Accounting for Merchandising Operations

Kern's Book Warehouse distributes hardcover looks to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Kern's inventory consisted of books purchased for $1,800. During June, the following merchandising transactions occurred.

June 1Purchased books on account for $1,600 from Binsfeld Publishers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $50 for the freight on this date.
3Sold books on account to Reading Rainbow for $2,500. The cost of the books sold was $1,440.
6Received $100 credit for books returned to Binsfeld Publishers.
9Paid Binsfeld Publishers in full, less discount.
15Received payment in full from Reading Rainbow.
17Sold books on account to Rapp Books for $1,800. The cost of the books sold was $1,080.
20Purchased books on account for $1,800 from McGinn Publishers, FOB destination, terms 2/15, n/30. The appropriate party also made a cash payment of $60 for the freight on this date.
24Received payment in full from Rapp Books.
26Paid McGinn Publishers in full, less discount.
28Sold books on account to Baeten Bookstore for $1,600. The cost of the books sold was $970.
30Granted Baeten Bookstore $120 credit for books returned costing $72

Kern's Book Warehouse's chart of accunts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, no. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.

Instructions

Journalize the transactions for the month of June for Kern's Book Warehouse using a perpetual inventory system.

Renner Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Renner showed Cash of $5,000 and Owner's Capital of $5,000.
May 1Purchased merchandise on account from Braun's Wholesale Supply $4,200, terms 2/10, n/30.
2Sold merchandise on account $2,100, terms 1/10, n/30. The cost of the merchandise sold was $1,300.
5Received credit from Braun's Wholesale Supply for merchandise returned $300.
9Received collections in full, less discounts, from customers billed on sales of $2,100 on May 2.
10Paid Braun's Wholesale Supply in full, less discount.
11Purchased supplies for cash $400
12Purchased merchandise for cash $1,400.
15received refund for poor quality merchandise from supplier on cash purchase $150.
17Purchased merchandise from Valley Distributors $1,300, FOB shipping point, terms 2/10, n/30.
19Paid freight on May 17 purchase $130
24Sold merchandise for cash $3,200. The merchandise sold had a cost of $2,000.
25Purchased merchandise from Lumley, Inc. $620, FOB destination, terms 2/10, n/30.
27Paid Valley Distributors in full, less discount.
29Made refunds to cash customers for defective merchandise $70. The returned merchandise had a fair value of $30.
31Sold merchandise on account $1,000 terms n/30. The cost of the merchandise sold was $560.

Runner Hardwere's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, no. 301 Owner's Capital, No. 401 Salves, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.

Instructions

  1. Journalize the transactions using a perpetual inventory system.
  2. Enter the beginning cash and capital balances and post the transactions. (use J1 for the journal reference.)
  3. Prepare an income statement through gross profit for the month of May 2019

Big Box Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company's fiscal year on November 30, 2019, the following accounts appeared in two of its trial balances.

Instructions

  1. Prepare a multiple-step income statement, and owner's equity statement, and a classified balance sheet. Notes payable are due in 2022
  2. Journalize the adjusting entries that were made
  3. Journalize the closing entries that are necessary.

Yolanda Hagen, a former disc golf star, operates Yolanda's Discorama. At the beginning of the current season on April 1, the ledger of yolanda's Discorama showed Cash $1,800, Inventory $2,500 and Owner's Capital $4,300. The following transactions were completed during April.

The trial balance of Gaolee Fashion Center contained the following accounts at November 30, the end of the company's fiscal year.

At the end of Donaldson Department Store's fiscal year on November 30, 2019, these accounts appeared in its adjusted trial balance.

Kayla Incorporation operates a retail operation that purchases and sells home entertainment products. The company purchase all merchandise inventory on credit and uses a periodic inventory system. The Accounts Payable account is used for recording inventory purchases only; all other current liabilities are accrued in separate accounts. You are provided with the following selected information for the fiscal years 2016 through 2019, inclusive.

At the beginning of the current season on April, the ledger of Gage Pro Shop showed Cash $3,000. Inventory $4,000, and Owner's Capital $7,000. These transactions occurred during April 2019.

Problems: Accounting for Merchandising Operations

Problem-1: Accounting for Merchandising Operations

Kern's Book Warehouse distributes hardcover looks to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Kern's inventory consisted of...

Problem-2: Accounting for Merchandising Operations

Renner Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Renner showed Cash of $5,000 and Owner's Capital of...

Problem-3: Accounting for Merchandising Operations

Big Box Store is located in midtown Madison. During the past several years, net income has been declining because of suburban shopping centers. At the end of the company's fiscal...

Problem-4: Accounting for Merchandising Operations

Yolanda Hagen, a former disc golf star, operates Yolanda's Discorama. At the beginning of the current season on April 1, the ledger of yolanda's Discorama showed Cash $1,800, Inventory $2,500...

Problem-5: Accounting for Merchandising Operations

The trial balance of Gaolee Fashion Center contained the following accounts at November 30, the end of the company's fiscal year.

Problem-6: Accounting for Merchandising Operations

At the end of Donaldson Department Store's fiscal year on November 30, 2019, these accounts appeared in its adjusted trial balance.

Problem-7: Accounting for Merchandising Operations

Kayla Incorporation operates a retail operation that purchases and sells home entertainment products. The company purchase all merchandise inventory on credit and uses a periodic inventory system. The Accounts Payable...

Problem-8: Accounting for Merchandising Operations

At the beginning of the current season on April, the ledger of Gage Pro Shop showed Cash $3,000. Inventory $4,000, and Owner's Capital $7,000. These transactions occurred during April 2019.

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