E5-3

Dr. Cr.
Septermber 06 Inventory 1600
Cash 1600

Septermber 09 Inventory 80
Cash 80

Septermber 10 Cash 63
Inventory 63

Septermber 12 Accounts receivables 806

Sales 806
Cost of Good Sold 546
Inventory 546

Septermber 14 Sales returned and allowance 31

Accounts receivabe 31
Inventory 21
Cost of goods sold 21

Septermber 20 Accounts receivables 960

Sales 960
Cost of Good Sold 630
Inventory 630
E5-4
(a). Prepare separate entries for each transaction on the books of Naveen Company.

June 10 Inventory 8000

Accounts payable 8000

June 11 Inventory 400

Cash 400

June 12 Accounts payable 300

Inventory 300

June 19 Accounts payable 7700

Cash 7546
Inventory 154

(b). Prepare separate entries for each transaction on the books of Jarrah Company.

June 10 Accounts receivable 8000

Sales 8000
Cost of goods sold 4800
Inventory 4800

June 11 No transaction

June 12 Sales return and allowance 300

Accounts receivable 300
Inventory 70
Cost of goods sold 70

June 19 Cash 7546

Sales discounts 154
Accounts receivabe 7700

E5-5
(a). Prepare the journal entries to record these transactions on the books of Syid Company E5-3OnSeptember1,SamardoOfficeSupplyhadaninventoryof30calculatorsatacostof
$18each.Thecompanyusesaperpetualinventorysystem.DuringSeptember,thefollowing
1. Accounts receivable 570000 transactionsoccurred.
Sales 570000 Sept.6Purchased80calculatorsat$20eachfromSamuelsCo.forcash.
Cost of goods sold 350000
9Paidfreightof$80oncalculatorspurchasedfromSamuelsCo.
Inventory 350000
10Returned3calculatorstoSamuelsCo.for$63credit(includingfreight)becausethey
didnotmeetspecifications.
2. Sales return and allowance 20000
12Sold26calculatorscosting$21(includingfreight)for$31eachtoTrentBookStore,
Accounts receivable 20000
termsn/30.
Inventory 12281
14Grantedcreditof$31toTrentBookStoreforthereturnofonecalculatorthatwas
Cost of goods sold 12281
notordered.
3. Cash 539000 20Sold30calculatorscosting$21for$32eachtoPlaisted'sCardShop,termsn/30.
Sales discounts 11000 Instructions
Accounts receivable 550000 JournalizetheSeptembertransactions.
(b). Prepare the journal entries E5-4OnJune10,NaveenCompanypurchased$8,000ofmerchandisefromJarrahCompany,
FOBshippingpoint,terms2/10,n/30.Naveenpaysthefreightcostsof$400onJune11.Damaged
Cash 550000 goodstotaling$300arereturnedtoJarrahforcreditonJune12.Thefairvalueofthesegoodsis
Accounts receivable 550000 $70.OnJune19,NaveenpaysJarrahCompanyinfull,lessthepurchasediscount.Bothcompa-
E5-6 niesuseaperpetualinventorysystem.
(a). Prepare the sales revenues section of the income statement Instructions
(a)PrepareseparateentriesforeachtransactiononthebooksofNaveenCompany.
 (a)PrepareseparateentriesforeachtransactiononthebooksofNaveenCompany.
Garcia Company (b)PrepareseparateentriesforeachtransactionforJarrahCompany.Themerchandisepur-
Income statement (partial) chasedbyNaveenonJune10hadcostJarrah$4,800.
REVENUE
Sales revenue 820.000 E5-5PresentedbelowaretransactionsrelatedtoSayidCompany.
Less: Sales return and allowance 25.000 1.OnDecember3,SayidCompanysold$570,000ofmerchandisetoShephardCo.,terms2/10,
Sales discounts 13.000 n/30,FOBshippingpoint.Thecostofthemerchandisesoldwas$350,000.
Net Sales 782.000 2.OnDecember8,ShephardCo.wasgrantedanallowanceof$20,000formerchandisepur-
chasedonDecember3.
3.OnDecember13,SayidCompanyreceivedthebalanceduefromShephardCo.
(b).Prepare separate closing entories for (1) sales and (2) the contra accounts to sales
Instructions

(1). Sales revenue 820.000 (a)PreparethejournalentriestorecordthesetransactionsonthebooksofSayidCompany

Income summary 820.000 usingaperpetualinventorysystem.
(b)AssumethatSayidCompanyreceivedthebalanceduefromShephardCo.onJanuary2of
(2). Income summary 38.000 thefollowingyearinsteadofDecember13.Preparethejournalentrytorecordthereceiptof
Sales return and allowance 25.000 paymentonJanuary2.
Sales discounts 13.000 E5-6TheadjustedtrialbalanceofGarciaCompanyshowsthefollowingdatapertainingto
E5-7
salesattheendofitsfiscalyearOctober31,2012:SalesRevenue$820,000,Freight-out$16,000,
(a). Prepare the adjusting entry necessary as a result of the physical count. SalesReturnsandAllowances$25,000,andSalesDiscounts$13,000.
Cost of goods sold 1100 Instructions
Inventory 1100 (a)Preparethesalesrevenuessectionoftheincomestatement.
(b)Prepareseparateclosingentriesfor(1)sales,and(2)thecontraaccountstosales.
(b). Prepare the closing entries E5-7HugoReyesCompanyhadthefollowingaccountbalancesatyear-end:CostofGoodsSold
(1). Sales revenue 115000
$60,000;Inventory$15,000;OperatingExpenses$29,000;SalesRevenue$115,000;SalesDiscounts
$1,200;andSalesReturnsandAllowances$1,700.Aphysicalcountofinventorydeterminesthat
Income summary 115000
merchandiseinventoryonhandis$13,900.
(2). Income summary 93000 Instructions
Cost of good sold 61100 (a)Preparetheadjustingentrynecessaryasaresultofthephysicalcount.
Sales return and allowance 1700 (b)Prepareclosingentries.
Sales discount 1200
Operating expenses 29000