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

  

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

  

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

  

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

  

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.)