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The following transactions for Liberty Tire, Inc., occurred during November i (Click the icon to view the transactions.) Requirements 1. Journalize the transactions on the

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The following transactions for Liberty Tire, Inc., occurred during November i (Click the icon to view the transactions.) Requirements 1. Journalize the transactions on the books of Liberty Tire, Inc. assuming the "net" method is used. 2. What was Liberty Tire, Inc.'s gross profit for the month of November? Requirement 1. Journalize the transactions on the books of Liberty Tire, Inc. assuming the "net" method is used. (Record debits first, then credits. Exclude explanations from any journal entries.) Nov 4: Purchased $6,500 of merchandise on account from Peter's Tire. Terms, 2/15, n/45, FOB shipping point. Peter's Tire prepaid the $200 shipping cost and added the amount to the invoice. Journal Entry Accounts Date * More Info Debit Credit Nov Nov 7: Purchased $600 of supplies on account from Office Sale. Terms, 3/10, 1/30, FOB destination. Journal Entry Accounts Nov 4 Purchased $6,500 of merchandise on account from Peter's Tire. Terms, 2/15, n/45, FOB shipping point. Peter's Tire prepaid the $200 shipping cost and added the amount to the invoice. 7 Purchased $600 of supplies on account from Office Sale. Terms, 3/10, n/30, FOB destination. 9 Sold $1,100 (cost, $400) of merchandise on account to W. Furmick. Terms, 2/15, n/45, FOB destination 11 Paid $95 freight charges to deliver goods to W. Furmick. 13 Returned $1,200 of the merchandise purchased on November 4 and received a credit. 15 Sold $840 (cost, $200) of merchandise to cash customers. 16 Paid for the supplies purchased on November 7. 18 Paid Peter's Tire the amount due from the November 4 purchase in full. 20 W. Furmick returned $100 (cost, $50) of merchandise from the November 9 sale. 22 Purchased $3,800 of inventory. Paid cash. 23 Received payment in full from W. Furmick for the November 9 sale. 30 The refund liability for the month of November was estimated to be $300. The cost of goods estimated to be returned was $180. Date Debit Credit Nov Nov 9: Sold $1,100 (cost, $400) of merchandise on account to W. Furmick. Terms, 2/15, n/45, FOB destination. Print Done Begin by journalizing the revenue from the sale of merchandise. (Do not yet record the cost related to the sale. W Journal Entry Date Accounts Debit Credit Nov Now journalize the cost of goods sold related to the sale of merchandise from November 9. Journal Entry Accounts Date Debit Credit Nov Nov 11: Paid $95 freight charges to deliver goods to W. Furmick Journal Entry Date Accounts Debit Credit Nov 1 Nov 13: Returned $1,200 of the merchandise purchased on November 4 and received a credit. Journal Entry Date Accounts Debit Credit Nov Nov 15: Sold $840 (cost, $200) of merchandise to cash customers Begin by journalizing the revenue from the sale of merchandise. (Do not yet record the cost related to the sale. We will do this in the next journal entry.) Journal Entry Accounts Date Debit Credit Nov 15 Now journalize the cost of goods sold related to the sale of merchandise from November 15. Journal Entry Date Accounts Debit Credit Nov Nov 16: Paid for the supplies purchased on November 7. Journal Entry Date Accounts Debit Credit Nov 16 Nov 18: Paid Peter's Tire the amount due from the November 4 purchase in full. Journal Entry Accounts Date Debit Credit Nov Nov 20: W. Furmick returned $100 (cost, $50) of merchandise from the November 9 sale. Start by recording the receivable adjustment portion of the merchandise return. (Do not yet record the inventory adjustment related to the return. We will do this in the next journal entry.) Journal Entry Accounts Debit Credit Date Nov 20 Now journalize the inventory adjustment portion of the merchandise return from November 20. Journal Entry Accounts Debit Credit Date Nov 20 Nov 22: Purchased $3,800 of inventory. Paid cash. Journal Entry Accounts Date Debit Credit Nov 22 Nov 23: Received payment in full from W. Furmick for the November 9 sale. Journal Entry Accounts Date Debit Credit Nov 23 Nov 30: The refund liability for the month of November was estimated to be $300. The cost of goods estimated to be returned was $180. Begin by journalizing the liability portion of the entry. (Do not yet record the asset portion of the entry. We will do that in the following step.) Journal Entry Date Accounts Debit Credit Nov 30 Now journalize the asset adjustment portion of the estimated returns transaction: The cost of goods estimated to be returned was $180. Journal Entry Date Accounts Debit Credit Nov 30 Requirement 2. What was Liberty Tire, Inc.'s gross profit for the month of November? Begin by selecting the formula, and then enter the amounts to determine gross profit for the month. Sales revenue - Cost of goods sold = Gross profit The following transactions for Liberty Tire, Inc., occurred during November i (Click the icon to view the transactions.) Requirements 1. Journalize the transactions on the books of Liberty Tire, Inc. assuming the "net" method is used. 2. What was Liberty Tire, Inc.'s gross profit for the month of November? Requirement 1. Journalize the transactions on the books of Liberty Tire, Inc. assuming the "net" method is used. (Record debits first, then credits. Exclude explanations from any journal entries.) Nov 4: Purchased $6,500 of merchandise on account from Peter's Tire. Terms, 2/15, n/45, FOB shipping point. Peter's Tire prepaid the $200 shipping cost and added the amount to the invoice. Journal Entry Accounts Date * More Info Debit Credit Nov Nov 7: Purchased $600 of supplies on account from Office Sale. Terms, 3/10, 1/30, FOB destination. Journal Entry Accounts Nov 4 Purchased $6,500 of merchandise on account from Peter's Tire. Terms, 2/15, n/45, FOB shipping point. Peter's Tire prepaid the $200 shipping cost and added the amount to the invoice. 7 Purchased $600 of supplies on account from Office Sale. Terms, 3/10, n/30, FOB destination. 9 Sold $1,100 (cost, $400) of merchandise on account to W. Furmick. Terms, 2/15, n/45, FOB destination 11 Paid $95 freight charges to deliver goods to W. Furmick. 13 Returned $1,200 of the merchandise purchased on November 4 and received a credit. 15 Sold $840 (cost, $200) of merchandise to cash customers. 16 Paid for the supplies purchased on November 7. 18 Paid Peter's Tire the amount due from the November 4 purchase in full. 20 W. Furmick returned $100 (cost, $50) of merchandise from the November 9 sale. 22 Purchased $3,800 of inventory. Paid cash. 23 Received payment in full from W. Furmick for the November 9 sale. 30 The refund liability for the month of November was estimated to be $300. The cost of goods estimated to be returned was $180. Date Debit Credit Nov Nov 9: Sold $1,100 (cost, $400) of merchandise on account to W. Furmick. Terms, 2/15, n/45, FOB destination. Print Done Begin by journalizing the revenue from the sale of merchandise. (Do not yet record the cost related to the sale. W Journal Entry Date Accounts Debit Credit Nov Now journalize the cost of goods sold related to the sale of merchandise from November 9. Journal Entry Accounts Date Debit Credit Nov Nov 11: Paid $95 freight charges to deliver goods to W. Furmick Journal Entry Date Accounts Debit Credit Nov 1 Nov 13: Returned $1,200 of the merchandise purchased on November 4 and received a credit. Journal Entry Date Accounts Debit Credit Nov Nov 15: Sold $840 (cost, $200) of merchandise to cash customers Begin by journalizing the revenue from the sale of merchandise. (Do not yet record the cost related to the sale. We will do this in the next journal entry.) Journal Entry Accounts Date Debit Credit Nov 15 Now journalize the cost of goods sold related to the sale of merchandise from November 15. Journal Entry Date Accounts Debit Credit Nov Nov 16: Paid for the supplies purchased on November 7. Journal Entry Date Accounts Debit Credit Nov 16 Nov 18: Paid Peter's Tire the amount due from the November 4 purchase in full. Journal Entry Accounts Date Debit Credit Nov Nov 20: W. Furmick returned $100 (cost, $50) of merchandise from the November 9 sale. Start by recording the receivable adjustment portion of the merchandise return. (Do not yet record the inventory adjustment related to the return. We will do this in the next journal entry.) Journal Entry Accounts Debit Credit Date Nov 20 Now journalize the inventory adjustment portion of the merchandise return from November 20. Journal Entry Accounts Debit Credit Date Nov 20 Nov 22: Purchased $3,800 of inventory. Paid cash. Journal Entry Accounts Date Debit Credit Nov 22 Nov 23: Received payment in full from W. Furmick for the November 9 sale. Journal Entry Accounts Date Debit Credit Nov 23 Nov 30: The refund liability for the month of November was estimated to be $300. The cost of goods estimated to be returned was $180. Begin by journalizing the liability portion of the entry. (Do not yet record the asset portion of the entry. We will do that in the following step.) Journal Entry Date Accounts Debit Credit Nov 30 Now journalize the asset adjustment portion of the estimated returns transaction: The cost of goods estimated to be returned was $180. Journal Entry Date Accounts Debit Credit Nov 30 Requirement 2. What was Liberty Tire, Inc.'s gross profit for the month of November? Begin by selecting the formula, and then enter the amounts to determine gross profit for the month. Sales revenue - Cost of goods sold = Gross profit

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