Ocean Atlantic Co. is a merchandising business. the account balances for Ocean A
ID: 2474538 • Letter: O
Question
Ocean Atlantic Co. is a merchandising business. the account balances for Ocean Atlantic co. as of July 1, 2012 (unless otherwise indicated), are as follows:
110 Cash 63,600
112 Accounts Receivable 153,900
115 Merchandise Inventory 602,400
116 Prepaid Insurance 16,800
117 Store Supplies 11,400
123 Store Equipment 469,500
124 Accumulated Depreciation-Store Equipment 56,700
210 Accounts Payable 96,600
211 Salaries Payable -
310 Capital stock 75,000
311 Retained earnings, Aug 1 2011 480,300
312 Dividends 135,000
313 Income summary
410 Sales 3,221,100
411 Sales Returns and Allowances 92,700
412 Sales Discounts 59,400
510 Cost of Merchandise Sold 1,623,000
520 Sales Salaries Expense 334,800
521 Advertising Expense 81,000
522 Depreciation Expense -
523 Store Supplies Expense -
529 Miscellaneous Selling Expense 12,600
530 Office Salaries Expense 182,100
531 Rent Expense 83,700
532 Insurance Expense -
539 Miscellaneous Administrative Expense 7,800
During July, the last month of the fiscal year, the following transactions were completed:
July 1, Paid rent for July, $4000.
3, Purchased merchandise on account from Lingard Co., Terms 2/10,n/30,FOB shipping point, $25,000.
4, Paid freight on purchase of July 3, $1000.
6, Sold merchandise on account to Holt Co., terms 2/10,n/30, FOB shipping point, $40,000. The cost of the merchandise sold was $24,000.
7, Received $18000 cash from Flat Co. on account, no discount.
10, sold merchandise for cash $90,000. The cost of the merchandise sold was $50,000.
13, Paid for merchandise purchased on July 3, less discount.
14, Received merchandise returned on sale of July 6, $7000. The cost of the merchandise returned was $4500.
15, Paid advertising expense for last half of July, $9000
16, received cash from sale of July 6, less return of July 14 and discount.
19, purchased merchandise for cash, $22000.
19, Paid $23,100 to Corino Co. on account, no discount
Record the following transactions on page 21 of the journal
20, sold merchandise on account to Reedley Co., terms 1/10,n/30, FOB shipping point, $40000. The cost of the merchandise sold was $25000.
21, for the convenience of the customer, paid freight on sale of July 20, $1100.
21, received $17600 cash from Owen co. on account, no discount.
21, purchased merchandise on account from Munson Co., terms 1/10, n/30, FOB Destination, $32000.
24, Returned $5000 of damaged merchandise purchased on July21, receiving credit from the seller.
26, Refunded cash on sales made for cash, $12000. The cost of the merchandise returned was $7200.
28, paid sales salaries of $22800 and office salaries of $15200.
29, purchased store supplies for cash, $2400.
30, Sold merchandise on account to Dix co., terms 2/10, n/30, FOB shipping point, $18,750. The cost of the merchandise sold was $11,250.
30, received cash from sale of July 20, less discount, plus freight paid on July 21.
31, Paid for purchase of July 21, less return of July 24 and discount.
Explanation / Answer
Returned $5000 of damaged merchandise purchased on July21, receiving credit from the seller.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.