During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,000 from Diamond Inc. with terms 2/15, n/60. 5 Returned goods costing $1,000 to Diamond Inc. for credit on account. 6 Purchased goods from Club Corp. for $1,550 with terms 2/15, n/60. 11 Paid the balance owed to Diamond Inc. 22 Paid Club Corp. in full.

During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,000 from Diamond Inc. with terms 2/15, n/60. 5 Returned goods costing $1,000 to Diamond Inc. for credit on account. 6 Purchased goods from Club Corp. for $1,550 with terms 2/15, n/60. 11 Paid the balance owed to Diamond Inc. 22 Paid Club Corp. in full.

Principles of Accounting Volume 1

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Chapter12: Current Liabilities

Section: Chapter Questions

Problem 8PB: Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following...

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Review the following transactions and prepare any necessary journal entries for Lands Inc. A. On December 10, Lands Inc. contracts with a supplier to purchase 450 plants for its merchandise inventory, on credit, for $12.50 each. Credit terms are 4/15, n/30 from the invoice date of December 10. B. On December 28, Lands pays the amount due in cash to the supplier.
Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.
Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.
Record journal entries for the following transactions of Furniture Warehouse. A. July 5: Purchased 30 couches at a cost of $150 each from a manufacturer. Credit terms are 2/15, n/30, invoice date July 5. B. July 10: Furniture Warehouse returned 5 couches for a full refund. C. July 15: Furniture Warehouse found 6 defective couches, but kept the merchandise for an allowance of $500. D. July 20: Furniture Warehouse paid their account in full with cash.
Air Compressors Inc. purchases compressor parts for its inventory from a supplier. The following transactions take place during the current year: A. On April 5, the company purchases 400 parts for $8.30 per part, on credit. Terms of the purchase are 4/ 10, n/30, invoice dated April 5. B. On May 5, Air Compressors does not pay the amount due and renegotiates with the supplier. The supplier agrees to $400 cash immediately as partial payment on note payable due, converting the debt owed into a short-term note, with a 7% annual interest rate, payable in three months from May 5. C. On August 5, Air Compressors pays its account in full. Record the journal entries to recognize the initial purchase, the conversion plus cash, and the payment.
Guardian Services Inc. had the following transactions during the month of April: a. Record the June purchase transactions for Guardian Services Inc. in the following purchases journal format: b. What is the total amount posted to the accounts payable and office supplies accounts from the purchases journal for April? c. What is the April 30 balance of the Officemate Inc. creditor account assuming a zero balance on April 1?
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence ofevents was as follows:June 3 Purchased goods for $4,100 from Diamond Inc. with terms 2/10, n/30.5 Returned goods costing $1,100 to Diamond Inc. for full credit.6 Purchased goods from Club Corp. for $1,000 with terms 2/10, n/30.11 Paid the balance owed to Diamond Inc.22 Paid Club Corp. in full.Required:Assume that Ace uses a perpetual inventory system and that the company had no inventory on handat the beginning of the month. Calculate the cost of inventory as of June 30.
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $3,400 from Diamond Incorporated with terms 2/12, n/45. June 5 Returned goods costing $1,150 to Diamond Incorporated for credit on account. June 6 Purchased goods from Club Corporation for $1,350 with terms 2.5/12, n/45. June 11 Paid the balance owed to Diamond Incorporated. June 22 Paid Club Corporation in full. Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,100 from Diamond Incorporated with terms 2/10, n/30. June 5 Returned goods costing $1,100 to Diamond Incorporated for credit on account. June 6 Purchased goods from Club Corporation for $1,000 with terms 2/10, n/30. June 11 Paid the balance owed to Diamond Incorporated. June 22 Paid Club Corporation in full. Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30.
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $7,700 from Diamond Incorporated with terms 2/10, n/30. June 5 Returned goods costing $2,900 to Diamond Incorporated for credit on account. June 6 Purchased goods from Club Corporation for $2,800 with terms 2/10, n/30. June 11 Paid the balance owed to Diamond Incorporated. June 22 Paid Club Corporation in full. Required: Prepare journal entries to record the transactions, assuming Ace records discounts using the gross method in a perpetual inventory system. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list No 1 2 3 4 5 Date June 03 June 05 June 06 June 11 June 22 View journal entry worksheet Inventory Accounts Payable Accounts Payable Inventory Inventory Accounts Payable Accounts Payable Cash Accounts Payable Cash General Journal Debit 7,700 2,900 2,800 7,546…
During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $3,800 from Diamond Incorporated with terms 2/10, n/30. June 5 Returned goods costing $850 to Diamond Incorporated for credit on account. June 6 Purchased goods from Club Corporation for $800 with terms 3/10, n/30. June 11 Paid the balance owed to Diamond Incorporated. June 22 Paid Club Corporation in full. Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Cost of Inventory $ % * 1 + 1 delet
During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows: January 6 Purchased goods for $1,200 from Green with terms 2/10, n/30. January 6 Purchased goods from Munoz for $900 with terms 2/10, n/30. January 14 Paid Green in full. February 2 Paid Munoz in full. February 28 Purchased goods for $350 from Reynolds with terms n/45. Required: Assume that Axe uses a perpetual inventory system, the company had no inventory on hand at the beginning of January, and no sales were made during January and February. Calculate the cost of inventory as of February 28. Cost of Inventory

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June	3	Purchased goods for $4,000 from Diamond Inc. with terms 2/15, n/60.
	5	Returned goods costing $1,000 to Diamond Inc. for credit on account.
	6	Purchased goods from Club Corp. for $1,550 with terms 2/15, n/60.
	11	Paid the balance owed to Diamond Inc.
	22	Paid Club Corp. in full.