Sign Up

Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.

Sign In

Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.

Forgot Password

Lost your password? Please enter your email address. You will receive a link and will create a new password via email.

You must login to ask a question.

Please briefly explain why you feel this question should be reported.

Please briefly explain why you feel this answer should be reported.

Please briefly explain why you feel this user should be reported.

Share & grow the world's knowledge!

We want to connect the people who have knowledge to the people who need it, to bring together people with different perspectives so they can understand each other better, and to empower everyone to share their knowledge.

Mead Company uses a perpetual inventory system

Question

Mead Company uses a perpetual inventory system and engaged in the following transactions during the month of May.

DateTransaction
May 01Made cash sales of $8,600, the cost of the inventory was $3,000.
5 Purchased $2,500 of inventory on credit
9Made credit sales of $3,400; the cost of the inventory sold was $1,900.
1313 Paid sales salaries of $900 and office salaries of $500.
14Paid for the May 5 purchases
18Purchased sales equipment costing $7,300; made a down payment of $1,700 and agreed to pay the balance in 60 days.
21Purchased $800 of inventory for cash.
27Sold land that had originally cost $2,000 for $2,600.


Required:

Record the preceding transactions in a general journal.

Answer:

DATEACCOUNT TITLEDEBITCREDIT
May. 01Cash   8,600
Sales Revenue         8,600
May. 01Cost of Goods Sold         3,000
Inventory         3,000
May. 05Inventory         2,500
Accounts Payable         2,500
May. 09Accounts Receivable3,400
Sales Revenue         3,400
May. 09Cost of Goods Sold         1,900
Inventory         1,900
May. 13Sales Salaries Expense            900
Office Salaries Expense            500
Cash         1,400
May. 14Accounts Payable         2,500
Cash         2,500
May. 18Equipment         7,300
Cash         1,700
Accounts Payable         5,600
May. 21Inventory            800
Cash            800
May. 27Cash         2,600
Land         2,000
Gain on Sale of Land            600
Mead Company uses a perpetual inventory system

Also check
Crane Company- Markup Percentage

Related Posts

Leave a comment

Latest News & Updates

QuizlyPro Latest Articles

McMann Solutions Inc. knowingly violates the Clean Water Act by discharging hazardous pollutants into a nearby river

McMann Solutions, Inc., knowingly violates the Clean Water Act by discharging hazardous pollutants into a nearby river. McMann Solutions is subject to a. neither a fine or imprisonment. b. fines but no criminal charges or imprisonment because a corporation cannot ...

Farm and Ranch Supply Co. discovers a cache of an unknown herbicide in a back corner of its warehouse

Farm and Ranch Supply Co. discovers a cache of an unknown herbicide in a back corner of its warehouse. Farm and Ranch repackages the product, relabeling it as “Farmer’s Friend” and stating on the label and in advertisements that it ...

Tiger Stripe owns and operates gasoline filling stations. Patrick’s Trucking delivers fuel to Tiger Stripe’s storage facility on a regular basis

Tiger Stripe owns and operates gasoline filling stations. Patrick’s Trucking delivers fuel to Tiger Stripe’s storage facility on a regular basis. On one occasion, Patrick fails to pay proper attention to his truck when he is unloading fuel into Tiger ...

Explore Our Blog