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ritafajita
Feb 10, 2007, 02:06 AM
:confused: Okay, this accounting class is not fun anymore! I would suggest to anyone, not to do online college with accounting. At least for me, it would help to actually have someone explain and show it to me. Anyway, I posted on my blackboard to no answers, have an assignment due tomorrow. Is anyone game to checking this for me.. Thank you in advance! Ritafajita
My copy and paste came out weird, it's a credit/debit pick with a drop down menu to pick one of the choices. I have most of my answers, just can't get cost of goods sold



Phantom Book Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Phantom's inventory consisted of 240 books purchased at $1,200. During the month of June the following merchandising transactions occurred. June 1 Purchased 160 books on account for $5 each from Ex Libris Publishers, FOB destination,terms 2/10, n/30. The appropriate party also made a cash payment of $50 for the freight on this date.
3 Sold 120 books on account to Readers-R-Us for $10 each.
6 Received $50 credit for 10 books returned to Ex Libris Publishers.
9 Paid Ex Libris Publishers in full, less discount.
15 Received payment in full from Readers-R-Us.
17 Sold 120 books on account to Bargain Books for $10 each.
20 Purchased 110 books on account for $5 each from Bookem Publishers, FOB destination, terms 2/15, n/30. The appropriate party also made a cash payment of $50 for the freight on this date.
24 Received payment in full from Bargain Books.
26 Paid Bookem Publishers in full, less discount.
28 Sold 110 books on account to Read-n-Weep Bookstore for $10 each.
30 Granted Read-n-Weep Bookstore $150 credit for 15 books returned costing $ 75.


Instructions

Journalize the transactions for the month of June for Phantom Book Warehouse using a perpetual inventory system.

(a) June 1

Debit Merchandise Inventory
800

Credit
Accounts Payable
800


June 3

Debit
Accounts Receivable
1200

Credit
Sales
1200




Debit
Cost of Goods Sold


Credit
Merchandise Inventory



June 6

Debit Accounts Payable
50

Credit
Merchandise Inventory
50

June 9

Debit Accounts Payable


Credit
Merchandise Inventory


Credit
Cash



June 15

Debit Cost of Goods SoldSales DiscountsSalesAccounts ReceivableAccounts PayableSales Returns and AllowancesCashMerchandise Inventory
1200

Credit
Merchandise InventoryAccounts ReceivableAccounts PayableCashSalesCost of Goods SoldSales DiscountsSales Returns and Allowances
1200


June 17

Debit Accounts Receivable
1200

Credit
Sales
1200




Debit Cost of Goods Sold


Credit
Merchandise Inventory



June 20

Debit Merchandise Inventory
550

Credit
Accounts Payable
550


June 24

Debit Cash


Debit Sales Discounts


Credit
Accounts Receivable



June 26

Debit Accounts Payable


Credit Merchandise Inventory


Credit Cash



June 28

Debit Accounts Receivable
1100

Credit
Sales
1100




Debit Cost of Goods Sold


Credit
Merchandise Inventory



June 30

Debit Sales Returns and Allowances
150

Credit
Accounts Receivable
150




Debit Merchandise Inventory
75

Credit
Cost of Goods Sold
75

CaptainForest
Feb 10, 2007, 02:30 PM
The following website explains quite nicely the difference between Perpetual vs. Periodic Inventory System Journal Entries

Perpetual and Periodic Journal Entries (http://ccba.jsu.edu/accounting/PERPETUALPERIODICJE.HTML)

ritafajita
Feb 10, 2007, 02:46 PM
The following website explains quite nicely the difference between Perpetual vs. Periodic Inventory System Journal Entries

Perpetual and Periodic Journal Entries (http://ccba.jsu.edu/accounting/PERPETUALPERIODICJE.HTML)
:D Thank you again so much! What an awesome link. I have to share it with another online classmate. I got it!! :)

CaptainForest
Feb 10, 2007, 04:24 PM
You're welcome!