Question: The following are transactions between Wang Corp., the consignor, and Ren Stores Ltd., the consignee, for the month of June 2020. Wang uses a perpetual

The following are transactions between Wang Corp., the consignor, and Ren Stores Ltd., the consignee, for the month of June 2020. Wang uses a perpetual inventory system and has a separate perpetual record for inventory sent out on consignment. At the end of each month, sales are reported by Ren to Wang and a net payment is made. The agreement stipulates that Ren is to receive a 15% (of sales) commission and a 6% (of sales) rebate to offset its advertising expenses.

June 1 Wang Corp. ships merchandise costing $455,000 on consignment to Ren Stores Ltd.

June 5 Wang pays the freight of $5,000 for the above shipment of June 1.

June 30 Summary entry for the month of June: Ren sells half of the merchandise for $600,000 cash.

June 30 Ren notifies Wang that 50% of the merchandise has been sold for $600,000 and remits a cheque for the amount due under the consignment agreement. Wang records the receipt of the cheque from Ren.

Instructions

a. Prepare the journal entries necessary on the books of Wang Corp.

b. Prepare the journal entries necessary on the books of Ren Stores Ltd.

Step by Step Solution

★★★★★

3.32 Rating (149 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 June 1 Wang Corp ships merchandise costing 455000 on consignment to Ren Stores Ltd a Wang books In... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Intermediate Accounting Questions!

In recent years, Flint Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant was in charge of selecting the depreciation method...

The following are transactions and events of the general fund of Sycamore Hospital, a not-for-profit entity, for the 20X6 fiscal year ending December 31, 20X6. 1. Provided a total of $6,200,000 in...

The following are transactions, events, and changes in balances for Exeter Corporation for the past fiscal year: 1. Repurchase of common stock . 2. Interest received. 3. Refund of income taxes. 4....

The following are transactions related to Producers Limited: 1. The City of Piedmont gives the company five hectares of land as a plant site. This land~ fair value is determined to be $92,000. 2....

The following are transactions between Wang Corp., the consignor, and Ren Stores Ltd . , the consignee, for the month of June 2 0 2 3 . Wang uses a perpetual inventory system and has a separate...

PREPARE ENTRIES NECESSARY FOR REN STORES...The following are transactions between Wang Corp., the consignor, and Ren Stores Ltd . , the consignee, for the month of June 2 0 2 3 . Wang uses a...

A O B 2 unit will be Remitted by the consignee. E6.30 (LO.9) (Consignment Sales) The following are transactions between Wang Corp., the consignor, and Ren Stores Ltd., the consignee, for the month of...

please solve the problem??????? The following are transactions between Wang Corp., the consignor, and Ren Stores Ltd., the consignee, for the month of June 2023. Wang uses a perpetual inventory...

The following are transactions between Wildhorse Corp., the consignor, and Crane Stores Ltd . , the consignee, for the month of June 2 0 2 3 . Wildhorse uses a perpetual inventory system and has a...

The following are transactions between Skysong Corp., the consignor, and Sheridan Stores Ltd., the consignee, for the month of June 2020. Skysong uses a perpetual inventory system and has a separate...

The following are transactions between Kingbird Corp., the consignor, and Blossom Stores Ltd., the consignee, for the month of June 2020. Kingbird uses a perpetual inventory system and has a separate...

(a) Explain the three main blocks of a solid state relay. (b) What is meant by grading of cables? Explain the two methods of grading. (8) (8)

Identify and discuss three criticisms of using the duration gap model to immunize the portfolio of a financial institution.

A reading list for a unit contains 20 articles. How many ways are there to choose three articles from this list?

How would you design a CI system?

The following information is available for a machine owned by Sorano Inc. at 31 December 20X4: Machine original cost ....................................................... $12 million Salvage value...

The following are independent scenarios. Scenario A Kalua Inc. is a small manufacturing plant. All produced goods pass through one key piece of machinery that was purchased in 20X2 for $6 million....

Consider the following two independent scenarios: Scenario A . Acehil owns and manages a consortium of apartments in the Edmonton Metropolitan Region. As part of a recent inspection by the fire...

1.Create a table and derive the probability distribution for total dollar losses in this case. Note that this is total dollar losses, not number of losses. Make sure you label your table correctly. $...

Find the solution for the Question below Q. 7 The weather at a coastal resort is classified each day simply as "sunny" or "rainy." A sunny day is followed by another sunny day with probability 0.9,...

All answers must be entered as a formula. Click OK to begin. OK A stock has had the following year-end prices and dividends. What is the arithmetic return over this period? Year Price Dividend 59.32...