question archive 10)Psang Ltd

10)Psang Ltd

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10)Psang Ltd. operates a retail operation that purchases and sells home furniture products. The company purchases all merchandise inventory on credit and uses a PERPETUAL inventory system. The Accounts Payable account is used for recording inventory purchases only, all other current liabilities are accrued in separate accounts. The main supplier of home furniture to Psang company is Lerwick Store Ltd. and uses PERIODIC inventory system. All sales of Lerwick Store are in account. On December 1, 2017, the ledger of Psang's Ltd. showed Cash €1,850, Inventory €2,150, and Share Capital_Ordinary €4,000. The following transactions were completed during December 2017. Dec. 1 Psang Ltd. Purchased chairs for € 16,450 on account, F.O.B destination, term 3/15. n/45 from Lerwick Store. However, the cost of the chairs for Lerwick Store was € 11.250. Dec. 2 Lerwick Store paid € 3,600 for 2-years insurance policy. In addition, purchased a Land by signing €10,000, 6%, 6-month note payable. Dec. 2 Psang Ltd Purchased supplies for € 3,500 cash from Best Buy Co. Dec. 3 Lerwick Store paid the shipping cost of chairs €250 cash. Dec. 4 Psang Hires 3 employees to start working on 11/12/2017. Each employee is to receive € 75 for 5-day workweek. The first payment is to be made on 22/12/2017 Dec. 5 Psang Ltd. Returned chairs for € 3.750 that were not according to the specifications. However, the cost of these chairs for Lerwick Store was € 2.565. Dec. 7 Psang purchased 100 tables for dining rooms for € 200 per table on account. F.O.B shipping point, term n/45 from Lerwick Store. The cost per table for Lerwick Store is €140. Dec. 10 Psang paid freight cost €450 on shipping of tables from Lerwick Store Dec. 14 Psang sold chairs for € 2,500 to Mrs. Valerie Fons on account. F.O.B shipping point term 5/15. n/30. The cost of these chairs for Psang Ltd. € 1.250. 10- Journalize the entry on Dec. 14 for Psang Ltd. (2 points) Enter your answer

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