Chapter 5 Bus1A Homework

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10 points priceof purchased with an invoice taos Company merchandise resalefrom TusconCompany for Taospaidwithin the n160. merchandise costTuscon The had and termsof 2110, $14,322. $21,000 credit period. inventory system. Assume bothbuyer seller a perpetual that and use discount (Omit the "$" sign in your l(a)Prepare entriesthat the buyershouldrecordfor the purchase. response.) General Journal Merchandise inventory payable lAccounts Debit l,:J l

Credit | 21,000

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(Omitthe "$" sign in your record the cashpayment. for 1(b)Prepare entries that the buyershould response.) General Journal

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Debit

Credit

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I Cash

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Debit Credit

(Omitthe "$" sign in your response.) Prepare record thesale. for 2(a) entries theseller that should General Journal lAccountsreceivable

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(Omitthe "$" sign in your 2(b)Prepare for entries that the sellershould record the cashcollection. response.) General Journal I Cash l S a l e sd i s c o u n t s LJ ***'*"*1*1 t :,1

Debit

Credit

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Assume that the buyerborrowed enough cashto pay the balance the lastday of the discount on period an annual period. at interest of 11o/o paidit backon the lastdayof thecredit rate and Compute (Use 365 days a year. Round your how much the buyer saved by following this strategy. intermediate calculations and final answerto 2 decimalplaces.Omit the "$" sign in your response.) Buyer'snet savings Explanation. 1.

" $:f / /o^oi)

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Assignment Print View
CashPayment: payable period. Paid account within discount 2% 3. Amount borrowed paywithdiscount $ 20,580 to x 11o/o Annual of interest rate per Interest year $2,263.80 ffi iiii iiiiiiririiir,;i

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per Interest day ($2,263.80365days)= $6.20 / Savings fromdiscount taken($21,000 $20,580) $ 420.00 paidon 50-day Interest loan(50daysx $6.20) Jt,0..9.? payin discount period 110.00 Netsavings fromborrowing to $ '' ViewHint#1

Worksheet

Learning 04-Pl Analyze Objective: andrecord transactions for purchases merchandise using a perpetual system. Learning Objective: 04-P2Analyze for and record transactions merchandise using perpetual a sales system.

Difficulty: Medium

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10points pirtJ was organizeo Mii t, 2ot t, anomadeitt firstpurchase merCninaise Mai 3. th; on Spare on ot purchase for 1,900 Parts for was sold1,140 the units of unitsat a priceof $8 perunit.On May5, Spare n/60. Co. of $12perunitto DeSoto Terms thesalewere2/10, needs.SpareParts a. On May 7, DeSotoreturns399 unitsbecause they did not fit the customer's restores unitsto its inventory. the b. On May8, DeSoto discovers 95 units damaged arestillof someuseand,therefore, that are but for keeps units. DeSoto credit memorandum $380to compensate the for the Spare Parts sends a damage. keeps68 of theseunits c. On May 15, DeSoto discovers 114unitsare the wrongcolor.DeSoto that DeSotoreturns to the because Spare Parts sends a $134 creditmemorandum compensate. remaining unitsto SpareParts. 46 the unitsto its inventory. SparePartsrestores 46 returned (Omitthe "$" sign in your response.) Prepare for Parts record May5 sale. entries Spare to the Date M"Y5 GeneralJournal solo merchandise credir. on Debit Credit

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To record costof sale.

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Prepare entriesfor each of the aboveseparate inventory transactions throughc usinga perpetual a (Omitthe "$" sign in your response.) system.

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Date May 7

General Journa Accepted return a froma customer.

Debit

Credit...
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