The selected transactions below were completed by Affordable Supplies Co., which sells supplies primarily to wholesalers and occasionally to retail customers.

Instructions:

Illustrate the effects of each of the transactions on the accounts and financial statements of Affordable Supplies Co.

If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases, cash outflows, and the income statement effects that reduce gross profit as negative amounts.

Jan. 6. Sold merchandise on account, $14,000, terms FOB shipping point, n/eom. The cost of merchandise sold was $8,400.

		Balance Sheet
	Assets	=	Liabilities	+	Stockholders' Equity
Accounts Receivable	+	Inventory	=	No Effect	+	Retained Earnings
Jan. 6.	fill in the blank 5		fill in the blank 6		fill in the blank 7		fill in the blank 8
Statement of Cash Flows		Income Statement
No effect	fill in the blank 10			fill in the blank 12
				fill in the blank 14
				fill in the blank 16

 

Jan. 8. Sold merchandise on account, $20,000, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $14,000.

		Balance Sheet
	Assets	=	Liabilities	+	Stockholders' Equity
Accounts Receivable	+	Inventory	=	No Effect	+	Retained Earnings
Jan. 8.	fill in the blank 21		fill in the blank 22		fill in the blank 23		fill in the blank 24
Statement of Cash Flows		Income Statement
	fill in the blank 26			fill in the blank 28
				fill in the blank 30
				fill in the blank 32

 

Jan. 16. Sold merchandise on account, $19,500, terms FOB shipping point, n/30. The cost of merchandise sold was $11,700.

		Balance Sheet
	Assets	=	Liabilities	+	Stockholders' Equity
Accounts Receivable	+		=		+
Jan. 16.	fill in the blank 37		fill in the blank 38		fill in the blank 39		fill in the blank 40
Statement of Cash Flows		Income Statement
	fill in the blank 42			fill in the blank 44
				fill in the blank 46
				fill in the blank 48

 

Jan. 18. Received check for amount due for sale on January 8.

		Balance Sheet
	Assets	=	Liabilities	+	Stockholders' Equity
	+		=		+
Jan. 18.	fill in the blank 53		fill in the blank 54		fill in the blank 55		fill in the blank 56
	Statement of Cash Flows		Income Statement
		fill in the blank 58			fill in the blank 60

 

Jan. 19. Issued credit memorandum for $4,500 for merchandise returned from sale on January 16. The cost of the merchandise returned was $2,700.

		Balance Sheet
	Assets	=	Liabilities	+	Stockholders' Equity
	+		+		=		+
Jan. 19.	fill in the blank 66		fill in the blank 67		fill in the blank 68		fill in the blank 69		fill in the blank 70
	Statement of Cash Flows		Income Statement
		fill in the blank 72			fill in the blank 74

 

Jan. 26. Received check for amount due for sale on January 16 less credit memorandum of January 19.

		Balance Sheet
	Assets	=	Liabilities	+	Stockholders' Equity
	+		=		+
Jan. 26.	fill in the blank 79		fill in the blank 80		fill in the blank 81		fill in the blank 82
	Statement of Cash Flows		Income Statement
		fill in the blank 84			fill in the blank 86

 

Jan. 31. Paid Cashell Delivery Service $3,000 for merchandise delivered during January to customers under shipping terms of FOB destination.

		Balance Sheet
	Assets	=	Liabilities	+	Stockholders' Equity
	+		=		+
Jan. 31.	fill in the blank 91		fill in the blank 92		fill in the blank 93		fill in the blank 94
	Statement of Cash Flows		Income Statement
		fill in the blank 96			fill in the blank 98

 

Jan. 31. Received check for amount due for sale of January 6.

		Balance Sheet
	Assets	=	Liabilities	+	Stockholders' Equity
	+		=		+
Jan. 31.	fill in the blank 103		fill in the blank 104		fill in the blank 105		fill in the blank 106
	Statement of Cash Flows		Income Statement
		fill in the blank 108			fill in the blank 110