Below are transactions that took place at the two companies, PT. East and PT West.

Given:

PT East and PT west have account data as below at the end of the accounting period May 2022 (in $).

Asked:

a. Make a journal for PT East's transactions using perpetual systems and PT East's closing entries.

b. Make a journal of PT West transactions using periodic systems and PT West's closing entries.
 
 

Transcribed Image Text:

May 1, 22 May 2, 22 May 6, 22 May 7, 22 May 8, 22 May 9, 22 May 13, 22 May 27, 22 PT. West purchased $30,000 of inventory with terms 2/10, n/30, shipping costs of $100 were borne by PT West. PT. East, who sells electric bicycles, buys supplies from the vendor PT. West is $20,000, freight costs are paid in cash by the buyer in the amount of $40 with terms 2/10, n/30. The cost of making a bicycle at PT West is a total of $12,500. Some goods were returned to PT. West is $400, the COGS of the goods is $300 for PT West. PT. East pays his debt to PT West. PT West returned some goods to its vendor for $5,000. PT West paid the debt for purchasing inventory on May 1 to its vendor. PT. East sells goods with total sales of $1,000 to PT. North with conditions 3/10. n/30, COGS of goods sold is $800, freight costs paid by PT. East for $20 PT North paid its debt to PT East May 1, 22 May 2, 22 May 6, 22 May 7, 22 May 8, 22 May 9, 22 May 13, 22 May 27, 22 PT. West purchased $30,000 of inventory with terms 2/10, n/30, shipping costs of $100 were borne by PT West. PT. East, who sells electric bicycles, buys supplies from the vendor PT. West is $20,000, freight costs are paid in cash by the buyer in the amount of $40 with terms 2/10, n/30. The cost of making a bicycle at PT West is a total of $12,500. Some goods were returned to PT. West is $400, the COGS of the goods is $300 for PT West. PT. East pays his debt to PT West. PT West returned some goods to its vendor for $5,000. PT West paid the debt for purchasing inventory on May 1 to its vendor. PT. East sells goods with total sales of $1,000 to PT. North with conditions 3/10. n/30, COGS of goods sold is $800, freight costs paid by PT. East for $20 PT North paid its debt to PT East

Answer rating: 100% (QA)

a Journal for PT Easts transactions using perpetual systems May 2 22 Inventory Dr 20000 Accounts Payable Cr 20000 To record the purchase of supplies f... View the full answer