The following are transactions between Wang Corp., the consignor, and Ren Stores Ltd., the consignee, for the month of June 2023. Wang uses a perpetual inventory system and has a separate perpetual record for inventory sent out on consignment. At the end of each month, sales are reported by Ren to Wang and a net payment is made. The agreement stipulates that Ren is to receive a 15% (of sales) commission and a 6% (of sales) rebate to offset its advertising expenses. June 1 Wang ships merchandise costing $455,000 on consignment to Ren Stores. Wang pays the freight of $5,000 for the above shipment of June 1. Summary entry for the month of June: Ren sells half of the merchandise for $600,000 cash. Ren notifies Wang that 50% of the merchandise has been sold for $600,000 and remits a cheque for the amount due under the consignment agreement. Wang records the receipt of the cheque from Ren. June 5 June 30 June 30 (a) Prepare the journal entries necessary on the books of Wang. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal

The following are transactions between Wang Corp., the consignor, and Ren Stores Ltd., the consignee, for the month of June 2023. Wang uses a perpetual inventory system and has a separate perpetual record for inventory sent out on consignment. At the end of each month, sales are reported by Ren to Wang and a net payment is made. The agreement stipulates that Ren is to receive a 15% (of sales) commission and a 6% (of sales) rebate to offset its advertising expenses. June 1 Wang ships merchandise costing $455,000 on consignment to Ren Stores. Wang pays the freight of $5,000 for the above shipment of June 1. Summary entry for the month of June: Ren sells half of the merchandise for $600,000 cash. Ren notifies Wang that 50% of the merchandise has been sold for $600,000 and remits a cheque for the amount due under the consignment agreement. Wang records the receipt of the cheque from Ren. June 5 June 30 June 30 (a) Prepare the journal entries necessary on the books of Wang. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The following information relates to the obligation of the company as of March 31, 2021: Trade Payables Accounts payable for suppliers, goods, and services purchases on open account amount to P1,670,000 as of March 31, 2021 before considering of the following items: On March 31, 2021, the company has a P50,000 debit balance in its accounts payable to a supplier, resulting from a P50,000 advance payment for goods odered by the company. The balance also includes an advance payment of P20,000 made by a customer to Doll in anticipation of a purchase to be made by the customer in April 2021. Additional information: A. Goods were in transit to the company from a vendor on March 31, 2021. The invoice cost was P35,000. The goods were shipped FOB seller on March 29, 2021 and were received on April 4, 2021. B. Goods shipped FOB destination on March 21, 2021, from a vendor to the company were…
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Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The following information relates to the obligation of the company as of March 31, 2021: Trade Payables Accounts payable for suppliers, goods, and services purchases on open account amount to P1,670,000 as of March 31, 2021 before considering of the following items: On March 31, 2021, the company has a P50,000 debit balance in its accounts payable to a supplier, resulting from a P50,000 advance payment for goods odered by the company. The balance also includes an advance payment of P20,000 made by a customer to Doll in anticipation of a purchase to be made by the customer in April 2021. Additional information: A. Goods were in transit to the company from a vendor on March 31, 2021. The invoice cost was P35,000. The goods were shipped FOB seller on March 29, 2021 and were received on April 4, 2021. B. Goods shipped FOB destination on March 21, 2021, from a vendor to the company were…
Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The following information relates to the obligation of the company as of March 31, 2021: Trade Payables Accounts payable for suppliers, goods, and services purchases on open account amount to P1,670,000 as of March 31, 2021 before considering of the following items: On March 31, 2021, the company has a P50,000 debit balance in its accounts payable to a supplier, resulting from a P50,000 advance payment for goods odered by the company. The balance also includes an advance payment of P20,000 made by a customer to Doll in anticipation of a purchase to be made by the customer in April 2021. Additional information: A. Goods were in transit to the company from a vendor on March 31, 2021. The invoice cost was P35,000. The goods were shipped FOB seller on March 29, 2021 and were received on April 4, 2021. B. Goods shipped FOB destination on March 21, 2021, from a vendor to the company were…
Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The following information relates to the obligation of the company as of March 31, 2021: Trade Payables Accounts payable for suppliers, goods, and services purchases on open account amount to P1,670,000 as of March 31, 2021 before considering of the following items: On March 31, 2021, the company has a P50,000 debit balance in its accounts payable to a supplier, resulting from a P50,000 advance payment for goods odered by the company. The balance also includes an advance payment of P20,000 made by a customer to Doll in anticipation of a purchase to be made by the customer in April 2021. Additional information: A. Goods were in transit to the company from a vendor on March 31, 2021. The invoice cost was P35,000. The goods were shipped FOB seller on March 29, 2021 and were received on April 4, 2021. B. Goods shipped FOB destination on March 21, 2021, from a vendor to the company were…
Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The following information relates to the obligation of the company as of March 31, 2021: Trade Payables Accounts payable for suppliers, goods, and services purchases on open account amount to P1,670,000 as of March 31, 2021 before considering of the following items: On March 31, 2021, the company has a P50,000 debit balance in its accounts payable to a supplier, resulting from a P50,000 advance payment for goods odered by the company. The balance also includes an advance payment of P20,000 made by a customer to Doll in anticipation of a purchase to be made by the customer in April 2021. Additional information: A. Goods were in transit to the company from a vendor on March 31, 2021. The invoice cost was P35,000. The goods were shipped FOB seller on March 29, 2021 and were received on April 4, 2021. B. Goods shipped FOB destination on March 21, 2021, from a vendor to the company were…
Rosalie Couses the gross method to record sales made on credit. On June 10, 2019, it made sales of £100,000 with terms 2/10, n/30 to Finley Farms, Inc. On June 19, 2019, Rosalie received payment for 1/2 the amount due from Finley Farms. Rosalie’s fiscal year end is on June 30, 2019. What amount will be reported in the statement of financial position for the accounts receivable due from Finley Farms, Inc.?
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Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The following information relates to the obligation of the company as of March 31, 2021: Trade Payables Accounts payable for suppliers, goods, and services purchases on open account amount to P1,670,000 as of March 31, 2021 before considering of the following items: On March 31, 2021, the company has a P50,000 debit balance in its accounts payable to a supplier, resulting from a P50,000 advance payment for goods odered by the company. The balance also includes an advance payment of P20,000 made by a customer to Doll in anticipation of a purchase to be made by the customer in April 2021. Additional information: A. Goods were in transit to the company from a vendor on March 31, 2021. The invoice cost was P35,000. The goods were shipped FOB seller on March 29, 2021 and were received on April 4, 2021. B. Goods shipped FOB destination on March 21, 2021, from a vendor to the company were…