Answer to Question #220654 in Accounting for zuby

Question

June 1 Rusk Company was organized, and the stockholders invested USD 1,008,000 cash, USD 336,000 of merchandise inventory, and a USD 288,000 plot of land in exchange for capital stock.

4 Merchandise was purchased for cash, USD 432,000; FOB shipping point, freight collect.

9 Cash of USD 10,080 was paid to a trucking company for delivery of the merchandise purchased June 4.

13 The company sold merchandise on account, USD 288,000; terms 2/10, n/ 30.

15 The company sold merchandise on account, USD 230,400; terms 2/10, n/30.

16 Of the merchandise sold June 13, USD 31,680 was returned for credit.

20 Salaries for services received were paid as follows: to office employees, USD 31,680; to salespersons, USD 83,520.

22 The company collected the amount due on the remaining USD 256,320 of accounts receivable arising from the sale of June 13.

a. Prepare journal entries for the transaction

Answer 1

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