Assignment 2
Accounting AC1260
Brooke Dawe
Instructor: Danielle Cox
November 25, 2016
5.1A Part 1
General Journal
Date Account Titles and Explanation P
R
Debit Credit
June 1 Accounts Receivable – Avery & West 9500
Sales 9500
To record sales with terms 2/5, n/15, FOB destination
1 Cost of goods sold 6650
Merchandise Inventory 6650
To record cost of sale
2 Merchandise Inventory 4900
Accounts receivable – Angolac Suppliers 4900
Purchased merchandise on credit, terms 1/10, n/20, FOB shipping
4 Merchandise Inventory 11400
Accounts payable – Bastille Sales 11400
Purchased merchandise on credit, terms 1/15, n/45, FOB Bastille Sales
5 Accounts Receivable – Gelgar 11000
Sales 11000
To record sale with terms 2/5, n/15, FOB destination
5 Cost of goods sold 7700
Merchandise Inventory 7700
To record cost of sale
6 Cash 9500
Sales Discount 190
Accounts Receivable- Avery & West 9310
Collected from accounts receivable within discount period (9500×2%=190)
1
2
Accounts payable – Angolac Suppliers 4900
Merchandise Inventory 190
Cash 9310
Paid accounts payable within discount period (4900×1%=49)
2
0
Cash 11000
Accounts receivable – Gelgar 11000
Collected from accounts receivable
3
0
Accounts payable – Bastille Sales 11400
Cash 11400
Paid accounts payable
5.1A, Part 2
a.) Net sales – 11,000+9,500-190= 20,310
b.) Cost of Goods Sold – 7700+6650= 14,350
c.) Net profit for month ending June 30, 2017 – 20,310-14,350= 5,960
5-8A
1. Classic multi-step income statement that would be used by the business’s owner
Bell Servicing
Income Statement
For year-end December 31, 2017
Sales. . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . . .. . . . 291,800
Less: Sales discounts. . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . 2000
Net sales. . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .. . . 271,800
