he following selected transactions were completed during April between Swan Comp
ID: 2548825 • Letter: H
Question
he following selected transactions were completed during April between Swan Company and Bird Company:
Required:
1. Journalize the April transactions for Bird Company (the buyer).
2. Journalize the April transactions for Swan Company (the seller).
Apr.2. Swan Company sold merchandise on account to Bird Company, $18,400, terms FOB shipping point, 1/10, n/30. Swan Company paid freight of $400, which was added to the invoice. The cost of the merchandise sold was $11,600. 8. Swan Company sold merchandise on account to Bird Company, $23,000, terms FOB destination, 2/15, n/30. The cost of the merchandise sold was $13,800. 8. Swan Company paid freight of $730 for delivery of merchandise sold to Bird Company on April 8. 12. Bird Company paid Swan Company for purchase of April 2. 18. Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise. 23. Bird Company paid Swan Company for purchase of April 8. 24. Swan Company sold merchandise on account to Bird Company, $9,400, terms FOB shipping point, n/45. The cost of the merchandise sold was $5,600. 26. Bird Company paid freight of $330 on April 24 purchase from Swan Company. 30. Swan Company granted a customer allowance (credit memo) to Bird Company for $11,300 for merchandise that was returned from the August 24 purchase. The cost of the merchandise returned was $6,500.Explanation / Answer
Answer 1. Bird Company Journal Entry Date Particulars Dr. Amt. Cr. Amt. 2-Apr Inventory 18,800.00 Accounts Payable - Swan Company 18,800.00 (record the purchases) 8-Apr Inventory 23,000.00 Accounts Payable - Swan Company 23,000.00 (record the purchases) 12-Apr Accounts Payable - Swan Company 18,800.00 Cash 18,616.00 Inventory 184.00 (record the cash paid) 18-Apr Cash 2,000.00 Inventory 2,000.00 (record the cash recd for defective inventory) 23-Apr Accounts Payable - Swan Company 23,000.00 Cash 22,540.00 Inventory 460.00 (record the cash paid) 24-Apr Inventory 9,400.00 Accounts Payable - Swan Company 9,400.00 (record the purchases) 26-Apr Inventory 330.00 Cash 330.00 (record the freight paid) 30-Apr Accounts Payable - Swan Company 11,300.00 Merchandise Inventory 11,300.00 (record the purcahse return) Answer 2. Swan Company Journal Entry Date Particulars Dr. Amt. Cr. Amt. 2-Apr Accounts Receivable - Bird Company 18,400.00 Sales 18,400.00 (To record the sales to Bird Company) 2-Apr Accounts Receivable - Bird Company 400.00 Cash 400.00 (record the freight paid) 2-Apr Cost of Goods Sold 11,600.00 Inventory 11,600.00 (Record the cost of goods sold) 8-Apr Accounts Receivable - Bird Company 23,000.00 Sales 23,000.00 (To record the sales to Bird Company) 8-Apr Cost of Goods Sold 13,800.00 Inventory 13,800.00 (Record the cost of goods sold) 8-Apr Delivery Expense 730.00 Cash 730.00 (To record the delivery expense) 12-Apr Cash 18,616.00 Sales Discount (18,400 x 1%) 184.00 Accounts Receivable - Bird Company 18,800.00 (record the cash received) 18-Mar Sale Return & Allowances 2,000.00 Cash 2,000.00 (Record the cash paid for defective material) 23-Apr Cash 22,540.00 Sales Discount (23,000 x 2%) 460.00 Accounts Receivable - Bird Company 23,000.00 (record the cash received) 24-Apr Accounts Receivable - Bird Company 9,400.00 Sales 9,400.00 (To record the sales to Bird Company) 24-Apr Cost of Goods Sold 5,600.00 Inventory 5,600.00 (Record the cost of goods sold) 30-Apr Sales return & Allowances 11,300.00 Accounts Receivable - Bird Company 11,300.00 (record the sales return) 30-Apr Merchandise Inventory 6,500.00 Cost of Goods Sold 6,500.00 (record the cost of goods sold of return)
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