The following selected transactions were completed by Silvergate Co. during May of the current year: May 3.

Question:

The following selected transactions were completed by Silvergate Co. during May of the current year:
May 3. Purchased merchandise for, $16,000, terms FOB destination, 2/10, n/30.
6. Issued debit memorandum for $4,000 of merchandise returned from purchase on May 3.
10. Purchased merchandise, $25,000, terms FOB shipping point, n/eom.
10. Paid freight of $600 on May 10 purchase.
13. Paid for invoice of May 3, less debit memorandum of May 6 and discount.
31. Paid for invoice of May 10.
Instructions
Illustrate the effects of each of the preceding transactions on the accounts and of Silvergate Co. Identify each transaction by date.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...