Use the T-Accounts on the following page to make the necessary journal entries f
ID: 2562729 • Letter: U
Question
Use the T-Accounts on the following page to make the necessary journal entries for the transactions described below, as well as the appropriate closing entries.
Assumptions:
1. Teinert Inc. uses a periodic inventory system.
2. The beginning balance in cash is $5,000.
3. The beginning balance in inventory of $300.
4. A physical count of inventory on June 30 showed an ending inventory of $1,000
June 1 Teinert Inc. purchases $800 of inventory with the terms 2/10 n/30.
2 Teinert Inc. sold merchandise for $500 to Faflick Co. on account.
5 Teinert Inc. purchased supplies worth $900 with cash. No supplies were used during June.
8 Teinert Inc. purchases $500 of inventory with the terms 2/10 n/30.
12 Faflick Co. returns $200 of defective merchandise.
15 Teinert Inc. returns $200 of the inventory purchased on June 8.
17 Teinert Inc. pays the entire balance for purchases made on June 8.
23 Teinert Inc. paid for purchases made on June 1.
Explanation / Answer
Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Jun Purchases Dr. 800 To Accounts Payable 800 2-Jun Accounts Receivable Dr. 500 To Sales 500 5-Jun Supplies Dr. 900 To Cash 900 8-Jun Purchases Dr. 500 To Accounts Payable 500 12-Jun Sales Return & Allowaces Dr. 200 To Accounts Receivable 200 15-Jun Accounts Payable Dr. 200 To Purchase return 200 17-Jun Accounts Payable Dr. 300 To Cash 294 To Purchase Discount 6 23-Jun Accounts Payable Dr. 800 To Cash 800 30-Jun Inventory (Ending Bal.) Dr. 1,000 Purchase Return Dr. 200 Purchase Discount Dr. 6 Cost of Goods Sold Dr. 394 To Inventory (Beg. Bal.) 300 To Purchases 1,300 30-Jun Income Summary Dr. 394 To Cost of Goods Sold 394 30-Jun Sales Dr. 500 To Income Summary 300 To Sales Retun & Allowances 200 Inventory Cash Accounts Payable Beg. Bal. 300 Beg. Bal. 5,000 900 5-Jun 15-Jun 200 800 1-Jun 30-Jun 700 294 17-Jun 17-Jun 300 500 8-Jun 800 23-Jun 23-Jun 800 End. Bal. 1,000 End. Bal. 3,006 End. Bal. - Purchase Purchase Return Purchase Discount 1-Jun 800 1,300 30-Jun 30-Jun 200 200 15-Jun 30-Jun 6 6 17-Jun 8-Jun 500 End. Bal. - End. Bal. - End. Bal. - Sales Sales Return & Allowances Cost of Goods Sold 30-Jun 500 500 2-Jun 12-Jun 200 200 30-Jun 30-Jun 394 394 30-Jun End. Bal - End. Bal - End. Bal. - Accounts Receivable Supplies 2-Jun 500 200 12-Jun 5-Jun 900 End. Bal 300 End. Bal 900
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