Name:
Course:
Date:
Problem P5-1A, Journalize purchase and sales transactions under a perpetual inventory system.
Financial Accounting
, 8
th
Edition by Weygandt, Kieso, and Kimmel
Primer on Using Microsoft Excel in Accounting
by Rex A Schildhouse
This challenge has been modified to a units presentation.
Problem P5-1A,
Ready-Set-Go Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of
its customers. At the end of June, Ready-Set-Go’s inventory consisted of
120
suitcases purchased at
$10.00
each. During the month of July the following merchandising transactions occurred.
Jul 1
Purchased
150
suitcases on account for
$10.00
each from Trunk Manufacturers, FOB
destination, terms 2/10, n/30. The appropriate party also made a cash payment of
$100.00
for
freight on this date.
Jul 3
Sold
110
suitcases on account to Satchel World for
$20.00
each. The cost of suitcases
sold is
$1,400.00
Jul 9
Paid Trunk Manufacturers in full.
Jul 12
Received payment in full from Satchel World.
Jul 17
Sold
70
suitcases on account to Lady GoGo for
$20.00
each. The cost of
suitcases sold is
$1,010.00
Jul 18
Purchased
190
suitcases on account for
$1,900.00
from Holiday Manufacturers, FOB
shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of
$125.00
for freight on this date.
Jul 20
Received
$300.00
credit (including freight) for
30
suitcases returned to Holiday
Manufacturers.
Jul 21
Received payment in full from Lady GoGo.
Jul 22
Sold
90
suitcases on account to Vagabond for
$25.00
each. The cost of suitcases
sold is
$1,350.00
Jul 30
Paid Holiday Manufacturers in full.
Jul 31
Granted Vagabond
$200.00
credit for
8
suitcases returned costing
$120.00
Sansomite's chart of accounts includes the following:
Acct Nbr
Account title:
Acct Nbr
Account title:
101
Cash
401
Sales Revenue
112
Accounts Receivable
412
Sales Returns and Allowances
120
Inventory
414
Sales Discounts
201
Accounts Payable
505
Cost of Goods Sold
Instructions:
Journalize the transactions for the month of July for Ready-Set-Go using a perpetual inventory system.
Date
Account titles and explanations
Ref
Debit
Credit
Jul 1
Account title
Amount
Account title
Amount
Text
3
Account title
Amount
Account title
Amount
Text
Account title
Amount
Account title
Amount
Text
9
Account title
Amount
Account title
Amount
Account title
Amount
Text
12
Account title
Amount
Account title
Amount
Account title
Amount
Text
17
Account title
Amount
Account title
Amount
Text
Account title
Amount
Account title
Amount
T.
2. , 8
th
Edition by Weygandt, Kieso, and Kimmel
Primer on Using Microsoft Excel in Accounting
by Rex A Schildhouse
This challenge has been modified to a units presentation.
Problem P5-1A,
Ready-Set-Go Co. distributes suitcases to retail stores and
extends credit terms of 1/10, n/30 to all of
its customers. At the end of June, Ready-Set-Go’s inventory
consisted of
120
suitcases purchased at
$10.00
each. During the month of July the following merchandising
transactions occurred.
Jul 1
Purchased
150
suitcases on account for
$10.00
each from Trunk Manufacturers, FOB
destination, terms 2/10, n/30. The appropriate party also made a
cash payment of
$100.00
for
freight on this date.
3. Jul 3
Sold
110
suitcases on account to Satchel World for
$20.00
each. The cost of suitcases
sold is
$1,400.00
Jul 9
Paid Trunk Manufacturers in full.
Jul 12
Received payment in full from Satchel World.
4. Jul 17
Sold
70
suitcases on account to Lady GoGo for
$20.00
each. The cost of
suitcases sold is
$1,010.00
Jul 18
Purchased
190
suitcases on account for
$1,900.00
from Holiday Manufacturers, FOB
shipping point, terms 1/10, n/30. The appropriate party also
made a cash payment of
$125.00
for freight on this date.
5. Jul 20
Received
$300.00
credit (including freight) for
30
suitcases returned to Holiday
Manufacturers.
Jul 21
Received payment in full from Lady GoGo.
Jul 22
Sold
90
suitcases on account to Vagabond for
$25.00
each. The cost of suitcases
sold is
$1,350.00
6. Jul 30
Paid Holiday Manufacturers in full.
Jul 31
Granted Vagabond
$200.00
credit for
8
suitcases returned costing
$120.00
Sansomite's chart of accounts includes the following:
