a) Journalize the above transactions using the perpetual method and make the necessary adjustments for depreciation (straight-line method), supplies expense,

Instruction:
a) Journalize the above transactions using the perpetual method and make the necessary adjustments for depreciation (straight-line method), supplies expense,
rent expense, interest expense, and interest revenue
b) make the adjusted trial balance Transcribed Image Text: Andromeda Company is a new retail business that opened up on April 1, 2021. The following
were transactions that occurred during first month of its operation
On April 1, Andromeda Company owner invested $780,000 cash to the business
On April 1, the company purchased equipment at a price of $16,400. The equipment have
$2,000 salvage value and have 4 years economic life
On April 1, paid rent for 12 months in advance for $12.000
On April 2, purchased 350 units of merchandise inventory from Libra Company. The
price of the goods was $120 per unit. FOB destination, the freight cost was $550
On April 3, purchased supplies on account amounting $28,000
On April 5, sold 150 merchandise inventory for $130 for each unit on account to
Centaurus Company. Terms for the receivables were (3/12,n/30). The freight cost was
$225. FOB shipping point, the merchandise inventory sold had a cost of $18,000
On April 7, purchased merchandise inventory from Cygnus Corp. The total units
purchased were 500 units. The price was $121 per unit. FOB shipping point, The freight
cost was $100
On April 10, received payment from Centaurus Company less discount.
On April 10, issued $21,000 one-year Notes Payable with 6% annual interest rate,
effective on April 11, with interest paid every October 1. (Assume 1 year = 360 days)
On April 12, sold merchandise inventory to Pyxis Company for $138 per unit. The total
units sold were 400 units and the total cost of merchandise sold was $48,240. FOB
shipping point, the freight cost was $90
On April 14, paid back of $690 to Pyxis Company for the return of 5 merchandise
inventory that was defect. The cost of merchandise returned was $606
On April 15, sold 105 units of merchandise inventory on account for $140 per unit to
Virgo Company, terms n/30. FOB destination, The merchandise inventory sold had a
cost of $121.20 per unit and the freight cost was $40
On April 18, purchased merchandise inventory from Arion Company for $36,600, terms
5/7, net/30. FOB destination, the freight cost was $550
On April 20, the owner withdrew cash $2,000 for his personal use
On April 22, returned damaged merchandise inventory to Arion Company and was
granted a $1,220 reduction in amounts due
On April 24, paid the amount due to Arion Company less discount
On April 25, received $9,000 one-year Notes Receivable with 8% annual interest rate,
effective on April 26, with interest paid every 1 October (Assume 1 year = 360 days)
On April 30, paid $4,000 for utilities usage during April
On April 30, paid $8,000 for salaries and wages on April
On April 30, determined that $20,000 worth of supplies were still on hand

-25-


Buy plagiarism free, original and professional custom paper online now at a cheaper price. Submit your order proudly with us



Essay Hope