Wicked Wild Company is a service based company that rents canoes for use on local lakes and rivers. At the beginning of the new year, Wicked Wild Company decided to carry and sell T-shirts with its logo printed on them. Wicked Wild Company uses the perpetual inventory system to account for the inventory. During January 2019, Wicked Wild Company completed the following merchandising transactions:
Wicked Wild Company is a service based company that rents canoes for use on local lakes and rivers. At the beginning of the new year, Wicked Wild Company decided to carry and sell T-shirts with its logo ted on them. Wicked Wild Co uses the ual i system to account for the invento January 2019, Wicked Wild Co eted the following merchandising transactions Jan. 1 Purchased 15 T-shirts at $7 each and paid cash. 2 Sold 5 T-shirts for $13 each, total cost of $35. Received cash. 3 Purchased 110 T-shirts on account at $9 each. Terms 3/10, n/30 7 Paid the supplier for the T-shirts purchased on January 3, less discount. 8 Realized 10 T-shirts from the January 1 order were printed wrong and returned them for a cash refund. 10 Sold 100 T-shirts on account for $13 each, total cost of $900. Terms 5/15, n/45 12 Received payment for the T-shirts sold on account on January 10, less discount. 14 Purchased 150 T-shirts on account at $7 each Terms 4/ 15, n/30 18 Wicked Wild Company called the supplier from the January 14 purchase and told them that some of the T-shirts were the wrong color. The supplier offered a $70 purchase allowance. 20 Paid the supplier for the T-shirts purchased on January 14, less the allowance and discount. 21 Sold 100 T-shirts on account for $13 each, total cost of $648. Terms 4/20, n/30 23 Received a payment on account for the T-shirts sold on January 21, less discount 25 Purchased 410 T-shirts on account at $9 each. Terms 3/10, n/30, FOB shipping point. 27 Paid freight associated with the January 25 purchase, $41 29 Paid for the January 25 purchase, less discount. 30 Sold 270 T-shirts on account for $13 each, total cost of $2,207. Terms 1/10, n/30 31 Received payment for the T-shirts sold on January 30, less discount. Requirements 1 and 2. Enter the transactions in a sales journal (page 2), a cash receipts journal (page 5, omit Sales Discounts Forfeited column), a purchases journal (page 7), a cash payments journal (page 6), and a general journal (page 4), as appropriate. Total each column of the special journals. Show that total debits equal total credits in each special journal. For purposes of this problem, we will ignore posting references Begin with page 2 of the sales journal. Enter the transactions and total the journal. (Round all amounts to the nearest whole dollar. If a box is not used in the table, leave the box empty; do not select a label or enter a zero.) Invoice Post. Accounts Receivable DR Cost of Goods Sold DR Date No. Account Debited Ref Sales Revenue CR Merchandise Inventory CR 2019 Jan. 31 Totals Show how total debits equal total credits Total debits = Total credits Sales journal Next complete page 5 of the cash receipts journal, omitting the Sales Discounts Forfeited column. Enter the transactions and total the journal. (Round all amounts to the nearest whole dollar. If a box is not used in the table, leave the box empty, do not select a label or enter a zero. Abbreviations used: Rec. = Receivables, Rev.Revenue, Accts Accounts, InvInventory) Cash Receipts Journal Accounts Sales Post. Other Cost of Goods Sold DR Date Account Credited Ref. Cash DR Rec. CR Rev. CR Accts CR Merchandise Inv. CR 2019 Jan. Jan 31 Totals Show how total debits equal total credits Total debits = Total credits Cash receipts journalS Now complete page 7 of the purchases journal. Enter the transactions and total the journal. (If a box is not used in the table, leave the box empty; do not select a label or enter a zero. Do not enter a " for Zero balances. Abbreviations used: Pay. = Payable. Inv. = Inventory, Supp. = Supplies) Purchases Journal Page Other Accounts DR Vendor Account Post. Accounts Merchandise Office Account Post. Date Credited Terms Ref. Pay. CR Inv. DR Supp. DR Title Ref. Amount 2019 Jan Jan 31 Totals Show how total debits equal total credits Total debits = Total credits Purchases journal S Next complete page 6 of the cash payments journal. Enter the transactions and total the journal. (Round all amounts to the nearest whole dollar. If a box is not used in the table, leave the box empty; do not select a label or enter a zero.) Cash Payments Journal Date Ck. Post. Other Accounts Merchandise 2019 Account Debited Ref.Accounts DR Payable DRInventory CR Cash CR 0 Jan. Jan 31 Totals Show how total debits equal total credits Total debits = Total credits Cash payments journal% Finally complete the required entries to page 4 of the general journal. (Record debits first, then credits. Exclude explanations from any journal entries.) Jan. 18: Happy Camper Company called the supplier from the January 14 purchase and told them that some of the T-shirts were the wrong color. The supplier offered a $130 purchase allowance General Journal Page 4 Date Accounts Debit Credit Jan. 18 Wicked Wild Company is a service based company that rents canoes for use on local lakes and rivers. At the beginning of the new year, Wicked Wild Company decided to carry and sell T-shirts with its logo ted on them. Wicked Wild Co uses the ual i system to account for the invento January 2019, Wicked Wild Co eted the following merchandising transactions Jan. 1 Purchased 15 T-shirts at $7 each and paid cash. 2 Sold 5 T-shirts for $13 each, total cost of $35. Received cash. 3 Purchased 110 T-shirts on account at $9 each. Terms 3/10, n/30 7 Paid the supplier for the T-shirts purchased on January 3, less discount. 8 Realized 10 T-shirts from the January 1 order were printed wrong and returned them for a cash refund. 10 Sold 100 T-shirts on account for $13 each, total cost of $900. Terms 5/15, n/45 12 Received payment for the T-shirts sold on account on January 10, less discount. 14 Purchased 150 T-shirts on account at $7 each Terms 4/ 15, n/30 18 Wicked Wild Company called the supplier from the January 14 purchase and told them that some of the T-shirts were the wrong color. The supplier offered a $70 purchase allowance. 20 Paid the supplier for the T-shirts purchased on January 14, less the allowance and discount. 21 Sold 100 T-shirts on account for $13 each, total cost of $648. Terms 4/20, n/30 23 Received a payment on account for the T-shirts sold on January 21, less discount 25 Purchased 410 T-shirts on account at $9 each. Terms 3/10, n/30, FOB shipping point. 27 Paid freight associated with the January 25 purchase, $41 29 Paid for the January 25 purchase, less discount. 30 Sold 270 T-shirts on account for $13 each, total cost of $2,207. Terms 1/10, n/30 31 Received payment for the T-shirts sold on January 30, less discount. Requirements 1 and 2. Enter the transactions in a sales journal (page 2), a cash receipts journal (page 5, omit Sales Discounts Forfeited column), a purchases journal (page 7), a cash payments journal (page 6), and a general journal (page 4), as appropriate. Total each column of the special journals. Show that total debits equal total credits in each special journal. For purposes of this problem, we will ignore posting references Begin with page 2 of the sales journal. Enter the transactions and total the journal. (Round all amounts to the nearest whole dollar. If a box is not used in the table, leave the box empty; do not select a label or enter a zero.) Invoice Post. Accounts Receivable DR Cost of Goods Sold DR Date No. Account Debited Ref Sales Revenue CR Merchandise Inventory CR 2019 Jan. 31 Totals Show how total debits equal total credits Total debits = Total credits Sales journal Next complete page 5 of the cash receipts journal, omitting the Sales Discounts Forfeited column. Enter the transactions and total the journal. (Round all amounts to the nearest whole dollar. If a box is not used in the table, leave the box empty, do not select a label or enter a zero. Abbreviations used: Rec. = Receivables, Rev.Revenue, Accts Accounts, InvInventory) Cash Receipts Journal Accounts Sales Post. Other Cost of Goods Sold DR Date Account Credited Ref. Cash DR Rec. CR Rev. CR Accts CR Merchandise Inv. CR 2019 Jan. Jan 31 Totals Show how total debits equal total credits Total debits = Total credits Cash receipts journalS Now complete page 7 of the purchases journal. Enter the transactions and total the journal. (If a box is not used in the table, leave the box empty; do not select a label or enter a zero. Do not enter a " for Zero balances. Abbreviations used: Pay. = Payable. Inv. = Inventory, Supp. = Supplies) Purchases Journal Page Other Accounts DR Vendor Account Post. Accounts Merchandise Office Account Post. Date Credited Terms Ref. Pay. CR Inv. DR Supp. DR Title Ref. Amount 2019 Jan Jan 31 Totals Show how total debits equal total credits Total debits = Total credits Purchases journal S Next complete page 6 of the cash payments journal. Enter the transactions and total the journal. (Round all amounts to the nearest whole dollar. If a box is not used in the table, leave the box empty; do not select a label or enter a zero.) Cash Payments Journal Date Ck. Post. Other Accounts Merchandise 2019 Account Debited Ref.Accounts DR Payable DRInventory CR Cash CR 0 Jan. Jan 31 Totals Show how total debits equal total credits Total debits = Total credits Cash payments journal% Finally complete the required entries to page 4 of the general journal. (Record debits first, then credits. Exclude explanations from any journal entries.) Jan. 18: Happy Camper Company called the supplier from the January 14 purchase and told them that some of the T-shirts were the wrong color. The supplier offered a $130 purchase allowance General Journal Page 4 Date Accounts Debit Credit Jan. 18
