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    Bookkeeping Problems Batch 1

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    lanz kristoff racho
    Modem Corp recorded various business transactions during April 2016 related to purchases, sales, expenses, and inventory. Journal entries were made for the transactions including an investment of $39,000 cash, purchase of equipment for $10,000, merchandise purchases on account, sales on account, payment of expenses and liabilities, and a bank loan. A post-closing trial balance was prepared through April 30th and inventory was counted at $25,000.

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    Bookkeeping Problems Batch 1

    Uploaded by

    lanz kristoff racho
    2K views2 pages
    Modem Corp recorded various business transactions during April 2016 related to purchases, sales, expenses, and inventory. Journal entries were made for the transactions including an investment of $39,000 cash, purchase of equipment for $10,000, merchandise purchases on account, sales on account, payment of expenses and liabilities, and a bank loan. A post-closing trial balance was prepared through April 30th and inventory was counted at $25,000.

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    Modem Corp recorded various business transactions during April 2016 related to purchases, sales, expenses, and inventory. Journal entries were made for the transactions including an investment of $39,000 cash, purchase of equipment for $10,000, merchandise purchases on account, sales on account, payment of expenses and liabilities, and a bank loan. A post-closing trial balance was prepared through April 30th and inventory was counted at $25,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    2K views2 pages

    Bookkeeping Problems Batch 1

    Uploaded by

    lanz kristoff racho
    Modem Corp recorded various business transactions during April 2016 related to purchases, sales, expenses, and inventory. Journal entries were made for the transactions including an investment of $39,000 cash, purchase of equipment for $10,000, merchandise purchases on account, sales on account, payment of expenses and liabilities, and a bank loan. A post-closing trial balance was prepared through April 30th and inventory was counted at $25,000.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 2

    Problem:

    Modem Corp. was incorporated on April 1, 2016 to operate a merchandising business.


    Journalize the transactions using periodic inventory method. The transactions
    during April 2016 are as follows:

    1 Ris Mendoza gave Ᵽ39,000 cash investment for his buisiness.


    2 Paid Easton Furniture Ltd Ᵽ10,000 for equipment purchased.
    2 Purchased Ᵽ15,900 merhandise on account from Blc Pens Ltd FOB Shipping point, for term
    2/10; n/30. Delivery charges, Ᵽ300 was paid by the buyer.
    3 Purchased office supplies for amounting Ᵽ700.
    4 Sold 15,200 of merchandise on account to Spellman Chair Rental Inc. terms 2/10; n/30
    (Cost of Sales Ᵽ12,200)
    5 Paid freight for April 4 Sales, Ᵽ200.
    6 Received a memo from Blic Pen Ltd to reduce accounts by Ᵽ300 for defective merchandise
    included in April 2.
    11 Paid Blic Pen Ltd.
    13 Received the amount due from Spellman Chair Rental for April 4 Sales.
    14 Purchased Ᵽ14,400 of merchandise.
    15 Paid salaries of Ᵽ1,500.
    16 Issued promissory note for Ᵽ200,000 cash received from bank borrowing.
    17 Received refund of Ᵽ500 from purchased merchandise.
    18 Purchased Ᵽ14,200 merchandise on account form from Shae Distributors Inc. for terms
    2/10; n/30.
    20 Paid Ᵽ700 freight from May 18 purchase.
    23 Sold Ᵽ16,400 merchandise (Cost of sale Ᵽ10,500)
    26 Purchased Ᵽ12,300 of merchandise.
    27 Paid Shaw Distributors Inc of Ᵽ9,000 on April 18 purchases. No discount on partial payment.
    28 Mr. Ris took Ᵽ2,008 for personal use.
    29 Paid return to customer from May 23 Sales, Ᵽ900.
    30 Sold Ᵽ13,700 merchandise on account to Eagle Products Corp., FOB Destination, term 2/10; n/30.
    30 Paid advertising Ᵽ1,000; Utilities Ᵽ400; Rent Ᵽ3,500; Salaries Ᵽ1,500.

    Required:
    1 Prepare journal entries to record April transactions.
    2 Post transactions.
    3 Create Chart of Accounts up Until Post Closing Trial Balance.

    Assume the Merchandise Inventory is counted at April 30 and assigned a total cost of Ᵽ25,000.
    Modem Corporation
    Chart of Accounts
    business.
    101 Cash 402 Sales Returns and Allowances
    102 Accounts Receivabl 403 Sales Discount
    103 Office Supplies 501 Freight-in
    104 Merchandise Invent 502 Freight-out
    105 Office Equipment 503 Purchases
    oint, for term 201 Accounts Payable 504 Purchase Returns and Allowances
    202 Notes Payable 505 Purchase Discount
    301 R. Mendoza, Capital 506 Salaries Expense
    302 R. Mendoza, Drawin 507 Advertising Expense
    303 Income Summary 508 Utilities Expense
    401 Sales 509 Rent Expense
    merchandise

    partial payment.

    on, term 2/10; n/30.

    al cost of Ᵽ25,000.

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