E5-3
Prepare purchase and sale entries.
Credit terms are 2/10, n/30, meaning that if Meredith pays within 10 days she gets 2 % discount. Otherwise
the full amount is due 30 days from the invoice date.
a) Meredith Company
Voucher
/date Text
10
11
12
19
Account
Purchase
Goods for resale
Trade Creditors
Freight
Goods for resale
Cash
Returning goods, at cost price
Goods for resale
Trade Creditors
Payment (8.000-300)*,98
Cash
Trade Creditors
Goods for resale
Amount
Debet
Kredit
12 110
15 300
8,000
12 110
12 410
400
12 110
15 300
12 410
15 300
12 110
Transport
8,000
400
300
300
7.546
7,700
154
16.400
16.400
b) Leinert Company
Voucher
/date Text
10
10
12
19
Account
Sales
Trade debtors
Sales
Cost of goods sold
Goods for resale
Cost of Goods sold
Returned goods
Trade debtors
Sales
Payment (8.000-300)*,98
Cash
Sales
Trade debtors
12 210
0110
8,000
8,000
12 110
0210
5,000
12 210
0110
300
12 410
0110
12 210
Transport
Amount
Debet
Kredit
5,000
300
7,546
154
7,700
21,000
21,000
E5-4
Journalize sales transactions.
Voucher
/date Text
3
3
8
13
Account
Sales
Sales
Trade Debtors
Costs of goods sold
Goods for resale
Cost of goods sold
Allowance
Sales
Trade debtors
Payment (500.000-27.000)*,98
Cash
Sales discount
Trade debtors
Amount
Debet
Kredit
0110
12 210
500,000
500,000
12 110
0210
300,000
300,000
0110
12 210
27,000
12 410
463,540
9,460
27,000
12 210
473,000
1,300,000
Transport
1,300,000
If Wheeler did not receive payment until January 2 they would just debit Cash with 473,000 and credit
Accounts Receivable with 473,000. In that case there would be no sales discount.
Voucher
/date Text
2
Account
Sales
Trade debtors
Cash
12 210
12 410
Transport
Amount
Debet
Kredit
473,000
473,000
473,000
473,000
E5-5
Prepare adjusting and closing entries.
Date
December 31
Date
December 31
Peter Kalle Company
GENERAL JOURNAL (adjusting entries)
Accounts Titles and explanation
Ref.
Cost of goods sold
Merchandise Inventory
(To record adjustment of inventories)
Peter Kalle Company
GENERAL JOURNAL (Closing entries)
Accounts Titles and explanation
Ref.
Sales
Income Summary
(To close income statement accounts with credit
balances)
Income Summary
Cost of goods sold
Operating expenses
Sales discounts
Sales Returns and Allowances
(To close income statement accounts with debit
balances)
Income Summary (108,000-92,800)
Retained Earnings
(To close net income to retained earnings)
Debit
900
Credit
900
Debit
108,000
Credit
108,000
92,800
60,900
29,000
1,200
1,700
15,200
15,200
E5-6
Date
January 31
Date
January 31
Rogers Co.
GENERAL JOURNAL (adjusting entries)
Accounts Titles and explanation
Ref.
Cost of goods sold
Merchandise Inventory
(To record adjustment of inventories)
Rogers Co.
GENERAL JOURNAL (Closing entries)
Accounts Titles and explanation
Ref.
Sales
Income Summary
(To close income statement accounts with credit
balances)
Income Summary
Sales returns and allowances
Sales discounts
Cost of goods sold
Salary expenses
Freight-out
Insurance expenses
Rent expenses
(To close income statement accounts with debit
balances)
Income Summary (350,000-354,600)
Retained Earnings
(To close net income to retained earnings)
Debit
600
Credit
600
Debit
350,000
Credit
350,000
354,600
13,000
10,000
218,600
61,000
7,000
12,000
20,000
4,600
4,600
E5-7
Zambrana Company
Income Statement (Partial)
For the Year Ended October 31, 2008
Sales revenues
Sales
Less:
Sales returns and allowances
Sales discounts
Net sales
800,000
25,000
15,000
40,000
760,000
Note: Freight-out is a selling expense.
Date
October 31
Zambrana Company
GENERAL JOURNAL (Closing entries)
Accounts Titles and explanation
Ref.
Sales
Income Summary
(To close income statement accounts with
credit balances)
Income Summary
Sales returns and allowances
Sales discounts
(To close income statement accounts with
debit balances)
Income Summary (800,000-40,000)
Retained Earnings
(To close net income to retained earnings)
Debit
800,000
Credit
800,000
40,000
25,000
15,000
760,000
760,000
E5-11
Rachel Ray Corporation
December 31, 2008
Sales
Less: Sales returns and allowances
Less: Sales discounts
Net sales
Costs of goods sold
Inventory, January 1
Purchases less discounts and returns (500,000-6,000-2,000)
Freight in
Inventory, December 31
Gross profit
Gross profit 299,000 – net income 130,000 = operating expenses 169,000
800,000
10,000
5,000
50,000
492,000
4,000
546,000
60,000
15,000
785,000
486,000
299,000
E5-12
G. Durler Company
August 31, 2008
Costs of goods sold
Inventory, beginning
Purchases less discounts and returns (149,000-2,000)
Freight in
Inventory, August 31
17,200
147,000
4,000
168,200
25,000
143,200
Hej
Som sagt bliver øvelsestimerne i de kommende uger opbygget som en slags workshop. Dvs. at I på forhånd
skal have lavet alle opgaverne hjemme fra (Opgave 1-4 + 6-7 fra filen ”bogføringsopgaver”, + E5-3 - E5-7 og
E5-11 – E5-12 fra bogen).
Angående afleveringen i uge 43 skal i lave sektion A fra Januar 2008 (minus bilag 4 og 10). Denne skal
afleveres senest d. 22. oktober i mit dueslag på øverste etage af M bygningen.
Hi
In the coming weeks the tutorials in basic financial accounting will be structured as a kind of workshop. This
means that you will have to do all the assignments from home (Assignments E5-3 - E5-7 and E5-11 – E5-12
from the book).
According your hand-in in week 43 you should make section A from the January 2008 exam (less voucher 4
and 10). You should hand this in at the latest on October 22nd in my mail box in the top floor of the M
building.