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    p5-2a

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    124 views10 pages

    p5 2a

    Uploaded by

    api-274120622

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 10
    ‘emalice,post and prepare a P5-2A Pace Distributing Company completed the following merchandising transactions in the ‘tat income sate monthoof Api. At the beginning of Apri. the ledger of Pace showed Cash of 9,000 and Owner's 323,56) Capital of $9,000. g ‘Ape. 2 Purchased merchanlse on account trom Monahan Supply Co, $6900, terms 1/10 30. 4 Sold merchandise on account $6,500, FOB destination, term 1/10, 30. The cost of the merchandise sod was $3,000 5S Paid $240 freight an April 4 sale. 6 Received credit from Monaghan Supply Co. for merchandise returned $500. 11 Paid Monaghan Supply Co. in full, less discount. 13. Received collections in fll, ess discounts, from customers billed on April 4 14 Purchased merchandise for cash $3,800. 16 Received refund from supplier for returned goods on cash purchase of April 14,500. 18 Purchased merchandise from Dominic Distributors $4,500, FOB shipping point, terms 2010, 280. 20 Paid freight on April 18 purchase $100. 23 Sold merchandise for cash $7.400. The merchandise sold had a cost of $4,120. 26 Purchased merchandise for cash $2,300. 27 Paid Dominic Distributors in ful, ess discount. 29 Made refunds to cash customers for defoctive merchandise $90. The returned mer- cchandise had a fie value of $30. 30. Sold merchandise on account $3,700 terms 1/30, The cost ofthe merchandise sold was $2,800. Problems: Set A Pace Distributing Company's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 301 Owner's Capital, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 4i4 Sales Discounts, No. 05 Cost of Goods Sold, and No. 644 Freight-out. Instructions (a) Journalize the transactions using a perpetual inventory system. () Enter the beginning cash and capital balances, and post the transactions. (Use J1 for the journal reference.) (©) Prepare the income statement through gross profit for the month of April 2012. (© Gross profit $6,655 Vino Doves a) Mow on Bro Morse Qaisy Moy tou 13 Cosh “Seles Dscamnt | iwerdory _ to \Cash : ~ — 8 Tanah 20 Tawendug : ost ‘ovod wecesvable * | Sales Tovenua (0) General ledger Ree Wiokibvdiac, . : ~ Cledy 101 oo pole ex iGior Tee. dm Balance Hach36 Pochance, a 9,000 Jord 5 Road Freight Gm sabe 3 1g, 70 Pod an.acounl gorpice Sil | 2424 - 13 Corswrad a godd in dat\ Br Gy, PS. $,

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