Accounting Cs Chapter 6

In: Business and Management

Submitted By frostysanchez
Words 2905
Pages 12
Ocean Atlantic Co. is a merchandising business. The account balances for Ocean Atlantic Co. as of July 1, 2012 (unless otherwise indicated), are as follows:
[pic]
.:.
During July, the last month of the fiscal year, the following transactions were completed:
July 1. Paid rent for July, $4,000.
3. Purchased merchandise on account from Lingard Co., terms 2/10, n/30, FOB shipping point, $25,000.
4. Paid freight on purchase of July 3, $1,000.
6. Sold merchandise on account to Holt Co., terms 2/10, n/30, FOB shipping point, $40,000. The cost of the merchandise sold was $24,000.
7. Received $18,000 cash from Flatt Co. on account, no discount.
10. Sold merchandise for cash, $90,000. The cost of the merchandise sold was $50,000.
13. Paid for merchandise purchased on July 3, less discount.
14. Received merchandise returned on sale of July 6, $7,000. The cost of the merchandise returned was $4,500.
15. Paid advertising expense for last half of July, $9,000.
16. Received cash from sale of July 6, less return of July 14 and discount.
19. Purchased merchandise for cash, $22,000.
19. Paid $23,100 to Carino Co. on account, no discount.
Record the following transactions on Page 21 of the journal.
20. Sold merchandise on account to Reedley Co., terms 1/10, n/30, FOB shipping point, $40,000. The cost of the merchandise sold was $25,000.
21. For the convenience of the customer, paid freight on sale of July 20, $1,100.
21. Received $17,600 cash from Owen Co. on account, no discount.
21. Purchased merchandise on account from Munson Co., terms 1/10, n/30, FOB destination, $32,000.
July 24. Returned $5,000 of damaged merchandise purchased on July 21, receiving credit from the seller.
26. Refunded cash on sales made for cash, $12,000. The cost of the merchandise returned was $7,200.
28. Paid sales salaries of $22,800 and office salaries of $15,200.
29. Purchased store…...

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