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The following selected transactions were completed during August between Summit Company and Beartooth Co Both companies use the net method under a perpetual inventory system

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The following selected transactions were completed during August between Summit Company and Beartooth Co Both companies use the net method under a perpetual inventory system Aug 1 2 5 9 15 Summit Company sold merchandise on account to Heartooth Co 548,300, termos destination, 2/15, neom The cost at the goods cold was $29.900 Summt Company paid freight of 51 230 for delivery of merchandise sold to Benitooth Ca on August 1 $ Summit Company sold merchandise on account to Beartooth Co $70 210, terms EOS teom The cost of the goods sold was $38,400 Beatooth Co pad freight of $2,450 on August 5 purchase from Summit Company Summit Company sold merchandise on account to Beartooth C, 855 200, terms For shipping point 1/45 Sument paid freight at 51 795, which was added to the invoice The cost of the goods sold was $83.780 Beartooth Capad Surront Company for purchase of August 1 Burunt Company pad Beatooth Co a cash rehand ot 51 One for defective merchandise purchased on August 1 Bertooth Co kept the merchandise Bartooth Co pud Suit Company on account for purchase of August Summit Company issued betooth Coacred memo for merchandise with an ice amount of 53.700 that was returned from the August 15 Sale The cost of the merchandise returned was $2.200 15 20 31 31 CHART OF ACCOUNTS Summit Company General Ledger ASSETS REVENUE 110 Cash 410 Sales 121 Accounts Receivable-Beartooth Co. 610 Interest Revenue 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 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 LIABILITIES 210 Accounts Payable 216 Salaries Payable 710 Interest Expense TOUT Lanta DeprecTALUI CAPETISCHE 192 Store Equipment 526 Salaries Expense 193 Accumulated Depreciation Store Equipment 531 Rent Expense 533 Insurance Expense 194 Office Equipment 195 Accumulated Depreciation Office Equipment 534 Store Supplies Expense 535 Office Supplies Expense LIABILITIES 536 Credit Card Expense 210 Accounts Payable 539 Miscellaneous Expense 216 Salaries Payable 710 Interest Expense 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends CHART OF ACCOUNTS Beartooth Co. General Ledger ASSETS REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 521 Delivery Expense 110 Cash 120 Accounts Receivable 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 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 LIABILITIES 211 Accounts Payable-Summit Company 216 Salaries Payable 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation Store Equipment 194 Office Equipment 195 Accumulated Depreciation Office Equipment 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 LIABILITIES 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense 211 Accounts Payable-Summit Company 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Common Stock 311 Retained Eamings 312 Dividends Journal Summit Company (1) Journage the August transactions for Summe Company Refer to the Chart of Accounts of the appropriate company for exact wording of account holes WOE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POSTER CHEDET LATES EOLITY LL Printem 11 1 15 17 TE 13 10 21 11 21 34 Journal-Bartooth Co (2) Journalize the August transactions for Beartooth Co. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles PAGE 15 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POSTRE DERIT CREDIT ASSETS LIABILITIES 1 EQUITY 2 . 4 9 10 11 12 14 15 XUAL ACCOUNTING EQUATION DATE DI POST DET ASSETS LAETICS TOLETY 11 11 14

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