The following trial balance pertains to Benji's Grocery as of January 1, 2018: Account Title ________________________ Beginning
Question:
The following trial balance pertains to Benji's 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 Benji's uses the periodic inventory method.
1. Purchased land for $30,000 cash.
2. Purchased merchandise on account for $230,000, terms 1/10, n/45.
3. Paid freight of $2,100 cash on merchandise purchased FOB shipping point.
4. Returned $8,600 of defective merchandise purchased in Event 2.
5. Sold merchandise for $186,000 cash.
6. Sold merchandise on account for $236,000, terms 2/10, n/30.
7. Paid cash within the discount period on accounts payable due on merchandise purchased in Event 2.
8. Paid $28,500 cash for selling expenses.
9. Collected $156,000 of the accounts receivable from Event 6 within the discount period.
10. Collected $56,000 of the accounts receivable but not within the discount period.
11. Paid $17,100 of other operating expenses.
12. A physical count indicated that $48,300 of inventory was on hand at the end of the accounting period.
Required
a. Record these transactions in a horizontal statements model like the following one.
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b. Prepare a schedule of cost of goods sold and an income statement.
Accounts PayableAccounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
a Balance Sheet Income Statement Statement of Event No Cash Accts Rec Mdse Inv Land Accts Pay C Stoc...View the full answer
Survey of Accounting
ISBN: 978-1259631122
5th edition
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair, Bor Yi Tsay
