1 Financial Statements Review & Merchandising Transactions (Chp 5) 2 Assuming the perpetual inventory system is utilized; prepare the journal entries to record the following transaction for Jemison Jewelers. June 2 Jemison received an invoice for $20,000 from one of its merchandise suppliers. Terms were 2/10,n/30 FOB shipping point. 3 3 4 5 6 7 8 9 LO 1 Jemison paid transportation cost on the June 2nd purchase, $1,200. 4 Jemison returned $3,400 of the merchandise billed on June 2nd because it was defective. 5 Jemison sold merchandise on account to Charles Chapman Jewelers for $9,000. Terms were 3/15, n/30 FOB destination. Jemison's cost for this merchandise was $3,000. -2 3 4 8 Jemison paid transportation cost on the June 5th sale, $500. -5 -6 10 Jemison paid the invoice dated June 2nd, less the return and the discount -7 -8 15 Charles Chapman Jewelers returned $3,000 of the merchandise from the June 5th sale. Jemison's cost for this merchandise was $1,000. 9 20 1 19 Jemison received payment on the remaining amount due from Charles Chapman Jewelers, less the return and the discount 22 25 Paid part-time salesperson wages, $1,200. 30 Paid rent, $1,500. -3 24 5 26 7 8 -9 50 Additional Information: (No Journal Entries Necessary) Please use these Beginning Balances for Jun 1, 2019 Cash Capital $ 40,000 40,000 1 2 3 4 Requirements: 5 1. Journalize Jemison Jewelers' June transactions. 3 -4 Requirements: 5 1. Journalize Jemison Jewelers' June transactions. 6 2. Post Jemison Jewelers's June transactions to T-Accounts. 7 3. Prepare Jemison Jewelers's Trial Balance as of June 30, 2019. 8 4. Prepare Jemison Jewelers's Multi-Step Income Statement for the month ended June 30, 2019. 9 5. Calculate Gross Profit %: 10 1 **ALL FINANCIAL STATEMENTS MUST BE COMPLETE WITH PROPER 3-LINE HEADING** 12 13 **COMPLETE ENTIRE PACKET NEATLY USING PENCIL, NO INK** 15 STEP 1: JOURNALIZE TRANSACTIONS 1 2 3 JOURNAL - Pg. 1 Accounts Names Post (No Explanations Necessary) Ref 4 Date Debit Credit 5 6 7 8 9 LO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 8 D E G H M N o P Q R S T X STEP 2: POST TRANSACTIONS TO THE ACCOUNTS Cash Merchandise Inventory Accounts Payable Capital June 1 Bol $ 40,000 $ 40,000 June 1 Bal. STEP 3: PREPARE TRIAL BALANCE 1 2 3 Company Name: 1 Trial Balance Date: 5 5 7 3 Balance Account Name Debit Credit 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 A STEP 4: PREPARE MULTI-STEP INCOME STATEMENT 1 2 3 4 5 6 7 8 9 LO 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27