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The following selected transactions were completed during August between Summit Company and Beartooth Co.: Aug. 1 Summit Company sold merchandise on account to Beartooth Co.,
The following selected transactions were completed during August between Summit Company and Beartooth Co.:
Aug. | 1 | Summit Company sold merchandise on account to Beartooth Co., $49,200, terms FOB destination, n/15. The cost of the goods sold was $27,580. |
2 | Summit Company paid freight of $1,115 for delivery of merchandise sold to Beartooth Co. on August 1. | |
5 | Summit Company sold merchandise on account to Beartooth Co., $68,150, terms FOB shipping point, n/eom. The cost of the goods sold was $42,180. | |
9 | Beartooth Co. paid freight of $2,230 on August 5 purchase from Summit Company. | |
15 | Summit Company sold merchandise on account to Beartooth Co., $61,100, terms FOB shipping point, n/45. Summit paid freight of $1,700, which was added to the invoice. The cost of the goods sold was $34,410. | |
16 | Beartooth Co. paid Summit Company for purchase of August 1. | |
20 | Summit Company paid Beartooth Co. a cash refund of $1,100 for defective merchandise purchased on August 1. Beartooth Co. kept the merchandise. | |
31 | Beartooth Co. paid Summit Company on account for purchase of August 5. | |
31 | Summit Company issued Beartooth Co. a credit memo for merchandise with an invoice amount of $3,600 that was returned from the August 15 sale. The cost of the merchandise returned was $2,500. |
Required:
Journalize the August transactions for (1) Summit Company and (2) Beartooth Co. |
X
Chart of Accounts-Beartooth Co.
CHART OF ACCOUNTSSummit CompanyGeneral Ledger
ASSETS | |
---|---|
110 | Cash |
121 | Accounts Receivable-Beartooth Co. |
125 | Notes Receivable |
130 | 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 | |
---|---|
210 | Accounts Payable |
216 | Salaries Payable |
218 | Sales Tax Payable |
219 | Customer Refunds Payable |
221 | Notes Payable |
EQUITY | |
---|---|
310 | Common Stock |
311 | Retained Earnings |
312 | Dividends |
REVENUE | |
---|---|
410 | Sales |
610 | Interest Revenue |
EXPENSES | |
---|---|
510 | Cost of Goods 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 |
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