Answer to Question #261136 in Accounting for mackie

Question

Analyzing various transactions : Purchase and Sale

The following transactions took place between Yamaha Company, a manufacturer of piano and

RhelJohn Store, a distributor.

1. Yamaha Company shipped 10 units of piano having a list price of P2,500 each to RJ Store.

Terms, 5,2/10,n/30,F.O.B, Shipping point. Freight of P800 was paid by Rj store for the

shipment.

2. RhelJohn store returned 1 unit due to defective quality.

3. RhelJohn Store paid the account in full within the discount period.

REQUIRED: Complete the table below and analyze each transaction as to their effects on the accounting

equation.

Description of each transaction X Account Debited X Account Credited

1. Effect on the Accounting Equation

ASSETS = LIABILITIES =OWNER’S EQUITY

2. Effect on the Accounting Equation

ASSETS = LIABILITIES = OWNER’S EQUITY

3. Effect on the Accounting Equation

ASSETS = LIABILITIES = OWNER’S EQUITY

Answer 1

Solution:

The journal entries are as follows: