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Monday July 22 CHPT 567 Answer Key

Monday

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57 views6 pages

Monday July 22 CHPT 567 Answer Key

Monday

Uploaded by

lakshbrar849
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© © All Rights Reserved
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TB 05-125 Maeves Store had the

Maeve's Store had the following transactions during December, the last
month of the accounting period:

De 1 Sold merchandise on credit for $7,000, cost $3,000 terms 1/10, n/30.
c.
3 Purchased merchandise for cash, $1,900.
4 Purchased merchandise on credit for $5,600, terms 2/10, n/30.
5 Issued a credit memorandum for $600 to a customer who returned
merchandise purchased November 29, cost $400.
11 Received payment for merchandise sold December 1.
15 Received a credit memorandum for $600 for the return of faulty
merchandise purchased on December 4.
18 Paid freight charges of $50 for merchandise ordered last month.
23 Paid for the merchandise purchased December 4 less merchandise
returned.
24 Sold merchandise on credit for $9,000, terms 1/10 n/30, cost $6,500.
31 Received payment for merchandise sold on December 24.

Prepare general journal entries to record these transactions, using a


perpetual inventory system.
Answer

Explanation:
Dec 1 Accounts Receivable 7,000
Sales 7,000
Cost of Goods Sold 3,000
Merchandise Inventory 3,000
Inventory sale terms 1/10, n/30
Dec 3 Merchandise Inventory 1,900
Cash 1,900
Inventory purchase
Dec 4 Merchandise Inventory 5,600
Accounts Payable 5,600
Inventory purchase terms 2/10, n/30.
Dec 5 Sales Returns and Allowances 600
Accounts Receivable 600
Merchandise Inventory 400
Cost of Goods Sold 400
Inventory return for November 29th sale.
Dec 11 Cash 6,930
Sales Discounts 70
Accounts Receivable 7,000
Payment for December 1st sale.
Discount(7,000 × 1%) = $70
Dec 15 Accounts Payable 600
Merchandise Inventory 600
Credit memorandum faulty merchandise.
Dec 18 Merchandise Inventory 50
Cash 50
Shipping charges.
Dec 23 Accounts Payable 5,000

Cash 5,000

Dec 24 Accounts Receivable 9,000


Sales 9,000
Cost of Goods Sold 6,500
Merchandise Inventory 6,500
Inventory sale. Terms 1/10, n/30
Dec 31 Cash 8,910
Sales Discounts 90
Accounts Receivable 9,000
Payment. Discount(9,000 × 1%) = $90

TB 06-139 Player Company made the following mer...

Player Company made the following merchandise purchases during the


current year:
Jan.1 380 units at
$15.00
May.1 270 units at
$20.00
June.1 300 units at
$24.00
Oct.1 250 units at
$30.00

There was no beginning inventory, but ending inventory consisted of 105


units. If Player uses the first-in, first-out method and the periodic inventory
system, what would be the cost of the ending inventory?
Answer

Explanation:
Number of units Price per unit Total cost
105 30 $3,150

TB 07-135 The bank statement and relevant porti...


The bank statement and relevant portions of Bernie Company's cash records
for the month ended June 30, 2023 are given below.

Bernie Company Cheque Register


Date Explanation Debit Credit Balance
31-May Deposit 9,050.00 21,242.92
1-Jun Cheque 882 659.00 20,583.92
1-Jun Cheque 876 226.00 20,357.92
1-Jun Cheque 883 2,390.00 17,967.92
1-Jun Cheque 884 565.00 17,402.92
3-Jun Cheque 885 424.00 16,978.92
4-Jun Cheque 886 352.00 16,626.92
9-Jun Deposit 6,280.00 22,906.92
12-Jun Cheque 887 2,113.78 20,793.14
12-Jun Cheque 888 2,169.43 18,623.71
12-Jun Cheque 889 1,248.00 17,375.71
18-Jun Deposit 1,920.00 19,295.71
20-Jun Cheque 890 2,369.00 16,926.71
21-Jun Cheque 891 6,669.00 10,257.71
24-Jun Cheque 892 1,452.00 8,805.71
26-Jun Cheque 893 256.00 8,549.71
29-Jun Deposit 3,695.00 12,244.71
Bank Statement
Cheques/Charges Deposits/Credits Balance
31-May 12,192.92
#884 6/1 565.00 6/1 9,050.0020,677.92
#883 6/4 2,390.00 18,287.92
#876 6/9 226.00 6/9 6,280.0024,341.92
#889 6/12 1,248.00 23,093.92
#882 6/14 659.00 22,434.92
#887 6/18 2,003.78 6/18 1,920.0022,351.14
#885 6/20 424.00 21,927.14
#891 6/21 6,569.00 15,358.14
#886 6/29 352.00 15,006.14
SC 6/30 89.30 6/30 14,916.84
Notes: Cheque #887
was recorded
incorrectly by the
bookkeeper for
equipment
purchase. Cheque
#891 was recorded
incorrectly by the
bank.

Prepare the bank reconciliation at June 30, 2023.


Answer
Explanation:
Bernie Company Bank Reconciliation June 30, 2023
Bank statement balance, $14,916. Book balance, $12,244.
June 30 84 June 30 71
Add:
Add:
Deposits in transit 3,695. Book error 110.00
00 cheque 887
3,695.00 $12,354.
71
18,611.8
4
Deduct: Deduct:
Bank error 100.00 Bank service 89.30
charges
Outstanding Cheques
888 2,169.
43
890 2,369.
00
892 1,452.
00
893 256.00 6,346.43 _________
Adjusted bank balance $12,265. Adjusted book $12,265.
41 balance 41

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