Jan. 6 Sold merchandise on acount to Sievert Co., $7,500, terms 2/10, n/30. The cost of the
merchandise sold was $4,500.
7 Returned $1,800 of merchandise purchased on January 5 from Wilhelm Co.
13 Paid Pynn Co. on account for purchase of January 3, less discount.
15 Paid Wilhelm Co. on account for purchase of January 5, less return of January 7 and
discount.
16 Received cash on account from sale of January 6 to Sievert Co., less discount.
19 Sold merchandise on nonbank credit cards and reported accounts to the card com-
pany,American Express, $6,450. The cost of the merchandise sold was $3,950.
22 Sold merchandise on account to Elk River Co., $3,480, terms 2/10, n/30. The cost of
the merchandise sold was $1,400.
23 Sold merchandise for cash, $9,350. The cost of the merchandise sold was $5,750.
25 Received merchandise returned by Elk River Co. from sale on January 22, $1,480. The
cost of the returned merchandise was $600.
31 Received cash from American Express for nonbank credit sales of January 19, less
$225 service fee.Instructions
Journalize the transactions.The following selected transactions were completed during June between Schnaps Company
and Brandy Company:June 2 Schnaps Company sold merchandise on account to Brandy Company, $14,000,
terms FOB shipping point, 2/10, n/30. Schnaps Company paid transportation costs
of $350, which were added to the invoice. The cost of the merchandise sold was
$8,000.
8 Schnaps Company sold merchandise on account to Brandy Company $12,500, terms
FOB destination, 1/15, n/eom. The cost of the merchandise sold was $7,500.
8 Schnaps Company paid transportation costs of $550 for delivery of merchandise sold
to Brandy Company on June 8.
12 Brandy Company returned $3,000 of merchandise purchased on account on June 8
from Schnaps Company. The cost of the merchandise returned was $1,800.
12 Brandy Company paid Schnaps Company for purchase of June 2, less discount.
23 Brandy Company paid Schnaps Company for purchase of June 8, less discount and
less return of June 12.
24 Schnaps Company sold merchandise on account to Brandy Company, $10,000, terms
FOB shipping point, n/eom. The cost of the merchandise sold was $6,000.
26 Brandy Company paid transportation charges of $310 on June 24 purchase from
Schnaps Company.
30 Brandy Company paid Schnaps Company on account for purchase of June 24.Instructions
Journalize the June transactions for (1) Schnaps Company and (2) Brandy Company.For the year ending December 31, 2007, Chippendale Systems Inc. reported net income of
$48,320 and paid dividends of $14,400. Comparative balance sheets as of December 31, 2007 and
2006, are as follows:252 Chapter 5 Accounting for Merchandise Operations
Problem 5-6A
Sales-related and purchase-
related transactions for seller
and buyer
Goals3, 4, 5, 6GENERAL LEDGERAppendix Problem
5-7AStatement of cash flows using
indirect method