MERCHANDISING ACOUNTING e Blink an his brother Paul opened Blink's Partnership Company Merchandising business on J The company applies the perpetual inventory system. y 1 Joe and Paul each invest $80,000 cash in a new partnership Purchased merchandise form Boden Company for $9,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1 1 2 Purchased used truck from Carter for $18,000, paying $3,000 cash and the balan 2 Sold merchandise that cost $4,500 to Rivera's Co. for $9,500 under credit terms of 2/1 on account. n/60 FOB shipping point, Invoice dated July 2, subject to a 9% sales tax. Received $9,754 in advance for merchandise to take place on July 12. Bink's asked Carter, Co. to accept a 60-day, 15% note to replace its existing account payable to Carter. Paid $325 cash for freight charges on the purchase of July 1 Paid $4,800 cash on one-year insurance policy effective July 1. Bink's issued a $250,000, 4-year, 12% note at face value to Forest Hills Bank and 2 3 4. 4. received $250,000 cash. The note requires annual interest payments each December Bink's pays the note plus interest to Carter. (July 3) Bink's borrows $75,000 from American Bank. The note bears interest at 9% per year. Principal and interest are due in 30 days. 5- 8. Sold merchandise that cost $850 to customers for $1,550 cash, FOB shipping point. Invoice dated July12, subject to a 9% sales tax. Sold merchandise that cost $7,000 to Rivera's Co. for $9,000 cash received on July 2. Invoice dated July12, subject to a 9% sales tax. 2 Bink's weekly payroll of $35,000 entirely subject to F.l.CA. and Medicare (7.65%), federal (0.8%) and state (4%) unemployment taxes, with income tax withholding of $1,420 and union dues of $99 deducted. Journal entry to record salaries and wages paid. 15 17 Bink's purchased a patent for $25,000. 18 Purchased merchandise form Boden Company for $8,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 18 Received $6,500 in advance merchandise to take place on August 10. 19. 21 21 Paid $100 gas and oil for the month. Sold merchandise that cost $4,900 to Creek Co. for $7,300 under credit terms of 2/10, n/60 FOB shipping point, Invoice dated July 31, subject to a 9% sales tax. Received a $350 credit memorandum form Boden Co. for the return of part of the merchandise purchased on October 18. 25. Received the balance due from Creek Co. for the invoice dated October 7, net of the Discount 27 Paid part-time receptionist for two weeks 'salary, $2,000. Bink's weekly payroll of $35,000 entirely subject to F... and Medicare (7.65%), federal (0.8%) and state (4%) unemployment taxes. Journal entry to record employer payroll taxes. 30. 31- Instructions: Required: Journalize each transaction in a two-column journal. 2. Post the journal to a ledger. 4. Prepare an unadjusted trial balance. DATE DESCRIPTION PR. 6 10 MERCHANDISING ACOUNTING e Blink an his brother Paul opened Blink's Partnership Company Merchandising business on J The company applies the perpetual inventory system. y 1 Joe and Paul each invest $80,000 cash in a new partnership Purchased merchandise form Boden Company for $9,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1 1 2 Purchased used truck from Carter for $18,000, paying $3,000 cash and the balan 2 Sold merchandise that cost $4,500 to Rivera's Co. for $9,500 under credit terms of 2/1 on account. n/60 FOB shipping point, Invoice dated July 2, subject to a 9% sales tax. Received $9,754 in advance for merchandise to take place on July 12. Bink's asked Carter, Co. to accept a 60-day, 15% note to replace its existing account payable to Carter. Paid $325 cash for freight charges on the purchase of July 1 Paid $4,800 cash on one-year insurance policy effective July 1. Bink's issued a $250,000, 4-year, 12% note at face value to Forest Hills Bank and 2 3 4. 4. received $250,000 cash. The note requires annual interest payments each December Bink's pays the note plus interest to Carter. (July 3) Bink's borrows $75,000 from American Bank. The note bears interest at 9% per year. Principal and interest are due in 30 days. 5- 8. Sold merchandise that cost $850 to customers for $1,550 cash, FOB shipping point. Invoice dated July12, subject to a 9% sales tax. Sold merchandise that cost $7,000 to Rivera's Co. for $9,000 cash received on July 2. Invoice dated July12, subject to a 9% sales tax. 2 Bink's weekly payroll of $35,000 entirely subject to F.l.CA. and Medicare (7.65%), federal (0.8%) and state (4%) unemployment taxes, with income tax withholding of $1,420 and union dues of $99 deducted. Journal entry to record salaries and wages paid. 15 17 Bink's purchased a patent for $25,000. 18 Purchased merchandise form Boden Company for $8,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 18 Received $6,500 in advance merchandise to take place on August 10. 19. 21 21 Paid $100 gas and oil for the month. Sold merchandise that cost $4,900 to Creek Co. for $7,300 under credit terms of 2/10, n/60 FOB shipping point, Invoice dated July 31, subject to a 9% sales tax. Received a $350 credit memorandum form Boden Co. for the return of part of the merchandise purchased on October 18. 25. Received the balance due from Creek Co. for the invoice dated October 7, net of the Discount 27 Paid part-time receptionist for two weeks 'salary, $2,000. Bink's weekly payroll of $35,000 entirely subject to F... and Medicare (7.65%), federal (0.8%) and state (4%) unemployment taxes. Journal entry to record employer payroll taxes. 30. 31- Instructions: Required: Journalize each transaction in a two-column journal. 2. Post the journal to a ledger. 4. Prepare an unadjusted trial balance. DATE DESCRIPTION PR. 6 10