Multi-StatementmediumIAS/IFRS

Beaumont Wholesale - Periodic System: Journal, Cash Ledger and Trial Balance

Question

Beaumont Wholesale uses a periodic inventory system. At July 1, 2025 its ledger showed: Cash $30,000, Inventory $12,000, and Share Capital - Ordinary $42,000. The following transactions occurred during July 2025.

Date	Transaction
July 3	Purchased merchandise on account from Keystone Mills for $9,600, terms 2/10, n/30.
July 5	Paid $450 cash for freight on the July 3 purchase (FOB shipping point).
July 8	Returned unsuitable merchandise with an invoice price of $1,100 to Keystone Mills for full credit.
July 12	Paid Keystone Mills the balance due, taking the purchase discount.
July 15	Sold merchandise on account for $11,400, terms 1/15, n/30.
July 20	Granted a customer a credit of $900 for goods returned from the July 15 sale.
July 28	Received full payment of the July 15 account within the discount period.
July 31	Paid monthly salaries of $3,600.

Instructions:

Journalize the July transactions using a periodic inventory system (use Purchases, Purchase Returns and Allowances, Purchase Discounts and Freight-In accounts; no cost-of-goods-sold entries are made at the time of sale).
Post to the Cash ledger account (running balance format), starting from the July 1 balance.
Prepare a trial balance at July 31, 2025. (Under the periodic system the Inventory account still shows its July 1 balance.)

Statements in this challenge

Journal EntriesJournal Entry
Cash Ledger AccountLedger
Trial BalanceTrial Balance

Scoring

40% Account naming / line matching
40% Amount correctness
20% Structure / section placement

Loading solver…