co for invoice of October 4 less debit memo of October 6 19 Purchased merchandise from Veggie Co , $27,300, terms FOB shipping point, n eom 19 Paid freight of $400 on October 19 purchase from Veggie Co 20 Purchased merchandise from Caesar Salad Co , $22,000, terms FOB destination, 1 10, n 30 30 Paid Caesar Salad Co for invoice of October 20 31 Paid UK Imports Co for invoice of October 1 31 Paid Veggie Co for invoice of October 19 Journalize the entries to record the transactions of Capers Company for October Refer to the Chart of Accounts for exact wording of account titles Chart of Accounts CHART OF ACCOUNTS Capers Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment LIABILITIES 211 Accounts Payable Caesar Salad Co 212 Accounts Payable Hoagie Co 213 Accounts Payable Taco Co 214 Accounts Payable UK Imports Co 215 Accounts Payable Veggie Co 216 Salaries Payable 218 Sales Tax Payable 219 Customers Refunds Payable 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense Store Equipment 525 Depreciation Expense Office Equipment 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense Journal Shaded cells have feedback Journalize the entries to record the transactions of Capers Company for October Refer to the Chart of Accounts for exact wording of account titles How does grading work PAGE 10 JOURNAL ACCOUNTING EQUATION Score 275 301 DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Points 54 82 60 Feedback Check My Work Journalize these transactions from the buyer's perspective Discounts are taken on the amount owed to the seller, except for any freight costs Oct 1, 3, 4, 19, 20 Using the perpetual inventory system, purchases of inventory on account are recorded by debiting the merchandise inventory account and crediting the accounts payable account Under FOB shipping point, freight is paid by the buyer, while FOB destination freight is the seller's expense Often freight must be prepaid for the carrier to deliver Oct 6 Any discounts or returns are recorded directly by the buyer who debits Accounts Payable and credits Merchandise Inventory, basically reversing what was done in recording the purchase Oct 19 Freight expense increases the cost of the merchandise However, freight is typically prepaid in cash Oct 13 Since the invoice is paid within the discount period, the cash paid on account is the difference between the invoice and the discount Oct 14 Returns are not eligible for discounts Since the invoice is paid within the discount period, Accounts Payable is debited for the balance in the account The cash paid on account is the difference between the invoice and the discount, less the returns Oct 30 Since the invoice is paid within the discount period, the cash paid on account is the difference between the invoice and the discount Oct 31 (UK Imports Veggie) Since no discounts are allowed, no discounts are recorded The cash paid on account in each case is equal to the invoice

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The following selected transactions were completed by Capers Company during October of the current year: Oct. 1 Purchased merchandise from UK Imports Co., $14,448, terms

The following selected transactions were completed by Capers Company during October of the current year:

Oct.	1	Purchased merchandise from UK Imports Co., $14,448, terms FOB destination, n/30.
	3	Purchased merchandise from Hoagie Co., $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice.
	4	Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30.
	6	Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4.
	13	Paid Hoagie Co. for invoice of October 3.
	14	Paid Taco Co. for invoice of October 4 less debit memo of October 6.
	19	Purchased merchandise from Veggie Co., $27,300, terms FOB shipping point, n/eom.
	19	Paid freight of $400 on October 19 purchase from Veggie Co.
	20	Purchased merchandise from Caesar Salad Co., $22,000, terms FOB destination, 1/10, n/30.
	30	Paid Caesar Salad Co. for invoice of October 20.
	31	Paid UK Imports Co. for invoice of October 1.
	31	Paid Veggie Co. for invoice of October 19.

Journalize the entries to record the transactions of Capers Company for October. Refer to the Chart of Accounts for exact wording of account titles.

Chart of Accounts

CHART OF ACCOUNTS

Capers Company

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Merchandise Inventory
131	Estimated Returns Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment

	LIABILITIES
211	Accounts Payable-Caesar Salad Co.
212	Accounts Payable-Hoagie Co.
213	Accounts Payable-Taco Co.
214	Accounts Payable-UK Imports Co.
215	Accounts Payable-Veggie Co.
216	Salaries Payable
218	Sales Tax Payable
219	Customers Refunds Payable
221	Notes Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing
312	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
526	Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense

Journal

Shaded cells have feedback.

Journalize the entries to record the transactions of Capers Company for October. Refer to the Chart of Accounts for exact wording of account titles.

How does grading work?

PAGE 10

JOURNAL

ACCOUNTING EQUATION

Score: 275/301

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
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8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24

Points:

54.82 / 60

Feedback

Check My Work

Journalize these transactions from the buyer's perspective. Discounts are taken on the amount owed to the seller, except for any freight costs.

Oct. 1, 3, 4, 19, & 20: Using the perpetual inventory system, purchases of inventory on account are recorded by debiting the merchandise inventory account and crediting the accounts payable account. Under FOB shipping point, freight is paid by the buyer, while FOB destination freight is the seller's expense. Often freight must be prepaid for the carrier to deliver.

Oct. 6: Any discounts or returns are recorded directly by the buyer who debits Accounts Payable and credits Merchandise Inventory, basically reversing what was done in recording the purchase.

Oct. 19: Freight expense increases the cost of the merchandise. However, freight is typically prepaid in cash.

Oct. 13: Since the invoice is paid within the discount period, the cash paid on account is the difference between the invoice and the discount.

Oct. 14: Returns are not eligible for discounts. Since the invoice is paid within the discount period, Accounts Payable is debited for the balance in the account. The cash paid on account is the difference between the invoice and the discount, less the returns.

Oct. 30: Since the invoice is paid within the discount period, the cash paid on account is the difference between the invoice and the discount.

Oct. 31 (UK Imports & Veggie): Since no discounts are allowed, no discounts are recorded. The cash paid on account in each case is equal to the invoice.