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Journal Entries: Gilberto Co.

Please see the attached file.

Information related to Gilberto Co. is presented below.

1) On April 5, purchased merchandise from Allman Company for $20,000 terms 2/10, net/30, FOB shipping point.

2) On April 6, paid freight costs of $900 on merchandise purchased from Allman.

3) On April 7, purchased equipment on account for $26,000.

4) On April 8, returned damaged merchandise to Allman Company and was granted a $4,000 allowance for returned merchandise.

5) On April 15, paid the amount due to Allman Company in full.

Instructions

a) Prepare the journal entries to record these transactions on the books of Gilberto Co. under a perpetual inventory system.

b) Assume that Gilberto Co. paid the balance due to Allman Company on May 4 instead of April 15. Prepare the journal entry to record this payment.

Journalize sales transactions.

Presented below are transactions related to Rebecca Company.

1) On December 3, Rebecca Company sold $480,000 of merchandise to Simonis Co., terms 2/10, n/30, FOB shipping point.
The cost of the merchandise sold was $350,000.

2) On December 8, Simonis Co. was granted an allowance of $27,000 for merchandise purchased on December 3.

3) On December 13, Rebecca Company received the balance due from Simonis Co.

Instructions

a) Prepare the journal entries to record these transactions on the books of Rebecca Company using a perpetual inventory system.

b) Assume that Rebecca Company received the balance due from Simonis Co. on January 2 of the following year instead of December 13.
Prepare the journal entry to record the receipt of payment on January 2.

Attachments

Solution Preview

Please see the attached file

Journalize purchases transactions.

Information related to Gilberto Co. is presented below.

1) On April 5, purchased merchandise from Allman Company for $20,000 terms 2/10, net/30, FOB shipping point.

2) On April 6, paid freight costs of $900 on merchandise purchased from Allman.

3) On April 7, purchased equipment on account for $26,000.

4) On April 8, returned damaged merchandise to Allman Company and was granted a $4,000 allowance for returned merchandise.

5) On April 15, paid the amount due to Allman Company in full.

Instructions

a) Prepare the journal entries to record these transactions on the books of Gilberto Co. under a perpetual inventory system.

b) Assume that Gilberto Co. paid the balance due to Allman Company on May 4 instead of April 15. Prepare the journal entry to ...

Solution Summary

The posting has two problem relating to journal entries - E5-1 of Gilberto Co. and E5-4 of Rebecca Company

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