Assignment 1: Journal Entry Problem Set
Journal entries are a critical step to create accounting records. Learn more about journal entries by completing an advanced accounting problem set. Review the steps to complete before submitting this assignment and understand how to submit the assignment.
About this Assignment
In accounting systems, business transactions are first recorded in a journal. A journal entry that is recorded in a company’s general journal will consist of the date, the amount/s and account/s that will be debited, the amount/s and account/s that will be credited, and a brief description/memo. This assignment will measure your understanding of the double entry system in accounting and will focus on the content of chapters 1-3 in the study.com course and the corresponding learning outcomes. Before beginning the assignment, please read the rubrics carefully to understand the expectations and how your work will be graded. Please note that you are required to utilize correct formatting, including headings and sub-headings, and show how calculations are done.
Problem Set
Problem # 1: Dino’s After School purchased 50 textbooks from the local publisher, about career readiness, to resell to clients. The total cost of the transaction, including shipping and handling, was$552. The textbooks were purchased on account. Use a journal entry to record this transaction, using the perpetual inventory system.
Problem # 2: Dino’s After School returned 8 severely damaged books to the publisher. The total value of the returned merchandise was $94. Use a journal entry to record this transaction, using the perpetual inventory system.
Problem # 3: Examine the invoice below. If Dino’s After School paid the invoice of 5/30/17 on6/6/17, record the journal entry that would be made for the payment of the invoice. Explain in 100-150 words the effect of discounts on merchandise inventory.
Invoice Date: 5/30/17
Terms: 2/10, n/30
Purchase of 25 textbooks at $11. 25 each $281.25
Shipping and Handling $12.50
Total Due: $293.75
Problem # 4: Dino’s After School sold 3 books to Sandy Mason on account for a total of $60. The total cost of the books sold was $34. Record the journal entries that would be made for this transaction using a perpetual inventory system. Why are two journal entries required to record the sale of merchandise in a perpetual inventory system? (100-150 words)
Problem #5: Use the information from (D) above. Sandy Mason returned 1 book. Record the journal entries for this transaction in a perpetual inventory system. Explain why two journal entries are required to record a sales return. (100-150 words)
