P5.2
a. Journalize
Date
Apr. 2
Apr. 4
Apr. 5
Apr. 6
Apr. 11
Apr. 13
Apr. 14
Apr. 16
Apr. 18
Apr. 20
Apr. 23
Transactions
Account titles
Purchased merchandise on account from Walker Supply Inventory
€6,200, terms 1/10, n/30
Accounts Payable
Accounts Receivable
Sold merchandise on account €5,500, FOB destination,
Sales Revenue
terms 1/10, n/30. The cost of the merchandise sold was
COGS
€3,400
Inventory
Delivery Expense
Paid €240 freight on April 4 sale
Cash
Received credit from Walker Supply for merchandise Accounts Payable
returned €500
Inventory
Accounts Payable
Paid Walker Supply in full, less discount
Cash
Inventory
Cash
Received collections in full, less discounts, from
Sales Discounts
customers billed on April 4
Accounts Receivable
Inventory
Purchased merchandise for cash €3,800
Cash
Received refund from supplier for returned goods on Cash
cash purchase of April 14, €500
Inventory
Purchased merchandise from Benjamin Glassware
Inventory
€4,500, FOB shipping point, terms 2/10, n/30
Accounts Payable
Inventory
Paid freight on April 18 purchase €160
Cash
Cash
Sold merchandise for cash €7,400. The merchandise sold Sales Revenue
had a cost of €4,120
COGS
Inventory
Debit (€)
6,200
Credit (€)
6,200
5,500
5,500
3,400
3,400
240
240
500
500
5,700
5,643
57
5,445
55
5,500
3,800
3,800
500
500
4,500
4,500
160
160
7,400
7,400
4,120
4,120
Apr. 26
Apr. 27
Apr. 29
Apr. 30
Inventory
Cash
Accounts Payable
Paid Benjamin Glassware in full, less discount
Cash
Inventory
Sales Returns and Allowances
Made refunds to cash customers for defective
Cash
merchandise €90. The returned merchandise had a fair
Inventory
value of €30.
COGS
Accounts Receivable
Sold merchandise on account €3,400, terms n/30. The Sales Revenue
cost of the merchandise sold was €1,900
COGS
Inventory
Purchased merchandise for cash €2,300
2,300
2,300
4,500
4,410
90
90
90
30
30
3,400
3,400
1,900
1,900
b. Post to ledger
Date
Apr. 1
Apr. 5
Apr. 11
Apr. 13
Apr. 14
Apr. 16
Apr. 20
Apr. 23
Apr. 26
Apr. 27
Apr. 29
Date
Apr. 4
Apr. 13
Apr. 30
Date
Apr. 2
Apr. 4
Apr. 6
Apr. 11
Apr. 14
Apr. 16
Apr. 18
Explanation
Cash
Debit
8,000
Credit
240
5,643
5,445
3,800
500
160
7,400
2,300
4,410
90
Accounts Receivable
Explanation
Debit
Credit
5,500
5,500
3,400
Explanation
Inventory
Debit
6,200
Credit
3,400
500
57
3,800
500
4,500
Balance
8,000
7,760
2,117
7,562
3,762
4,262
4,102
11,502
9,202
4,792
4,702
Balance
5,500
3,400
Balance
6,200
2,800
2,300
2,243
6,043
5,543
10,043
Date
Apr. 2
Apr. 6
Apr. 11
Apr. 18
Apr. 27
Date
Apr. 1
Date
Apr. 4
Apr. 23
Apr. 30
Accounts Payable
Explanation
Debit
Credit
6,200
500
5,700
4,500
4,500
Share Capital - Ordinary
Explanation
Debit
Credit
8,000
Explanation
Sales Revenue
Debit
Credit
5,500
7,400
3,400
Balance
6,200
5,700
4,500
-
Balance
8,000
Balance
5,500
12,900
16,300
Date
Apr. 29
Sales Returns and Allowances
Explanation
Debit
Credit
90
Balance
90
Date
Apr. 13
Sales Discounts
Explanation
Debit
55
Credit
Balance
55
Date
Apr. 4
Cost of goods sold
Explanation
Debit
3,400
Credit
Balance
3,400
Apr. 20
Apr. 23
Apr. 26
Apr. 27
Apr. 29
Apr. 30
160
4,120
2,300
90
30
1,900
10,203
6,083
8,383
8,293
8,323
6,423
Apr. 23
Apr. 29
Apr. 30
4,120
30
1,900
7,520
7,490
9,390
c. Income Statement
Vree Distributors
Income Statement
For the Month Ended April 30, 2020
Sales
Sales Revenue
Less: Sales Discounts
Sales Returns and Allowances
Net sales
Less: Cost of goods sold
Gross profit
16,300
55
90
145
16,155
9,390
6,765