Name:            Course:           Date:            Problem P5-1A, Journalize purchase and sales transactions under a perpetual inventory system. Financial Accounting, 8th Edition by Weygandt, Kieso, and Kimmel   Primer…

Name:

Course:

Date:

Problem P5-1A, Journalize purchase and sales transactions under a perpetual inventory system.

Financial Accounting, 8^{th Edition by Weygandt, Kieso, and Kimmel}

Primer on Using Microsoft Excel in Accounting by Rex A Schildhouse

This challenge has been modified to a units presentation.

Problem P5-1A, Ready-Set-Go Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of

its customers. At the end of June, Ready-Set-Go’s inventory consisted of

120

suitcases purchased at

$10.00

each. During the month of July the following merchandising transactions occurred.

Jul 1

Purchased

150

suitcases on account for

$10.00

each from Trunk Manufacturers, FOB

destination, terms 2/10, n/30. The appropriate party also made a cash payment of

$100.00

for

freight on this date.

Jul 3

Sold

110

suitcases on account to Satchel World for

$20.00

each. The cost of suitcases

sold is

$1,400.00

Jul 9

Paid Trunk Manufacturers in full.

Jul 12

Received payment in full from Satchel World.

Jul 17

Sold

70

suitcases on account to Lady GoGo for

$20.00

each. The cost of

suitcases sold is

$1,010.00

Jul 18

Purchased

190

suitcases on account for

$1,900.00

from Holiday Manufacturers, FOB

shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of

$125.00

for freight on this date.

Jul 20

Received

$300.00

credit (including freight) for

30

suitcases returned to Holiday

Manufacturers.

Jul 21

Received payment in full from Lady GoGo.

Jul 22

Sold

90

suitcases on account to Vagabond for

$25.00

each. The cost of suitcases

sold is

$1,350.00

Jul 30

Paid Holiday Manufacturers in full.

Jul 31

Granted Vagabond

$200.00

credit for

8

suitcases returned costing

$120.00

Sansomite’s chart of accounts includes the following:

Acct Nbr

Account title:

Acct Nbr

Account title:

101

Cash

401

Sales Revenue

112

Accounts Receivable

412

Sales Returns and Allowances

120

Inventory

414

Sales Discounts

201

Accounts Payable

505

Cost of Goods Sold

Instructions:

Journalize the transactions for the month of July for Ready-Set-Go using a perpetual inventory system.

Date

Account titles and explanations

Ref

Debit

Credit

Jul 1

Account title

Amount

Account title

Amount

Text

3

Account title

Amount

Account title

Amount

Text

Account title

Amount

Account title

Amount

Text

9

Account title

Amount

Account title

Amount

Account title

Amount

Text

12

Account title

Amount

Account title

Amount

Account title

Amount

Text

17

Account title

Amount

Account title

Amount

Text

Account title

Amount

Account title

Amount

Text

18

Account title

Amount

Account title

Amount

Text

Account title

Amount

Account title

Amount

Text

20

Account title

Amount

Account title

Amount

Text

21

Account title

Amount

Account title

Amount

Account title

Amount

Text

22

Account title

Amount

Sales Revenue

Amount

Text

Account title

Amount

Account title

Amount

Text

30

Account title

Amount

Account title

Amount

Text

31

Account title

Amount

Account title

Amount

Text

Account title

Amount

Account title

Amount

Text