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Summit Company and Beartooth Co, and Gloucester Co

Sales-related and purchase-related transactions for seller and buyer

The following selected transactions were completed during August between Summit Company and Beartooth Co:

Aug 1 Summit Company sold merchandise on account to Beartooth Co, $48,000, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $28,800.
2 Summit Company paid freight of $1,150 for delivery of merchandise sold to Beartooth Co. on August 1.
5 Summit Company sold merchandise on account to Beartooth Co, $66,000, terms FOB shipping point, n/eom. The cost of the merchandise sold was $40,000.
6 Beartooth Co returned $10,500 of merchandise purchased on account on August 1 from Summit Company. The cost of the merchandise returned was $6,300.
9 Beartooth Co paid freight of $2,300 on August 5 purchase from Summit Company.
15 Summit Company sold merchandise on account to Beartooth Co, $58,700, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,675, which was added to the invoice. The cost of the merchandise sold was $35,000.
16 Beartooth Co paid Summit Company for purchase of August 1, less discount and less return of August 6.
25 Beartooth Co paid Summit Company on account for purchase of August 15, less discount.
31 Beartooth Co paid Summit Company on account for purchase of August 5.

Journalize the August transactions for Summit Company and Beartooth Co.

Multi-step income statement and report form of balance sheet

The following selected accounts and their current balances appear in the ledger of Gloucester Co for the fiscal year ended August 31, 2014:

(see the attached file)

1. Prepare a multiple-step income statement.
2. Prepare a retained earnings statement.
3. Prepare a report form of balance sheet, assuming that the current portion of the note payable if $16,000.
4. Briefly explain (a) how multiple-step and single-step income statements differ and (b) how report-form and account-form balance sheets differ.

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Your tutorial is in excel, attached. It includes a multi-step ...

Solution Summary

Your tutorial is in excel, attached. It includes a multi-step income statement and classified balance sheet and a statement of change in retained earnings. The journal entries for sale and purchase are shown, accounting for discounts when taken (if any).

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