These are our answers so far for our group project. We messed up somewhere and we need help double checking our answers! The company we are completing this project for is Polar Trees and they use a perpetual inventory system.
April 21. Poplar Tree provides consulting services of $4,820 for a client. The client is billed $4,820 for these services.
|
Accounts Receivable |
4820 |
|
|
Consulting Revenue |
4820 |
April 21. Poplar Tree sold $22,300 of merchandise on account to Halstad Co., terms FOB shipping point, 2/10, n/30. The cost of the merchandise was $15,000.
|
Accounts Payable |
22,300 |
|
|
Sales |
22,300 |
|
Cost of goods sold |
15000 |
|
|
Merchandise Inv. |
15000 |
April 30. The company paid $10,700 cash for utilities expenses for April.
|
Miscellaneous Expense |
10700 |
|
|
Cash |
10700 |
April 30. Poplar Tree receives $33,300 cash from clients for consulting services performed during the last two weeks of the month.
|
Cash |
33,300 |
|
|
Consulting Revenue |
33,300 |
April 30. The company provides consulting services of $2,650 for a client. The client is billed $2,650 for these services.
|
Accounts Receivable |
2650 |
|
|
Consulting Revenue |
2650 |
May 1. Poplar Tree received payment from Halstad Co. for the April 21st sale.
|
Cash |
21854 |
|
|
Sales Discount |
446 |
|
|
Accounts Rec. |
22,300 |
May 1. Poplar Tree pays $5,000 cash for May rent.
|
Rent Expense |
5,000 |
|
|
Cash |
5,000 |
May 1. Poplar Tree sold $75,000 of merchandise on account to Ryanair Co., terms FOB destination, 2/10, n/30. The cost of the merchandise was $37,550. Ryanair signed an 8% note due in 30 days.
|
Notes receivable |
75,000 |
|
|
Sales |
75,000 |
|
Cost of Goods Sold |
37,550 |
|
|
Merchandise Inventory |
37,550 |
May 1.Poplar Tree paid salaries that were accrued on April 30.
|
Salaries payable |
25,000 |
|
|
Cash |
25,000 |
May 1.The company sold equipment for $80,000 cash. The equipment had cost $150,000 and was 45% depreciated at the time of the sale. The company already depreciated the equipment through May 1. After disposing of this piece of equipment, the company has several pieces of Equipment with a cost of $447,800 that was purchased on January 1, 2018. This group of equipment has a salvage value of $26,000 and a useful life of 5 years.
|
Cash |
80,000 |
|
|
Loss on Sale |
2500 |
|
|
Equipment |
82500 |
|
Depreciation |
7030 |
|
|
Equipment |
7030 |
May 3.The company purchased $36,000 of merchandise on account from Kersey Co.,terms FOB shipping point, 2/10, n/30.
|
Merchandise Inventory |
36,000 |
|
|
Accounts Payable |
36,000 |
May 4. Paid Fedex $600 cash for delivering inventory purchased from Kersey Co. on May 3.
|
Merchandise Inventory |
600 |
|
|
cash |
600 |
May 5. Poplar Tree received payment from Pelter Co. for the April 23rd sale.
|
Cash |
54,000 |
|
|
Accounts Receivable |
54,000 |
May 6. The company sold $68,500 of merchandise on account to Korman Co., terms FOB shipping point, 2/10, n/30. The cost of the merchandise was $41,000.
|
Accounts Receivable |
68,500 |
|
|
Sales |
68,500 |
|
Cost of Goods Sold |
41,000 |
|
|
Merchandise Inventory |
41,000 |
May 8. Korman Co. returned $13,500 of merchandise from the sale of May 6. The cost of the returned merchandise was $8,000.
|
Sales returns and allowances |
13,500 |
|
|
Accounts Rec. |
13,500 |
|
Merchandise inv. |
8000 |
|
|
Cost of goods sold |
8000 |
May 11. The company sold $43,776 of merchandise on account to Gee Co. terms FOB shipping point, 1/10, n/30. The cost of the merchandise was $16,250.
|
Accounts Receivable |
43,776 |
|
|
Sales |
43,776 |
|
Cost of goods Sold |
16,250 |
|
|
Merchandise Inventory |
16,250 |
May 12. Paid Kersey for the merchandise purchased on May 3.
|
Accounts Payable |
36000 |
|
|
Merchandise Inventory |
720 |
|
|
Cash |
35280 |
May 15. Paid cash for a newspaper advertisements for the month of May, $11,000.
|
Advertise Expense |
11,000 |
|
|
Cash |
11,000 |
May 16. Poplar Tree received payment from Korman Co. for the May 6th sale.
|
Cash |
67,130 |
|
|
Sales Discount |
1,370 |
|
|
Accounts Receivable |
68,500 |
May 20. The company sold $110,000 of merchandise on account to Crescent Co., terms FOB shipping point, 2/10, n/30. The cost of merchandise was $70,000.
|
Accounts Receivable |
110,000 |
|
|
Sales |
110,000 |
|
Cost of Goods Sold |
70,000 |
|
|
Merchandise Inventory |
70,000 |
May 23. Poplar Tree received payment from Gee Co. for the May 11th sale
|
Cash |
43,776 |
|
|
Accounts Receivable |
43,776 |
May 23. Poplar Tree purchased $88,000 of merchandise on account from Osterman Co., terms, FOB destination, 1/10, n/30.
|
Merchandise Inv. |
88,000 |
|
|
Accounts Payable |
88,000 |
May 24. Poplar Tree returned damaged merchandise to Osterman from the May 23rd purchase. Poplar received a credit memo from the seller for $5,000.
|
Accounts Payable |
5,000 |
|
|
Merchandise Inventory |
5,000 |
May 28. The company paid $45,000 cash to employee for hours worked.
|
Salaries Expense |
45,000 |
|
|
Cash |
45,000 |
May 29. The company purchased $24,000 of supplies for cash from Office Station Company.
|
Store Supplies |
24,000 |
|
|
Cash |
24,000 |
May 30. Poplar Tree sold $78,750 of merchandise on account to Turner Co., terms FOB shipping point, 2/10, n/30. The cost of the merchandise sold was $47,000.
|
Accounts Receivable |
78,750 |
|
|
Sales |
78,750 |
|
Cost of good sold |
47,000 |
|
|
Merchandise Inventory |
47,000 |
May 30. The company received payment from Crescent Co. for the May 20th sale.
|
Cash |
107,800 |
|
|
Sales Discount |
2200 |
|
Accounts Receivable |
110,000 |
May 30. Paid Osterman for the merchandise purchased on May 23.
|
Accounts Payable |
83,000 |
|
|
Merchandise Inventory |
830 |
|
|
Cash |
82170 |
May 31. Ryanair dishonored the note issued by the company on May 1.
|
Accounts Receivable |
75,500 |
|
|
Notes Receivable |
75,000 |
|
|
Interest Revenue |
500 |
May 31. The company paid $10,700 cash for utilities expense for May.
|
MISC expense |
10,700 |
|
|
Cash |
10,700 |
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