The following trial balance pertains to Benjis Grocery as of January 1, 2018 Account Title Beginning Balances Cash $ 64,000 Accounts receivable 12,000 Merchandise inventory 90,000 Accounts payable 7,500 Common stock 89,000 Retained earnings 69,500 The following events occurred in 2018 Assume that Benjis uses the periodic inventory method Purchased land for $30,000 cash Purchased merchandise on account for $230,000, terms 1 10, n 45 Paid freight of $2,100 cash on merchandise purchased FOB shipping point Returned $8,600 of defective merchandise purchased in Event 2 Sold merchandise for $186,000 cash Sold merchandise on account for $236,000, terms 2 10, n 30 Paid cash within the discount period on accounts payable due on merchandise purchased in Event 2 Hint there are two separate journal entries for this one, 7A and 7B Paid $28,500 cash for selling expenses Collected $156,000 of the accounts receivable from Event 6 within the discount period Collected $56,000 of the accounts receivable but not within the discount period Paid $17,100 of other operating expenses A physical count indicated that $48,300 of inventory was on hand at the end of the accounting period Required Record the preceding transactions in a horizontal statements model In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event The beginning balances have been recorded as an example

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Posted on Aug 28, 2024

The following trial balance pertains to Benjis Grocery as of January 1, 2018:

The following events occurred in 2018. Assume that Benjis uses the periodic inventory method.

Purchased land for $30,000 cash.
Purchased merchandise on account for $230,000, terms 1/10, n/45.
Paid freight of $2,100 cash on merchandise purchased FOB shipping point.
Returned $8,600 of defective merchandise purchased in Event 2.
Sold merchandise for $186,000 cash.
Sold merchandise on account for $236,000, terms 2/10, n/30.
Paid cash within the discount period on accounts payable due on merchandise purchased in Event 2. *Hint: there are two separate journal entries for this one, 7A and 7B.
Paid $28,500 cash for selling expenses.
Collected $156,000 of the accounts receivable from Event 6 within the discount period.
Collected $56,000 of the accounts receivable but not within the discount period.
Paid $17,100 of other operating expenses.
A physical count indicated that $48,300 of inventory was on hand at the end of the accounting period.

Required:

Record the preceding transactions in a horizontal statements model. In the Cash Flows column, use OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The beginning balances have been recorded as an example.