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Question 1

Lewis Corporation engaged in the following transactions during June.

DATE TRANSACTIONS
2019
4 Purchased merchandise on account from Salinas Company; Invoice 100 for $1,055; terms
June
n/30.
15 Recorded purchases for cash, $1,540.
30 Paid amount due to Salinas Company for the purchase on June 4.

Record these transactions in a general journal.

Question 2

During the year, a firm purchased $256,700 of merchandise and paid freight charges of $41,770. If the
total purchases returns and allowances were $16,040 and purchase discounts were $8,500 for the year,
what is the net delivered cost of purchases?

Multiple Choice

$298,470

$273,930

$323,010

$190,390

Question 3

Tune Tones Instrument Tuning Company owes Mandy Lynn's Music Studio $5,046 as of November 1.
During November, Tune Tones purchased merchandise from Mandy Lynn totaling $8,685 and made
payments on account to Mandy Lynn in the amount of $7,440. The amount Tune Tones owes Mandy
Lynn on November 30 is:

Multiple Choice

$6,291.

$3,801.
 $11,079.

$7,440.

Question 4

During March a firm purchased $22,730 of merchandise and paid freight charges of $1,800. If the net
delivered cost of purchases for the March is $21,980, what is the total purchase returns for March?

Multiple Choice

$0

$1,050

$2,550

$3,600

Question 5

Bushard Company (buyer) and Schmidt, Inc. (seller) engaged in the following transactions during
February 2019:
Bushard Company
DATE TRANSACTIONS
2019
Feb.10 Purchased merchandise for $6,700 from Schmidt, Inc., Invoice 1980, terms 2/10, n/30.
13 Received Credit Memorandum 230 from Schmidt, Inc., for damaged merchandise totaling
$370 that was returned; the goods were purchased on Invoice 1980, dated February 10.
19 Paid amount due to Schmidt, Inc., for Invoice 1980 of February 10, less the return of February
13 and less the cash discount, Check 2010.

Schmidt, Inc.
DATE TRANSACTIONS
2019
Feb.10 Sold merchandise for $6,700 on account to Bushard Company, Invoice 1980, terms 2/10,
n/30. The cost of merchandise sold was $3,850.
13 Issued Credit Memorandum 230 to Bushard Company for damaged merchandise totaling
$370 that was returned; the goods were purchased on Invoice 1980, dated February 10. The
cost of the returned goods was $290.
19 Received payment from Bushard Company for Invoice 1980 of February 10, less the return of
February 13 and less the cash discount, Check 2010.
Both companies use the perpetual inventory system. Journalize the transactions above in a general
journal for both Bushard Company and Schmidt, Inc. (Round final answers to the nearest whole dollar
value.)

Question 6

Assume the following account balances at January 1, 2019, for Bioplast Jewelry, Inc.:

Accounts Payable (control account) $7,500

Accounts Payable—Evans Enterprises 1,900
Accounts Payable—Stamos Distributors 3,400
Accounts Payable—Tonetta Company 2,200

GENERAL JOURNAL
POST.
DATE DESCRIPTION REF. DEBITCREDIT
2019
Jan. 8 Accounts Payable/Stamos Distributors 330
Cash 330
Made partial payment
on account, Check 1240

10 Accounts Payable/Evans Enterprises 230

Purchases Returns and Allowances 230
Received Credit Memorandum
123 as allowance for
discolored merchandise

1. Use the final balances of the vendor accounts to prepare a schedule of accounts to payable for
Bioplast Jewelry, Inc., as of January 31, 2019.
2. Does the total of your accounts payable schedule agree with the balance of the accounts
payable account in the general ledger at January 31, 2019?

Question 7
Bushard Company (buyer) and Schmidt, Inc. (seller) engaged in the following transactions during
February 2019:
Bushard Company
DATE TRANSACTIONS
2019
Feb.10 Purchased merchandise for $1,100 from Schmidt, Inc., Invoice 1980, terms 1/10, n/30.
13 Received Credit Memorandum 230 from Schmidt, Inc., for damaged merchandise totaling
$200 that was returned; the goods were purchased on Invoice 1980, dated February 10.
19 Paid amount due to Schmidt, Inc., for Invoice 1980 of February 10, less the return of February
13 and less the cash discount, Check 2010.

Schmidt, Inc.
DATE TRANSACTIONS
2019
Feb.10 Sold merchandise for $1,100 on account to Bushard Company, Invoice 1980, terms 1/10,
n/30.
13 Issued Credit Memorandum 230 to Bushard Company for damaged merchandise totaling
$200 that was returned; the goods were purchased on Invoice 1980, dated February 10.
19 Received payment from Bushard Company for Invoice 1980 of February 10, less the return of
February 13 and less the cash discount, Check 2010.

Journalize the transactions above in a general journal for both Bushard Company and Schmidt, Inc.

Question 8

Post the entries in the general journal below to the accounts payable account in the general ledger and
to the appropriate accounts in the accounts payable ledger.
Assume the following account balances at January 1, 2019, for Bioplast Jewelry, Inc.:

Accounts Payable (control account) $7,200

Accounts Payable—Evans Enterprises 1,800
Accounts Payable—Stamos Distributors 3,300
Accounts Payable—Tonetta Company 2,100

GENERAL JOURNAL
POST.
DATE DESCRIPTION REF. DEBITCREDIT
 2019
Jan. 8 Accounts Payable/Stamos Distributors 340
Cash 340
Made partial payment
on account, Check 1240

10 Accounts Payable/Evans Enterprises 240

Purchases Returns and Allowances 240
Received Credit Memorandum
123 as allowance for
discolored merchandise

Post the entries in the general journal above to the accounts payable account in the general ledger.

Post the entries in the general journal above to the appropriate accounts in the accounts payable ledger.

Question 9

On April 1, Moloney Meat Distributors sold merchandise on account to Fronke’s Franks for
$3,550 on Invoice 1001, terms 1/10, n/30. The cost of merchandise sold was $2,100. Payment
was received in full from Fronke’s Franks, less discount, on April 10.

Record the transactions for Moloney Meat Distributors on April 1 and April 10. The company
uses the perpetual inventory system. (Round final answers to the nearest whole dollar value.)

Question 10

Record the following transactions of J. Min Designs in a general journal. The company uses the perpetual
inventory system.

DATE TRANSACTIONS
2019
April 1 Purchased merchandise on credit from O’Rourke Fabricators, Invoice 885, $3,450, terms 1/10,
n/30; freight of $65 prepaid by O’Rourke Fabricators and added to the invoice (total invoice
amount, $3,515).
9 Paid amount due to O’Rourke Fabricators for the purchase of April 1, less the 2 percent
discount, Check 457.
 15 Purchased merchandise on credit from Kroll Company, Invoice 145, $1,700, terms 1/10, n/30;
freight of $120 prepaid by Kroll and added to the invoice.
17 Returned damaged merchandise purchased on April 15 from Kroll Company; received Credit
Memorandum 332 for $95.
24 Paid the amount due to Kroll Company for the purchase of April 15, less the return on April
17, taking the 1 percent discount, Check 470.

Record these transactions in a general journal. (Round final answers to the nearest whole dollar value.)

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