The following selected transactions were completed during April between Swan Company and Bird Company:

The following selected transactions were completed during April between Swan Company and Bird Company:

Apr. 2. Swan Company sold merchandise on account to Bird Company, $32,000, terms FOB shipping point, 2/10, n/30. Swan Company paid freight of $330, which was added to the invoice. The cost of the merchandise sold was $19,200.
 8. Swan Company sold merchandise on account to Bird Company, $49,500, terms destination, 1/15, n/eom. The cost of the merchandise sold was $29,700.
 8. Swan Company paid freight of $710 for delivery of merchandise sold to Bird Company on April 8.
12. Bird Company returned $7,500 of merchandise purchased on account on April 8 from Swan Company. The cost of the merchandise returned was $4,800.
12. Bird Company paid Swan Company for purchase of April 2, less discount.
23. Bird Company paid Swan Company for purchase of April 8, less discount and less return of April 12.
24. Swan Company sold merchandise on account to Bird Company, $67,350, terms FOB shipping point, n/eom. The cost of the merchandise sold was $40,400.
26. Bird Company paid freight of $875 on April 24 purchase from Swan Company.
30. Bird Company paid Swan Company on account for purchase of April 24.

Instructions
Journalize the April transactions for (1) Swan Company and (2) Bird Company.


Answer:









































1.

Apr. 2 Accounts Receivable—Bird Company 32,000
Sales 32,000
2 Accounts Receivable—Bird Company 330
Cash 330
2 Cost of Merchandise Sold 19,200
Merchandise Inventory 19,200
8 Accounts Receivable—Bird Company 49,500
Sales 49,500
8 Cost of Merchandise Sold 29,700
Merchandise Inventory 29,700
8 Delivery Expense 710
Cash 710
12 Sales Returns and Allowances 7,500
Accounts Receivable—Bird Company 7,500
12 Merchandise Inventory 4,800
Cost of Merchandise Sold 4,800
12 Cash 31,690
Sales Discounts 640
Accounts Receivable—Bird Company 32,330
23 Cash 41,580
Sales Discounts 420
Accounts Receivable—Bird Company 42,000
24 Accounts Receivable—Bird Company 67,350
Sales 67,350
24 Cost of Merchandise Sold 40,400
Merchandise Inventory 40,400
30 Cash 67,350
Accounts Receivable—Bird Company 67,350
2.

Apr. 2 Merchandise Inventory 32,330
Accounts Payable—Swan Company 32,330
$32,000 + $330 = $32,330.
8 Merchandise Inventory 49,500
Accounts Payable—Swan Company 49,500
12 Accounts Payable—Swan Company 7,500
Merchandise Inventory 7,500
12 Accounts Payable—Swan Company 32,330
Cash 31,690
Merchandise Inventory 640
23 Accounts Payable—Swan Company 42,000
Cash 41,580
Merchandise Inventory 420
24 Merchandise Inventory 67,350
Accounts Payable—Swan Company 67,350
26 Merchandise Inventory 875
Cash 875
30 Accounts Payable—Swan Company 67,350
Cash 67,350