The document provides examples of transactions that various companies completed during different months. These transactions include purchases and sales of merchandise and supplies, payments made and received, and other expenses. The examples are to be used to practice journalizing transactions in special journals (purchases journal, sales journal, cash receipts journal, cash payments journal) and the general journal, then posting to accounts in the general and subsidiary ledgers.
Acc 291 t Motivated Minds/newtonhelp.comamaranthbeg41
For more course tutorials visit
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During March a firm purchased $22,790 of merchandise and paid freight charges of $1,860. If the net delivered cost of purchases for the March is $22,040, what is the total purchase returns for March?
Multiple Choice
•
$0
Prepare journal entries to record the following merchandising tra.pdfpondycomputerszone
Prepare journal entries to record the following merchandising transactions of Cabela's, which
uses the perpetual inveritory system and the gross method. July 1 Turchased merchandise from
Boden Company for $6,600 under eredit terms of 2/15, n/30, Fos shipping point, invoice dated
July 1. July 2 sold serchandise to Creek Company for $950 under eredit terns of 2/10, n/60, ros
shipping point, involee dated July 2. The merehandise had cost \$550. July 3 paid $115 eash for
freight charges on the purchase of July 1. July 8 sold nerchandise that had cost $1,900 for $2,300
cash. July 9 purchased nerebasdile from teight Conpany for $2,700 under credit terns of 2/15,
n/60, Fos destination, invoice dated Jaly 9 . July 11 Returned $700 of merchandise purchased on
July 9 from Leight Company and deblted fts account payable for that anount. July 12 Recelved
the balance due fron Creek Company for tho invoice dated Jaly 2, net of the discoust. July 16
paid the balance due to Boden Company within the discount period. July 19 sold morehandise
that cost $1,000 to Art company for $1,500 under credit terms of 2/15,n/60, Fos shipping point,
involce dated July 19. July 21 Cave a price reduction (allowance) of $250 to art Conpany for
merchandise sold on July 19 and eredited Art's accounts receivable for that amount. July 24 faid
Leight Coepany the balance due, net of discount. July 30 Received the balance due froe Art
Company for the involee dated July 19 , net of discount. July 31 sold merchandise that cost
$5,400 to Creek Company for $6,800 under credit terms of 2/10, n/60, Fos whipping point,
invoice dated Jaly 31.
Purchased merchandise from Boden Company for $6,600 under credit terms of 2/15,n/30,FOB
shipping point, invoice dated July 1 . Note: Enter debits before credits..
Work to do
Subsidlary Ledgers
Past from the journals to the general lodger accounts.
Past from the journals to the accounts payable kadger accounts. Accounts Payable Ledaer
instructions
Customer David's Decorating Elizabeth Shoemaker Leigh Summers Meg Johnson Supplier
Flower Wholesalers Jill Hand Seidl Enterprises Vasos Etc.
Selected account balances as of October 1 weie as folloms: The Pink Petal also had the following
subsidiary ledger balances as of October 1 : Acoounts Recervable: Acoounts Payatio: Required:
1. Aecord the transactions in a sabs journal (page 7), cash receipts joumal (page 10), purchases
joumal (page 6), cash payments jouma/ iage 11). and general foumal (page 5). Total and varly
the columb where appropriste at the end of the month. Afer each entry. posf to the appropriate
selectod accounts.
Fecord the transactions in a general journal (page 5). Post to the appropriate ledgers.
Cash Pryments Jouma
Oct. 1 Sold merchandise on account to Elizabeth Shoemaker, $1,000, plus tax of $50. Sale No.
222. 2 Issued Check No. 190 to Jill Hand in payment of October 1 balance of $500, less 2%
discount. 2 Purchased merchandise on account from Flower Wholesalers, $4,000. Invoice No,
500 , dated October 2, terms 2/10,n/30. 4 Purchased merchandise on account from Seidl
Enterprises, $700. Invoice No. 527, dated October 4. terms 2/15,n/30. 5 Issued Check No. 191 in
payment of phone expense for the month of September, $150. 7 Sold merchandise for cash,
$3,500, plus tax of $175. 9 Received payment from Leigh Summers in full settlement of account,
$2,000. 11 Issued Check No. 192 to Flower Wholesalers in payment of October 1 balance of
$1,500. 12 Sold merchandise on account to Leigh Summers, $2,000, plus tax of $100. Sale No.
223. 12 Received payment from Meg Johnson on account, $3,100. 13 Issued Check No. 193 to
Seidl Enterprises in payment of October 4 purchase. Invoice No. 527, less 2\% discount. 14 Meg
Johnson returned merchandise for a credit, $300, plus sales tax of $15. 17 Returned merchandise
to Vases Etc. for credi, $900. 24 Received payment from David's Decorating on account, $2,135.
27 Sold merchandise on account to David's Decorating, $3,000, plus tax of $150. Sale No. 224.
29 issued Check No. 194 in payment of wages (Wages Expense) for the four-week period ending
October 30,5900 Selected account balances as of October 1 were as follows:
Post from the journals to the accounts receivable lodger accounts. Accounts Aeceivabie Ledger
instructions
Mastery Problem Cash Recents doarna
Fecord the transactions in a purchases joumal (page 6). Total, verif, and post fo ledjers as
apprepriste.
Mastery Problem Instructions Chart of Accouints Customec and suppliec Unt Canth foeclpis
Journat Durehates journgl Sales Joumal 5aiet.daenel hatsction.
For more course tutorials visit
www.acc291.com
During March a firm purchased $22,790 of merchandise and paid freight charges of $1,860. If the net delivered cost of purchases for the March is $22,040, what is the total purchase
Acc 291 t Motivated Minds/newtonhelp.comamaranthbeg41
For more course tutorials visit
www.newtonhelp.com
During March a firm purchased $22,790 of merchandise and paid freight charges of $1,860. If the net delivered cost of purchases for the March is $22,040, what is the total purchase returns for March?
Multiple Choice
•
$0
Prepare journal entries to record the following merchandising tra.pdfpondycomputerszone
Prepare journal entries to record the following merchandising transactions of Cabela's, which
uses the perpetual inveritory system and the gross method. July 1 Turchased merchandise from
Boden Company for $6,600 under eredit terms of 2/15, n/30, Fos shipping point, invoice dated
July 1. July 2 sold serchandise to Creek Company for $950 under eredit terns of 2/10, n/60, ros
shipping point, involee dated July 2. The merehandise had cost \$550. July 3 paid $115 eash for
freight charges on the purchase of July 1. July 8 sold nerchandise that had cost $1,900 for $2,300
cash. July 9 purchased nerebasdile from teight Conpany for $2,700 under credit terns of 2/15,
n/60, Fos destination, invoice dated Jaly 9 . July 11 Returned $700 of merchandise purchased on
July 9 from Leight Company and deblted fts account payable for that anount. July 12 Recelved
the balance due fron Creek Company for tho invoice dated Jaly 2, net of the discoust. July 16
paid the balance due to Boden Company within the discount period. July 19 sold morehandise
that cost $1,000 to Art company for $1,500 under credit terms of 2/15,n/60, Fos shipping point,
involce dated July 19. July 21 Cave a price reduction (allowance) of $250 to art Conpany for
merchandise sold on July 19 and eredited Art's accounts receivable for that amount. July 24 faid
Leight Coepany the balance due, net of discount. July 30 Received the balance due froe Art
Company for the involee dated July 19 , net of discount. July 31 sold merchandise that cost
$5,400 to Creek Company for $6,800 under credit terms of 2/10, n/60, Fos whipping point,
invoice dated Jaly 31.
Purchased merchandise from Boden Company for $6,600 under credit terms of 2/15,n/30,FOB
shipping point, invoice dated July 1 . Note: Enter debits before credits..
Work to do
Subsidlary Ledgers
Past from the journals to the general lodger accounts.
Past from the journals to the accounts payable kadger accounts. Accounts Payable Ledaer
instructions
Customer David's Decorating Elizabeth Shoemaker Leigh Summers Meg Johnson Supplier
Flower Wholesalers Jill Hand Seidl Enterprises Vasos Etc.
Selected account balances as of October 1 weie as folloms: The Pink Petal also had the following
subsidiary ledger balances as of October 1 : Acoounts Recervable: Acoounts Payatio: Required:
1. Aecord the transactions in a sabs journal (page 7), cash receipts joumal (page 10), purchases
joumal (page 6), cash payments jouma/ iage 11). and general foumal (page 5). Total and varly
the columb where appropriste at the end of the month. Afer each entry. posf to the appropriate
selectod accounts.
Fecord the transactions in a general journal (page 5). Post to the appropriate ledgers.
Cash Pryments Jouma
Oct. 1 Sold merchandise on account to Elizabeth Shoemaker, $1,000, plus tax of $50. Sale No.
222. 2 Issued Check No. 190 to Jill Hand in payment of October 1 balance of $500, less 2%
discount. 2 Purchased merchandise on account from Flower Wholesalers, $4,000. Invoice No,
500 , dated October 2, terms 2/10,n/30. 4 Purchased merchandise on account from Seidl
Enterprises, $700. Invoice No. 527, dated October 4. terms 2/15,n/30. 5 Issued Check No. 191 in
payment of phone expense for the month of September, $150. 7 Sold merchandise for cash,
$3,500, plus tax of $175. 9 Received payment from Leigh Summers in full settlement of account,
$2,000. 11 Issued Check No. 192 to Flower Wholesalers in payment of October 1 balance of
$1,500. 12 Sold merchandise on account to Leigh Summers, $2,000, plus tax of $100. Sale No.
223. 12 Received payment from Meg Johnson on account, $3,100. 13 Issued Check No. 193 to
Seidl Enterprises in payment of October 4 purchase. Invoice No. 527, less 2\% discount. 14 Meg
Johnson returned merchandise for a credit, $300, plus sales tax of $15. 17 Returned merchandise
to Vases Etc. for credi, $900. 24 Received payment from David's Decorating on account, $2,135.
27 Sold merchandise on account to David's Decorating, $3,000, plus tax of $150. Sale No. 224.
29 issued Check No. 194 in payment of wages (Wages Expense) for the four-week period ending
October 30,5900 Selected account balances as of October 1 were as follows:
Post from the journals to the accounts receivable lodger accounts. Accounts Aeceivabie Ledger
instructions
Mastery Problem Cash Recents doarna
Fecord the transactions in a purchases joumal (page 6). Total, verif, and post fo ledjers as
apprepriste.
Mastery Problem Instructions Chart of Accouints Customec and suppliec Unt Canth foeclpis
Journat Durehates journgl Sales Joumal 5aiet.daenel hatsction.
For more course tutorials visit
www.acc291.com
During March a firm purchased $22,790 of merchandise and paid freight charges of $1,860. If the net delivered cost of purchases for the March is $22,040, what is the total purchase
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
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Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
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Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Amendment of MOA:
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ch 7 part 2.doc
1. 1
Special Journals
If a transaction cannot be recorded in a special journal, the company records it in the general journal.
Ex 1: In May, the following selected transactions were completed. All purchases and sales were
on account except as indicated. The cost of all merchandise sold was 60% of the sales price.
May 2 Purchased merchandise from Berkman Company $5,000.
3 Received freight bill from Fast Freight on Berkman purchase $250.
5 Sales were made to Persinger Company $1,300, Fehr Bros. $2,300, and Mount Company
$1,000.
8 Purchased merchandise from Kayser Company $5,400 and Neufeld Company $3,000.
10 Received credit on merchandise returned to Neufeld Company $350.
15 Purchased supplies from Rabel’s Supplies $600.
16 Purchased merchandise from Berkman Company $3,100, and Kayser Company $4,200.
17 Returned supplies to Rabel’s Supplies, receiving credit $70. (Hint: Credit Supplies.)
18 Received freight bills on May 16 purchases from Fast Freight $325.
20 Returned merchandise to Berkman Company receiving credit $200.
23 Made sales to Fehr Bros. $1,600 and to Mount Company $2,500.
25 Received bill for advertising from Mock Advertising $620.
26 Granted allowance to Mount Company for merchandise damaged in shipment $140.
28 Purchased equipment from Rabel’s Supplies $400.
Instructions
(a) Journalize the transactions above in a purchases journal, a sales journal, and a general
journal. The purchases journal should have the following column headings: Date, Account
Credited (Debited), Ref., Accounts Payable Cr., Inventory Dr., and Other Accounts Dr.
(b) Post to both the general and subsidiary ledger accounts.
Ex 2: In July the following selected transactions were completed. All purchases and sales were
on account. The cost of all merchandise sold was 70% of the sales price.
July 1 Purchased merchandise from Fritz Company $8,000.
2 Received freight bill from Wayward Shipping on Fritz purchase $400.
3 Made sales to Pinick Company $1,300, and to Wayne Bros. $1,500.
5 Purchased merchandise from Moon Company $3,200.
8 Received credit on merchandise returned to Moon Company $300.
13 Purchased store supplies from Cress Supply $720.
15 Purchased merchandise from Fritz Company $3,600 and from Anton Company $3,300.
16 Made sales to Sager Company $3,450 and to Wayne Bros. $1,570.
18 Received bill for advertising from Lynda Advertisements $600.
21 Sales were made to Pinick Company $310 and to Haddad Company $2,800.
2. 2
22 Granted allowance to Pinick Company for merchandise damaged in shipment $40.
24 Purchased merchandise from Moon Company $3,000.
26 Purchased equipment from Cress Supply $900.
28 Received freight bill from Wayward Shipping on Moon purchase of July 24, $380.
30 Sales were made to Sager Company $5,600.
Instructions
(a) Journalize the transactions above in a purchases journal, a sales journal, and a general
journal. The purchases journal should have the following column headings: Date, Account
Credited (Debited), Ref., Accounts Payable Cr., Merchandise Inventory Dr., and Other Accounts
Dr.
(b) Post to both the general and subsidiary ledger accounts.
E73: Montalvo Company uses special journals and a general journal. The following
transactions occurred during September 2010.
Sept. 2 Sold merchandise on account to T. Hossfeld, invoice no. 101, $720, terms n/30.The cost
of the merchandise sold was $420.
10 Purchased merchandise on account from L. Rincon $600, terms 2/10, n/30.
12 Purchased office equipment on account from R. Press $6,500.
21 Sold merchandise on account to P. Lowther, invoice no. 102 for $800, terms 2/10, n/30. The
cost of the merchandise sold was $480.
25 Purchased merchandise on account from W. Barone $860, terms n/30.
27 Sold merchandise to S. Miller for $700 cash.The cost of the merchandise sold was $400.
Instructions
Prepare a sales journal and a single-column purchase journal
Ex 4: In May the following selected transactions were completed. All purchases and
sales were on account except as indicated. The cost of all merchandise sold was 65% of
the sales price.
May 2 Purchased merchandise from Wilkins Company $7,500.
3 Received freight bill from Kwik Freight on Wilkins purchase $360.
5 Sales were made to May Company $1,980, Stein Bros. $2,700, and Lane Company
$1,500.
8 Purchased merchandise from Wen Company $8,000 and Allan Company $8,700.
10 Received credit on merchandise returned to Allan Company $500.
15 Purchased supplies from Camile Supply $900.
16 Purchased merchandise from Wilkins Company $4,500, and Wen Company $7,200.
17 Returned supplies to Camile Supply, receiving credit $100. (Hint: Credit Supplies.)
18 Received freight bills on May 16 purchases from Kwik Freight $500.
20 Returned merchandise to Wilkins Company receiving credit $300.
23 Made sales to Stein Bros. $2,400 and to Lane Company $3,600.
25 Received bill for advertising from Brooster Advertising $900.
26 Granted allowance to Lane Company for merchandise damaged in shipment $200.
28 Purchased equipment from Camile Supply $500.
Instructions
(a) Journalize the transactions above in a purchases journal, a sales journal, and a
3. 3
general journal. The purchases journal should have the following column headings: Date,
Account Credited (Debited), Ref., Accounts Payable Cr., Inventory Dr., and Other
Accounts Dr.
(b) Post to both the general and subsidiary ledger accounts.
Ex 5: Orender Company uses special journals and a general journal. The following
transactions occurred during September 2017.
Sept. 2 Sold merchandise on account to R. Sears, invoice no. 101, $800, terms n/30. The
cost of the merchandise sold was $480.
10 Purchased merchandise on account from M. Stoltz $900, terms 2/10, n/30.
12 Purchased office equipment on account from C. Cottrain 7,000.
21 Sold merchandise on account to W. Noyes, invoice no. 102 for $1,000, terms 2/10, n/30.
The cost of the merchandise sold was $600.
25 Purchased merchandise on account from W. Loper $1,200, terms n/30.
27 Sold merchandise to K. Salma for $850 cash. The cost of the merchandise sold was
$510.
Instructions
(a) Prepare a sales journal and a single-column purchase journal
E6: Strobel Co. uses special journals and a general journal. The following transactions occurred
during May 2017.
May 1 F. Yancey invested $40,000 cash in the business.
2 Sold merchandise to B. Counder for $3,800 cash. The cost of the merchandise sold was
$2,500.
3 Purchased merchandise for $4,300 from S. Trader using check no. 101.
14 Paid salary to G. Waldorf $650 by issuing check no. 102.
16 Sold merchandise on account to F. Etondo for $550, terms n/30. The cost of the
merchandise sold was $350.
22 A check of $5,400 is received from M. Moritz in full for invoice 101; no discount given.
Instructions
(a) Prepare a multiple-column cash receipts journal and a multiplecolumn cash payments
journal
E6: On June 1 the accounts receivable ledger of Milroy Company showed the following
balances: Archer & Daughter $2,500, Emler Co. $1,900, Hinson Bros. $1,600, and Naylor Co.
$1,300. The June transactions involving the receipt of cash were as follows.
June 1 The owner, B. Milroy, invested additional cash in the business $10,000.
3 Received check in full from Naylor Co. less 2% cash discount.
6 Received check in full from Emler Co. less 2% cash discount.
7 Made cash sales of merchandise totaling $6,135. The cost of the merchandise sold was
$4,090.
9 Received check in full from Archer & Daughter less 2% cash discount.
11 Received cash refund from a supplier for damaged merchandise $320.
15 Made cash sales of merchandise totaling $4,500. The cost of the merchandise sold was
$3,000.
20 Received check in full from Hinson Bros. $1,600.
Instructions
Journalize the transactions above in a six-column cash receipts journal with columns for Cash
Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Revenue Cr., Other Accounts Cr., and
Cost of Goods Sold Dr./Inventory Cr.
E7: On November 1 the accounts payable ledger of Hoyt Company showed the following
balances: B. Mosby & Co. $4,500, D. Prothe $2,350, H. Susscan $1,000, and Xavier Bros. $1,500.
The November transactions involving the payment of cash were as follows.
4. 4
Nov. 1 Purchased merchandise, check no. 11, $1,340.
3 Purchased store equipment, check no. 12, $1,700.
5 Paid Xavier Bros. balance due of $1,500, less 1% discount, check no. 13, $1,485.
11 Purchased merchandise, check no. 14, $2,000.
15 Paid H. Susscan balance due of $1,000, less 3% discount, check no. 15, $970.
16 D. Hoyt, the owner, withdrew $500 cash for own use, check no. 16.
19 Paid D. Prothe in full for invoice no. 1245, $1,750 less 2% discount, check no. 17, $1,715.
25 Paid premium due on one-year insurance policy, check no. 18, $3,000.
30 Paid B. Mosby & Co. in full for invoice no. 832, $3,500, check no. 19.
Instructions : Journalize the transactions above in a four-column cash payments journal with
columns for Other Accounts Dr., Accounts Payable Dr., Inventory Cr., and Cash Cr.
E8: The cost of all merchandise sold was 70% of the sales price. During October, Gowen
Company completed the following transactions.
Oct. 2 Purchased merchandise on account from Seibel Company $16,500.
4 Sold merchandise on account to Carey Co. $9,200. Invoice no. 204, terms 2/10, n/30.
5 Purchased supplies for cash $80.
7 Made cash sales for the week totaling $9,660.
9 Paid in full the amount owed Seibel Company less a 2% discount.
10 Purchased merchandise on account from Monaghan Corp. $3,500.
12 Received payment from Carey Co. for invoice no. 204.
13 Returned $210 worth of damaged goods purchased on account from Monaghan Corp. on
October 10.
14 Made cash sales for the week totaling $8,180.
16 Sold a parcel of land for $27,000 cash, the land’s original cost.
17 Sold merchandise on account to H. Witten & Co. $5,350, invoice no. 205, terms 2/10, n/30.
18 Purchased merchandise for cash $2,125.
21 Made cash sales for the week totaling $8,200.
23 Paid in full the amount owed Monaghan Corp. for the goods kept (no discount).
25 Purchased supplies on account from Sorenson Co. $260.
25 Sold merchandise on account to Igles Corp. $5,220, invoice no. 206, terms 2/10, n/30.
25 Received payment from H. Witten & Co. for invoice no. 205.
26 Purchased for cash a small parcel of land and a building on the land to use as a storage
facility. The total cost of $35,000 was allocated $21,000 to the land and $14,000 to the building.
27 Purchased merchandise on account from Landro Co. $8,500.
28 Made cash sales for the week totaling $7,540.
30 Purchased merchandise on account from Seibel Company $14,000.
30 Paid advertising bill for the month from the Tribune, $400.
30 Sold merchandise on account to H. Witten & Co. $4,600, invoice no. 207, terms 2/10, n/30.
Gowen Company uses the following journals.
1. Sales journal.
2. Single-column purchases journal.
3. Cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable
Cr., Sales Revenue Cr., Other Accounts Cr., and Cost of Goods Sold Dr./ Inventory Cr.
4. Cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr.,
Inventory Cr., and Cash Cr.
5. General journal.
Instructions
Using the selected accounts provided:
(a) Record the October transactions in the appropriate journals
Ex 9:
5. 5
Pherigo Co. uses special journals and a general journal. The following transactions occurred
during May 2010.
May 1 I. Pherigo invested $50,000 cash in the business.
2 Sold merchandise to B. Sherrick for $6,300 cash. The cost of the merchandise sold was 4200
3 Purchased merchandise for $7,200 from J. DeLeon using check no. 101.
14 Paid salary to H. Potter $700 by issuing check no. 102.
16 Sold merchandise on account to K. Kimbell for $900, terms n/30. The cost of the
merchandise sold was $630.
22 A check of $9,000 is received from M. Moody in full for invoice 101; no discount given.
Instructions
(a) Prepare a multiple-column cash receipts journal (see Illustration 7-9) and a
multiplecolumn cash payments journal
Ex 10: On April 1 the accounts receivable ledger of Grider Company showed the following
balances: Ogden $1,550, Chelsea $1,200, Eggleston Co. $2,900, and Baez $1,800. The April
transactions involving the receipt of cash were as follows.
Apr. 1 The owner, O. Grider, invested additional cash in the business $7,200.
4 Received check for payment of account from Baez less 2% cash discount.
5 Received check for $920 in payment of invoice no. 307 from Eggleston Co.
8 Made cash sales of merchandise totaling $7,245. The cost of the merchandise sold was
$4,347.
10 Received check for $600 in payment of invoice no. 309 from Ogden.
11 Received cash refund from a supplier for damaged merchandise $740.
23 Received check for $1,500 in payment of invoice no. 310 from Eggleston Co.
29 Received check for payment of account from Chelsea.
Instructions
(a) Journalize the transactions above in a six-column cash receipts journal with columns for
Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Cr., Other Accounts Cr., and
Cost of Goods Sold Dr./Merchandise Inventory Cr.
Ex 11: On October 1 the accounts payable ledger of Ming Company showed the following
balances: Bovary Company $2,700, Nyman Co. $2,500, Pyron Co. $1,800, and Sims Company
$3,700. The October transactions involving the payment of cash were as follows.
Oct. 1 Purchased merchandise, check no. 63, $300.
3 Purchased equipment, check no. 64, $800.
5 Paid Bovary Company balance due of $2,700, less 2% discount, check no. 65, $2,646.
10 Purchased merchandise, check no. 66, $2,250.
15 Paid Pyron Co. balance due of $1,800, check no. 67.
16 T. Ming, the owner, pays his personal insurance premium of $400, check no. 68.
19 Paid Nyman Co.in full for invoice no.610,$1,600 less 2% cash discount,check no.69,$1,568.
29 Paid Sims Company in full for invoice no. 264, $2,500, check no. 70.
Instructions : Journalize the transactions above in a four-column cash payments journal with
6. 6
columns for Other Accounts Dr., Accounts Payable Dr., Merchandise Inventory Cr., and
Cash Cr.
Ex 12 The cost of all merchandise sold was 60% of the sales price. During January, Boyden
completed the following transactions.
Jan. 3 Purchased merchandise on account from Wortham Co. $10,000.
4 Purchased supplies for cash $80.
4 Sold merchandise on account to Milam $5,250, invoice no. 371, terms 1/10, n/30.
5 Returned $300 worth of damaged goods purchased on account from Wortham Co. on
January 3.
6 Made cash sales for the week totaling $3,150.
8 Purchased merchandise on account from Noyes Co. $4,500.
9 Sold merchandise on account to Connor Corp. $6,400, invoice no. 372, terms 1/10, n/30.
11 Purchased merchandise on account from Betz Co. $3,700.
13 Paid in full Wortham Co. on account less a 2% discount.
13 Made cash sales for the week totaling $6,260.
15 Received payment from Connor Corp. for invoice no. 372.
15 Paid semi-monthly salaries of $14,300 to employees.
17 Received payment from Milam for invoice no. 371.
17 Sold merchandise on account to Bullock Co. $1,200, invoice no. 373, terms 1/10, n/30.
19 Purchased equipment on account from Murphy Corp. $5,500.
20 Cash sales for the week totaled $3,200.
20 Paid in full Noyes Co. on account less a 2% discount.
23 Purchased merchandise on account from Wortham Co. $7,800.
24 Purchased merchandise on account from Forgetta Corp. $5,100.
27 Made cash sales for the week totaling $4,230.
30 Received payment from Bullock Co. for invoice no. 373.
31 Paid semi-monthly salaries of $13,200 to employees.
31 Sold merchandise on account to Milam $9,330, invoice no. 374, terms 1/10, n/30. Boyden
Company uses the following journals.
1. Sales journal. 2. Single-column purchases journal.
3. Cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts
Receivable Cr., Sales Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Merchandise
Inventory Cr.
4. Cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr.,
Merchandise Inventory Cr., and Cash Cr.
5. General journal.
Instructions : Record the January transactions in the appropriate journal
BE 106
Indicate whether each of the following accounts would be shown in the general ledger or
subsidiary ledger.
1. Cash ____________________
2. Accounts Receivable—Jones ____________________
3. Equipment ____________________
7. 7
4. Accounts Payable—Smith ____________________
5. Common Stock ____________________
6. Sales ____________________
BE 107
Dexter Company maintains four special journals and a general journal 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
BE 108
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. _______________________
BE 109
Indicate the special journal(s) in which the following column headings appear.
1. Cash Cr. _______________________
2. Cost of Goods Sold Dr. _______________________
3. Accounts Receivable Dr. _______________________
4. Accounts Payable Cr. _______________________
5. Merchandise Inventory Cr. _______________________
6. Sales Discounts Dr. _______________________
Ex. 113
Lowry Company uses a sales journal, a cash receipts journal, and a general journal to record
transactions with its customers. Record the following transactions in the appropriate journals.
The cost of all merchandise sold was 70% of the sales price.
July 2 Sold merchandise for $15,000 to B. Rice on account. Credit terms 2/10, n/30. Sales invoice
No. 100.
8. 8
July 5 Received a check for $800 from R. Hyatt in payment of his account.
July 8 Sold merchandise to F. Wenger for $900 cash.
July 10 Received a check in payment of Sales invoice No. 100 from B. Rice minus the 2%
discount.
July 15 Sold merchandise for $9,000 to J. Mays on account. Credit terms 2/10, n/30. Sales
invoice No. 101.
July 18 Borrowed $25,000 cash from United Bank signing a 6-month, 10% note.
July 20 Sold merchandise for $12,000 to C. Kane on account. Credit terms 2/10, n/30. Sales
invoice No. 102.
July 25 Issued a credit (reduction) of $600 to C. Kane as an allowance for damaged
merchandise previously sold on account.
July 31 Received a check from J. Mays for $5,000 as payment on account
Ex. 114
Goren Company uses a single-column purchases journal, a cash payments journal, and a
general journal to record transactions with its suppliers and others. Record the following
transactions in the appropriate journals.
Oct. 5 Purchased merchandise on account for $20,000 from Hendry Company. Terms: 2/10
n/30; FOB shipping point.
Oct. 6 Paid $7,200 to Federated Insurance Company for a two-year fire insurance policy.
Oct. 8 Purchased store supplies on account for $700 from Flint Supply Company. Terms: 2/10
n/30.
Oct. 11 Purchased merchandise on account for $14,000 from Adler Corporation. Terms: 2/10
n/30; FOB shipping point.
Oct. 13 Granted a reduction of $3,000 to Adler Corporation for merchandise purchased on
October 11 and returned because of damage.
Oct. 15 Paid Hendry Company for merchandise purchased on October 5, less discount.
Oct. 16 Purchased merchandise for $8,000 cash from Clifford Company.
Oct. 21 Paid Adler Corporation for merchandise purchased on October 11, less merchandise
returned on October 13, less discount.
Oct. 25 Purchased merchandise on account for $22,000 from Eaton Company. Terms: 2/10
n/30; FOB shipping point.
Oct. 31 Purchased office equipment for $30,000 cash from Pate Office Supply Company.