ACC291T Week 2 Apply Exercise SCORE 100 PERCENT

Question 1

Lewis Corporation engaged in the following transactions during June.

 

DATE			TRANSACTIONS
2019
June	4		Purchased merchandise on account from Salinas Company; Invoice 100 for $1,055; terms n/30.
	15		Recorded purchases for cash, $1,540.
	30		Paid amount due to Salinas Company for the purchase on June 4.

Record these transactions in a general journal.

 

Question 2
During the year, a firm purchased $256,700 of merchandise and paid freight charges of $41,770. If the total purchases returns and allowances were $16,040 and purchase discounts were $8,500 for the year, what is the net delivered cost of purchases?

Multiple Choice

    $298,470
    $273,930
    $323,010
    $190,390

Question 3
Tune Tones Instrument Tuning Company owes Mandy Lynn's Music Studio $5,046 as of November 1. During November, Tune Tones purchased merchandise from Mandy Lynn totaling $8,685 and made payments on account to Mandy Lynn in the amount of $7,440. The amount Tune Tones owes Mandy Lynn on November 30 is:

Multiple Choice

    $6,291.
    $3,801.
    $11,079.
    $7,440.

Question 4
During March a firm purchased $22,730 of merchandise and paid freight charges of $1,800. If the net delivered cost of purchases for the March is $21,980, what is the total purchase returns for March?

Multiple Choice

    $0
    $1,050
    $2,550
    $3,600

Question 5
Bushard Company (buyer) and Schmidt, Inc. (seller) engaged in the following transactions during February 2019:
Bushard Company
DATE         TRANSACTIONS
2019          
Feb.    10         Purchased merchandise for $6,700 from Schmidt, Inc., Invoice 1980, terms 2/10, n/30.
     13         Received Credit Memorandum 230 from Schmidt, Inc., for damaged merchandise totaling $370 that was returned; the goods were purchased on Invoice 1980, dated February 10.
     19         Paid amount due to Schmidt, Inc., for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.
 
Schmidt, Inc.
DATE         TRANSACTIONS
2019          
Feb.    10         Sold merchandise for $6,700 on account to Bushard Company, Invoice 1980, terms 2/10, n/30. The cost of merchandise sold was $3,850.
     13         Issued Credit Memorandum 230 to Bushard Company for damaged merchandise totaling $370 that was returned; the goods were purchased on Invoice 1980, dated February 10. The cost of the returned goods was $290.
     19         Received payment from Bushard Company for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.
 
Both companies use the perpetual inventory system. Journalize the transactions above in a general journal for both Bushard Company and Schmidt, Inc. (Round final answers to the nearest whole dollar value.)

Question 6

Assume the following account balances at January 1, 2019, for Bioplast Jewelry, Inc.:

  

Accounts Payable (control account)	$	7,500
Accounts Payable—Evans Enterprises		1,900
Accounts Payable—Stamos Distributors		3,400
Accounts Payable—Tonetta Company		2,200

  

GENERAL JOURNAL
DATE		DESCRIPTION	POST. REF.	DEBIT			CREDIT
2019
Jan.	8	Accounts Payable/Stamos Distributors			330
		Cash						330
		Made partial payment
		on account, Check 1240
	10	Accounts Payable/Evans Enterprises			230
		Purchases Returns and Allowances						230
		Received Credit Memorandum
		123 as allowance for
		discolored merchandise

 

1. Use the final balances of the vendor accounts to prepare a schedule of accounts to payable for Bioplast Jewelry, Inc., as of January 31, 2019.
2. Does the total of your accounts payable schedule agree with the balance of the accounts payable account in the general ledger at January 31, 2019?

 

Question 7

Bushard Company (buyer) and Schmidt, Inc. (seller) engaged in the following transactions during February 2019:

Bushard Company

DATE			TRANSACTIONS
2019
Feb.	10		Purchased merchandise for $1,100 from Schmidt, Inc., Invoice 1980, terms 1/10, n/30.
	13		Received Credit Memorandum 230 from Schmidt, Inc., for damaged merchandise totaling $200 that was returned; the goods were purchased on Invoice 1980, dated February 10.
	19		Paid amount due to Schmidt, Inc., for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.

 

Schmidt, Inc.

DATE			TRANSACTIONS
2019
Feb.	10		Sold merchandise for $1,100 on account to Bushard Company, Invoice 1980, terms 1/10, n/30.
	13		Issued Credit Memorandum 230 to Bushard Company for damaged merchandise totaling $200 that was returned; the goods were purchased on Invoice 1980, dated February 10.
	19		Received payment from Bushard Company for Invoice 1980 of February 10, less the return of February 13 and less the cash discount, Check 2010.

 

Journalize the transactions above in a general journal for both Bushard Company and Schmidt, Inc.

 

Question 8

Post the entries in the general journal below to the accounts payable account in the general ledger and to the appropriate accounts in the accounts payable ledger.

Assume the following account balances at January 1, 2019, for Bioplast Jewelry, Inc.:

  

Accounts Payable (control account)	$	7,200
Accounts Payable—Evans Enterprises		1,800
Accounts Payable—Stamos Distributors		3,300
Accounts Payable—Tonetta Company		2,100

  

GENERAL JOURNAL
DATE		DESCRIPTION	POST. REF.	DEBIT			CREDIT
2019
Jan.	8	Accounts Payable/Stamos Distributors			340
		Cash						340
		Made partial payment
		on account, Check 1240
	10	Accounts Payable/Evans Enterprises			240
		Purchases Returns and Allowances						240
		Received Credit Memorandum
		123 as allowance for
		discolored merchandise

  Question 9
On April 1, Moloney Meat Distributors sold merchandise on account to Fronke's Franks for $3,550 on Invoice 1001, terms 1/10, n/30. The cost of merchandise sold was $2,100. Payment was received in full from Fronke's Franks, less discount, on April 10.
Record the transactions for Moloney Meat Distributors on April 1 and April

10. The company uses the perpetual inventory system. (Round final answers to the nearest whole dollar value.)
Question 10
Record the following transactions of J. Min Designs in a general journal. The company uses the perpetual inventory system.
 
DATE         TRANSACTIONS
2019          
April    1         Purchased merchandise on credit from O'Rourke Fabricators, Invoice 885, $3,450, terms 1/10, n/30; freight of $65 prepaid by O'Rourke Fabricators and added to the invoice (total invoice amount, $3,515).
     9         Paid amount due to O'Rourke Fabricators for the purchase of April 1, less the 2 percent discount, Check 457.
     15         Purchased merchandise on credit from Kroll Company, Invoice 145, $1,700, terms 1/10, n/30; freight of $120 prepaid by Kroll and added to the invoice.
     17         Returned damaged merchandise purchased on April 15 from Kroll Company; received Credit Memorandum 332 for $95.
     24         Paid the amount due to Kroll Company for the purchase of April 15, less the return on April 17, taking the 1 percent discount, Check 470.

Record these transactions in a general journal. (Round final answers to the nearest whole dollar value.)