The following data for June 2012 are for Rusk Company's first month of operations: June 1 - Rusk...
Question:
The following data for June 2012 are for Rusk Company's first month of operations:
| June 1 | Rusk Company was organized, and the stockholders invested $1,008,000 cash, $336,000 of merchandise inventory, and a $288,000 plot of land in exchange for capital stock. |
| 4 | Merchandise was purchased for cash, $432,000; FOB shipping point, freight collect. |
| 9 | Cash of $10,080 was paid to a trucking company for delivery of the merchandise purchased June 4. |
| 13 | The company sold merchandise on account, $288,000; terms 2/10, n/30. |
| 15 | The company sold merchandise on account, $230,400; terms 2/10, n/30. |
| 16 | Of the merchandise sold June 13, $31,680 was returned for credit. |
| 20 | Salaries for services received were paid as follows: to office employees, $31,680; to salespersons, $83,520. |
| 22 | The company collected the amount due on the remaining $256,320 of accounts receivable arising from the sale of June 13. |
| 24 | The company purchased merchandise on account at a cost of $345,600; terms 2/10, n/30, FOB shipping point, freight collect. |
| 26 | The company returned $57,600 of the merchandise purchased June 24 to the vendor for credit. |
| 27 | A trucking company was paid $7,200 for delivery to Rusk Company of the goods purchased June 24. |
| 29 | The company sold merchandise on account, $384,000; terms 2/10, n/30. |
| 30 | Sold merchandise for cash, $172,800. |
| 30 | Payment was received for the sale of June 15. |
| 30 | Paid store rent for June, $43,200. |
| 30 | Paid the amount due on the purchase of June 24. |
ADDITIONAL DATA :
The inventory on hand at the close of business June 30 was $672,000 at cost.
a. Prepare journal entries for the transactions.
b. Post the journal entries to the proper ledger accounts. Use the account numbers in the chart of accounts shown in a separate file at the end of the text. Assume that all postings are from page 20 of the general journal.
c. Prepare a trial balance as of June 30, 2012.
d. Prepare a classified income statement for the month ended June 30, 2012. No adjusting entries are needed.
Cost of Goods Sold:
Cost of Goods Sold refers to the cost of the goods or services provided to customers. This can be computed by adding the beginning inventory to the net purchases and deducting the ending inventory. The purchase returns and allowances and purchase discounts are deducted in the total purchases to get the net purchases.
Answer and Explanation: 1
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View this answera. Prepare journal entries for the transactions.
| June 1 | Cash | 1,008,000 | |
| Merchandise Inventory | 336,000 | ||
| Land | 288,000 | ||
| Capital Stock | 1,632,000 | ||
| To record... |
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