Presented below are selected transactions for Monty Company during September and October of the current year....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Presented below are selected transactions for Monty Company during September and October of the current year. Monty uses a periodic inventory system. Sept. 1 2 5 15 16 17 25 30 Oct. 1 2 3 10 11 12 17 31 Purchased merchandise on account from Hillary Company at a cost of $54,000, FOB destination, terms 1/15, n/30. The correct company paid $2,000 of freight charges to Trucking Company on the September 1 merchandise purchase. Returned for credit $3,300 of damaged goods purchased from Hillary Company on September 1. Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $84,500, terms 2/10, n/30, FOB destination. The correct company paid $2,000 of freight charges on the September 15 sale of merchandise. Issued Irvine Company a credit of $5,500 for returned goods. These goods had cost Monty Company $3,000 and were returned to inventory. Received the balance owing from Irvine Company for the September 15 sale. Paid Hillary Company the balance owing for the September 1 purchase. Purchased merchandise on account from Kimmel Company at a cost of $62,000, terms 2/10, n/30, FOB shipping point. The correct company paid freight costs of $1,100 on the October 1 purchase. Obtained a purchase allowance of $2,100 from Kimmel Company to compensate for some minor damage to goods purchased on October 1. Paid Kimmel Company the amount owing on the October 1 purchase. Sold all of the merchandise purchased from Kimmel Company to Kieso Company for $100,000, terms 2/10, n/30, FOB shipping point. The correct company paid $800 freight costs on the October 11 sale. Issued Kieso Company a sales allowance of $1,800 because some of the goods did not meet Kieso's exact specifications. Received a cheque from Kieso Company for the balance owing on the October 11 sale. Record the September and October transactions for Monty Company, Assume that Norlan uses the earnings approach. (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 entries in the order presented in the problem.) Date < Account Titles and Explanation (Purchase on account.) (To record purchase return) Sept 25 (To record sales on account) (To record cash payment for freight) (To record credit for goods returned) (Collection on account) Debit 1:100 00 00 00 1000 Credit 1:0 (Payment on account) 000 (Purchase on account.) (To record freight on purchase) (To record purchase allowance) (Payment on account) (To record sales on account) (To record sales allowance) (Collection on account) 11:00 100 10793 Presented below are selected transactions for Monty Company during September and October of the current year. Monty uses a periodic inventory system. Sept. 1 2 5 15 16 17 25 30 Oct. 1 2 3 10 11 12 17 31 Purchased merchandise on account from Hillary Company at a cost of $54,000, FOB destination, terms 1/15, n/30. The correct company paid $2,000 of freight charges to Trucking Company on the September 1 merchandise purchase. Returned for credit $3,300 of damaged goods purchased from Hillary Company on September 1. Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $84,500, terms 2/10, n/30, FOB destination. The correct company paid $2,000 of freight charges on the September 15 sale of merchandise. Issued Irvine Company a credit of $5,500 for returned goods. These goods had cost Monty Company $3,000 and were returned to inventory. Received the balance owing from Irvine Company for the September 15 sale. Paid Hillary Company the balance owing for the September 1 purchase. Purchased merchandise on account from Kimmel Company at a cost of $62,000, terms 2/10, n/30, FOB shipping point. The correct company paid freight costs of $1,100 on the October 1 purchase. Obtained a purchase allowance of $2,100 from Kimmel Company to compensate for some minor damage to goods purchased on October 1. Paid Kimmel Company the amount owing on the October 1 purchase. Sold all of the merchandise purchased from Kimmel Company to Kieso Company for $100,000, terms 2/10, n/30, FOB shipping point. The correct company paid $800 freight costs on the October 11 sale. Issued Kieso Company a sales allowance of $1,800 because some of the goods did not meet Kieso's exact specifications. Received a cheque from Kieso Company for the balance owing on the October 11 sale. Record the September and October transactions for Monty Company, Assume that Norlan uses the earnings approach. (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 entries in the order presented in the problem.) Date < Account Titles and Explanation (Purchase on account.) (To record purchase return) Sept 25 (To record sales on account) (To record cash payment for freight) (To record credit for goods returned) (Collection on account) Debit 1:100 00 00 00 1000 Credit 1:0 (Payment on account) 000 (Purchase on account.) (To record freight on purchase) (To record purchase allowance) (Payment on account) (To record sales on account) (To record sales allowance) (Collection on account) 11:00 100 10793
Expert Answer:
Answer rating: 100% (QA)
Particulars 01Sep Inventory Date Accounts Payble No entry is required as seller is responsible to pa... View the full answer
Related Book For
Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Posted Date:
Students also viewed these accounting questions
-
Presented below are selected transactions for Norlan Company during September and October of the current year. Norlan uses a perpetual inventory system. Sept. 1 Purchased merchandise on account from...
-
A company uses a periodic inventory system on august 1, the company had 6 items of beginning inventory with a cost of $7 per unit on August 3, the company purchased 16 units at $14 per unit then, on...
-
Presented below are selected transactions of Santos Company. Santos sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 Sold merchandise on...
-
Kellogg Company is expected to pay $2.00 in annual dividends to its common shareholders in the future. Our best estimate of the expected cost of equity capital is 5.0% and the expected growth rate in...
-
For an ac circuit with R = 4.80 k, C = 45.0 F, E = 15.0 V and f = 1.75 kHz: (a) Find the impedance (in ohms), (b) Find the phase angle (c) Find the current.
-
A new CEO was hired to revive the floundering Champion Chemical Corporation. The company had endured operating losses for several years, but confidence was emerging that better times were ahead. The...
-
Explain the main accounting conventions underpinning the income statement.
-
The OASDI program provides retirement benefits to covered employees and their dependents. Explain whether each of the following persons would be eligible for OASDI retirement benefits based on the...
-
What will be the company s net income for the current year if there is a 1 0 percent increase in projected unit sales volume? The projected net income for the current year is $ 1 , 8 8 0 , 0 0 0...
-
Samantha and John agree both to the participating preferred and that the company will probably need another round of financing in addition to the current $5 million. Samantha believes that New...
-
Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2024, the records indicate the following data: ($ in 000s) Cost Retail Beginning inventory $ 90 $ 150...
-
5) Use the following information to calculate the company's accounting net income for the year. Sales on credit $900,000 Sales (cash) $900,000 Administrative Expenses $100,000 Selling and marketing...
-
A: The digital communications coordinator at the arena is angry because they were excluded from a department meeting evaluating new vendor proposals. This employee was invited to the meeting but...
-
Factor. 5x - 4xy - 12y
-
Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed a company to produce and package applesauce. Apples can be stored for several months in cold storage, so applesauce...
-
How does smart home assistant product align with broader trends or societal needs, reflecting your understanding of market dynamics and consumer behavior?
-
Write two KCL equations and one auxiliary equation for nodal analysis of the circuit below. No need to solve the equations. 2 V -+ 12 Vi V2 492 ww 13 102 2A 1 4 V 252 402
-
Find the center of mass of a thin triangular plate bounded by the y-axis and the lines y = x and y = 2 - x if (x, y) = 6x + 3y + 3.
-
The trial balance for Arbor Green Golf Club for the year ended July 31 shows Service Revenue of $16,400; Salaries Expense $8,400; Rent Expense $2,500; T. Arid, Capital $47,000; and T. Arid, Drawings...
-
MC Liquidation Warehouse sells goods to retail stores and extends credit terms of 1/10, n/30. MC Liquidation has a stated policy of no returns, all sales are final. The company uses a perpetual...
-
On June 30, 2021, EZ Fertilizer?s cash account per its general ledger showed the following balance: The bank statement from Canada Bank on that date showed the following balance: A comparison of the...
-
Consider the monthly simple excess returns of 10 U.S. stocks from January 1990 to December 2003 for 168 observations. The 3-month Treasury bill rate on the secondary market is used to compute the...
-
Which provides stronger evidence against H0: a P-value of 0.05 or a P-value of 0.50?
-
A test is made of H0 : = 6 versus H1: 6. a. The test statistic is z = 0.75. Find and interpret the P-value. b. The test statistic is z = 2.20. Find and interpret the P-value. c. Which provides...
Study smarter with the SolutionInn App