Journalize the following transactions using current GAAP first and then journalize them again using proposed GAAP....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Journalize the following transactions using current GAAP first and then journalize them again using proposed GAAP. Joanie Kane, a former professional golfer, operates Kane's Pro Shop at Crowbush Golf course. At the beginning of current season on April 1, the ledger of Kane's Pro Shop showed Cash $2,500; Merchandise Inventory $3,500; and Kane, Capital $6,000. The following transactions occurred during April 2017: I April 5 7 9 10 12 14 17 20 21 Purchased golf bags, clubs, and balls on account from Balata Co. for $1,600, FOB shipping point, terms no Use templaton Paid freight on Balata Co. purchases, $80. Received credit from Balata Co. for merchandise returned, $100. Sold merchandise on account to members $900, terms n/30. Purchased golf shoes, sweaters, and other accessories on account from Arrow Sportswear, S660, terms 3/15, n/30. Paid Balata Co. in full. Received $60 credit from Arrow Sportswear for merchandise returned. Made sales on account to members, $700, terms n/30. Paid Arrow Sportswear in full. Granted credit to members for clothing that did not fit, $30. Made cash sales, $600. Received payments on account from members, $1,100. 27 30 30 Instructions Journalize April transactions for Kane's Pro Shop using the periodic inventory system. Note: When using the PROPOSED GAAP, remember adjusting entries are at the end of the year, not every time a customer returns something. Assume 10% returns, if not given in the question. Journalize the following transactions using current GAAP first and then journalize them again using proposed GAAP. Joanie Kane, a former professional golfer, operates Kane's Pro Shop at Crowbush Golf course. At the beginning of current season on April 1, the ledger of Kane's Pro Shop showed Cash $2,500; Merchandise Inventory $3,500; and Kane, Capital $6,000. The following transactions occurred during April 2017: I April 5 7 9 10 12 14 17 20 21 Purchased golf bags, clubs, and balls on account from Balata Co. for $1,600, FOB shipping point, terms no Use templaton Paid freight on Balata Co. purchases, $80. Received credit from Balata Co. for merchandise returned, $100. Sold merchandise on account to members $900, terms n/30. Purchased golf shoes, sweaters, and other accessories on account from Arrow Sportswear, S660, terms 3/15, n/30. Paid Balata Co. in full. Received $60 credit from Arrow Sportswear for merchandise returned. Made sales on account to members, $700, terms n/30. Paid Arrow Sportswear in full. Granted credit to members for clothing that did not fit, $30. Made cash sales, $600. Received payments on account from members, $1,100. 27 30 30 Instructions Journalize April transactions for Kane's Pro Shop using the periodic inventory system. Note: When using the PROPOSED GAAP, remember adjusting entries are at the end of the year, not every time a customer returns something. Assume 10% returns, if not given in the question.
Expert Answer:
Answer rating: 100% (QA)
The image you have provided shows a list of transactions that occurred during April 2017 for a business known as Kanes Pro Shop Joanie Kane operates t... View the full answer
Related Book For
Accounting Volume 2
ISBN: 978-0176509743
2nd Canadian edition
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
Posted Date:
Students also viewed these accounting questions
-
Journalize the following transactions in general journal form. a. Bought merchandise on account from Brewer, Inc., invoice no. B2997, $ 914; terms net 30 days; FOB destination. b. Received credit...
-
Journalize the following transactions for Orkin Manufacturing. (a) Purchased 6,000 units of raw materials on account for $11,100.The standard cost was $12,000. (b) Issued 5,500 units of raw materials...
-
Journalize the following transactions for Slocombe Manufacturing. (a) Purchased 6,000 units of raw materials on account for $11,100. The standard cost was $12,000. (b) Issued 5,500 units of raw...
-
Willingham Company Ltd. has the following comparative statements of financial position data. WILLINGHAM COMPANY LTD. Statements of Financial Position December 31 Additional information for 2017: 1....
-
What is keystroke monitoring?
-
When non-strategic debt investments are accounted for using the amortized cost method, when should interest income be recognized?
-
For each of the following situations, calculate the \(z\)-statistic \((z)\). a. \(\mathrm{X}^{-}=14.00 ; \mu=11 ; \sigma=6 ; N=36\) b. \(\mathrm{X}^{-}=7.00 ; \mu=8 ; \sigma=3 ; N=9\) c....
-
Shanes Roasted Peanuts, Inc., supplies snack foods. The business experienced the following events. a. Shanes Roasted Peanuts received cash from the sole stockholder and issued common stock. b. Cash...
-
According to the ideas behind the revenue recognition standard of the FASB, when a seller enters into a contract with a buyer, the seller accepts certain performance obligations in exchange for the...
-
3. Consider the time function x(t) shown in the figure below 12 (1) X 10 00 6 st 4 2 2 x(t) = at, ts 3 mom 4 5 Time t (seconds) x(t) = 10, t > 5 6 9 10 Suppose this signal is sampled every T = 0.5...
-
If there is a decrease in interest rates, what will happen for households that are net savers in the economy? They will decrease current consumption if the substitution effect is greater than the...
-
Which sets of lines can be removed without stopping the code from compiling and while printing the same output? (Choose three.) A. Lines 15 and 17 B. Lines 16 and 23 C. Lines 17, 18, and 22 D. Line...
-
Fill in the blanks: Using the ________ and ________ modifiers together allows a variable to be accessed from any class, without requiring an instance variable. A. class, static B. default, public C....
-
The following intangible assets were purchased by Goldstein Corporation: A. A patent with a remaining legal life of twelve years is bought, and Goldstein expects to be able to use it for seven years....
-
Which is not a difference between a limited liability company and a limited liability partnership? a. An LLC, unlike an LLP or LLLP, can exist with only one owner. b. All members of an LLC have...
-
How many of the following lines contain a compiler error? A. Zero B. One C. Two D. Three E. Four F. Five. long min1= 123.0, max1 = 987L; final long min2 = 1_2_3, max2 = 9__8__7; long min3= 123, int...
-
Q3. Online algorithm for portfolio investment (25 points). In this problem we are going to see how you can use online learning to make money from stocks! To do so, we are going to look at the...
-
At the beginning of its fiscal year, Lakeside Inc. leased office space to LTT Corporation under a seven-year operating lease agreement. The contract calls for quarterly rent payments of $25,000 each....
-
The net income reported on the income statement of Berkwood Ltd. was $500,000. Berkwood had 70,000 common shares and 4,000 $2 cumulative preferred shares outstanding throughout the current year. The...
-
Bancroft Corporation, a manufacturer of industrial pumps, reported the following results for the year ended January 31, 2015: Retained earnings, February 1, 2014. . . . . . . . . . . . . . . . . . ....
-
Barks Bites Ltd. reported the following for 2015 (all amounts are before taxes): Sales, net......................................................................................... $685,000 Cost of...
-
From the following figures, compile accounts receivable ledger and accounts payable ledger control accounts for the month, and ascertain what the net balances of the respective ledgers should be on...
-
Why may some people consider this to be incorrect? That is, why is the fact that the control account is kept in the General Ledger not enough to justify saying that the control account is part of the...
-
The financial year of The Better Trading Company ended on 30 November 2014. You have been asked to prepare a Total Accounts Receivable Account and a Total Accounts Payable Account in order to produce...
Study smarter with the SolutionInn App