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.... 750 Merchandise Inventory... 750 To record the cost of the May 4 sale. 4 Merchandise Inventory... 150 Cash... 150 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.... 3,450 12 Accounts Payable Richter Co.... 300 Merchandise Inventory... 300 Solutions Manual for Chapter 6 1
Received credit memo. 14 Cash... 1,176 Sales Discounts... 24 Accounts Receivable Cornerstone Co.... Collected receivable within the 2% discount period. 1,200 15 Cash... 500 Office Equipment... 500 To record sale of store equipment at cost. May 17 Accounts Payable Mobley Co.... Merchandise Inventory... 9,000 90 Cash... 8,910 Paid payable within the discount period; 1% $9,000 = $90. May 18 Cleaning supplies inventory... 820 Accounts payable A & Z Suppliers... 820 Purchased supplies on credit. 20 Accounts Receivable Harrill Co.... 1,875 Sales... 1,875 20 Cost of Goods Sold.... 1,350 Merchandise Inventory... 1,350 To record the cost of the May 20 sale. 22 Sales Returns and Allowances... 225 Accounts Receivable Harrill Co.... 225 Issued credit memo. 2 Fundamental Accounting Principles, Tenth Canadian Edition
23 Sales... 75 Accounts Receivable Harrill Co.... 75 Received debit memo for error. 25 Accounts Payable Richter Co.... 3,150 Merchandise Inventory... 63 Cash... Paid payable within the discount period; 2% $3,150. 3,087 31 Cash... Sales Discounts... 1,543.50 31.50 Accounts Receivable Harrill Co.... 1,575 Collected receivable within the 2% discount period. 31 Accounts Receivable Cornerstone Co.... 7,500 Sales... 7,500... 31 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
Problem 6-2B (40 minutes) July 3 Merchandise Inventory... 15,000 Accounts Payable CMP Corp.... 15,000 4 Accounts Payable CMP Corp.... 250 Cash... 250 Paid freight for supplier. 7 Accounts Receivable Harbison Co.... 10,500 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 13,850 11 Delivery Expense... 300 Cash... 300 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
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.... 175 8,750 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... 112.50 Cash... 11,737.50 Paid payable within the discount period; $13,250 + $600 $2,000 = $11,850; ($13,250 $2,000) 1%* = $112.50. 21 Accounts Receivable Hess... 9,000 Sales... 9,000 Solutions Manual for Chapter 6 5
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... 75 Accounts Receivable Hess... 7,500 Collected receivable within the 1% discount period. 31 Accounts Payable CMP Corp.... 14,750 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