The Garden Company did the following in October 2010.

1 October Merchandise sold on loan to Ernie Devlin, terms n/30 FOB shipping point, $1,050 (cost $630)
October 2 Merchandise purchased on loan from Ruland Company, terms n/30, FOB shipping point, $1,900.
On October 2, Jay paid $145 for freight charges for goods received to Custom Freight.
October 6 Store supplies purchased on credit from Arizona Supply House, terms n/30
$318.
October 9 Goods purchased on credit from LNP Company, terms n/30, FOB shipping point, $1,800 including freight cost 4 100 paid by LNP company.
Oct. 11 Accepted return of goods returned to inventory from Ernie Devlin, $150 (cost.$90)
14 Oct. Returned for credit of $300 merchandise received Oct.
October 15, $100 in store supplies purchased on October 6 were returned for credit.
October 16 Items sold in cash, $500 (costs $300)
October 22 paid Ruland Company for October 2 purchase, October 14 yield deducted.
October 23 received full payment from Ernie Devlin for October 1 purchase, deducting October 11 yield.

Required:
.Prepare entries in log form to record transactions.
A perpetual inventory system is used.

Prepare an income statement for Martin's Hardware for the month ended February 28 using the following data:
Cost of goods sold $30,000
General and administrative expenses 8,000
Net sales 50,000
Selling expenses 7,000

Concord products use a perpetual inventory system. On January 1, the balance of the inventory account was $84,500. The following transactions took place over several days of January:
January 2 Purchased goods for $9,200 on credit from Smith company.
January 3 Sold merchandise for $22,000 in cash. The cost of this item was $14,300.

 Required

Prepare entries in the general diary form to record the above transactions.
What was the balance of the inventory account at business closing Jan.

Answer rating: 100% (QA)

Transactions for Martins Hardware 1 October 1 Accounts Receivable Ernie Devlin 1050 Sales Revenue 10... View the full answer