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Answers - Chapter 5

The document contains journal entries for transactions related to inventory, accounts payable, accounts receivable, sales revenue, and expenses for Ayman Bicycle Store across different dates. It includes detailed debit and credit amounts for each transaction, demonstrating a perpetual inventory system. Additionally, it summarizes year-end closing entries for sales, income summary, retained earnings, and dividends.

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2 views3 pages

Answers - Chapter 5

The document contains journal entries for transactions related to inventory, accounts payable, accounts receivable, sales revenue, and expenses for Ayman Bicycle Store across different dates. It includes detailed debit and credit amounts for each transaction, demonstrating a perpetual inventory system. Additionally, it summarizes year-end closing entries for sales, income summary, retained earnings, and dividends.

Uploaded by

almallak.mohammed82
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Question 1

Solution Question 1
Date Account / Description Debit Credit
July 6 Inventory 1600
Accounts Payable 1600
8 Accounts Payable 100
Inventory 100
9 Inventory 90
Cash 90
19 Accounts Receivable 4400
Sales Revenue 4400
Cost of Goods Sold 2700
Inventory 2700
22 Sales Revenue 300
Accounts Receivable 300
Inventory 150
Cost of Goods Sold 150
28 Cash 4059
Sales Discounts 41
Accounts Receivable 4100
31 Accounts Payable 1500
Cash 1500
Question 2

Solution Question 2
Journalize the transactions for the month of April for Ayman bicycle Store using Perpetual
Inventory System

Date Account / Description Debit Credit


Oct 4 Inventory 6000
Accounts Payable 6000
5 Inventory 90
Cash 90
6 Accounts Receivable 4500
Sales Revenue 4500
6 Cost of Goods Sold 3000
Inventory 3000
10 Accounts Payable 600
Inventory 600
13 Accounts Payable 5400
Cash 5292
Inventory 108
14 Cash 4410
Sales discount 90
Accounts Receivable 4500
Question 3

Date Account / Description Debit Credit


Dec 31 Sales 550000
Income Summary 550000

31 Income Summary 473,180


Sales Returns and Allowance 4500
Sales Discounts 4250
Cost of goods sold 382450
Sales Salaries Expense 44000
Advertising Expense 8150
Store Salaries Expense 24325
Store Supplies Expense 450
Interest expense 5055
31 Income Summary 76,820
Retained Earning 76,820

31 Retained Earning 45000


Dividends 45000

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