T completed the following merchandising transactions in the month of April.
At the beginning of April, the ledger of T showed
April 2 Paid rent for April, 5,000
3 Purchased merchandise on cash basis, Catalog price of 100,000, 10%, 20%
5 Sold merchandise to cash customer for an invoice price of 30,000, cost of the goods is 21,000
7 Obtain a loan to X bank, 200,000
10 Purchase merchandise from Z Company, paying 20,000 and the balance on account., terms 5/10, 2/15,
11 Paid freight on purchase of April 10, 5,000
15 Sold merchandise on account to G., term 10/10, 5/15, 2/20, n/30. FOB destination, 100,000
Cost of goods sold is 70,000
16 Paid freight on sale, 10,000
18 Returned defective goods to Z Company, 10,000
19 Paid Z Company in full
21 A customer returned defective goods 20,000
25 Paid advertising expense for the month, 15,000
26 Purchase on account from B Company., term 5/15, n/60., FOB shipping point, 50,000
27 Paid freight on purchase to B Company, 5,000
30 Paid salary for the month, 20,000
Collected in full the account of G.
the ledger of T showed Cash of 99,000 and Capital account of 99,000
oods is 21,000
ount., terms 5/10, 2/15, n/30, FOB shipping point, 120000
tion, 100,000
PERPETUAL
Date Transaction Debit Credit
April 2 Prepaid rent 5,000
Cash 5,000
2 Paid rent for April, 5,000
3 Inventory 72,000
Purchased merchandise on cash Cash 72,000
3 basis, Catalog price of 100,000,
10%, 20% Catalog Price 100,000
Trade disc. (10%) (10,000)
Total 90,000
Trade disc. (20%) (18,000)
Invoice price 72,000
Sold merchandise to cash customer 5 Cash 30,000
5 for an invoice price of 30,000, cost Sales 30,000
of the goods is 21,000
Cost of goods sold 21,000
Inventory 21,000
7 Cash 200,000
Loan payable 200,000
7 Obtain a loan to X bank, 200,000
10 Inventory 120,000
Cash 20,000
Account payable 100,000
Purchase merchandise from Z
Company, paying 20,000 and the 11 Invetory 5,000
10 balance on account., terms 5/10, Cash 5,000
2/15, n/30, FOB shipping point,
120000
15 Account receivable 100,000
Sales 100,000
Paid freight on purchase of April 10,
11
5,000 Cost of goods sold 70,000
Inventory 70,000
16 Freight-out 10,000
Sold merchandise on account to G., Cash 10,000
term 10/10, 5/15, 2/20, n/30. FOB
15
destination, 100,000. Cost of goods
sold is 70,000
16 Paid freight on sale, 10,000
Returned defective goods to Z 18 Account payable 10,000
18
Company, 10,000 Inventory 10,000
19 Paid Z Company in full 19 Accounts payable 90,000
Cash 85,500
Inventory 4,500
A customer returned defective A/P 90,000
21
goods 20,000 Cash discount (5%) 4,500
Total cash payment 85,500
21 Sales return and allowan 20,000
Paid advertising expense for the Cash 20,000
25
month, 15,000
Inventory 14,000
COGS 14,000
Purchase on account from B
26 Company., term 5/15, n/60., FOB 25 Advertising expense 15,000
shipping point, 50,000 Cash 15,000
Paid freight on purchase to B 26 Inventory 50,000
27
Company, 5,000 Account payable 50,000
27 Inventory 5,000
30 Paid salary for the month, 20,000 Cash 5,000
30 Collected in full the account of G. 30 Salaries expense 20,000
Cash 20,000
30 Cash 95,000
Sales discount 5,000
Account recivable 100,000
A/R 100,000
Cash discount (5%) (5,000)
Cash collection 95,000
PERIODIC
Date Transaction Debit Credit
2 Prepaid rent 5,000
Cash 5,000
3 Purchase 72,000
Cash 72,000
5 Cash 30,000
Sales 30,000
no entry
7 Cash 200,000
Loan payable 200,000
10 Purchase 120,000
Cash 20,000
Account payable 100,000
11 Freigh-in 5,000
Cash 5,000
15 Account receivable 100,000
Sales 100,000
No entry
16 Freight-out 10,000
Cash 10,000
18 Account payable 10,000
Purchase return and allow 10,000
19 Accounts payable 90,000
Cash 85,500
Purchase discount 4,500
21 Sales return and allowan 20,000
Cash 20,000
No entry
25 Advertising expense 15,000
Cash 15,000
26 Purchase 50,000
Account payable 50,000
27 Freight-in 5,000
Cash 5,000
30 Salaries expense 20,000
Cash 20,000
30 Cash 95,000
Sales discount 5,000
Account recivable 100,000
PERPETUAL PERIODIC
Date Transaction Debit Credit Date Transaction Debit
2 Prepaid rent 5,000 2 Prepaid rent 5,000
Cash 5,000 Cash
3 Inventory 72,000 3 Purchase 72,000
Cash 72,000 Cash
5 Cash 30,000 5 Cash 30,000
Sales 30,000 Sales
Cost of goods sold 21,000 no entry
Inventory 21,000
7 Cash 200,000 7 Cash 200,000
Loan payable 200,000 Loan payable
10 Inventory 120,000 10 Purchase 120,000
Cash 20,000 Cash
Account payable 100,000 Account payable
11 Invetory 5,000 11 Freigh-in 5,000
Cash 5,000 Cash
15 Account receivable 100,000 15 Account receivable 100,000
Sales 100,000 Sales
Cost of goods sold 70,000 No entry
Inventory 70,000
16 Freight-out 10,000 16 Freight-out 10,000
Cash 10,000 Cash
18 Account payable 10,000 18 Account payable 10,000
Inventory 10,000 Purchase return and allow
19 Accounts payable 90,000 19 Accounts payable 90,000
Cash 85,500 Cash
Inventory 4,500 Purchase discount
21 Sales return and allowan 20,000 21 Sales return and allowan 20,000
Cash 20,000 Cash
Inventory 14,000 No entry
COGS 14,000
25 Advertising expense 15,000 25 Advertising expense 15,000
Cash 15,000 Cash
26 Inventory 50,000 26 Purchase 50,000
Account payable 50,000 Account payable
27 Inventory 5,000 27 Freight-in 5,000
Cash 5,000 Cash
30 Salaries expense 20,000 30 Salaries expense 20,000
Cash 20,000 Cash
30 Cash 95,000 30 Cash 95,000
Sales discount 5,000 Sales discount 5,000
Account recivable 100,000 Account recivable
Credit
5,000 Prepaid rent 5,000
Cash 166,500 242,000 purchase
Inventory 160,500 10,000 freight-in
72,000 Sales 130,000 10,000
Cost of goods sold 77,000 4,500
Loan payable 200,000 252,000 14,500
Account payable 50,000 237,500
30,000 Capital 99,000 237,500
Account receivable -
Freight-out 10,000
Sales return and allowance 20,000
Advertising expense 15,000
Sales discount 5,000
200,000 Salaries expense 20,000
479,000 479,000
20,000
100,000
5,000
100,000
10,000
10,000
85,500
4,500
20,000
15,000
50,000
5,000
20,000
100,000
purchase return and allowance
Purchase discount
PERPETUAL
TRIAL BALANCE
Accounts Debit Credit
Cash 166,500
Prepaid rent 5,000
Inventory 160,500
Account payable 50,000
Loan payable 200,000
Capital 99,000
Sales 130,000
Cost of goods sold 77,000
Freight-out 10,000
Sales return and allowance 20,000
Advertising expense 15,000
Sales discount 5,000
Salaries expense 20,000
Total 479,000 479,000
Sales 130,000
Less: Sales return and allowance (20,000)
Sales Discount (5,000)
Net sales 105,000 105,000
Cost of goods sold (77,000)
Gross profit 28,000
Operating expenses
Advertising expense (15,000)
Salaries expense (20,000)
Freight-out (10,000)
Total OPEX (45,000) (45,000)
Net loss (17,000)
PERIODIC
TRIAL BALANCE
Accounts Debit Credit
Cash 166,500
Prepaid rent 5,000
Account payable 50,000
Loan payable 200,000
Capital 99,000
Sales 130,000
Freight-out 10,000
Sales return and allowance 20,000
Advertising expense 15,000
Sales discount 5,000
Salaries expense 20,000
purchase 242,000
freight-in 10,000
purchase return and allowance 10,000
Purchase discount 4,500
Total 493,500 493,500
Sales 130,000
Less: Sales return and allowance (20,000)
Sales Discount (5,000)
Net sales 105,000 105,000
Cost of goods sold
Inventory beginning 0
Purchases 242,000
Add: Freight-in 10,000
Less: Purchase discount (4,500)
Purchase return and allowances (10,000)
Net purchase 237,500 237,500
Total goods available for sale 237,500
Less: Inventory End Physical count (160,500) 77,000
Gross profit 28,000
Operating expenses
Advertising expense (15,000)
Salaries expense (20,000)
Freight-out (10,000)
Total OPEX (45,000) (45,000)
Net loss (17,000)
