Accounting Homework Week 3

hw20ch20520i-05.0120comprehensive20problem.xls

Problem

Tic Toc Clock Shop reported the following merchandising-related transactions during June. Tic Tock Clock Shop records all purchases "gross" and credit terms are precisely followed on both purchases and sales. Prepare journal entries to record each transaction.
3-Jun	Purchased $4,000 of clocks on account from Swiss Time, F.O.B. destination, terms 1/10, n/30.
5-Jun	Sold a $1,500 clock to Janci Holgren on account, terms 2/10, n/eom. The customer picked up the clock from the shop.
9-Jun	Paid the amount due for the purchase of June 3.
11-Jun	Purchased $8,000 of clocks on account from Melbourne Clockworks, F.O.B. shipping point, terms 2/10, n/30. Freight charges of $460 were prepaid by Melbourne and added to the invoice. No discount is permitted on the freight charges.
19-Jun	Sold a $3,500 clock on account, terms 2/10, n/eom. Tic Toc sold the clock F.O.B. destination, and paid the freight charges of $330.
23-Jun	The customer of June 19 called to report that the clock was received damaged. An agreement was reached to reduce the invoice by 20%.
27-Jun	Paid Melbourne Clockworks for the purchase of June 11.
27-Jun	Janci Holgren paid for the purchase of June 5.
28-Jun	The customer of June 19 paid the balance due.

&R&"Myriad Web Pro,Bold"&20I-05.01

I-05.01

GENERAL JOURNAL			Page
Date	Accounts	Debit	Credit
3-Jun
	Purchased clocks on account, terms 1/10,n/30
5-Jun
	Sold clock on account, terms 2/10, n/eom
9-Jun
	Paid for the puchase of June 3, taking the 1% discount
11-Jun
	Purchased clocks on account, 2/10,n/30, F.O.B. shipping point
19-Jun
	Sold clock on account, 2/10, n/eom, F.O.B. destination
23-Jun
	Reduced balance due from customer on account of damage
GENERAL JOURNAL			Page
Date	Accounts	Debit	Credit
27-Jun
	Paid the full amount due for the purchase of June 11
27-Jun
	Collected the amount due for the sale on June 5
28-Jun
	Collected remaining amount for June 19 sale, less 2% discount

&L&"Myriad Web Pro,Bold"&12Name: Date: Section: &R&"Myriad Web Pro,Bold"&20I-05.01

B-05.01(a)