Dexter Company uses four special journals and a general journal to record transactions. The document provides a code to indicate the appropriate journal for each of ten transactions. It also asks which journal six additional transactions would be recorded in. The second document provides transactions for Lowry Company and asks to record them in the appropriate sales, cash receipts, or general journal. The third document similarly provides transactions for Goren Company and asks to record them in the appropriate purchases, cash payments, or general journal.

1. BE 107
Dexter Company maintains four special journals and a generaljournal to record its
transactions.
Using the code below, indicate in the space provided the appropriate journal for recording the
transactions listed.
Code Journals
S
CR
CP
P
G
Sales journal
Cash receipts journal
Cash payments journal
Single-column purchases journal
General journal
____ 1. Mr. Dexter invested cash in the business.
____ 2. Purchased store supplies on account.
____ 3. Sold merchandise to customer on account.
____ 4. Purchased a 2-year fire insurance policy for cash.
____ 5. Received a check from a customer as payment on account.
____ 6. Paid for store supplies purchased in transaction 2.
____ 7. Purchased merchandise on account.
____ 8. Issued a credit memorandum to a customer who returned defective merchandise
previously sold on account.
____ 9. Purchased office equipment for cash.
____ 10. Made an adjusting entry for store supplies used during the period.
Indicate in which journal each of the following transactions is recorded.
1. Cash purchase of merchandise. _______________________
2. Owner investment of cash. _______________________
3. Sale of merchandise on account. _______________________
4. Purchase of supplies for cash. _______________________
5. Credit purchase of merchandise. _______________________
6. Collection on account from customers. _______________________
Ex. 113
LowryCompanyusesa salesjournal,acash receiptsjournal,anda general journal torecord
transactionswithitscustomers.Recordthe followingtransactionsinthe appropriate
journals.The
cost of all merchandise soldwas70% of the salesprice
.
July2 Soldmerchandise for$15,000 to B. Rice on account.Creditterms2/10, n/30. Sales
invoice No.100
.
July5 Receivedacheckfor $800 from R. Hyatt in paymentof hisaccount
.
July8 Soldmerchandise toF.Wengerfor $900 cash
.
July10 Receivedacheckinpaymentof Salesinvoice No.100 fromB. Rice minusthe 2%
discount
.
July15 Soldmerchandise for$9,000 to J.Mays on account.Creditterms 2/10, n/30. Sales
invoice No.101
.
July18 Borrowed$25,000 cash fromUnitedBank signinga6-month,10% note
.
July20 Soldmerchandise for$12,000 to C. Kane on account.Creditterms2/10, n/30. Sales
invoice No.102
.
July25 Issuedacredit(reduction) of $600 to C. Kane as an allowance fordamaged

2. merchandise previouslysoldonaccount
.
July31 ReceivedacheckfromJ. Mays for $5,000 as paymentonaccount.
Ex. 114
GorenCompanyusesa single-columnpurchasesjournal,acashpaymentsjournal,anda
general journal torecordtransactionswithitssuppliersandothers.Recordthe following
transactionsinthe appropriate journals
.
Transactions
Oct. 5 Purchasedmerchandiseonaccountfor$20,000 fromHendryCompany.Terms
:
2
/
10
,
n/30; FOB shippingpoint
.
Oct. 6 Paid$7,200 to FederatedInsurance Companyforatwo-yearfire insurance policy
.
Oct. 8 Purchasedstore suppliesonaccountfor$700 from FlintSupplyCompany.Terms
:
2
/
10
,
n/30
.
Oct. 11 Purchasedmerchandise onaccountfor$14,000 fromAdlerCorporation.Terms
:
2
/
10
,
n/30; FOB shippingpoint
.
Oct. 13 Granteda reductionof $3,000 to AdlerCorporationformerchandise purchasedon
October11 and returnedbecause of damage
.
Oct. 15 PaidHendryCompanyformerchandise purchasedonOctober5,lessdiscount
.
Oct. 16 Purchasedmerchandise for$8,000 cash fromCliffordCompany
.
Oct. 21 PaidAdlerCorporationformerchandise purchasedonOctober11, lessmerchandise
returnedonOctober13, lessdiscount
.
Oct. 25 Purchasedmerchandise onaccountfor$22,000 fromEaton Company.Terms:2/10
,
n/30; FOB shippingpoint
.
Oct. 31 Purchasedoffice equipmentfor$30,000 cash from Pate Office SupplyCompany.