Questions from General Accounting

Q: Mr. Wellington has prepared the following list of statements about service

Mr. Wellington has prepared the following list of statements about service companies and merchandisers. 1. Measuring net income for a merchandiser is conceptually the same as for a service company. 2....

Q: Hollins Company buys merchandise on account from Gordon Company. The selling

Hollins Company buys merchandise on account from Gordon Company. The selling price of the goods is $780, and the cost of the goods is $520. Both companies use perpetual inventory systems. Journalize t...

Q: Information related to Steffens Co. is presented below. 1

Information related to Steffens Co. is presented below. 1. On April 5, purchased merchandise from Bryant Company for $25,000 terms 2/10, net/30, FOB shipping point. 2. On April 6 paid freight costs of...

Q: On September 1, Howe Office Supply had an inventory of 30

On September 1, Howe Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred. Sept....

Q: Prepare the journal entries to record the following transactions on Monroe Company’s

Prepare the journal entries to record the following transactions on Monroe Company’s books using a perpetual inventory system. (a) On March 2, Monroe Company sold $900,000 of merchandise to Churchill...

Q: From the information in BE5-3, prepare the journal entries

From the information in BE5-3, prepare the journal entries to record these transactions on Churchill Company’s books under a perpetual inventory system. Exercise 5-3: (a) On March 2, Monroe Company s...

Q: On June 10, Meredith Company purchased $8,000 of

On June 10, Meredith Company purchased $8,000 of merchandise from Leinert Company, FOB shipping point, terms 2/10, n/30. Meredith pays the freight costs of $400 on June 11. Damaged goods totaling $300...

Q: At year-end the perpetual inventory records of Garbo Company showed

At year-end the perpetual inventory records of Garbo Company showed merchandise inventory of $98,000. The company determined, however, that its actual inventory on hand was $96,500. Record the necessa...

Q: Presented below are transactions related to Wheeler Company. 1.

Presented below are transactions related to Wheeler Company. 1. On December 3, Wheeler Company sold $500,000 of merchandise to Hashmi Co., terms 2/10, n/30, FOB shipping point. The cost of the merchan...

Q: Brandon Computer Timeshare Company entered into the following transactions during May

Brandon Computer Timeshare Company entered into the following transactions during May 2010. 1. Purchased computer terminals for $20,000 from Digital Equipment on account. 2. Paid $4,000 cash for May r...