ACC 291 Week 2 Practice: Connect Practice Assignment

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ACC 291 Week 2 Practice: Connect Practice Assignment

Big Country Ski Shop is a retail store that sells ski equipment and clothing. Big Country Ski Shop commenced business on September 1, 2019. The firm purchases merchandise on open account. The firm’s purchases, purchase returns and allowances, and cash payments on account during September 2019 follow:

DATE		TRANSACTIONS
2019
Sept.	2	Purchased ski boots for $6,600 plus a freight charge of $310 from Colorado Ski Shop, Invoice 6672, terms n/30.
	3	Purchased skis for $12,200 from Alaska Supply Company, Invoice 5916; terms 3/10, n/30.
	7	Received Credit Memorandum 165 for $1,000 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.
	11	Purchased ski jackets for $5,000 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.
	12	Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.
	22	Purchased ski poles for $4,760 plus a freight charge of $170 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
	23	Purchased ski pants for $3,250 from Swenson Ski Goods, Invoice 528, terms n/30.
	25	Received Credit Memorandum 245 for $400 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.
	27	Purchased ski sweaters for $3,600 plus a freight charge of $150 from Colorado Ski Shop, Invoice 6722, terms n/30.
	30	Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.

Required:

Post the entries from the general journal to the appropriate accounts in the general ledger and in the accounts payable ledger.

Prepare a schedule of accounts payable.GENERAL LEDGER ACCOUNTS


101	Cash, $27,000 Dr.
201	Accounts Payable
501	Purchases
502	Freight In
503	Purchases Returns and Allowances
504	Purchases Discounts

ACCOUNTS PAYABLE LEDGER ACCOUNTS

Alaska Supply Company

Cold Mountain Clothing Company

Colorado Ski Shop

Swenson Ski Goods

Analyze:

What portion of the purchases in September, before purchases returns and allowances and before purchases discounts, were for clothing items? Include ski boots as a clothing item.

NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 2019. NewTech Medical Devices purchases merchandise for cash and on open account. In June 2019, NewTech Medical Devices engaged in the following purchasing and cash payment activities:

DATE		TRANSACTIONS
2019
June	1	Issued Check 101 to purchase merchandise, $4,500.
	3	Purchased merchandise for $1,700 from BioCenter Inc., Invoice 606; terms 2/10, n/30.
	5	Purchased merchandise for $5,850, plus a freight charge of $110, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
	9	Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.
	10	Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $150 that was returned; the goods were purchased on Invoice 1011, dated June 5.
	11	Purchased merchandise for $1,680 from BioCenter Inc., Invoice 612; terms 2/10, n/30.
	14	Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the cash discount, Check 103.
	15	Purchased merchandise with a list price of $9,200 and trade discounts of 20 percent and 15 percent from Park Research, Invoice 1029, terms n/30.
	20	Issued Check 104 to purchase merchandise, $3,000.
	25	Returned merchandise purchased on June 20 as defective, receiving a cash refund of $280.
	30	Purchased merchandise for $3,200, plus a freight charge of $85, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.

Required:

Journalize the transactions in a general journal.

Analyze:

What was the amount of trade discounts received on the June 15 purchase from Park Research?

DATE		TRANSACTIONS
2019
Sept.	2	Purchased ski boots for $6,600 plus a freight charge of $310 from Colorado Ski Shop, Invoice 6672, terms n/30.
	3	Purchased skis for $12,200 from Alaska Supply Company, Invoice 5916; terms 3/10, n/30.
	7	Received Credit Memorandum 165 for $1,000 from Colorado Ski Shop for return of damaged ski boots; the boots were originally purchased September 2 on Invoice 6672.
	11	Purchased ski jackets for $5,000 from Cold Mountain Clothing Company, Invoice 4091, terms n/30.
	12	Issued Check 104 to Alaska Supply Company in payment of Invoice 5916, dated September 3, less the cash discount.
	22	Purchased ski poles for $4,760 plus a freight charge of $170 from Alaska Supply Company, Invoice 5950, terms 3/10, n/30.
	23	Purchased ski pants for $3,250 from Swenson Ski Goods, Invoice 528, terms n/30.
	25	Received Credit Memorandum 245 for $400 from Swenson Ski Goods for return of defective ski pants; the pants were originally purchased September 23 on Invoice 528.
	27	Purchased ski sweaters for $3,600 plus a freight charge of $150 from Colorado Ski Shop, Invoice 6722, terms n/30.
	30	Issued Check 110 to Colorado Ski Shop in payment of Invoice 6672, dated September 2, less the return of September 7.

Required:

Record the transactions in a general journal.

Analyze:

What was the amount of the cash discount on September 12?

DATE		TRANSACTIONS
2019
June	1	Issued Check 101 to purchase merchandise, $4,500.
	3	Purchased merchandise for $1,700 from BioCenter Inc., Invoice 606; terms 2/10, n/30.
	5	Purchased merchandise for $5,850, plus a freight charge of $110, from New Concepts Corporation, Invoice 1011, terms 2/10, n/30.
	9	Paid amount due to BioCenter Inc. for purchase of June 3, less discount, Check 102.
	10	Received Credit Memorandum 227 from New Concepts Corporation for damaged merchandise totaling $150 that was returned; the goods were purchased on Invoice 1011, dated June 5.
	11	Purchased merchandise for $1,680 from BioCenter Inc., Invoice 612; terms 2/10, n/30.
	14	Paid amount due to New Concepts Corporation for Invoice 1011 of June 5, less the return of June 10 and less the cash discount, Check 103.
	15	Purchased merchandise with a list price of $9,200 and trade discounts of 20 percent and 15 percent from Park Research, Invoice 1029, terms n/30.
	20	Issued Check 104 to purchase merchandise, $3,000.
	25	Returned merchandise purchased on June 20 as defective, receiving a cash refund of $280.
	30	Purchased merchandise for $3,200, plus a freight charge of $85, from New Concepts Corporation, Invoice 1080; terms 2/10, n/30.

Required:

Post the transactions in to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger.

Prepare a schedule of accounts payable at June 30, 2019.

GENERAL LEDGER ACCOUNTS


101	Cash, $37,400 Dr.
201	Accounts Payable
501	Purchases
502	Purchases Returns and Allowances
503	Purchases Discounts
504	Freight In

ACCOUNTS PAYABLE LEDGER ACCOUNTS

BioCenter Inc.

New Concepts Corporation

Park Research

Analyze:

What was the amount of merchandise returned to vendors by NewTech Medical Devices in June?

Bowden Company (buyer) and Song, Inc. (seller), engaged in the following transactions during January 2019:

Bowden Company

DATE		TRANSACTIONS
2019
Jan.	8	Issued Check 2101 for $2,940 on account to Song, Inc., in payment of Invoice 1885 dated December 30, 2018, less cash discount of $60.
	10	Purchased merchandise for $3,500 from Song, Inc., Invoice 1920; terms 2/10, n/30.
	15	Received Credit Memorandum 320 from Song, Inc., for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1920, dated January 10.
	19	Paid amount due to Song, Inc., for Invoice 1920 of January 10, less the return of January 15 and less the cash discount, Check 2130.
	30	Purchased merchandise for $4,400 from Song, Inc., Invoice 1950; terms 2/10, n/30.

GENERAL LEDGER ACCOUNTS—BOWDEN COMPANY

201 Accounts Payable, $3,000 Cr.

ACCOUNTS PAYABLE LEDGER ACCOUNT—BOWDEN COMPANY

Song, Inc., $3,000

Song, Inc.

DATE		TRANSACTIONS
2019
Jan.	8	Received payment of $2,940 on account from Bowden Company in payment of Invoice 1885 dated December 30, 2018, less cash discount of $60.
	10	Sold merchandise for $3,500 on account to Bowden Company, Invoice 1920, terms 2/10, n/30.
	15	Issued Credit Memorandum 320 to Bowden Company for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 1920, dated January 10.
	19	Received payment from Bowden Company for Invoice 1920 of January 10, less the return of January 15 and less the cash discount.
	30	Sold merchandise for $4,400 to Bowden Company, Invoice 1950; terms 2/10, n/30.

GENERAL LEDGER ACCOUNTS—SONG, INC.

111 Accounts Receivable, $3,000 Dr.

ACCOUNTS RECEIVABLE LEDGER ACCOUNT—SONG, INC.

Bowden Company, $3,000

Required:

Journalize the transactions above in a general journal for both Bowden Company and Song, Inc.

Post the transactions to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger for Bowden Company.

Post the transactions to the appropriate accounts in the general ledger and the accounts receivable subsidiary ledger for Song, Inc.

Analyze:

What is the balance of the accounts payable for Song, Inc., in the Bowden Company accounts payable subsidiary ledger? What is the balance of the accounts receivable for Bowden Company in the Song, Inc., accounts receivable subsidiary ledger?