The following selected transactions were completed by Capers Company during October of the...
Question:
The following selected transactions were completed by Capers Company during October of the current year:
Oct. 1 Purchased merchandise from UK Imports Co., $14,448, terms FOB destination, n/30.
3 Purchased merchandise from Hoagie Co., $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice.
4 Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30.
6 Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4
13 Paid Hoagie Co. for invoice of October 3.
14 Paid Taco Co. for invoice of October 4, less debit memo of October 6.
19 Purchased merchandise from Veggie Co., $27,300, terms FOB shipping point, n/eom
19 Paid freight of $400 on October 19 purchase from Veggie Co
20 Purchased merchandise from Caesar Salad Co., $22,000, terms FOB destination, 1/10, n/30
30 Paid Caesar Salad Co. for invoice of October 20
31 Paid UK Imports Co. for invoice of October 1
31 Paid Veggie Co. for invoice of October 19.
CHART OF ACCOUNTS | |||||||
---|---|---|---|---|---|---|---|
Capers Company | |||||||
General Ledger | |||||||
ASSETS | REVENUE | ||||||
110 | Cash | 410 | Sales | ||||
120 | Accounts Receivable | 610 | Interest Revenue | ||||
120 | Accounts Receivable | ||||||
131 | Notes Receivable | EXPENSES | |||||
132 | Interest Receivable | 510 | Cost of Merchandise Sold | ||||
141 | Merchandise Inventory | 515 | Credit Card Expense | ||||
145 | Office Supplies | 516 | Cash Short and Over | ||||
146 | Store Supplies | 520 | Salaries Expense | ||||
151 | Prepaid Insurance | 531 | Advertising Expense | ||||
181 | Land | 532 | Delivery Expense | ||||
191 | Office Equipment | 533 | Insurance Expense | ||||
192 | Accumulated Depreciation-Office Equipment | 534 | Office Supplies Expense | ||||
193 | Store Equipment | 535 | Rent Expense | ||||
194 | Accumulated Depreciation-Store Equipment | 536 | Repairs Expense | ||||
537 | Selling Expenses | ||||||
LIABILITIES | 538 | Store Supplies Expense | |||||
210 | Accounts Payable | 561 | Depreciation Expense-Office Equipment | ||||
221 | Notes Payable | 562 | Depreciation Expense-Store Equipment | ||||
222 | Interest Payable | 590 | Miscellaneous Expense | ||||
231 | Salaries Payable | 710 | Interest Expense | ||||
241 | Sales Tax Payable | ||||||
EQUITY | |||||||
310 | Owner, Capital | ||||||
311 | Owner, Drawing | ||||||
312 | Income Summary |
Journal Entries:
Journal entries are posted to the general ledger to record and summarize the business transactions of a company into financial statements. Financial statements are prepared for internal and external users for a variety of reasons.
Answer and Explanation: 1
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View this answerOctober 1: To record the purchase of merchandise Capers Company must debit inventory to increase the balance in the asset account and credit accounts...
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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.