Merchandising operations

Part A (40 points) Use the following information to complete the partial worksheet for Bill’s Company. Record the appropriate adjusting entries using the data below and extend the balances over to the adjusted trial balance columns. Merchandise inventory—ending $10 Store supplies on hand 3 Depreciation on store equipment 2 Accrued salaries 1 Bill’s Company Partial Worksheet For the Year Ended December 31st, 2012 Account Titles Trial Balance Adjustments Adjusted Trial Balance Debit Credit Debit Credit Debit Credit Merchandise Inv. 16 Store Supplies 10 Store Equipment 20 Accum. Depr. Store Equip. 6 Salaries Payable Income Summary Salary Expense 10 Depreciation Expense Store Supplies Exp.
Part B (15 points each for a possible total of 60 points) The Bixby Co. had the following transactions involving the purchase of merchandise. Prepare the necessary general journal entries. Any applicable freight costs are prepaid by the seller. The perpetual inventory method is in use. June 16 Purchased merchandise having a price of $6,000 from the Shelby Manufacturing Co. on account with credit terms 10, n/30. Transportation terms F.O.B destination. June 16 Purchased merchandise having a price of $9,000 from the Ajax Supply House on account with credit terms 2/10,

June 16 Purchased merchandise having a price of $6,000 from the Shelby Manufacturing terms 10, n/30. Transportation terms F.O.B destination. June 16 Purchased merchandise having a price of $9,000 from the Ajax Supply House on n/30. Transportation terms FOB shipping point. The freight costs were $175. June 17 Received the goods from Shelby. June 17 Received the goods from Ajax. June 20 Returned for credit merchandise with an invoice price of $800 to Ajax. June 25 Paid Shelby the amount owed. June 28 Paid Ajax the amount owed. June 30 Returned for cash, merchandise with an invoice price of $400 to Shelby.
Co. on account with credit account with credit terms 2/10,
(1) Prepare the necessary general journal entry for June 16, Purchased merchandise having a price of $6,000 from the Shelby Manufacturing Co. on account with credit terms 2/10, n/30. Transportation terms FOB destination.
(2) Prepare the necessary general journal entry for June 17, Received the goods from Shelby.
(3) Prepare the necessary general journal entry for June 25.
(4) Prepare the necessary general journal entry for June 28.

 

 

 

Sample Solution

ACED ESSAYS