Problem 6-1B (40 minutes) May 2 Merchandise Inventory... 9,000 Accounts Payable Mobley Co... 9,000 Purchased goods on credit.

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1 Problem 6-1B (40 minutes) May 2 Merchandise Inventory... 9,000 Accounts Payable Mobley Co... 9,000 4 Accounts Receivable Cornerstone Co.... 1,200 Sales... 1,200 4 Cost of Goods Sold Merchandise Inventory To record the cost of the May 4 sale. 4 Merchandise Inventory Cash Paid freight on incoming goods. 9 Cash... 2,400 Sales... 2,400 Sold goods for cash. 9 Cost of Goods Sold.... 1,800 Merchandise Inventory... 1,800 To record the cost of the May 9 sale. 10 Merchandise Inventory... 3,450 Accounts Payable Richter Co.... 3, Accounts Payable Richter Co Merchandise Inventory Solutions Manual for Chapter 6 1

2 Received credit memo. 14 Cash... 1,176 Sales Discounts Accounts Receivable Cornerstone Co.... Collected receivable within the 2% discount period. 1, Cash Office Equipment To record sale of store equipment at cost. May 17 Accounts Payable Mobley Co.... Merchandise Inventory... 9, Cash... 8,910 Paid payable within the discount period; 1% $9,000 = $90. May 18 Cleaning supplies inventory Accounts payable A & Z Suppliers Purchased supplies on credit. 20 Accounts Receivable Harrill Co.... 1,875 Sales... 1, Cost of Goods Sold.... 1,350 Merchandise Inventory... 1,350 To record the cost of the May 20 sale. 22 Sales Returns and Allowances Accounts Receivable Harrill Co Issued credit memo. 2 Fundamental Accounting Principles, Tenth Canadian Edition

3 23 Sales Accounts Receivable Harrill Co Received debit memo for error. 25 Accounts Payable Richter Co.... 3,150 Merchandise Inventory Cash... Paid payable within the discount period; 2% $3,150. 3, Cash... Sales Discounts... 1, Accounts Receivable Harrill Co.... 1,575 Collected receivable within the 2% discount period. 31 Accounts Receivable Cornerstone Co.... 7,500 Sales... 7, Cost of Goods Sold.... 4,800 Merchandise Inventory... 4,800 To record the cost of the May 31 sale. Solutions Manual for Chapter 6 3

4 Problem 6-2B (40 minutes) July 3 Merchandise Inventory... 15,000 Accounts Payable CMP Corp ,000 4 Accounts Payable CMP Corp Cash Paid freight for supplier. 7 Accounts Receivable Harbison Co ,500 Sales... 10,500 7 Cost of Goods Sold.... 7,500 Merchandise Inventory... 7,500 To record the cost of the July 7 sale. 10 Merchandise Inventory... 13,850 Accounts Payable Cimarron Corporation 13, Delivery Expense Cash Paid shipping charges on July 7 sale. 12 Sales Returns and Allowances... 1,750 Accounts Receivable Harbison Co.... 1,750 Customer returned merchandise. 12 Merchandise Inventory... 1,250 Cost of Goods Sold... 1,250 Returned goods to inventory. 4 Fundamental Accounting Principles, Tenth Canadian Edition

5 14 Accounts Payable Cimarron Corporation... 2,000 Merchandise Inventory... 2,000 Received a credit memorandum for July 10 purchase. 17 Cash... 8,575 Sales Discounts... Accounts Receivable Harbison Co ,750 Collected receivable within the 2% discount period. July 18 Cash... 15,000 Land... 15,000 Sold land at cost. 19 Van... 18,000 Cash... 5,000 Notes Payable... 13,000 To record purchase of van. 20 Accounts Payable Cimarron Corporation... 11,850 Merchandise Inventory Cash... 11, Paid payable within the discount period; $13,250 + $600 $2,000 = $11,850; ($13,250 $2,000) 1%* = $ Accounts Receivable Hess... 9,000 Sales... 9,000 Solutions Manual for Chapter 6 5

6 21 Cost of Goods Sold.... 6,250 Merchandise Inventory... 6,250 To record the cost of the July 21 sale. 24 Sales Returns and Allowances... 1,500 Accounts Receivable Hess... 1,500 Issued credit memo. 31 Cash... 7,425 Sales Discounts Accounts Receivable Hess... 7,500 Collected receivable within the 1% discount period. 31 Accounts Payable CMP Corp ,750 Cash... 14,750 Paid payable. * Note that the discount applies to the merchandise inventory purchased and not to the shipping charges 6 Fundamental Accounting Principles, Tenth Canadian Edition