The following selected transactions occurred for Bleumortier Corporation. The co
ID: 2369460 • Letter: T
Question
The following selected transactions occurred for Bleumortier Corporation. The company has a March 31 year end and adjusts accounts annually. Jan.5 Sold $18,000 of merchandise to Brooks Limited, terms n/30. The cost of goods sold was $12,000. Feb.1 Bleumortier has introduced its own credit card. Morgan Ltd. used the card to buy merchandise for $6,000 that cost Bleumortier $4,000. Interest on unpaid balances after 30 days is charged at 18% per annum (1.5% per month). 2 Accepted a four-month, 6%, $18,000 promissory note from Brooks for the balance due. Interest is payable at maturity. (See January 5 transaction.) 3 Sold $13,400 of merchandise costing $8,800 to Gauthier Company and accepted Gauthier's two-month, 6% note in payment. Interest is payable at maturity. 26 Sold $8,000 of merchandise to Mathias Corp., terms n/30. The cost of the merchandise sold was $5,400. Mar.6 Sold $4,000 of merchandise that cost $3,000 to Superior Limited. Superior paid using a bank credit card that has a 3% fee. 31 Accepted a two-month, 7%, $8,000 note from Mathias for the balance due. Interest is payable at maturity. (See February 26 transaction.) 31 Adjusted any accrued interest at year end on notes and credit card receivables. Apr.1 Collected full payment from Morgan Ltd. 3 Collected the Gauthier note in full. (See February 3 transaction.) May31 The Mathias note of March 31 is dishonoured. It is expected that Mathias will eventually pay the amount owed. June1 Collected the Brooks note in full. (See February 2 transaction.) Instructions Record the transactions. Round your answers to the nearest dollar. The following selected transactions occurred for Bleumortier Corporation. The company has a March 31 year end and adjusts accounts annually. Jan.5 Sold $18,000 of merchandise to Brooks Limited, terms n/30. The cost of goods sold was $12,000. Feb.1 Bleumortier has introduced its own credit card. Morgan Ltd. used the card to buy merchandise for $6,000 that cost Bleumortier $4,000. Interest on unpaid balances after 30 days is charged at 18% per annum (1.5% per month). 2 Accepted a four-month, 6%, $18,000 promissory note from Brooks for the balance due. Interest is payable at maturity. (See January 5 transaction.) 3 Sold $13,400 of merchandise costing $8,800 to Gauthier Company and accepted Gauthier's two-month, 6% note in payment. Interest is payable at maturity. 26 Sold $8,000 of merchandise to Mathias Corp., terms n/30. The cost of the merchandise sold was $5,400. Mar.6 Sold $4,000 of merchandise that cost $3,000 to Superior Limited. Superior paid using a bank credit card that has a 3% fee. 31 Accepted a two-month, 7%, $8,000 note from Mathias for the balance due. Interest is payable at maturity. (See February 26 transaction.) 31 Adjusted any accrued interest at year end on notes and credit card receivables. Apr.1 Collected full payment from Morgan Ltd. 3 Collected the Gauthier note in full. (See February 3 transaction.) May31 The Mathias note of March 31 is dishonoured. It is expected that Mathias will eventually pay the amount owed. June1 Collected the Brooks note in full. (See February 2 transaction.) Jan.5 Sold $18,000 of merchandise to Brooks Limited, terms n/30. The cost of goods sold was $12,000. Feb.1 Bleumortier has introduced its own credit card. Morgan Ltd. used the card to buy merchandise for $6,000 that cost Bleumortier $4,000. Interest on unpaid balances after 30 days is charged at 18% per annum (1.5% per month). 2 Accepted a four-month, 6%, $18,000 promissory note from Brooks for the balance due. Interest is payable at maturity. (See January 5 transaction.) 3 Sold $13,400 of merchandise costing $8,800 to Gauthier Company and accepted Gauthier's two-month, 6% note in payment. Interest is payable at maturity. 26 Sold $8,000 of merchandise to Mathias Corp., terms n/30. The cost of the merchandise sold was $5,400. Mar.6 Sold $4,000 of merchandise that cost $3,000 to Superior Limited. Superior paid using a bank credit card that has a 3% fee. 31 Accepted a two-month, 7%, $8,000 note from Mathias for the balance due. Interest is payable at maturity. (See February 26 transaction.) 31 Adjusted any accrued interest at year end on notes and credit card receivables. Apr.1 Collected full payment from Morgan Ltd. 3 Collected the Gauthier note in full. (See February 3 transaction.) May31 The Mathias note of March 31 is dishonoured. It is expected that Mathias will eventually pay the amount owed. June1 Collected the Brooks note in full. (See February 2 transaction.) Jan.5 Sold $18,000 of merchandise to Brooks Limited, terms n/30. The cost of goods sold was $12,000. Feb.1 Bleumortier has introduced its own credit card. Morgan Ltd. used the card to buy merchandise for $6,000 that cost Bleumortier $4,000. Interest on unpaid balances after 30 days is charged at 18% per annum (1.5% per month). 2 Accepted a four-month, 6%, $18,000 promissory note from Brooks for the balance due. Interest is payable at maturity. (See January 5 transaction.) 3 Sold $13,400 of merchandise costing $8,800 to Gauthier Company and accepted Gauthier's two-month, 6% note in payment. Interest is payable at maturity. 26 Sold $8,000 of merchandise to Mathias Corp., terms n/30. The cost of the merchandise sold was $5,400. Mar.6 Sold $4,000 of merchandise that cost $3,000 to Superior Limited. Superior paid using a bank credit card that has a 3% fee. 31 Accepted a two-month, 7%, $8,000 note from Mathias for the balance due. Interest is payable at maturity. (See February 26 transaction.) 31 Adjusted any accrued interest at year end on notes and credit card receivables. Apr.1 Collected full payment from Morgan Ltd. 3 Collected the Gauthier note in full. (See February 3 transaction.) May31 The Mathias note of March 31 is dishonoured. It is expected that Mathias will eventually pay the amount owed. June1 Collected the Brooks note in full. (See February 2 transaction.) Instructions Record the transactions. Round your answers to the nearest dollar. Instructions Record the transactions. Round your answers to the nearest dollar. Jan.5 Sold $18,000 of merchandise to Brooks Limited, terms n/30. The cost of goods sold was $12,000. Feb.1 Bleumortier has introduced its own credit card. Morgan Ltd. used the card to buy merchandise for $6,000 that cost Bleumortier $4,000. Interest on unpaid balances after 30 days is charged at 18% per annum (1.5% per month). 2 Accepted a four-month, 6%, $18,000 promissory note from Brooks for the balance due. Interest is payable at maturity. (See January 5 transaction.) 3 Sold $13,400 of merchandise costing $8,800 to Gauthier Company and accepted Gauthier's two-month, 6% note in payment. Interest is payable at maturity. 26 Sold $8,000 of merchandise to Mathias Corp., terms n/30. The cost of the merchandise sold was $5,400. Mar.6 Sold $4,000 of merchandise that cost $3,000 to Superior Limited. Superior paid using a bank credit card that has a 3% fee. 31 Accepted a two-month, 7%, $8,000 note from Mathias for the balance due. Interest is payable at maturity. (See February 26 transaction.) 31 Adjusted any accrued interest at year end on notes and credit card receivables. Apr.1 Collected full payment from Morgan Ltd. 3 Collected the Gauthier note in full. (See February 3 transaction.) May31 The Mathias note of March 31 is dishonoured. It is expected that Mathias will eventually pay the amount owed. June1 Collected the Brooks note in full. (See February 2 transaction.)Explanation / Answer
he need of suitable supplementary exercises in bookkeeping to test the thinking ability of the student has been apparent to me for several years, and has prompted me to prepare this series. The character of the work is made general in order to cover the ground fully, and the exercises are graded in order to bring out the student's best efforts. Some of the questions may seem hard, but it has been thought best to make them so, because plenty of easy material may be found in the regular textbooks. After some careful study and thought, however, they may not seem so hard as a first glance would indicate. No rules are given, as they are contained in all leading book- keeping texts. Where necessary the teacher should make suggestions as to the proper procedure in working any par- ticular example. The exercises may be used with any textbook, either for class drills, home work, examinations, or for supplementary work. Part or all of the questions in an exercise may be assigned for a lesson, as the teacher may deem advisable. Review questions are found every tenth exercise, and a general review is given at the end. Special features of the book are the chapters containing extended discussions of " Business Statements," " Errors and Trial Balances/' " Manufacturing, Trading, and Profit and Loss Statements," and " Auditing." These are not covered at any great length in textbooks on bookkeeping, and therefore should be of special interest to the teacher and the student. Journalizing is given only subordinate place, as modern systems of bookkeeping make use of the Journal to a limited extent. The principle of debit and credit, and the equilibrium of the ledger, however, are constantly kept in mind. 3 4 PREFACE The teacher will find herein exercises for all stages of the work, both junior and intermediate, and the advanced student may find plenty of scope for testing his knowledge of book- keeping and accounting. Both teacher and student should keep in mind that observa- tion and actual experience must be combined with study and practice in order to produce first-class bookkeepers. The exercises are divided into two parts, Exercises 1-39 being the Elementary, and 40-61 the Advanced. The Advanced Exercises are designed for advanced students in commercial and high schools, and for classes or individuals in higher accounting. These questions are well adapted to the work of advanced accounting, and are carefully graded to meet the needs of students of accountancy. Answers are not included, as the methods of working and arriving at results are the main objects desired, which in many cases involve a considerable exhibit of details. Accuracy is required at every stage of the work, and nothing else should be accepted. " What is worth doing at all is worth doing well." R. J. BENNETT. CONTENTS PART I PAGE Exercise i. Drill in Journalizing 7 Exercise 2. Drill in Journalizing 9 Exercise 3. Drill in Journalizing 11 Exercise 4. Set to be Worked. Without Journal . . 12 Exercise 5. Entries to Personal Accounts . . -13 Exercise 6. Accounts affecting Loss and Gain . . .15 Exercise 7. Entries in Cash Book 17 Exercise 8. Set of Transactions for Store . . . .18 Exercise 9. Journalizing Notes and Drafts .... 20 Exercise 10. Review Questions 23 Annual Statements 25 Exercise ii. Notes and Drafts with Entries .... 29 Exercise 12. Set to be Worked. Card Ledger and Balance Sheet 31 Exercise 13. Supplying Daybook Entries 34 Exercise 14. Shipments and Consignments . . . . . 35 Exercise 15. Shipments and Consignments 38 Exercise 16. Errors and Trial Balances 41 Exercise 17. Adjustment Entries 43 Exercise 18. Set to be Worked. Ledger Only ... 46 Exercise 19. Miscellaneous Entries 48 Exercise 20. Review Questions 50 Errors and Trial Balances . .