GL0401 – Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Hall's, which uses the perpetual inventory system and the gross method. (Hint it will help to identify each receivable and payable: for example, record the purchase on July 1 in Accounts Payable-Wilson) Jul. 1 Purchased merchandise from Wilson Company for $8,800 under credit terms of 1/15, 130, FOB shipping point, invoice dated July 1. Jul. 2 Sold merchandise to Lee Co. for $2,300 under credit terms of 2/10, 1/60, FOS shipping point, invoice dated July 2. The merchandise had cost $1. Jul. 3 Paid $685 cash for freight charges on the purchase of July 1. Jul. & Sold merchandise that had cost $2,700 for $4, see cash. Jul. 9 Purchased merchandise from King Co. for $3,600 under credit teres of 2/15, 1/60, FOB destination, invoice dated July 9. Jul. 11 Returned $700 of serchandise purchased on July 9 from King Co. and debited its account payable for that amount. Jul. 12 Received the balance due from Lee Co. for the invoice dated July 2, net of the discount. Jul. 16 Paid the balance due to Wilson Company within the discount period. Jul. 19 Sold merchandise that cost $2,800 to Cabela Co. for $4,698 under credit teres of 2/15, n/60, FOB shipping point, invoice dated July 19. Sul. 21 Gave a price reduction (allowance) of $800 to Cabela Co. for merchandise sold on July 19 and credited Cabela's accounts receivable for that amount Jul. 24 Paid King Co. the balance due, net of discount. Jul. 30 Received the balance due from Cabela Co. for the invoice dated July 19, net of discount. Jul. 31 Sold merchandise that cost $5,900 to Lee Co. for 39,800 under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July 31 Requirement General General Til Balance Journal Ledger Schedule of Receivables Schedule of Payables Income Statement Impact on Income General Journal tab – Journalive the merchandising transactions. The General Ledger, trial balance and schedules of accounts receivable and accounts payable will be updated based on your entries. General Ledger Tab – One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance Tab – General ledger software also automates the preparation of trial balance. A trial balance lists each account from the General Ledger along with its balance either a debitor a credit. Total debits should always equal total Income Statement tab – Prepare the income statement through the calculation of gross profit. Impact on Income tab – Indicate the impact each transaction had on net income General Journal > 2 sold serchandise to Lee Co. for 52, under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July berchandise had cost $1. 3e Jul. Paid $685 cash for freight charges on the purchase of July 1. Jul. Sold merchandise that had cost $2,700 for $4,500 cash. Jul. Purchased merchandise from King Co. for $3,600 under credit tees of 2/15, A/S, FOB destination, Invoice dated July Jul. 11 Returned 5700 of merchandise purchased on July 9 from King Cond debited its account payable for that amount. Jul 12 Received the balance due free Lee Co. for the invoice dated July 2. set of the discount. Jul. 16 Paid the balance due to Wilson Company within the discount period. Jul. 19 Sold merchandise that cost $2,800 to Cabela Co. for $4,60 under credit terms of 2/15, 1/6, FOB shipping point, dated July 19. Jul. 21 Gave a price reduction (allowance) of shoe to Cabela Co. for merchandise sold on July 19 and credited Cabela's a receivable for that amount. Jul. 24 Paid King Co. the balance due, net of discount. Jul. 30 Received the balance due from Cabela Co. for the invoice dated July 19, met of discount. Jul. 31 Sold merchandise that cost $5,900 to Lee Co. for $9,800 under credit terms of 2/10, 1/60, FOB shipping point, invoice July 31 General General Journal Requirement Trial Balance Schedule of Receivables Schedule of Payables income Statement Impact on Income Ledger Journalize the merchandising transactions. The General Ledger, trial balance, payable will be updated based on your entries. schedules of accounts receivable and accounts View transaction list Journal entry worksheet Purchased merchandise from Wilson Company for $8.800 under credit te 1/15, 1/30, FOB shipping point, invoice dated July 1. Account Title Debit Credit Date Jul 01 Ready Carey General Law > pe here to search
