Test Bank for College Accounting,
Chapters 1-27, 23rd Edition James A. Heintz Robert W. Parry
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Test Bank for College Accounting, Chapters 1-27, 23rd Edition James A. Heintz Robert W. Parry Visit TestBankBell.com to get complete for all chapters
Name: Class: Date:
Chapter 11 Accounting for Purchases and Cash Payments
True / False
1. A written order by a buyer for merchandise or other property specified in a purchase requisition is known as a purchase invoice.
a. True
b. False ANSWER: False
2. A source document prepared by the seller that lists the items shipped, their cost, and the method of shipment is commonly referred to by the seller as a purchase invoice.
a. True
b. False ANSWER: False
3. Major documents used in the purchasing process are the purchase requisition, purchase order, receiving report, and sales invoice.
a. True
b. False ANSWER: False
4. The supplier or vendor is the person or firm from whom the merchandise or other property is ordered.
a. True
b. False ANSWER: True
5. Special discounts on list prices granted to different classes of customers are known as trade discounts.
a. True
b. False ANSWER: True
6. Merchandise inventory at the beginning of the period minus purchases plus merchandise inventory at the end of the period equals cost of goods sold for the period.
a. True
b. False ANSWER: False
7. Freight-In is an adjunct-purchases account to which transportation charges on merchandise purchases are debited.
a. True
b. False ANSWER: True
8. When the merchandise is received, a receiving report indicating what has been received is prepared.
a. True
b. False ANSWER: True
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9. In entering in the books an invoice that involves a trade discount, the amount to be used is the net amount after the trade discount is subtracted.
a. True
b. False ANSWER: True
10. Postings to the accounts payable ledger should be made at the end of the month.
a. True
b. False ANSWER: False
11. A schedule of accounts payable is used to prove that the sum of the accounts payable ledger balances equals the Accounts Payable balance in the general ledger.
a. True
b. False ANSWER: True
12. Trade discounts represent a reduction in the price of the merchandise and should not be entered in the accounts of either the seller or the buyer.
a. True
b. False ANSWER: True
13. Purchases Returns and Allowances is the contra-purchases account to which purchases returns and purchases allowances are credited.
a. True
b. False ANSWER: True
14. The purchases discounts account is debited for cash discounts to customers.
a. True
b. False ANSWER: False
15. FOB destination means free on board at the destination of the shipment.
a. True
b. False ANSWER: True
16. FOB shipping point means free on board at destination of the shipment.
a. True
b. False ANSWER: False
17. If the merchandise received is damaged or unsatisfactory, an adjustment may be made that is referred to as an
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Chapter 11 Accounting for Purchases and Cash Payments
allowance.
a. True
b. False
ANSWER: True
18. For merchandising businesses, the term "purchases" refers only to merchandise acquired for resale.
a. True
b. False
ANSWER: True
19. A trade discount is often offered by wholesalers.
a. True
b. False ANSWER: True
20. The first document created in the purchasing process normally is the purchase requisition.
a. True
b. False ANSWER: True
21. The first step in the purchasing process involves preparing a purchase order.
a. True
b. False ANSWER: False
22. A form used to request the purchasing department to purchase merchandise or other property is known as a purchase order.
a. True
b. False ANSWER: False
23. Gross profit is a measure of the amount of sales dollars available to cover expenses after covering the cost of the goods sold.
a. True
b. False ANSWER: True
24. After the posting of the accounts payable ledger and the general ledger is completed, the total of the accounts payable ledger balances should equal the Accounts Payable balance in the general ledger.
a. True
b. False ANSWER: True
25. Purchases Returns and Allowances is a contra-purchases account.
a. True
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b. False
ANSWER: True
26. Discounts from quoted prices which are contingent on prompt payment of invoices, within a stated discount period, are called cash discounts.
a. True
b. False
ANSWER: True
27. If the terms specified on an invoice are 2/10, n/30, this means that a discount of 2% will be allowed if payment is made within 30 days from the date of the invoice.
a. True
b. False
ANSWER: False
28. If the terms of an invoice dated April 10 are 3/10, n/30, the invoice must be paid on or before April 20 in order to be entitled to a discount.
a. True
b. False
ANSWER: True
29. An invoice is never subject to both trade and cash discounts.
a. True
b. False ANSWER: False
30. Purchases Discounts is a contra-purchases account used to record cash discounts allowed on purchases.
a. True
b. False ANSWER: True
31. An account number in the Posting Reference column of the general journal indicates that the account has been posted to the general ledger.
a. True
b. False ANSWER: True
32. A schedule of accounts payable is prepared from the list of accounts in the accounts receivable ledger.
a. True
b. False ANSWER: False
33. (Appendix) If purchases are recorded at the net amount, assuming that all available cash discounts will be taken, the net-price method of recording the purchase has been used.
a. True
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b. False
ANSWER: True
34. (Appendix) The purchases discounts lost account is only used with the gross-price method of recording purchases.
a. True
b. False
ANSWER: False
Multiple Choice
35. A written order by a buyer for merchandise or other property specified in a purchase requisition is known as a
a. purchase invoice.
b. purchase order.
c. purchase requisition.
d. receiving report.
ANSWER: b
36. A printed price of a manufacturer or wholesaler that is subject to trade discounts is called
a. net price.
b. gross price.
c. list price.
d. retail price.
ANSWER: c
37. A source document prepared by the seller that lists the items shipped, their cost, and the method of shipment is commonly referred to by the seller as the
a. sales invoice.
b. purchase invoice.
c. receiving report.
d. purchase requisition.
ANSWER: a
38. Special discounts from list prices, granted by manufacturers to different classes of customers, are known as
a. cash discounts.
b. trade discounts.
c. manufacturers' discounts.
d. customers' discounts.
ANSWER: b
39. Assume the gross amount of an invoice is $200 and a trade discount of 10% is allowed. The amount to be entered in the accounting records would be
a. $20.
b. $220.
c. $200.
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Chapter 11 Accounting for Purchases and Cash Payments
d. $180.
ANSWER: d
40. Assume the gross amount of an invoice is $200 and a discount of 20% is allowed. The amount of the trade discount totals
a. $20.
b. $65.
c. $40.
d. $80.
ANSWER: c
41. A discount offered as an inducement for prompt payment of an invoice is called a(n)
a. trade discount.
b. invoice discount.
c. early discount.
d. cash discount.
ANSWER: d
42. The terms on an invoice are 4/15, n/30. This means that
a. a discount of 4% will be allowed if payment is made within 15 days from the date of the invoice.
b. a discount of 15% will be allowed if payment is made with 4 days from the date of the invoice.
c. a discount of 4% will be allowed if payment is made by the 15th of the month.
d. a discount of 15% will be allowed if payment is made by the 4th day after the date of the invoice.
ANSWER: a
43. Assume the gross amount of an invoice is $100 and a discount of 20% is allowed. The net amount is
a. $65.
b. $80.
c. $20.
d. $40.
ANSWER: b
44. An invoice in the amount of $916 is subject to a trade discount of 10% and credit terms of 3/10, n/30. The amount of the trade discount would be
a. $24.73.
b. $27.48.
c. $91.60.
d. $824.40.
ANSWER: c
45. Which of the following indicates that the purchaser will pay the transportation costs?
a. COD
b. FOB shipping point
c. FOB destination
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Chapter 11 Accounting for Purchases and Cash Payments
d. 4/10, EOM
ANSWER: b
46. Which of the following indicates that the seller must pay all transportation costs?
a. COD
b. FOB shipping point
c. FOB destination
d. 4/10, EOM
ANSWER: c
47. An invoice in the amount of $916 is subject to a trade discount of 10% and credit terms on 3/10, n/30. If the invoice is not paid within the discount period, the amount that would be paid to satisfy the invoice would be
a. $824.40.
b. $888.52.
c. $981.27.
d. $916.00.
ANSWER: a
48. Which of the following credit terms allows a discount of 2% if payment is made within 10 days with the total amount of the invoice due within 60 days?
a. 2/10, n/30
b. 2/10, EOM/60
c. 10/2, n/60
d. 2/10, n/60
ANSWER: d
49. Which of the following credit terms allows a discount of 3% if payment is made within 15 days from the date of the invoice; otherwise, the total amount of the invoice must be paid within 30 days from its date?
a. 3/15, EOM
b. 3/EOM, n/30
c. 3/15, n/30
d. 15/3, n/30
ANSWER: c
50. Merchandise inventory available at the beginning of the period plus cost of goods purchased minus merchandise inventory at the end of the period equals
a. purchases.
b. cost of goods sold.
c. purchases returns and allowances.
d. net purchases.
ANSWER: b
51. The entry to record the purchase on account of merchandise for resale under the periodic inventory system includes
a. debiting Purchases and crediting Cash.
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Chapter 11 Accounting for Purchases and Cash Payments
b. debiting Purchases and crediting Accounts Payable.
c. debiting Merchandise Inventory and crediting Cash.
d. debiting Merchandise Inventory and crediting Accounts Payable.
ANSWER: b
52. An invoice of $237.50 dated April 2 is subject to credit terms of 2/10, n/30. The amount to be paid if the invoice is paid on or before April 12 is
a. $4.75.
b. $23.75.
c. $232.75.
d. $237.50.
ANSWER: c
53. The cost of merchandise purchased during the period less any discounts granted by suppliers and amounts returned to suppliers and amounts of any allowances made by suppliers is called
a. purchases.
b. net purchases.
c. purchases returns and allowances.
d. cost of goods sold.
ANSWER: b
54. A form used to request the responsible person or department to purchase merchandise or other property is known as a
a. purchase invoice.
b. receiving report.
c. purchase requisition.
d. purchase order.
ANSWER: c
55. An invoice of $237.50 dated April 2 is subject to credit terms of 2/10, n/30. If the invoice is paid on April 14, the amount to be paid would be
a. $4.75.
b. $23.75.
c. $232.75.
d. $237.50.
ANSWER: d
56. The account to which transportation charges on incoming merchandise are generally entered is
a. Freight-In.
b. FOB-In.
c. Freight-Out.
d. Delivery-In.
ANSWER: a
57. A record used to keep the amount owed to each supplier is called a(n)
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Chapter 11 Accounting for Purchases and Cash Payments
a. accounts receivable ledger.
b. accounts payable ledger.
c. transportation ledger.
d. general ledger for accounts payable.
ANSWER: b
58. After the posting of the accounts payable ledger is completed, the total of the accounts payable ledger balances should equal the balance of which of the following general ledger accounts?
a. Purchases
b. Accounts Receivable
c. Accounts Payable
d. Purchases Returns and Allowances
ANSWER: c
59. A list showing the amount due to each supplier as of a specified date is known as the
a. schedule of accounts receivable.
b. trial balance.
c. balance sheet.
d. schedule of accounts payable.
ANSWER: d
60. (Appendix) When the net-price method of recording purchases is used, the debit to Purchases is for the
a. full amount of the invoice.
b. amount of the invoice less available cash discounts.
c. amount actually paid on the invoice.
d. amount of the invoice plus available cash discounts.
ANSWER: b
61. (Appendix) A purchase was made for $200 on account with credit terms of 2/10, n/30. The purchase was recorded using the net-price method. If payment is made 25 days later, the entry to record the payment will be to
a. debit Accounts Payable for $200 and credit Cash for $200.
b. debit Accounts Payable for $204, credit Purchases Discounts Lost for $4, and credit Cash for $200.
c. debit Accounts Payable for $196, debit Purchases Discounts Lost for $4, and credit Cash for $200.
d. debit Purchases for $196, debit Purchases Discounts Lost for $4, and credit Cash for $200.
ANSWER: c
Completion
62. A(n) is a reduction from the list or catalog price offered to different classes of customers.
ANSWER: trade discount
63. Net sales minus cost of goods sold equals ____________________.
ANSWER: gross profit gross margin
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64. A form used to request the purchase of merchandise or other property is a(n) ____________________.
ANSWER: purchase requisition
65. When the transportation charges are paid by the seller, merchandise is shipped ____________________.
ANSWER: FOB destination
66. tells management the amount of sales dollars available to cover expenses after covering the cost of goods sold.
ANSWER: Gross profit Gross margin
67. A summary accounts payable account, called a(n) ____________________, is maintained in the general ledger.
ANSWER: controlling account
68. The is an alphabetic or numeric listing of supplier accounts and balances, usually prepared at the end of the month.
ANSWER: schedule of accounts payable
69. A(n) is a separate ledger containing an individual account for each supplier.
ANSWER: accounts payable ledger
70. Goods available for sale minus ending inventory equals ____________________.
ANSWER: cost of goods sold
71. When merchandise is shipped ____________________, the freight costs are paid by the buyer.
ANSWER: FOB shipping point
72. is an account used to record transportation charges on merchandise purchases.
ANSWER: Freight-In
73. Merchandise acquired for resale to customers requires a debit to ____________________.
ANSWER: Purchases
Matching
Match the terms with the definitions.
a. accounts payable ledger
b. cost of goods sold
c. FOB destination
d. FOB shipping point
e. gross profit
f. purchase invoice
g. purchase order
h. purchase requisition
i. purchases
j. receiving report
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Chapter 11 Accounting for Purchases and Cash Payments
k. schedule of accounts payable l. trade discount
74. A report indicating what has been received. ANSWER: j
75. A written order to buy goods from a specific vendor (supplier). ANSWER: g
76. A document prepared by the seller as a bill for the merchandise shipped. ANSWER: f
77. A reduction from the list or catalog price offered to different classes of customers. ANSWER: l
78. A form used to request the purchase of merchandise or other property. ANSWER: h
79. The difference between net sales and cost of goods sold. ANSWER: e
80. An alphabetical or numerical listing of supplier accounts and balances, usually prepared at the end of the month. ANSWER: k
81. The difference between the goods available for sale and the ending inventory. ANSWER: b
82. A separate ledger containing an individual account payable for each supplier. ANSWER: a
83. Transportation charges are paid by the buyer. ANSWER: d
84. Transportation charges are paid by the seller. ANSWER: c
85. Merchandise acquired for resale to customers. ANSWER: i
Subjective Short Answer
86. Using the following information, determine the (a) cost of goods sold (show your work) and (b) gross profit.
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Net sales $198,000 Purchases 92,000 Purchases returns and allowances 1,800 Purchases discounts 1,250 Freight-in 1,590
Chapter 11 Accounting for Purchases and Cash Payments
87. Below is a general journal page for the month of March for Wind Surfing City. Accounts Payable is account number 202 and Purchases is account number 501.
Required:
1. Post the information in the general journal to the appropriate general ledger and accounts payable ledger accounts.
2. Prepare a schedule of accounts payable.
Name: Class: Date:
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Page 12 Merchandise inventory, beginning of period 63,000 Merchandise inventory, end of period 37,000 ANSWER: a. Beginning merchandise inventory $ 63,000 Purchases $92,000 Less: Purchases returns and allowances $1,800 Less: Purchases discounts 1,250 3,050 Net purchases $88,950 Add freight-in 1,590 Cost of goods purchased 90,540 Goods available for sale $153,540 Less: Ending merchandise inventory 37,000 Cost of goods sold $116,540 b. Net sales $198,000 Cost of goods sold 116,540 Gross profit $ 81,460
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GENERAL JOURNAL Page 1 Date Description Post Ref. Debit Credit Mar. 1 Purchases 3,190.00 Accounts Payable/A-1 Canvas Co. 3,190.00 7 Purchases 6,750.00 Accounts Payable/Gone with the Wind Co. 6,750.00 10 Purchases 670.00 Accounts Payable/High Seas Co. 670.00 15 Purchases 3,760.00 Accounts Payable/Smooth Sailing Co. 3,760.00 23 Purchases 145.00 Accounts Payable/Gone with the Wind Co. 145.00
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Copyright Cengage Learning. Powered by Cognero. Page 13 25 Purchases 275.00 Accounts Payable/A-1 Canvas Co. 275.00 GENERAL LEDGER Account Accounts Payable Account No. 202 Post Balance Date Item Ref. Debit Credit Debit Credit Account Purchases Account No. 501 Post Balance Date Item Ref. Debit Credit Debit Credit ACCOUNTS PAYABLE LEDGER Account A-1 Canvas Co. Date Item Post Ref. Debit Credit Balance Account Gone with the Wind Co. Date Item Post Ref. Debit Credit Balance Account High Seas Co. Date Item Post Ref. Debit Credit Balance Account Smooth Sailing Co. Date Item Post Ref. Debit Credit Balance
Chapter 11 Accounting for Purchases and Cash Payments
Chapter 11 Accounting for Purchases and Cash Payments
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Page 14 ANSWER: GENERAL JOURNAL Page 1 Date Description Post Ref. Debit Credit Mar. 1 Purchases 501 3,190.00 Accounts Payable/A-1 Canvas Co. 202/ 3,190.00 7 Purchases 501 6,750.00 Accounts Payable/Gone with the Wind Co. 202/ 6,750.00 10 Purchases 501 670.00 Accounts Payable/High Seas Co. 202/ 670.00 15 Purchases 501 3,760.00 Accounts Payable/Smooth Sailing Co. 202/ 3,760.00 23 Purchases 501 145.00 Accounts Payable/Gone with the Wind Co. 202/ 145.00 25 Purchases 501 275.00 Accounts Payable/A-1 Canvas Co. 202/ 275.00 GENERAL LEDGER Account Accounts Payable Account No. 202 Post Balance Date Item Ref. Debit Credit Debit Credit Mar. 1 J1 3,190.00 3,190.00 7 J1 6,750.00 9,940.00 10 J1 670.00 10,610.00 15 J1 3,760.00 14,370.00 23 J1 145.00 14,515.00 25 J1 275.00 14,790.00 Account Purchases Account No. 501 Post Balance Date Item Ref. Debit Credit Debit Credit Mar. 1 J1 3,190.00 3,190.00 7 J1 6,750.00 9,940.00 10 J1 670.00 10,610.00 15 J1 3,760.00 14,370.00 23 J1 145.00 14,515.00 25 J1 275.00 14,790.00
Copyright
Chapter 11 Accounting for Purchases and Cash Payments
ACCOUNTS PAYABLE LEDGER
Gone with the Wind Co.
88. Record the following transactions as general journal entries. Use the gross-price method.
6 Purchased $830 of merchandise on account from Johnston Co. Credit terms 2/10, n/30.
8 Bought an $18,000 truck from Pillner Co., paying $3,000 down; balance on account.
13 Purchased $2,611 of merchandise for cash from Pillner and Co.
15 Paid for the August 6 purchase of merchandise from Johnston Co.
17 Purchased $1,743 of merchandise from Luis Co. Credit terms 2/10, n/30.
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Account
Date Item Post Ref. Debit Credit Balance Mar. 1 J1 3,190.00 3,190.00 25 J1 275.00 3,465.00 Account
Date Item Post Ref. Debit Credit Balance Mar. 7 J1 6,750.00 6,750.00 23 J1 145.00 6,895.00 Account
Seas Co. Date Item Post Ref. Debit Credit Balance Mar. 10 J1 670.00 670.00 Account
Date Item Post Ref. Debit Credit Balance Mar. 15 J1 3,760.00 3,760.00 Schedule of Accounts Payable A-1 Canvas Co. $ 3,465 Gone with the Wind Co. 6,895 High Seas Co. 670 Smooth Sailing Co. 3,760 Total $14,790
A-1 Canvas Co.
High
Smooth Sailing Co.
Aug.
GENERAL JOURNAL Page 1 Date Description Post Ref. Debit Credit Aug. 6 Purchases 830.00 Accounts Payable/Johnston Co. 830.00
ANSWER:
Chapter 11 Accounting for Purchases and Cash Payments
89. The following information was taken from the accounting records of Bay Village Paving Co. for the month of January 20 :
Complete a partial income statement for the month of January, showing gross profit.
Bay Village Paving Co. Income Statement (partial) For the month ended January 31, 20
Sales
Sales returns and allowances Sales discounts Net sales
Cost of goods sold: Merchandise inventory, January 1
Purchases returns and allowances Purchases discounts
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Page 16 8 Truck 18,000.00 Accounts Payable/Pillner Co. 15,000.00 Cash 3,000.00 13 Purchases 2,611.00 Cash 2,611.00 15 Accounts Payable/Johnston Co. 830.00 Purchases Discounts 16.60 Cash 813.40 17 Purchases 1,743.00 Accounts Payable/Luis Co. 1,743.00
Sales $857,000 Sales Returns and Allowances 1,876 Sales Discounts 627 Purchases 378,000 Purchases Returns and Allowances 9,560 Purchases Discounts 2,760 Freight-In 3,700 Merchandise Inventory, January 1 111,000 Merchandise Inventory, January 31 106,000
Purchases
Chapter 11 Accounting for Purchases and Cash Payments
90. The following information was taken from the accounting records of Northern Lights for the month of October 20 :
Complete a partial income statement for the month of October, showing gross profit.
Northern Lights Income Statement (partial) For the month ended October 31, 20
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Name: Class: Date:
Net purchases Freight-in Cost of goods purchased Goods available for sale Merchandise inventory, January
Cost of goods sold Gross profit ANSWER:
Income Statement
For the month
Sales $857,000 Sales returns and allowances $ 1,876 Sales discounts 627 2,503 Net sales $854,497 Cost of goods sold: Merchandise inventory, January 1 $111,000 Purchases $378,000 Purchases returns and allowances $9,560 Purchases discounts 2,760 12,320 Net purchases $365,680 Freight-in 3,700 Cost of goods purchased 369,380 Goods available for sale $480,380 Merchandise inventory, January 31 106,000 Cost of goods sold 374,380 Gross profit $480,117
31
Bay Village Paving Co.
(partial)
ended January 31, 20--
Sales $344,000 Sales Returns and Allowances 3,410 Sales Discounts 370 Purchases 194,500 Purchases Returns and Allowances 9,740 Purchases Discounts 5,560 Freight-In 1,580 Merchandise Inventory, October 1 42,000 Merchandise Inventory, October 31 33,000
Sales
Sales discounts Net sales Cost of goods sold:
Sales
returns and allowances
Chapter 11 Accounting for Purchases and Cash Payments
October 1
October 31
91. Tim Simpleton owns a variety store called Tiny Tim Center. Journalize the following purchases of inventory, returns, and discounts for the month of November. Use the gross-price method.
Nov. 1 Purchased $4,000 of merchandise from Hilltop Caterers on account, Invoice 1234, with a 10% trade discount. Credit terms 2/10, n/30.
1 Paid rent for the month of November. Issued Check 5142 for $1,400.
5 Purchased merchandise from Owen's Supply Co. Issued Check 5143 for $1,750.
7 Purchased $3,400 of merchandise from Seaside Co. on account, Invoice 7438. Credit terms 1/15, n/30.
10 Returned $500 of the merchandise from Seaside Co. Received Credit Memo 131.
11 Paid Invoice 1234 to Hilltop Caterers. Issued Check 5144 for $3,528.
12 Purchased $4,700 of merchandise (included $200 freight) from Winding Willow Co. on account, Invoice 5139. Credit terms 3/15, n/30, FOB shipping point.
17 Purchased $320 of office supplies from Turnkey Co. on account, Invoice 8320. Credit terms 2/10, n/30.
22 Paid Invoice 7438 to Seaside Co. Issued Check 5145 for $2,871.
27 Paid Invoice 5139 to Winding Willow Co. Issued Check 5146 for $4,565.
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Purchases Purchases
and
Purchases discounts Net purchases Freight-in Cost of goods purchased Goods available for sale Merchandise inventory,
Cost of goods sold Gross profit ANSWER: Northern
Income Statement (partial) For the month ended
Sales $344,000 Sales returns and allowances $ 3,410 Sales discounts 370 3,780 Net sales $340,220 Cost of goods sold: Merchandise inventory, October 1 $ 42,000 Purchases $194,500 Purchases returns and allowances $9,740 Purchases discounts 5,560 15,300 Net purchases $179,200 Freight-in 1,580 Cost of goods purchased 180,780 Goods available for sale $222,780 Merchandise inventory, October 31 33,000 Cost of goods sold 189,780 Gross profit $150,440
Page 18 Merchandise inventory,
returns
allowances
Lights
October 31, 20
Chapter 11 Accounting for Purchases and Cash Payments
Name: Class: Date:
Copyright Cengage Learning. Powered by Cognero. Page 19 ANSWER: GENERAL JOURNAL Page 1 Date Description Post Ref. Debit Credit GENERAL JOURNAL Page 1 Date Description Post Ref. Debit Credit Nov. 1 Purchases 3,600.00 Accounts Payable/Hilltop Caterers 3,600.00 1 Rent Expense 1,400.00 Cash 1,400.00
Chapter 11 Accounting for Purchases and Cash Payments
Name: Class: Date:
Copyright Cengage Learning. Powered by Cognero. Page 20 5 Purchases 1,750.00 Cash 1,750.00 7 Purchases 3,400.00 Accounts Payable/Seaside Co. 3,400.00 10 Accounts Payable/Seaside Co. 500.00 Purchases Returns and Allowances 500.00 11 Accounts Payable/Hilltop Caterers 3,600.00 Purchases Discounts 72.00 Cash 3,528.00 12 Purchases 4,500.00 Freight-In 200.00 Accounts Payable/Winding Willow Co. 4,700.00 17 Office Supplies 320.00 Accounts Payable/Turnkey Co. 320.00 22 Accounts Payable/Seaside Co. . 2,900.00 Purchases Discounts 29.00 Cash 2,871.00 27 Accounts Payable/Winding Willow Co. 4,700.00 Purchases Discounts 135.00 Cash 4,565.00 92. Record the following transactions for Red Wood Trails in a general journal. June 3 Purchased $3,985 of merchandise on account from JVC Co. 9 Purchased $2,300 of merchandise on account from Prime Target and Co. Credit terms 2/10, n/30. 12 Purchased $675 of store supplies on account from Craft Shop. 13 Paid for June 3 purchase of merchandise from JVC Co. 19 Paid for June 9 purchase of merchandise from Prime Target and Co. ANSWER: GENERAL JOURNAL Page 1 Date Description Post Ref. Debit Credit June 3 Purchases 3,985.00 Accounts Payable/JVC Co. 3,985.00 9 Purchases 2,300.00 Accounts Payable/Prime Target and Co. 2,300.00
Name: Class: Date: Chapter 11 Accounting for Purchases and Cash Payments Copyright Cengage Learning. Powered by Cognero. Page 21 12 Store Supplies 675.00 Accounts Payable/Craft Shop 675.00 13 Accounts Payable/JVC Co. 3,985.00 Cash 3,985.00 19 Accounts Payable/Prime Target and Co 2,300.00 Purchases Discounts 46.00 Cash 2,254.00 Test Bank for College Accounting, Chapters 1-27, 23rd Edition James A. Heintz Robert W. Parry Visit TestBankBell.com to get complete for all chapters
