FINANCE

Finer Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of May.

 

May. 2 Sold merchandise costing $370 to B. Facer for $555 cash, invoice no. 5703.
5 Purchased $2,300 of merchandise on credit from Marchant Corp.
7 Sold merchandise costing $999 to J. Dryer for $1,449, terms 1/10, n/30, invoice no. 5704.
8 Borrowed $8,000 cash by signing a note payable to the bank.
12 Sold merchandise costing $250 to R. Lamb for $400, terms n/30, invoice no. 5705.
16 Received $1,435 cash from J. Dryer to pay for the purchase of May 7.
19 Sold used store equipment for $900 cash to Golf, Inc.
25 Sold merchandise costing $420 to T. Taylor for $659, terms n/30, invoice no. 5706.

 

Journalize the May transactions that should be recorded in the sales journal assuming the perpetual inventory system is used.

 

2)

Ali Co. uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of November.

 

Nov. 3 The company purchased $3,000 of merchandise on credit from Hart Co., terms n/20.
7 The company sold merchandise costing $792 on credit to J. Than for $870, subject to an $17 sales discount if paid by the end of the month.
9 The company borrowed $3,225 cash by signing a note payable to the bank.
13 J. Ali, the owner, contributed $4,525 cash to the company.
18 The company sold merchandise costing $126 to B. Cox for $224 cash.
22 The company paid Hart Co. $3,000 cash for the merchandise purchased on November 3.
27 The company received $853 cash from J. Than in payment of the November 7 purchase.
30 The company paid salaries of $1,500 in cash.

 

Journalize the November transactions that should be recorded in the cash receipts journal assuming the perpetual inventory system is used.

 

3)

Marx Supply uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of April.

 

April   3 Purchased merchandise for $2,400 on credit from Seth, Inc., terms 3/10, n/30.
9 Issued check no. 210 to Kitt Corp. to buy store supplies for $384.
12 Sold merchandise costing $434 on credit to C. Myrs for $729, terms n/30.
17 Issued check no. 211 for $1,500 to pay off a note payable to City Bank.
20 Purchased merchandise for $3,000 on credit from Lite, terms 3/10, n/30.
28 Issued check no. 212 to Lite to pay the amount due for the purchase of April 20, less the discount.
29 Paid salary of $1,350 to B. Dock by issuing check no. 213.
30 Issued check no. 214 to Seth, Inc., to pay the amount due for the purchase of April 3.

 

Journalize the April transactions that should be recorded in the cash disbursements journal assuming the perpetual inventory system is used.

 

4)

At the end of May, the sales journal of Mountain View appears as follows.
Date Account
Debited
Invoice Number PR Accounts Receivable Dr.
Sales Cr.
Cost of Goods Sold Dr.
Inventory Cr.
May 6     Aaron Reckers 190 4,320 3,283
10     Sara Reed 191 3,380 2,789
17     Anna Page 192 1,504 884
25     Sara Reed 193 602 354


31     Totals 9,806 7,310





Mountain View also recorded the return of defective merchandise with the following entry.
Date General Journal Debit Credit
May 20   Sales Returns and Allowances 250
          Accounts Receivable—Anna Page 250
      Customer returned (worthless) merchandise.

 
1. Post to the customer accounts the entries in the sales journal and any portion of the general journal entry that affects a customer’s account.

 

 

 

 

 

2. Post the sales journal amounts first and then any portion of the general

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