Answer to Question #220657 in Accounting for zuby

Question

May 1 The stockholders purchased stock at par for the following assets in the business: USD 462,000 cash, USD 168,000 merchandise, and USD 105,000 land.

1 Paid rent on administrative offices for May, USD 25,200.

5 The company purchased merchandise from Carl Company on account, USD 189,000; terms 2/10, n/30.

Freight terms were FOB shipping point, freight collect.

8 Cash of USD 8,400 was paid to a trucking company for delivery of the merchandise purchased May 5.

14 The company sold merchandise on account, USD 315,000; terms 2/10, n/30.

15 Paid Carl Company the amount due on the purchase of May 5.

16 Of the merchandise sold May 14, USD 13,860 was returned for credit.

19 Salaries for services received were paid for May as follows: office employees, USD 16,800; salespersons, USD 33,600.

24 The company collected the amount due on USD 126,000 of the accounts receivable arising from the sale of May 14.

30 Cash of USD 100,800 was received from the sale of May 14.

a. Prepare journal entries for the transactions.

Answer 1

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