At the beginning of June, Circuit Country has a balance in inventory of $2,050. The following transactions occur during the month of June. June 2 Purchase radios on account from Radio World for $1,750, terms 2/15, n/45.
June 4 Pay cash for freight charges related to the June 2 purchase from Radio World, $210. June 8 Return defective radios to Radio World and receive credit, $200.
June 10 Pay Radio World in full. June 11 Sell radios to customers on account, $3,100, that had a cost of $2,250.
June 18 Receive payment on account from customers, $2,100.
June 20 Purchase radios on account from Sound Unlimited for $2,850, terms 2/10, n/30.
June 23 Sell radios to customers for cash, $4,350, that had a cost of $2,650.
June 26 Return damaged radios to Sound Unlimited and receive credit of $500.
June 28 Pay Sound Unlimited in full.

Required:
a. Assuming that Circuit Country uses a perpetual inventory system, record transactions using the following account titles: Cash, Accounts Receivable, Inventory, Accounts Payable, Sales, and Cost of Goods Sold.
b. Prepare the top section of the multiple-step income statement through gross profit for the month of June.

Circuit Country

a. Journal Entries:

June 2: Debit Inventory $1,750

Credit Accounts payable (Radio World) $1,750

To record the purchase of goods, terms 2/15, n/45.

June 4: Debit Freight-in $210

Credit Cash $210

To record the payment for freight.

June 8: Debit Accounts payable (Radio World) $200

Credit Inventory $200

To record the return of goods.

June 10: Debit Accounts payable (Radio World) $1,550

Credit Cash $1,519

Credit Cash Discounts $31

To record payment on account, including discounts.

June 11: Debit Accounts receivable $3,100

Credit Sales Revenue $3,100

To record the sale of goods on account.

June 11: Debit Cost of goods sold $2,250

Credit Inventory $2,250

To record the cost of goods sold.

June 18: Debit Cash $2,100

Credit Accounts receivable $2,100

To record cash received on account.

June 20: Debit Inventory $2,850

Credit Accounts payable (Sound Unlimited) $2,850

To record the purchase of goods on credit, terms 2/10, n/30.

June 23: Debit Cash $4,350

Credit Sales Revenue $4,350

To record the sale of goods for cash.

June 23: Debit Cost of goods sold $2,650

Credit Inventory $2,650

To record the cost of goods sold.

June 26: Debit Accounts payable(Sound Unlimited) $500

Credit Inventory $500

To record the return of goods.

June 28: Debit Accounts payable(Sound Unlimited) $2,350

Credit Cash $2,303

Credit Cash Discounts $47

To record payment on account, including discounts.

b. Income Statement for the month ended June 30:

Sales Revenue      $7,450

Cost of goods sold 5,032

Gross profit           $2,418

Explanation:

a) Data and Analysis:

June 1: Beginning inventory $2,050

June 2: Inventory $1,750 Accounts payable (Radio World) $1,750, terms 2/15, n/45.

June 4: Freight-in $210 Cash $210

June 8: Accounts payable (Radio World) $200 Inventory $200

June 10: Accounts payable (Radio World) $1,550 Cash $1,519 Cash Discounts $31

June 11: Accounts receivable $3,100 Sales Revenue $3,100

June 11: Cost of goods sold $2,250 Inventory $2,250

June 18: Cash $2,100 Accounts receivable $2,100

June 20: Inventory $2,850 Accounts payable (Sound Unlimited) $2,850 terms 2/10, n/30.

June 23: Cash $4,350 Sales Revenue $4,350

June 23: Cost of goods sold $2,650 Inventory $2,650

June 26:  Accounts payable(Sound Unlimited) $500 Inventory $500

June 28:  Accounts payable(Sound Unlimited) $2,350 Cash $2,303 Cash Discounts $47

Cash

Date        Account Titles             Debit      Credit

June 4:    Freight-in                                              $210

June 10:  Accounts payable (Radio World)         1,519

June 18:  Accounts receivable $2,100

June 23: Sales Revenue           4,350

June 28:  Accounts payable(Sound Unlimited) 2,303

Accounts Receivable

Date     Account Titles             Debit      Credit

June 11: Sales Revenue        $3,100

June 18: Cash                                      $2,100

Inventory

Date     Account Titles             Debit      Credit

June 1  Beginning balance   $2,050

June 2 Accounts payable

             (Radio World)             1,750

June 8: Accounts payable (Radio World) $200

June 11: Cost of goods sold                     2,250

June 20: Accounts payable

             (Sound Unlimited)    2,850

June 23: Cost of goods sold                 2,650

June 26:  Accounts payable

               (Sound Unlimited)                     500

Accounts Payable

Date     Account Titles             Debit      Credit

June 2: Inventory                   $1,750

June 8: Inventory                                      $200

June 10: Cash                           1,519

             Cash Discounts              31

June 20: Inventory                2,850

June 26:  Inventory                                   500

June 28:  Cash                      2,303

               Cash Discounts          47

Sales

Date     Account Titles             Debit      Credit

June 11: Accounts receivable                 $3,100

June 23: Cash                                          4,350

June 30: Income Summary    $7,450

Cost of Goods Sold

Date     Account Titles             Debit      Credit

June 4: Freight-in                    $210

June 10: Cash discounts                             $31

June 11: Inventory                  2,250

June 23: Inventory                2,650

June 28: Cash discounts                             47

June 30: Income Summary                 $5,032

answer: b. false

the staff is a set of five horizontal lines and four spaces which represent a different musical pitch. the lines and the spaces are numbered from bottom to top, the bottom line is the first line and the fifth line is the line on the top. the notes on the top of the staff (fifth line) have a higher pitch than a note at the bottom of the staff.