The following selected transactions were completed by Silvertree Company during
ID: 2451615 • Letter: T
Question
The following selected transactions were completed by Silvertree Company during January of the current year: Jan. 1. Purchased merchandise from Guinn Co., $13,600, terms FOB destination, n/30. 3. Purchased merchandise from Cybernet Co., $18,000, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $300 was added to the invoice. 4. Purchased merchandise from Berry Co., $22,000, terms FOB destination, 2/10, n/30. 6. Issued debit memo to Berry Co. for $3,500 of merchandise returned from purchase on January 4. 13. Paid Cybernet Co. for invoice of January 3, less discount. 14. Paid Berry Co. for invoice of January 4, less debit memo of January 6 and discount. 19. Purchased merchandise from Cleghorne Co., $18,000, terms FOB shipping point, n/eom. 19. Paid freight of $500 on January 19 purchase from Cleghorne Co. 20. Purchased merchandise from Lenn Co., $10,000, terms FOB destination, 1/10, n/30. 30. Paid Lenn Co. for invoice of January 20, less discount. 31. Paid Guinn Co. for invoice of January 1. 31. Paid Cleghorne Co. for invoice of January 19. Instructions Journalize the entries to record the transactions of Silvertree Company for January.
Explanation / Answer
The following selected transactions were completed by Silvertree Company during January of the current year: Jan. 1. Purchased merchandise from Guinn Co., $13,600, terms FOB destination, n/30. 3. Purchased merchandise from Cybernet Co., $18,000, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $300 was added to the invoice. 4. Purchased merchandise from Berry Co., $22,000, terms FOB destination, 2/10, n/30. 6. Issued debit memo to Berry Co. for $3,500 of merchandise returned from purchase on January 4. 13. Paid Cybernet Co. for invoice of January 3, less discount. 14. Paid Berry Co. for invoice of January 4, less debit memo of January 6 and discount. 19. Purchased merchandise from Cleghorne Co., $18,000, terms FOB shipping point, n/eom. 19. Paid freight of $500 on January 19 purchase from Cleghorne Co. 20. Purchased merchandise from Lenn Co., $10,000, terms FOB destination, 1/10, n/30. 30. Paid Lenn Co. for invoice of January 20, less discount. 31. Paid Guinn Co. for invoice of January 1. 31. Paid Cleghorne Co. for invoice of January 19. Instructions Journalize the entries to record the transactions of Silvertree Company for January.
Jan. 1. Purchased merchandise from Guinn Co., $13,600, terms FOB destination, n/30
3. Purchased merchandise from Cybernet Co., $18,000, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $300 was added to the invoice.
4. Purchased merchandise from Berry Co., $22,000, terms FOB destination, 2/10, n/30.
6. Issued debit memo to Berry Co. for $3,500 of merchandise returned from purchase on January 4.
14. Paid Berry Co. for invoice of January 4, less debit memo of January 6 and discount.
19. Purchased merchandise from Cleghorne Co., $18,000, terms FOB shipping point, n/eom.
19. Paid freight of $500 on January 19 purchase from Cleghorne Co.
20. Purchased merchandise from Lenn Co., $10,000, terms FOB destination, 1/10, n/30.
The following selected transactions were completed by Silvertree Company during January of the current year: Jan. 1. Purchased merchandise from Guinn Co., $13,600, terms FOB destination, n/30. 3. Purchased merchandise from Cybernet Co., $18,000, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $300 was added to the invoice. 4. Purchased merchandise from Berry Co., $22,000, terms FOB destination, 2/10, n/30. 6. Issued debit memo to Berry Co. for $3,500 of merchandise returned from purchase on January 4. 13. Paid Cybernet Co. for invoice of January 3, less discount. 14. Paid Berry Co. for invoice of January 4, less debit memo of January 6 and discount. 19. Purchased merchandise from Cleghorne Co., $18,000, terms FOB shipping point, n/eom. 19. Paid freight of $500 on January 19 purchase from Cleghorne Co. 20. Purchased merchandise from Lenn Co., $10,000, terms FOB destination, 1/10, n/30. 30. Paid Lenn Co. for invoice of January 20, less discount. 31. Paid Guinn Co. for invoice of January 1. 31. Paid Cleghorne Co. for invoice of January 19. Instructions Journalize the entries to record the transactions of Silvertree Company for January.
Jan. 1. Purchased merchandise from Guinn Co., $13,600, terms FOB destination, n/30
1 Merchandise Inventory 13,600 Accounts Payable—Guinn Co. 13,6003. Purchased merchandise from Cybernet Co., $18,000, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $300 was added to the invoice.
3 Merchandise Inventory 18,300 Accounts Payable—Cybernet Co. 18,3004. Purchased merchandise from Berry Co., $22,000, terms FOB destination, 2/10, n/30.
4 Merchandise Inventory 22,000 Accounts Payable—Berry Co. 22,0006. Issued debit memo to Berry Co. for $3,500 of merchandise returned from purchase on January 4.
6 Accounts Payable—Berry Co. 3,500 Merchandise Inventory 3,500 13. Paid Cybernet Co. for invoice of January 3, less discount. 13 Accounts Payable—Cybernet Co. 18,300 Cash 17,940 Merchandise Inventory ($18,000 x 2%) 36014. Paid Berry Co. for invoice of January 4, less debit memo of January 6 and discount.
14 Accounts Payable—Berry Co. ($22,000 - $3,500) 18,500 Cash 18,130 Merchandise Inventory ($18,500 x 2%) 37019. Purchased merchandise from Cleghorne Co., $18,000, terms FOB shipping point, n/eom.
19 Merchandise Inventory 18,000 Accounts Payable—Cleghorne Co. 18,00019. Paid freight of $500 on January 19 purchase from Cleghorne Co.
19 Merchandise Inventory 500 Cash 50020. Purchased merchandise from Lenn Co., $10,000, terms FOB destination, 1/10, n/30.
Merchandise Inventory 10,000 Accounts Payable—Lenn Co. 10,000 30. Paid Lenn Co. for invoice of January 20, less discount. 30 Accounts Payable—Lenn Co. 10,000 Cash 9,900 Merchandise Inventory ($10,000 x 1%) 100 31. Paid Guinn Co. for invoice of January 1. 31 Accounts Payable—Guinn Co. 13,600 Cash 13,600 31. Paid Cleghorne Co. for invoice of January 19. 18,000 31 Accounts Payable—Cleghorne Co. 18,000 Cash