Described below are certain transactions of Edwardson Corporation. The company uses the periodic...
Question:
Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system.
1. On February 2, the corporation purchased goods from Martin Company for $70,000 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26.
2. On April 1, the corporation bought a truck for $50,000 from General Motors Company, paying $4,000 in cash and signing a 1-year, 12% note for the balance of the purchase price.
3. On May 1, the corporation borrowed $83,000 from Chicago National Bank by signing a $92,000 zero-interest-bearing note due 1 year from May 1.
4. On August 1, the board of directors declared a $300,000 cash dividend that was payable on September 10 to stockholders of record on August 31.
Required:
Make all the journal entries necessary to record the transactions above using appropriate dates.
Journal Entry:
A properly recorded financial transaction will include the date of the transaction, debit account and credit account, transaction reference number, the total debit amount, and total credit account.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answerRequired journal entries are shown below.
Edwardson Corporation
Journal Entries
Date | Particulars | Debit ($) | Credit ($) | Calculation |
---|---|---|---|---|
Feb. 2 | Purchases | 68,60... |
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:

from
Chapter 3 / Lesson 10Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples.
Related to this Question
- Described below are certain transactions of Sweet Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Martin Company for $76,000 subject to cash discount terms of 2/10, n/30. Purchases and a
- Described below are certain transactions of Marigold Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Martin Company for $76,700 subject to cash discount terms of 2/10, n/30. Purchases and
- Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system. |1. On February 2, the corporation purchased goods from Martin Company for $82,200 s
- Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Martin Company for $78,700 sub
- Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Martin Company for $70,000 sub
- Described below are certain transactions of Edwardson Corporation. The company uses the periodic system. 1. On February 2, the corporation purchased goods from Martin Company for $80,800 subject to c
- Described below are certain transactions of Whispering Corporation. The company uses the periodic inventory system. a. On February 2, the corporation purchased goods from Martin Company for $64,600 s
- Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Martin Company for $74,800 s
- Described below are certain transactions of Vaughn Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Martin Company for $69,500 subjec
- Described below are certain transactions of Blossom Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Martin Company for $73,500 subje
- Described below are certain transactions of Vaughn Corporation. The company uses the periodic inventory system. 1. On February 2, the corporation purchased goods from Martin Company for $76,700 subje
- On February 1, Company E purchased $9,500 worth of inventory on terms: 2/10, n/30, FOB Shipping Point on account from Company F. The Freight Charge is $200. On February 2, Company E returned $500 worth of merchandise purchased to Company F. The company us
- On February 1, Company E purchased $9,500.00 worth of inventory on terms: 2/10, n/30, FOB Shipping Point on account from Company F. The Freight Charge is $200.00. On February 2, Company E returned $500 worth of merchandise purchased to Company F. The comp
- A company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 9, 2018, for $50,000 and then sells this inventory on account on March 7, 2018, for $70,000. Required: Record the transactions for
- The following transactions occurred during February 2013 for the Company. The company owns and operates a wholesale warehouse. 1. Issued 32,000 shares of common stock in exchange for $320,000 in cash. 2. Purchased equipment at a cost of $42,000. $11,000 c
- A company that uses perpetual inventory system made the following cash purchases and sales: January 1 Purchased 100 units at $10 per unit. February 5: Purchased 60 units at $12 per unit.
- A company that uses a perpetual inventory system made the following cash purchases and sales: January 1: Purchased 100 unit at $10 per unit. February 5: Purchased 60 units at $12 per unit. March 16: Sold 40 units for $16 per unit. 1.Prepare general journa
- Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2, 2015, for $25,000, with terms 2/10, n/30. On February 10, the compan
- Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the gross method is used. 1. Purchased on account $2,500 of merchandise on May 2, 2016. 2. Retur
- Wamerwoods Company uses a perpetual Inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Be
- Shankar Company uses a periodic system to record inventory transactions. The company purchases inventory on account on February 2 for $30,000 and then sells this inventory on account on March 17 for $
- The following selected transactions were completed by Artic Company during February of the current year. Artic Company uses the periodic inventory system. Feb. 2. Purchased $17,500 of merchandise on account, FOB shipping point, terms 2/15, n/30. 5. Paid f
- The following transactions occurred during January 2018: Jan.1 Sold merchandise for cash, $2,900. The cost of the merchandise was $1,400. The company uses the perpetual inventory system. 2 Purchased
- Prepare journal entries for the following, assuming the company uses a perpetual inventory method and records purchases at their net amounts. June 1 Purchased merchandise from the Martin Company for $900.00 with the terms of 2/10, net 30. June 2 Returne
- Alpha Company uses the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. Unless otherwise noted, FOB
- Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. 033 Mar. 1 Beginning inventory 150 units @ $52.89 per unit Mar. 5 Purchase 250 u
- On February 28, Yule Company sells $60,000 of goods for cash, and collects sales tax of 5%. The cost of the goods sold was $10,000, and the company uses the perpetual inventory system. What is the journal entry to record the transaction?
- Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2013 purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan
- Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2, 2012, for $40,000 and then sells this inventory on account on March 17, 2012, for $62,000. Record transactions for the purc
- Alpha Company uses the periodic inventory system for purchases and sales of merchandise. Discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. Unless otherwise noted,
- A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning of the year, $3,600; Freight-In, $650; Purchases, $10,700; Purchases Returns and Allowances, $1,950; Purchases Discounts, $330. The co
- A company has beginning inventory of 12 units at a cost of $28 each on February 1. On February 3, it purchases 38 units at $30 each. 17 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 17 units that are sold?
- Montoure Company uses a periodic inventory system. It entered into the following calendar-year 2015 purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan.1- Beginning inventory 690units@ $80.00 per unit Feb.10
- Dodridge Corporation has provided the following data for February. The beginning balance in the raw materials inventory account was $23,000. During the month, the company made raw materials purchases
- A company has beginning inventory of 12 units at a cost of $15 each on February 1. On February 3, it purchases 25 units at $17 each. On February 5, 20 units are sold. Using the FIFO periodic inventory method, what is the cost of the 20 units that are sold
- The Martin Company had a finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months were as follows: January = 200,000 units February = 180,000 units March = 210,000 units April = 230,000 units The Martin Company w
- Alpha Company uses the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. Unless otherwise noted,
- Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $38,000. In addition to the cost of inventory, the company also
- Assume that Gallant Company uses a periodic inventory system and has these account balances: Purchases $482,780; Purchase Returns and Allowances $12,670; Purchase Discounts $9,080; and Freight-In $16,200. Gallant Company has beginning inventory of $62,30
- A company has beginning inventory of 12 units at a cost of $26 each on February 1. On February 3, it purchases 36 units at $31 each. Suppose 18 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 18 units that a
- 12. A company has beginning inventory of 16 units at a cost of $24 each on February 1. On February 3, it purchases 34 units at $26 each. 22 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 22 units that
- A company has beginning inventory of 16 units at a cost of $33 each on February 1. On February 3, it purchases 48 units at $35 each. Suppose 24 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 24 units that a
- The Warnerwood Company uses a perpetual inventory system. It entered the following purchases and sales transactions for March into the system: Date Activities Units Acquired at Cost Cost per Unit Uni
- Journalize the following transactions for White Company using the gross method of accounting for purchase discounts. Assume a perpetual inventory system. November 9. Purchased goods from Rivera Company on account, $13,500, terms 4/10, n/30. November 15. R
- A company has the following transactions during March: March 3 Purchases inventory on account for $3,900 terms 4/10, n/30 March 5 Pays freight costs of $230 on inventory purchased on March 3. March
- Merchandise with an invoice price of $4,000 was purchased on February 3, terms 3/15, n/60. The company uses the gross method to record purchases and a perpetual inventory system. The entry to record a
- Some of the transactions of Kingbird Company during August are listed below. Kingbird uses the periodic inventory method August 10 Purchased merchandise on account, $10,700, terms 2/10, n/30. 13 Retur
- Inventory, February 1 65 units @ $20 Purchases: February 7 50 units @ $22 February 18 60 units @ $23 February 27 45 units @ $24 During February, VanderMeer sold 140 units. The company uses a periodic
- A company has the following transactions during March: March 3 Purchases inventory on account for $3,300, terms 3/10, n/30. March 5 Pays freight costs of $300 on inventory purchased on March 3. Mar
- Schumacher Company uses the perpetual inventory system, and it engaged in the following transactions during 2014: 1) Started the business by issuing common stock for $7,590 cash. 2) Paid cash to purchase $5,030 of inventory. 3) Sold inventory that cost $3
- Schumacher Company uses the perpetual inventory system, and it engaged in the following transactions during 2009: 1) Started the business by issuing common stock for $7,500 cash. 2) Paid cash to purchase $5,000 of inventory. 3) Sold inventory that cost
- Schumacher Company uses the perpetual inventory system, and it engaged in the following transactions during 2014: 1) Started the business by issuing common stock for $7,740 cash. 2) Paid cash to purchase $5,080 of inventory. 3) Sold inventory that cost $3
- Prepare the journal entries to record the following transactions on Markowitz Company's books using a perpetual inventory system. On February 6, Markowitz Company sold $75,000 of merchandise to the L
- Shankar Company uses a periodic system to record inventory transactions. The company purchases 2,000 units of inventory on account on February 2 for $64,000 ($32 per unit) but then returns 150 defecti
- Journalize the following transactions for Martin Bicycles using the periodic inventory system. Nov. 2 Purchased $2,800 of merchandise inventory on account under terms 3/10, n/EOM, and FOB shipping point from Shook Bikes Nov. 6 Returned $500 of defective m
- Alpha Company uses the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchases & sales are, 2/10, n/30 and the gross method is used. Unless otherwise noted, FO
- Alpha Company uses the periodic inventory system for purchases and sales of merchandise. Discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. Unless otherwise
- A company purchased inventory for $1,100 per unit. The company later sold one unit of the inventory for cash of $1,800. Under the perpetual inventory system, which accounts will be debited to record the sale?
- Which of the following accounts will normally appear in the ledger of a merchandising company that uses a perpetual inventory system? a. Purchases b. Freight-in c. Cost of Goods Sold d. Purchase Discounts
- The following data has been provided by Lee Company regarding its inventory purchases and sales throughout the year. Transaction Units Cost per Unit Jan. 1 Balance 175 $86 Mar. 14 Sale 55 May 23 Purchase 135 90 Aug. 21 Sale 100 Nov. 5 Purchase 175 91 Nov.
- A company uses the weighted-average method of inventory valuation under a periodic inventory system. The company began the year with a zero inventory balance. They had the following transactions during the year. Purchased 65 units at $6 per unit Purchase
- Alpha Company uses the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchases & sales are, 2/10, n30 and the gross method is used. Unless otherwise
- Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 700 units@ $50 per unit Feb. 10 Purc
- A company has a beginning inventory of 14 units at a cost of $26 each on February 1. On February 3, it purchases 36 units at $28 each. On February 5, 17 units are sold. Using the FIFO periodic inventory method, what is the cost of the 17 units that are so
- Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2015 purchases and sales transactions. Date Activities Unit Acquired at Cost Units Sold at Retail Jan.
- Company A is a retailer selling unique hardware. Company A uses a perpetual inventory system. Journalize the following transactions: On July 5, Company A purchases inventory for sale from Company B fo
- A company uses the perpetual method. On February 17, it sells $30,000 in merchandise on account that cost $10,000. On February 23, 10% of these goods are returned. Prepare the entry that the company makes on February 23 to record the sales return. a. debi
- Kingbird Industries purchased $ 12,200 of merchandise on February 1, 2017, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $ 2,500 (gross price before trade or cash
- The Eastman Corporation sells merchandise with a list price of $13,000 on February 1, 2007, with terms of 1/10, n/30. On February 10, 2007, payment was received on merchandise originally billed for $7,500, and the balance due was received on February 28,
- The following are selected 2017 transactions of Sheffield Corporation. Sept. 1 Purchased inventory from Encino Company on account for $37,600. Sheffield records purchases, gross and uses a periodic inventory system. Oct. 1 Issued a $37,600, 12-month, 8% n
- During 2012, Martin Corporation sold merchandise costing $2,800,000 on an installment basis for $4,000,000. The cash receipts related to these sales were collected as follows: 2012, $1,600,000; 2013,
- Altira Corporation uses a perpetual inventory system. The following transactions affected its merchandise inventory during the month of August 2018: Aug. 1 Inventory on hand-3,000 units; cost $7.10 each. 8 Purchased 15,000 units for $6.50 each. 14 Sold
- Shenker Company uses a periodic system to record inventory transactions. The company purchases 2,000 units of inventory on account on February 2 for $40,000 ($20 per unit) but then returns 150 defective units on February 5. Record the inventory purchase
- Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March.For Specific identification, March 9 sale consisted of 90 units from begi
- Yowell Company had the following transactions during March 2016: - Purchased merchandise inventory of $12,500 from Rochester Company with freight terms FOB destination. - Freight costs on the Rochester Company purchase were $400. - Purchased mer
- The company has one LIFO pool. Information relating to the products in this pool is as follows: Beginning inventory, January 1 10 units @ $10 each Purchase, February 12 50 units @ $11 each Purchase, February 28 60 units @ $12 each Purchase, March 15 70 un
- Anthony Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginni
- A company budgeted unit sales of 75,100 units for January, 2011 and 67,100 units for February, 2011. The company has a policy of having an inventory of units on hand at the end of each month equal to
- During March XYZ company entered the following transactions: -purchased inventory for $18,000 on credit. -issued common stock for $10,000 cash. -purchased equipment for $7950 cash. As a result of these transactions, the XYZ company's total assets woul
- Martin Sales had a Beginning inventory balance of $120 made up of 10 units purchased for $12 per unit. Early in the month, they purchased 16 units at $10 per unit. Later that month, they sold 15 units. Martin uses a perpetual inventory system and applies
- Some of the transactions of Wildhorse Company during August are listed below. Wildhorse uses the periodic inventory method. August 10 Purchased merchandise on account, $11,900, terms 2/10, n/30. 13 R
- Assume that Tract Company uses a periodic inventory system and has these account balances: Purchases $995,000; Purchase Returns and Allowances $113,700; Purchase Discounts $58,900; Freight-In $44,400, Beginning Inventory $90,000, Net Sales $1,345,678, and
- A company using the periodic inventory system has the following account balances: Inventory at the beginning of the year, $4,118; Freight-In, $559; Purchases, $13,635; Purchases Returns and Allowances, $3,824; Purchases Discounts, $443. The cost of mercha
- Cruise Industries purchased $10,800 of merchandise on February 1, 2014, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $2,500 (gross price before trade or cash discount) on February 4. The invoice was paid on February
- A company uses the periodic method and has the following account balances. Purchase Returns = $19,000 Purchases = $812,000 Purchase Discounts = $8,000 Beginning Inventory = $21,000 Freight-In = $30,000 Ending Inventory = $37,000 What is the company's cost
- Wildhorse Industries purchased $8,300 of merchandise on February 1, 2020, subject to a trade discount of 10% and with credit terms of 3/15, n/60. It returned $1,800 (gross price before trade or cash discount) on February 4. The invoice was paid on Februar
- A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning of the year, $4,000 Transportation In, $450 Purchases, $12,000 Purchases Return
- Montour company uses a perpetual inventory system. It entered into the following calendar-year 2015 purchases and sales transactions: Date Activities Units Acquired at Cost Units Sold at Retail Jan 1
- A company uses the weighted average method of inventory valuation under a periodic inventory system. It began the year with a zero inventory balance. It had the following transactions during the year: | Purchased 65 units at AED 7 per unit | Purchased 13
- Some of the transactions of Cullumber Company during August are listed below. Cullumber uses the periodic inventory method. August 10 Purchased merchandise on account, $12,300, terms 2/10, n/30. 13
- Alpha Company used the periodic inventory system for the purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n/30, and the gross method is used. 1. Alpha Company purchased on account $2,700 of merchandise
- Montoure Company uses a perpetual inventory system. It entered into the following calendar-year 2015 purchases and sales transactions. (For specific identification, units sold consist of 600 units fro
- Alpha Company used the periodic inventory system for purchase and sales of merchandise. Discount terms for both purchase and sales are, FOB Destination, 2/10, n30, and the gross method is used. -Alpha Company purchased on account $2,700 of merchandise fro
- Alpha Company used the periodic inventory system for the purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30, and the gross method is used. 1. Alpha Company purchased on account $2,700 of merchandise f
- Alpha Company used the periodic inventory system for the purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30, and the gross method is used. 1. Alpha Company purchased on account $2,500 of merchandise f
- The following inventory transactions occur during 2014: Units Cost/unit 2/1/20 Purchase 60 $50 3/14/20 Purchase 95 $42 5/1/20 Purchase 61 $47 The company sold 150 units at $80 each and has a tax rate of 30%. Assuming that a periodic inventory system is us
- Use the following information to record the following accounts using the perpetual inventory system: Trading inventory on 1 March 2018 $20,000 Transactions for the year ended 28 February 2019: Goods purchased for cash $60,000 Sales of goods for cash (at c
- A corporation uses the perpetual inventory system. On May 1, it sells merchandise on account for $10,000 with terms 2/10, n/30. The corporation had paid $6,000 to acquire the merchandise. On May 7, the customer returns merchandise with an invoice price of
- Anthony Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 200 units @ $53.00/unit Mar. 5 Purchase 275
- Shankar Company uses a perpetual system to record inventory transactions. The company purchases 1,500 units of inventory on account on February 2 for $31,500 ($21 per unit) but then returns 100 defect