The following are transactions between Sage Hill Corp., the consignor, and Oriole Stores Ltd., the consignee, for
Question:
The following are transactions between Sage Hill Corp., the consignor, and Oriole Stores Ltd., the consignee, for the month of June 2020. Sage Hill 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 Oriole to Sage Hill and a net payment is made. The agreement stipulates that Oriole is to receive a 20% (of sales) commission and a 6% (of sales) rebate to offset its advertising expenses.
June1Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd.
June5Sage Hill pays the freight of $6,000 for the above shipment of June 1.
June30Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash.
June30Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole.
a) Prepare the journal entries necessary on the books of Sage Hill Corp.
b) Prepare the journal entries necessary on the books of Oriole Stores Ltd on June 1, June 5 and June 30.
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |
June | 1 | Sage Hill Corp. ships merchandise costing $489,000 on consignment to Oriole Stores Ltd. | |
June | 5 | Sage Hill pays the freight of $6,000 for the above shipment of June 1. | |
June | 30 | Summary entry for the month of June: Oriole sells half of the merchandise for $665,000 cash. | |
June | 30 | Oriole notifies Sage Hill that 50% of the merchandise has been sold for $665,000 and remits a cheque for the amount due under the consignment agreement. Sage Hill records the receipt of the cheque from Oriole. |