Brief Exercise 18A-1 On May 10, 2014, Cosmo Co. enters into a contract to delive
ID: 2461089 • Letter: B
Question
Brief Exercise 18A-1
On May 10, 2014, Cosmo Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2014. Greig agrees to pay the full contract price of $4,100 on July 15, 2014. The cost of the goods is $3,400. Cosmo delivers the product to Greig on June 15, 2014, and receives payment on July 15, 2014. Prepare the journal entries for Cosmo related to this contract. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
May 10, 2014
June 15, 2014
(To record sale)
(To record cost of goods sold)
July 15, 2014
Date
Account Titles and Explanation
Debit
Credit
May 10, 2014
June 15, 2014
(To record sale)
(To record cost of goods sold)
July 15, 2014
Explanation / Answer
In the books of Cosmo Journal Entries Date Account titles & explanation Debit Credit In $ In $ May10,2014 No Entry (Contract entered with Greig Co.) June 15,2014 Greig Co. 4100 Sales 4100 (to record sales) June 15,2014 Cost of goods sold 3400 Inventory 3400 (to record cost of goods sold) July 15,2014 Cash 4100 Greig Co. 4100 (Cash received from Greig Co.)
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