You have been given the assignment to read Beer School: Bottling Success at The Brooklyn Brewery. Upon completion of reading this informative book dealing with this real life rags to riches entrepreneurial….
what information would you want to capture in a database about the transactions?
Acquisition/payment transactions. As of January 31, 2005, the accounts payable subsidiary ledger of ABL Corporation revealed the following information:
|Vendor Name Invoice Number Invoice Date Invoice Amount Terms|
|FNA Corp. 5525 1/6/2005 $1,700 2/15, n/30
FRS Corp. 6217 1/15/2005 1,840 3/15, n/60
CNF Corp. 457 1/18/2005 1,350 2/10, n/30
APR Corp. 8071 1/22/2005 550 2/10, n/30
CRL Corp. 4687 1/29/2005 360 2/10, n/30
ABL uses a perpetual inventory system; purchases are debited to Inventory and credited
to Accounts Payable. The terms shown in the table on the previous page apply to
all purchases from a given vendor. During the month of February 2005, ABL completed
the following transactions related to its acquisition/payment cycle:
|1 Purchased equipment for use in the business from FRP Corporation. List price, $10,000. 30%
cash down payment, with the remainder on a 3-month, 12% note.
2 Purchased inventory on account from CNF Corporation, $1,500.
3 Paid amount due to CRL Corporation.
11 Purchased supplies on account from FNA Corporation, $700.
13 Paid amount due to CNF Corporation.
17 Purchased supplies on account from FNA Corporation, $500.
20 Paid total amount due to FNA Corporation.
21 Paid half the amount due to FRS Corporation.
24 Returned unused materials to APR Corporation, $100. The materials were part of Invoice 8071.
28 Accrued one month’s interest on note payable to FRP Corporation.
a. Record the preceding transactions in general journal format.
b. In addition to that provided by the journal entries, what information would you want to capture
in a database about the transactions?