167.HealthCo Company uses special journals to record transactions. HealthCo uses the perpetual inventory system. Journalize the following transactions in the appropriate special journal. All credit sales have 2/10, n/30 terms.
Nov. 3The company purchased $5,500 of merchandise on credit from Hatch, terms 2/10, n/30.
5The company sold merchandise costing $5,250 to Level Company for $8,900, invoice no. 278.
7The owner, L. Garvey, contributed $15,000 cash to the company.
8The company purchased $7,200 of merchandise on credit from Gentry Company, terms 1/15, n/30.
10The company sold merchandise costing $4,630 to Nance Company for $8,250, invoice no. 279.
14The company received payment from Level Company for the November 5 sale within the discount period.
15HealthCo. paid salaries of $5,560 for the first half of the month, check no. 214.
16HealthCo. returned $1,200 of the merchandise purchased on November 8 to Gentry Company.
20HealthCo. paid Gentry for the purchase on November 8 within the discount period, check no. 215.
22HealthCo. purchased office equipment from Vale Co. costing $12,000 on credit, terms n/30.
Sales Journal
DateAccount DebitedInvoice Number
PRAccounts Receivable
Dr. Sales Cr.Cost of Goods Sold Dr.
Inventory Cr.
Purchases Journal
Date
Account
Date of Invoice
Terms
PRAccounts Payable Cr.Inventory Dr.Office Supplies Dr.Other Accounts Dr.
Cash Receipts Journal
Date
Account Credited
Explanation
PR
Cash Dr.Sales Discount Dr.Accounts Receivable Cr.
Sales Cr.Other Accounts Cr.Cost of
Goods Sold Dr.
Inventory Cr.
Cash Disbursements Journal
Date
Ck. No.
Payee
Account Debited
PR
Cash Cr.
Inventory Cr.Other Accounts Dr.Accounts Payable Dr.
General Journal
168.The following information is available for Napa, Inc. (all amounts are in millions):
U.S.CanadaEurope
Segment sales$7,745$8,940$4,780
Segment operating income2,3202,455595
Segment average assets5,5908,7501,480
a. Determine the segment return on assets for each geographic segment.
b. Comment on the results. How do the segments compare with respect to profitability?