At the beginning of July, CD City has a balance in inventory of $3,400. The following transactions occur during the month of July. July3Purchase CDs on account from Wholesale Music for $2,300, terms 1/10, n/30.
July4Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110.
July9Return incorrectly ordered CDs to Wholesale Music and receive credit, $200.
July11Pay Wholesale Music in full.
July12Sell CDs to customers on account, $5,800, that had a cost of $3,000.
July15Receive full payment from customers related to the sale on July 12.
July18Purchase CDs on account from Music Supply for $3,100, terms 1/10, n/30.
July22Sell CDs to customers for cash, $4,200, that had a cost of $2,500.
July28Return CDs to Music Supply and receive credit of $300.
July30Pay Music Supply in full.
Required:
1. Assuming that CD City uses a perpetual inventory system, record the transactions.2. Prepare the top section of the multiple-step income statement through gross profit for the month of July.

Journal Entries

July 3

CDs Inventory $2,300 (debit)

Trade Payable - Wholesale Music $2,300 (credit)

July 4

Freight Charges $110 (debit)

Cash $110 (credit)

July 9

Trade Payable - Wholesale Music $200 (debit)

CDs Inventory $200 (credit)

July 11

J1

Trade Payable - Wholesale Music $2,079 (debit)

Cash $2,079 (credit)

J2

Trade Payable - Wholesale Music $21 (debit)

Discount Received $21 (credit)

July 12

J1

Trade Receivable $5,800 (debit)

Revenue $5,800 (credit)

J2

Cost of Goods Sold $3,000 (debit)

Inventory CDs $3,000 (credit)

July 15

Cash $5,800 (debit)

Trade Receivable $5,800 (credit)

July 18

Inventory CDs $3,100 (debit)

Trade Payable - Music Supply $3,100 (credit)

July 22

J1

Cash $4,200 (debit)

Revenue $4,200 (credit)

J2

Cost of Goods Sold $2,500 (debit)

Inventory CDs $2,500 (credit)

July 28

Trade Payable - Music Supply $300 (debit)

CDs Inventory $300 (credit)

July 30

J1

Trade Payable - Wholesale Music $2,772 (debit)

Cash $2,772 (credit)

J2

Trade Payable - Wholesale Music $28 (debit)

Discount Received $28 (credit)

multiple-step income statement

Revenue ($4,200+$5,800)                                                 $10,000

Less Cost of Goods Sold :

Opening Stock                                             $3,400

Add Purchases ( $2,300 + $3,100)             $5,400

Less Returns Outwards ( $200 +  $300)     ($500)

Add Freight Charges                                       $110

                                                                     $8,190

Less Closing Stock (Balancing figure)         ($190)

Cost of Goods Sold ($3,000+ $2,500)                               $8,000

Gross Profit                                                                           $2,000

Explanation:

The Income Statement is Prepared on Accrual Basis of Accounting meaning that Revenues and Expenses are recorded when they occur or incur not when cash is paid or received.

administrative jobs normally have someone answering phone calls and scheduling appointments, filing patient or customer information, making sure the front of the office looks nice to those who enter the building. administrative jobs can also include making sure the manager has everything they need for meetings, making delivers and much more. administrative jobs are important to most businesses as are customer service focused as they are often one of the first impressions a consumer sees of a business.