The following selected transactions were completed by Capers Company during October of the...


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.

Capers Company
General Ledger
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
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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October 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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Journal Entries and Trial Balance in Accounting


Chapter 3 / Lesson 10

Discover 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.

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