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Mar 1 Received $ 999 000 cash from customers for their order of 3,000 units if CDs which will be delivered to them on April 25.

Mar 9 Purchases of merchandise on account was made: 25, 000 units @ $ 90.00 unit cost. The company paid the delivery charges amounting to $ 10, 000.

Mar 24 Sales - various customers: 22, 000 units @ $300 average selling price. (60% of which is on account and the remainder in cash basis).

Mar 30 Issued a 12% 5-year bonds with a face value of $ 10,000,000 with the interest payable every Mar 30 beginning 2008. The market yield rate is 10%.

Apr 1 Purchase 10, 000 units of CDs @ $ 105 per CD. Term: 2/30, n60.

Apr 9 All the remaining unissued ordinary shares were issued at market value of $230.

Apr 25 Delivered the goods ordered by customers on Mar 1. The company incurred additional $5,000 for delivering the said merchandise.

Apr 28 Paid the amount payable from Apr 1 transaction.

2007-08-20 15:48:59 · 1 answers · asked by Caine 1 in Business & Finance Corporations

1 answers

Mar 1 Rec'd $999 000 cash from customers for their order of 3,000 units if CDs which will be delivered to them on Apr 25.
Dr Cash 999k
Cr Advance sales 999k

Mar 9 Purchases of merchandise on a/c was made: 25, 000 units @ $ 90.00 unit cost. The company paid the delivery charges amounting to $10, 000.
Dr Purchases 2,260k
Cr Cash 10k
Cr A/cs payable 2,250k

Mar 24 Sales - various customers: 22, 000 units @ $300 average selling price. (60% of which is on account and the remainder in cash basis).
Dr Cash 2,640k (40%)
Dr A/cs receivable 3,960k (60%)
Cr Sales 6,600k

Mar 30 Issued a 12% 5-year bonds with a face value of $ 10,000,000 with the interest payable every Mar 30 beginning 2008. The market yield rate is 10%.
Dr Cash 10,757,960
Cr Bond premium 757,960
Cr Bond payable 10,000,000

Apr 1 Purchase 10, 000 units of CDs @ $ 105 per CD. Term: 2/30, n60.
Dr Purchases 1,050k
Cr A/cs payable 1,050k

Apr 9 All the remaining unissued ordinary shares were issued at market value of $230.
Dr Cash 230
Cr Share capital 230
(Did you mean $230 for all the unissued shares or $230 per share? If it's the latter, it can't be done here cos you didn't say how many unissued shares there are)

Apr 25 Delivered the goods ordered by customers on Mar 1. The company incurred additional $5,000 for delivering the said merchandise.
Dr Advance sales 999k
Cr Sales 999k

Dr Delivery expenses 5k
Cr Cash 5k

Apr 28 Paid the amount payable from Apr 1 transaction.
Dr A/cs payable 1,050k
Cr Purchases (2% discount) 21k
Cr Cash 1,029k

2007-08-21 17:14:32 · answer #1 · answered by Sandy 7 · 0 0

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