The following trial balance pertains to Benji s Grocery as of
The following trial balance pertains to Benji’s Grocery as of January 1, 2016:
The following events occurred in 2016. Assume that Benji’s uses the periodic inventory method.
1. Purchased land for $30,000 cash.
2. Purchased merchandise on account for $230,000, terms 1/10 n/45.
3. Paid freight of $2,100 cash on merchandise purchased FOB shipping point.
4. Returned $8,600 of defective merchandise purchased in Event 2.
5. Sold merchandise for $186,000 cash.
6. Sold merchandise on account for $236,000, terms 2/10 n/30.
7. Paid cash within the discount period on accounts payable due on merchandise purchased in Event 2.
8. Paid $28,500 cash for selling expenses.
9. Collected $156,000 of the accounts receivable from Event 6 within the discount period.
10. Collected $56,000 of the accounts receivable but not within the discount period.
11. Paid $17,100 of other operating expenses.
12. A physical count indicated that $48,300 of inventory was on hand at the end of the accounting period.
Required
a. Record these transactions in a general journal.
b. Post the transactions to ledger T-accounts.
c. Prepare a schedule of costs of goods sold, income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for 2016.
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