The following information relates to Hampton Pty Ltd. 1. On 5 April purchased inventory from R. Ward
Question:
The following information relates to Hampton Pty Ltd.
1. On 5 April purchased inventory from R. Ward & Co. for $9000, terms 2/7, n/30.
2. On 6 April paid freight costs to Freight Masters of $450 on inventories purchased from R. Ward & Co.
3. On 7 April purchased equipment on account for $52 000.
4. On 8 April returned incorrect inventories to R. Ward & Co. and was granted a $1500 allowance.
5. On 11 April paid the amount due to R. Ward & Co.
Required
(a) Prepare the journal entries to record the transactions listed in the records of Hampton Pty Ltd.
(b) Assume that Hampton Pty Ltd paid the balance due to R. Ward & Co. on 4 May instead of 11 April. Prepare the journal entry to record this payment.
Step by Step Answer:
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong