81
152)
A company uses four special journals: purchases, sales, cash receipts, and cash disbursements. The
following purchase and cash payments transactions were incurred during August:
Aug.
1
Purchased merchandise from Able Co. for $2,000, terms 2/10, n/30. Invoice dated
August 1.
7
Paid salaries accrued on July 31, $2,100 to manager Ms. Krenz, Check No. 756.
9
Returned merchandise costing $200 to Able Co. from August 1 purchase.
11
Paid Able Co. for the August 1 purchase, Check No. 757.
28
Purchased office supplies from Mercantile Co. on credit, terms 1/10, n/EOM for
$335.
29
Paid cash to Incite Telephone Co. for monthly telephone bill $250, Check No.758.
Record these transactions in the appropriate special journals below.
83
153)
Trimble Company began business on July 1. They use the perpetual inventory method. The
following transactions involving purchases and cash disbursements occurred during July.
July
4
July
5
July
8
July
10
July
13
July
22
a. Use the purchases journal and the cash disbursements journal provided to record these
transactions.
b. Prepare a schedule of accounts payable as of July 31. There were no accounts payable on July 1.
Nov. 1
Sold merchandise for $6,700 on credit to the Three Rivers Co., terms 2/10,
n/30. Invoice no. 1455. Cost of the merchandise sold is $3,600.
Nov. 1
Sold merchandise for $3,400 on credit to the Milwaukee Co., terms 2/10,
n/30. Invoice no. 1456. Cost of the merchandise sold is $1,800.
Nov. 2
Sold merchandise for $590 for cash to the Madison Co. Invoice no. 1457.
Cost of the merchandise sold is $300.
Nov. 3
Borrowed $10,000 from Lake City Bank on a long-term note payable.
154)
The Moonlight Company completed the following sales and cash receipts transactions during
November. The Moonlight Company uses the perpetual inventory system.
84
Nov. 3
Borrowed $10,000 from Lake City Bank on a long-term note payable.
Nov. 3
Sold merchandise for $7,200 on credit to the Pare Co., terms 2/10, n/30.
Invoice no. 1458. Cost of the merchandise sold is $4,000.
Nov. 5
Received the amount due from the Three Rivers Co. from the sale on
November 1.
Nov. 6
Sold merchandise on credit for $950 to the Manitowok Co., terms 2/10, n/30.
Invoice No. 1459. Cost of the merchandise is $500.
Nov. 10
Received the amount due from the Milwakee Co. from the sale on November
1.
a. Use the sales journal and the cash receipts journal to record these transactions.
b. Prepare a schedule of accounts receivable as of November 10. There was no accounts receivable
balance at November 1.
87
155)
Climbers Unlimited uses special journals to record its daily transactions. They use the perpetual
inventory system. Shown below is its cash receipts journal and selected ledger accounts. Post the
cash receipts journal to the appropriate ledger accounts.
89
156)
The Skyview Company uses a sales journal, purchases journal, cash receipts journal, cash
disbursements journal, and general journal. They use the periodic inventory method. The following
sales and cash collections transactions occurred during the month of December:
Dec.
4
Sold merchandise on credit for $3,300 to the B&A Co., Invoice No. 313.
10
Sold merchandise for $500 cash to CAR Corp., Invoice 314.
13
Collected $3,300 from the B&A Co. for merchandise sold on December 4.
24
Sold merchandise on credit for $4,500 to Cowl Corp., Invoice No. 315.
Record these transactions using the journals below.
Dec
8
Purchased merchandise on credit for $1,800 from the Wexler Co., terms 2/10,
n/30. Invoice dated December 8.
17
Paid amount owed to Wexler Co. from December 8 purchase, Check No. 1011.
157)
The Skyview Company uses a sales journal, purchases journal, cash receipts journal, cash
disbursements journal, and general journal. They use the periodic inventory method. The following
purchase and cash payments transactions occurred during the month of December:
90
17
Paid amount owed to Wexler Co. from December 8 purchase, Check No. 1011.
27
Paid $400 cash for monthly rent to Iowa Properties, Check No. 1012.
31
Purchased equipment for $3,055 from Gore Corp., Check No. 1013.
Record these transactions using the journals below.
May 2
Purchased $25,000 of merchandise inventory on credit from the Farthing
Company, terms 2/10, n/30. Invoice dated May 1.
May 3
Purchased $12,000 of merchandise inventory on credit from the Hacks Company,
terms 2/10, n/30. Invoice dated May 2.
May 3
Purchased $3,000 of office supplies for cash from Liston Co. Check no. 1267
May.
May 4
Purchased $36,000 of office equipment on credit from Superior Office, terms n/60
Invoice dated May 3.
May 6
Paid the amount due for the merchandise purchased from Farthing Company.
Check no. 1268.
May 6
Purchased $14,500 of merchandise inventory for cash from the Hills Co.
Check no. 1269.
158)
Daisy Company began business on May 1. They use the periodic inventory method. The following
transactions involving purchases and cash disbursements occurred during the first week of May.
.
a. Use the purchases journal and the cash disbursements journal to record these transactions.
b. Prepare a schedule of accounts payable. There was no accounts payable balance on May 1.
Dec. 1
Sold merchandise for $6,700 on credit to the Banks Co., terms 2/10, n/30, invoice
no. 1455. Cost of the merchandise sold is $3,600.
Dec. 1
Sold merchandise for $3,400 on credit to the Warsaw Co., terms 2/10, n/30.
Invoice no. 1456. Cost of the merchandise sold is $1,800.
Dec. 2
Sold merchandise for $590 for cash to the Draper Co. Invoice no. 1457. Cost of
the merchandise sold is $300.
Dec. 3
Borrowed $10,000 from Franklin Savings on a long-term note payable.
Dec. 3
Sold merchandise for $7,200 on credit to the Wentner Co., terms 2/10, n/30.
159)
The Lavender Company completed the following sales and cash receipts transactions during the first
week of December. The Lavender Company uses the periodic inventory system.
93
Dec. 3
Sold merchandise for $7,200 on credit to the Wentner Co., terms 2/10, n/30.
Invoice no. 1458. Cost of the merchandise sold is $4,000.
Dec. 5
Received the amount due from the Banks Co. from the sale on December 1.
Dec. 6
Sold merchandise on credit for $950 to the Global Co., terms 2/10, n/30. Invoice
No. 1459.
Dec. 6
Received the amount due from the Warsaw Co. from the sale on December 1.
a. Use the sales journal and the cash receipts journal to record these transactions.
b. Prepare a schedule of accounts receivable. There was no accounts receivable balance at December
1.
U.S.
$2,120/$3,800 = 55.8%
Canada
$2,240/$4,200 = 53.3%
Mexico
$1,200/$2,800= 42.9%
160)
The following information is available for Soda Station, Inc. (all amounts are in millions):
U.S.
Canada
Mexico
Segment sales
$6,300
$5,200
$3,800
Segment operating income
2,120
2,240
1,200
Segment average assets
3,800
4,200
2,800
a. Determine the segment return on assets for each geographic segment.
b. Comment on the results. How do the segments compare with respect to profitability?
c. What measures could be taken to improve segment return?
97
161)
The following segment information is available for the three regions of the country in which Fresh
Snacks, Inc. does business (all amounts are in millions):
Midwest
West
South
Segment operating income
120
380
75
Segment average assets
310
782
103
a. Determine the segment return on assets for each geographic segment.
b. Comment on the results. How do the segments compare with respect to profitability?
Midwest
$120/$310= 38.7%
West
$380/$782= 48.6%
South
$75/$103 = 72.8%
162)
Plimpton Sales uses special journals to record business transactions. Plimpton sells office equipment.
The company completed the following transactions a through j. Identify the journal in which each
transaction should be recorded.
a.
Paid an installment on a bank loan.
b.
Purchased inventory on credit.
c.
Paid cash to a creditor.
d.
Sold equipment to a customer on credit.
e.
Sold equipment to a customer for cash.
f.
Paid employees’ salaries in cash.
g.
Received payment from a customer on credit.
h.
Purchased office supplies on account.
i.
Returned inventory to creditor before payment.
j.
Sold equipment on account.