Question
Week 1 Sold 110 Mandy Amp and the Thought Police CDs to D-Funkt Records for $40 each, Invoice No. 501. Obtained a loan of $46,000
Week 1 Sold 110 Mandy Amp and the Thought Police CDs to D-Funkt Records for $40 each, Invoice No. 501. Obtained a loan of $46,000 from ZNZ Bank at a simple interest rate of 6% per year. The first interest payment is due at the end of August 2020 and the principal of the loan is to be repaid on June 1, 2024. Purchased 240 Boony & the Noobs CDs from Phin records for $17 each, terms 2/10, n/30. Purchased 260 Cray-Z Albums from Shadow records for $20 each, terms net 30. Paid the full amount owing to Mapster records, Check No. 903. Payment fell within discount period. Made cash sales of $4,294 during the first 3 days of the month. Purchased 95 AC/BC T-shirts with cash for $22 each, Check No. 904. Paid the full amount owing to Pony OMC records, Check No. 905. Payment fell within discount period.
Week 2 Paid the full amount owing to Toadstool records, Check No. 906. Made cash sales of $10,632 during the week. Carrie O'Key paid the full amount owing on their account. Since Carrie O'Key has been a loyal customer from the day the business commenced, a 5% discount was given for this early repayment. D-Funkt Records returned $1,392 worth of product. Issued a Credit Memorandum for $1,392. Sold 15 The Oblique References CDs to Council Records for $29 each, Invoice No. 502.
Week 3 Paid sales staff wages of $5,218 for the two weeks up to and including yesterday, Check No. 907. Made cash sales of $11,667 during the week. Sold 60 Best of the 1870s, 80s & 90s Albums to Obsenity Records for $17 each, Invoice No. 503. D-Funkt Records paid the full amount owing on their account. Returned $1,921 worth of faulty product to Shadow records. Received a Credit Memorandum for $1,921. Received a purchase order from Council Records. Created a corresponding sales order to deliver 110 Cray-Z Albums to this customer for $35 each, Invoice No. 504. Council Records paid $100 in partial payment of their account.
Week 4 Made cash sales of $10,195 during the week. Paid the full amount owing to Shadow records, Check No. 908. Paid the full amount owing to Phin records, Check No. 909. Ordered 80 Evan Handed and the Handymen CDs from Pony OMC records for $17 each, agreed terms with Pony OMC records are 2/10, n/30. Delivered 110 Cray-Z Albums to Council Records for $35 each, Invoice No. 504, which was ordered on the 20th.
Week 5 Received 80 Evan Handed and the Handymen CDs for $17 each, which were ordered on the 27th, agreed terms with Pony OMC records are 2/10, n/30. Mira Ball Records paid the full amount owing on their account. Paid sales staff wages of $5,826 for the two weeks up to and including yesterday, Check No. 910. Made cash sales of $8,225 during the last 6 days of the month. Paid monthly salary of $6,100 to Roderigo Rayleigh, Check No. 911.
Note: All transactions need to be recorded in journals and ledgers.
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