Your Questions About In Which Journal Is The Return Of Supplies Purchased On Account Recorded

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Ken asks…

Comprehensive Problem-Perpetual ?

Comprehensive Problem-Perpetual 7-5A?
(If the Working Papers that accompany this textbook are not being used, omit this problem.) You have just taken over the accounting for Choi Enterprises, whose annual accounting period ends December 31. The company’s previous accountant journalized its transactions through December 15 and posted all items that required posting as individual amounts (see the journals and ledgers in the Working Papers). The company’s transactions beginning on December 16 follow (terms for all its credit sales are 2_10, n_30):
Dec. 16 Sold merchandise on credit to Hanna Seppa, Invoice No. 916, for $7,700 (cost is $4,600).
17 Received a $1,040 credit memorandum from Funk Company for the return of merchandise received on December 15.
17 Purchased $615 of office supplies on credit from KK’s Supply Company, invoice dated December 16, terms n_10 EOM.
18 Received a $40 credit memorandum from KK’s Supply Company for the return of office supplies received on December 17.
20 Issued a $500 credit memorandum to Bo Brown for defective (worthless) merchandise sold on December 15 and returned for credit.
21 Purchased $6,700 of store equipment on credit from KK’s Supply Company, invoice dated December 21, terms n_10 EOM.
22 Received payment from Hanna Seppa for the December 12 sale less the discount.
23 Issued Check No. 623 to Crossland Company in payment of its December 15 invoice less the discount.
24 Sold merchandise on credit to Shilo Jones, Invoice No. 917, for $1,200 (cost is $600).
24 Issued Check No. 624 to Funk Company in payment of its December 15 invoice less the return and the discount.
25 Received payment from Bo Brown for the December 15 sale less the return and the discount.
26 Purchased $8,100 of merchandise from Crossland Company, invoice dated December 25, terms 2_10, n_60.
29 Sold a neighboring merchant five boxes of file folders (office supplies) at their cost of $50 cash.
30 Ken Choi, the sole owner of Choi Enterprises, used Check No. 625 to withdraw $2,500 in cash from the business for personal use.
31 Issued Check No. 626 to Jamie Inman, the company’s only sales employee, in payment of her $2,020 salary for the last half of December.
31 Issued Check No. 627 to Access Electric Company in payment of its $710 December electric bill.
31 Cash sales for the last half of the month are $29,600 (cost is $11,200). (Cash sales are recorded daily but are recorded only twice in this problem to reduce repetitive entries.)
Required
1. Record these transactions in the journals provided in the working papers.
2. Verify that amounts that should be posted as individual amounts to the general ledger accounts have been posted, including posting to the customer and creditor accounts. (Such items are immediately posted.) Foot and crossfoot the journals and make the month-end postings.
3. Prepare a December 31 trial balance and prove the accuracy of the subsidiary ledgers by preparing schedules of both accounts receivable and accounts payable

Justin answers:

I’ve sent the Excel file to your email address.

Thomas asks…

Need Help with accounting Questions for test review?

13. (Points: 1)
If a company determines cost of goods sold each time a sale occurs, it

1. uses a combination of the perpetual and periodic inventory systems.

2. must have a computer accounting system.

3. uses a perpetual inventory system.

4. uses a periodic inventory system

14. (Points: 1)
Which of the following items does not result in an adjustment in the merchandise inventory account under a perpetual system?

1. Payment of freight costs for goods shipped to a customer

2. A purchase of merchandise.

3. Payment of freight costs for goods received from a supplier

4. A return of merchandise inventory to the supplier

15. (Points: 1)
A company using a perpetual inventory system that returns goods previously purchased on credit would

1. debit Cash and credit Accounts Payable.

2. debit Accounts Payable and credit Purchases.

3. debit Sales and credit Accounts Payable.

4. debit Accounts Payable and credit Inventory.

16. (Points: 1)
If a purchaser using a perpetual inventory system pays the transportation costs, then the

1. Inventory account is increased.

2. Delivery Expense account is increased.

3. Inventory account is not affected.

4. Freight-out account is increased.

21. (Points: 1)
Assets purchased for resale are recorded in which of the following accounts?

1. Equipment

2. More than one of the above is correct.

3. Inventory

4. Supplies

23. (Points: 1)
The journal entry to record a credit sale is

1.
Accounts Receivable
Sales Revenue

2.
Accounts Receivable
Sales Returns and Allowances

3.
Cash
Service Revenue

4.
Cash
Sales Revenue

32. (Points: 1)
Which sales accounts normally have a debit balance?

1. Sales discounts

2. Sales returns and allowances.

3. both (a) and (b).

4. Neither (a) and (b).

34. (Points: 1)
Interest expense would be classified on a multiple-step income statement under the heading

1. Cost of goods sold

2. Other expenses and losses

3. Selling expenses

4. Other revenues and gains

35. (Points: 1)
Financial information is presented below:

Operating Expenses
$ 45,000

Sales Returns and Allowances
13,000

Sales Discounts
6,000

Sales Revenue
160,000

Cost of Goods Sold
77,000
The gross profit rate would be

1. .54.

2. .55.

3. .45.

4. .50.

Justin answers:

13) 3
14) 1
15) 4
16) 3
21) 3
23) 1
32) 3
34) 2
35) 3

William asks…

How to solve these accounting questions?

1.The basic accounting equation cannot be restated as
a.Assets – Liabilities = Owner’s Equity.
b.Assets – Owner’s Equity = Liabilities.
c.Owner’s Equity + Liabilities = Assets.
d.Assets + Liabilities = Owner’s Equity.

2.If an individual asset is increased, then
a.there must be an equal decrease in a specific liability.
b.there must be an equal decrease in owner’s equity.
c.there must be an equal decrease in another asset.
d.none of these is possible.

3.Morreale Beaver Company buys a $12,000 van on credit. The transaction will affect the
a.income statement only.
b.balance sheet only.
c.income statement and owner’s equity statement only.
d.income statement, owner’s equity statement, and balance sheet.

4.Which of the following statements is true?
a.Debits increase assets and increase liabilities.
b.Credits decrease assets and decrease liabilities.
c.Credits decrease assets and increase liabilities.
d.Debits decrease liabilities and decrease assets.

5.A journal provides
a.the balances for each account.
b.information about a transaction in several different places.
c.a list of all accounts used in the business.
d.a chronological record of transactions

6.If the sum of the debit column equals the sum of the credit column in a trial balance, it indicates
a.no errors have been made.
b.no errors can be discovered.
c.that all accounts reflect correct balances.
d.the mathematical equality of the accounting equation.

7.Which of the following rules is incorrect?
a.Credits decrease the drawing account.
b.Debits increase the capital account.
c.Credits increase revenue accounts.
d. Debits decrease liability accounts
8. Unearned revenue is classified as
a.an asset account.
b.a revenue account.
c.a contra-revenue account.
d.a liability.

9. A post-closing trial balance will show
a.only permanent account balances.
b.only temporary account balances.
c.zero balances for all accounts.
d.the amount of net income (or loss) for the period.

10.A Sales Returns and Allowances account is not debited if a customer
a.returns defective merchandise.
b.receives a credit for merchandise of inferior quality.
c.utilizes a prompt payment incentive.
d.returns goods that are not in accordance with specifications .

11. The respective normal account balances of Sales, Sales Returns and Allowances, and Sales Discounts are

a.credit, credit, credit.
b.debit, credit, debit.
c.credit, debit, debit.
d.credit, debit, credit.

12.In a period of increasing prices, which inventory flow assumption will result in the lowest amount of income tax expense?
a.FIFO
b.LIFO
c.Average Cost
d.Income tax expense for the period will be the same under all assumptions

13.Euler Company made an inventory count on December 31, 2008. During the count, one of the clerks made the error of counting an inventory item twice. For the balance sheet at December 31, 2008, the effects of this error are
AssetsLiabilitiesOwner’s Equity

a.overstatedunderstatedoverstated
b.understatedno effectunderstated
c.overstatedno effectoverstated
d.overstatedoverstatedunderstated

14.Overstating ending inventory will overstate all of the following except
a.assets.
b.cost of goods sold.
c.net income.
d.owner’s equity.

15.A sales invoice is a source document that
a.provides support for goods purchased for resale.
b.provides evidence of incurred operating expenses.
c.provides evidence of credit sales.
d.serves only as a customer receipt .
QUESTIONS 16 TO 25 ARE WORTH 2 POINTS EACH.

16.Quirk Company purchased office supplies costing $6,000 and debited Office Supplies for the full amount. At the end of the accounting period, a physical count of office supplies revealed $2,400 still on hand. The appropriate adjusting journal entry to be made at the end of the period would be

a.Debit Office Supplies Expense, $2,400; Credit Office Supplies, $2,400.
b.Debit Office Supplies, $3,600; Credit Office Supplies Expense, $3,600.
c.Debit Office Supplies Expense, $3,600; Credit Office Supplies, $3,600.
d.Debit Office Supplies, $2,400; Credit Office Supplies Expense, $2,400

17.Baden Realty Company received a check for $18,000 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent was credited for the full $18,000. Financial statements will be prepared on July 31. Baden Realty should make the following adjusting entry on July 31:

a.Debit Unearned Rent, $3,000; Credit Rental Revenue, $3,000.

b.Debit Rental Revenue, $3,000; Credit Unearned Rent, $3,000.

c.Debit Unearned Rent, $18,000; Credit Rental Revenue, $18,000.

d.Debit Cash, $18,000; Credit Rental Revenue, $18,000 .

Justin answers:

Most of these are very good conceptual questions, but I don’t see your answers, so it is not possible to help you. To get help you should answer each question and state your reasons for selecting the answer. Then I can explain why your reasoning is wrong, if it is, and provide reasons for the correct answer. That way you would learn something.

You would learn nothing if I provided the answers. If you think it is appropriate for someone else to do your work for you, you should seriously consider dropping out of school and get a job as a taxi driver or janitor.

Question 2 is not valid because it does not have a correct answer. Items a and b are not possible. Item c is not valid because the situation is possible but it is not a “must” case. Item d is not valid because item c is possible.

Item 7 is not valid because it has two correct choices.

Item 15 is not a valid question. The correct choice is not always true.

You may make some points with your teacher by pointing out the above bad questions. Of course, you have to decide why they are bad.

Mark asks…

Accounting questions about inventory?

Could someone please help me solving this?

1. Lettermann Company is in the electronics industry and the price it pays for inventory is ?decreasing.

?Indicate which inventory method will:
?a.?provide the highest ending inventory.
?b.?provide the highest cost of goods sold.
?c.?result in the highest net income.
?d.?result in the lowest income tax expense.
?e.?produce the most stable earnings over several years.

?2. We have merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid freight costs of $100. Prior to payment, $1,400 of the merchandise is returned. The correct amount is paid within the discount period.

Record the foregoing transactions of the buyer in the sequence indicated below, assuming a perpetual inventory system is used.

(a)
Purchased the merchandise.
(b)
Recorded receipt of the credit memo for merchandise returned.
(c)
Paid the amount owed.

2. If a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal are used, indicate the journal in which each of the following transactions should be recorded:

(a)
Investment of additional cash in the business by the owner.
(b)
Rendering of services for cash.
(c)
Rendering of services on account.
(d)
Receipt of cash on account from a customer.
(e)
Sale of office supplies for cash, at cost, to a neighboring business.
(f)
Adjustment to record supplies used at the end of the year.
(g)
Closing of drawing account at the end of the year.

4.?Starlight Company purchased merchandise on account from a supplier for $7,500, terms 2/10, net 30. Travis returned $1,350 of the merchandise and received full credit. Travis Company paid for the merchandise within the discount period.

Under a perpetual inventory system, record all of the journal entries required for the above transactions.

Thanks in advace! 🙂

Justin answers:

1. Lettermann Company is in the electronics industry and the price it pays for inventory is ?decreasing.

?Indicate which inventory method will:
?a.?provide the highest ending inventory – LIFO
?b.?provide the highest cost of goods sold – FIFO
?c.?result in the highest net income – LIFO
?d.?result in the lowest income tax expense – FIFO
?e.?produce the most stable earnings over several years – weighted average

?2. We have merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid freight costs of $100. Prior to payment, $1,400 of the merchandise is returned. The correct amount is paid within the discount period.

Record the foregoing transactions of the buyer in the sequence indicated below, assuming a perpetual inventory system is used.

(a)
Dr Merchandise inventory (MI) $4,800
Cr Accounts payable (AP) $4,800
Purchased the merchandise.

(b)
Dr AP $1,400
Cr MI $1,400
Recorded receipt of the credit memo for merchandise returned.

(c)
Dr AP 3,400
Cr Cash 3,353
Cr MI 47
Paid the amount owed.

2. If a two-column (all-purpose) general journal, a revenue journal, and a cash receipts journal are used, indicate the journal in which each of the following transactions should be recorded:
(a)
Investment of additional cash in the business by the owner.
Cash receipts journal
(b)
Rendering of services for cash.
Cash receipts journal
(c)
Rendering of services on account.
Revenue journal
(d)
Receipt of cash on account from a customer.
Cash receipts journal
(e)
Sale of office supplies for cash, at cost, to a neighboring business.
Cash receipts journal
(f)
Adjustment to record supplies used at the end of the year.
General journal
(g)
Closing of drawing account at the end of the year.
General journal

4.?Starlight Company purchased merchandise on account from a supplier for $7,500, terms 2/10, net 30. Travis returned $1,350 of the merchandise and received full credit. Travis Company paid for the merchandise within the discount period.

Dr MI $7,500
Cr AP $7,500
Purchased the merchandise.

Dr AP $1,350
Cr MI $1,350
Recorded receipt of the credit memo for merchandise returned.

Dr AP 6,150
Cr Cash 6,027
Cr MI 123

Paul asks…

Below are some typical transactions incurred by Kwun Company.?

Below are some typical transactions incurred by Kwun Company.
For each transaction, indicate whether it would normally be recorded in a cash receipts journal, cash payments journal, sales journal, single-column purchases journal, or general journal
Choose one per number
1. Payment of creditors on account. Cash receipts journa/lCash payments journal/General journa/lSales journal/Purchases journal
2. Return of merchandise sold for credit. Cash payments journal/Sales journal/General journal/Cash receipts journal/Purchases journal
3. Collection on account from customers. General journal/Purchases journal/Cash payments journal/Cash receipts journal/Sales journal
4. Sale of land for cash. Cash payments journal/Sales journal/Purchases journal/General journal/Cash receipts journal
5. Sale of merchandise on account. General journal/Sales journal/Purchases journal/Cash payments journal/Cash receipts journal
6. Sale of merchandise for cash. Purchases journal/Sales journal/General journal/Cash receipts journal/Cash payments journal
7. Received credit for merchandise purchased on credit. General journal/Cash payments journal/Sales journal/Purchases journal/Cash receipts journal
8. Sales discount taken on goods sold for cash. General journal/Cash payments journal/Sales journal/Cash receipts journal/Purchases journal
9. Payment of employee wages. Cash receipts journal/Sales journal/Cash payments journal/Purchases journal/General journal
10. Income summary closed to owner’s capital. Cash payments journal/Sales journal/Cash receipts journal/Purchases journal/General journal
11. Depreciation on building. Sales journal/Cash payments journal/Purchases journal/Cash receipts journal/General journal
12. Purchase of office supplies for cash. Cash payments journal/Purchases journal/Sales journal/General journal/Cash receipts journal
13. Purchase of merchandise on account. Cash payments journal/Cash receipts journal/Purchases journal/Sales journal/General journal

Justin answers:

1. Payment of creditors on account. Cash payments journal,
2. Return of merchandise sold for credit. General journal
3. Collection on account from customers. Cash receipts journal
4. Sale of land for cash. Cash receipts journal
5. Sale of merchandise on account. Sales journal
6. Sale of merchandise for cash. Cash receipts journal
7. Received credit for merchandise purchased on credit. General journal
8. Sales discount taken on goods sold for cash. Cash receipts journal
9. Payment of employee wages. Cash payments journal
10. Income summary closed to owner’s capital. General journal
11. Depreciation on building. General journal
12. Purchase of office supplies for cash. Cash payments journal
13. Purchase of merchandise on account. Purchases journal

George asks…

Help Me with my ACCOUNTING PLEASE?

You keep the accounting records for a small merchandising corporation which operates on a fiscal year that ends on December 31. Using the separate general journal form provided, journalize the selected business transactions given below. You may omit the explanations for your entries. (40 points)

2005
Dec.2Purchased $6,000 worth of merchandise on credit from Buy-Right Corp.. Their invoice #a210 includes sales terms of 1/10, n/30, FOB shipping point.

3Paid Express Shipping Company $150 for the delivery of the merchandise you purchased from Buy-Right Corp. on Dec. 2.

4Sold $10,000 worth of merchandise on credit to Best Supply Co. on Invoice #2256, terms 2/10, n/30, FOB shipping point. The merchandise cost $7,000.

5You discovered that some of the merchandise you purchased from Buy-Right Corp. on Dec. 2 was defective and had to be sent back. You returned $1,000 worth of merchandise.

14Received a check from Best Supply Co. for the merchandise you had sold to them on Dec. 4, less their applicable discount.

Justin answers:

Journal Entries:
…………………..

2005
Dec. 2 Purchased $6,000 worth of merchandise on credit from Buy-Right Corp.. Their invoice #a210 includes sales terms of 1/10, n/30, FOB shipping point.

Dr Purchases…………………………………… 6,000
Cr Accounts Payable/Sundry Creditors ………………. 6,000

3 Paid Express Shipping Company $150 for the delivery of the merchandise you purchased from Buy-Right Corp. On Dec. 2.

Dr Freight Charges …………………………. 150
Cr Cash/Bank ……………………………………………………… 150

4 Sold $10,000 worth of merchandise on credit to Best Supply Co. On Invoice #2256, terms 2/10, n/30, FOB shipping point. The merchandise cost $7,000.

Dr Accounts Receivables/Sry Debtors … 10,000
Cr Sales ………………………………. …………….. … ……..10,000

5 You discovered that some of the merchandise you purchased from Buy-Right Corp. On Dec. 2 was defective and had to be sent back. You returned $1,000 worth of merchandise.

Dr Accounts Payable/Sundry Creditors ………… 1,000
Cr Purchases Returns ………………………………………………….. 1,000

14 Received a check from Best Supply Co. For the merchandise you had sold to them on Dec. 4, less their applicable discount.

Dr Cash/Bank
Dr Discount on Sales
Cr Accounts Receivables/Sry Debtors

.

Michael asks…

I need help with these two problems if someone could help it would be greatly appreciated.?

The following information is available to reconcile Clark Company’s book balance of cash with its
bank statement cash balance as of July 31, 2005:
a. After all posting is complete on July 31, the company’s Cash account has a $26,193 debit balance,
but its July bank statement shows a $28,020 cash balance.
b. Check No. 3031 for $1,380 and Check No. 3040 for $552 were outstanding on the June 30 bank
reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is
not. Also, Check No. 3065 for $336 and Check No. 3069 for $2,148, both written in July, are not
among the canceled checks on the July 31 statement.
c. In comparing the canceled checks on the bank statement with the entries in the accounting records,
it is found that Check No. 3056 for July rent was correctly written and drawn for $1,250 but was
erroneously entered in the accounting records as $1,230.
d. A credit memorandum enclosed with the July bank statement indicates the bank collected $9,000
cash on a noninterest-bearing note for Clark, deducted a $45 collection fee, and credited the remainder
to its account. Clark had not recorded this event before receiving the statement.
e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had
been received from a customer, Jim Shaw. Clark has not yet recorded this check as NSF.
f. Enclosed with the July statement is a $15 debit memorandum for bank services. It has not yet
been recorded because no previous notification had been received.
g. Clark’s July 31 daily cash receipts of $10,152 were placed in the bank’s night depository on that
date, but do not appear on the July 31 bank statement.
Required
1. Prepare the bank reconciliation for this company as of July 31, 2005.
2. Prepare the journal entries necessary to bring the company’s book balance of cash into conformity
with the reconciled cash balance as of July 31, 2005.
Analysis Component
3. Assume that the July 31, 2005, bank reconciliation for this company is prepared and some items
are treated incorrectly. For each of the following errors, explain the effect of the error on (i) the
adjusted bank statement cash balance and (ii) the adjusted cash account book balance.
a. The company’s unadjusted cash account balance of $26,193 is listed on the reconciliation as
$26,139.
b. The bank’s collection of the $9,000 note less the $45 collection fee is added to the bank statement
cash balance on the reconciliation.

This is the final and I just need help understanding it.

Assume it is Monday, May 1, the first business day of the month, and you have just been hired
as the accountant for Colo Company, which operates with monthly accounting periods. All of the
company’s accounting work is completed through the end of April and its ledgers show April 30 balances.
During your first month on the job, the company experiences the following transactions and
events (terms for all its credit sales are 210, n30 unless stated differently):
May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, $3,710. (Use
two lines to record the transaction. Charge 80% of the rent to Rent Expense—Selling Space
and the balance to Rent Expense—Office Space.)
2 Sold merchandise on credit to Hensel Company, Invoice No. 8785, for $6,100 (cost is $4,100).
2 Issued a $175 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold
on April 28 and returned for credit. The total selling price (gross) was $4,725.
3 Received a $798 credit memorandum from Peyton Products for the return of merchandise
purchased on April 29.
4 Purchased the following on credit from Gear Supply Co.: merchandise, $37,072; store supplies,
$574; and office supplies, $83. Invoice dated May 4, terms n10 EOM.

Colo Company
excel

5 Received payment from Knox, Inc., for the balance from the April 28 sale less the May 2
return and the discount.
8 Issued Check No. 3411 to Peyton Products to pay for the $7,098 of merchandise purchased
on April 29 less the May 3 return and a 2% discount.
9 Sold store supplies to the merchant next door at their cost of $350 cash.
10 Purchased $4,074 of office equipment on credit from Gear Supply Co., invoice dated May
10, terms n10 EOM.
11 Received payment from Hensel Company for the May 2 sale less the discount.
11 Purchased $8,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 210,
n30.
12 Received an $854 credit memorandum from Gear Supply Co. for the return of defective office
equipment received on May 10.
15 Issued Check No. 3412, payable to Payroll, in payment of sales salaries, $5,320, and office
salaries, $3,150. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are $59,220 (cost is $38,200). (Cash sales are
recorded daily but are recorded only twice here to reduce repetitive entries.)
15 Post to the customer and creditor accounts. Also post individual items that
My email address is amber_d83@sbcglobal.net and again thanks.

Justin answers:

I’ve sent the Excel file to you.

David asks…

Accounting: In which journal we would normally record following?

A – General journal,
B – Purchases journal
C – Sales j.,
D – Cash payment,
E – Cash receipts,

1. Payments of creditors on account
2. Return of merchandise soled on credit
3. Collection on account sold from costumers
4. Sale of land for cash
5. Sale of merchandise on account
6. Sale of merchandise for cash
7. Received credit for merchandise purchased on credit
8. Sales discount taken on goods sold
9. Payment of employee wages
10. Income summary closed to owners capital
11. Depreciation on building
12. Purchase of office supplies for cash
13. Purchase of merchandise on account

Justin answers:

1. Payments of creditors on account
D – Cash payment
2. Return of merchandise soled on credit
A – General journal,
3. Collection on account sold from costumers
E – Cash receipts
4. Sale of land for cash
E – Cash receipts
5. Sale of merchandise on account
C – Sales j.,
6. Sale of merchandise for cash
E – Cash receipts
7. Received credit for merchandise purchased on credit
A – General journal,
8. Sales discount taken on goods sold
A – General journal,
9. Payment of employee wages
D – Cash payment,
10. Income summary closed to owners capital
A – General journal
11. Depreciation on building
A – General journal
12. Purchase of office supplies for cash
D – Cash payment
13. Purchase of merchandise on account
B – Purchases journal

Chris asks…

Accounting question/help! :o?

I need help sorting these transactions into either
general journal
purchase journal and cash payment journal

Nov. 1.Wrote Check No. 363 for the monthly rent of $1,300.00.

2.Bought $120.00 worth of store supplies on account from Meda Store Supplies, recorded on Memo 43, with 2/10, n/30 payment terms.

3.Received an invoice, stamped Purchase Invoice 84, for merchandise on account from Central Fitness for $2,150.00, less a 60% trade discount.

4.Paid $150.00 to Pitman Industries with Check No. 364 for merchandise.

6.Wrote Check No. 365 for $1,020.00 to Pacer Equipment for Purchase Invoice 82’s payment on account.

8.Returned $260.00 of the merchandise purchased on Purchase Invoice 84 to Central Fitness, recorded on Debit Memorandum 54.

9.Purchased $2,900.00 of merchandise on account from Trackmaster on Purchase Invoice 85, with 2/10, n/30 payment terms.

10.Paid $52.00 to myOffice for office supplies with Check No. 366.

11.Paid the balance of Purchase Invoice 84 less Debit Memorandum 54, to Central Fitness with Check No. 367, taking advantage of the 2/10, n/30 payment terms.

12.Wrote Check No. 368 for $290.00 to pay the monthly insurance premium.

16.Paid Trackmaster the amount owed on Purchase Invoice 85, writing Check No. 369.

29.Paid Meda Store Supplies for the Nov. 2 purchase of store supplies with Check No. 370.

30.Replenished the petty cash fund by writing Check No. 371 to the custodian for $207.00. Receipts were submitted for the following: office supplies, $48.00; store supplies, $24.00; advertising, $68.00; and miscellaneous, $66.00.

and can someone help give a good definition of what transactions go into the general journa/ cash payments journal? still get confused sometimes
thanks 😀

Justin answers:

You just need to see what is the originating transaction. If it says a cheque is issued and gives you the cheque no., then it’s the Cash payments journal. If a purchase of trading inventory is made on account, it’s the Purchases journal. If a sale is made on account, it’s the Sales journal. If cash is received, it’s the cash receipts journal. Other than these 4, it usually goes to the General journal

Nov. 1. Wrote Check No. 363 for the monthly rent of $1,300.00.
Cash Payments Journal (CPJ)

2. Bought $120.00 worth of store supplies on account from Meda Store Supplies, recorded on Memo 43, with 2/10, n/30 payment terms.
General Journal (GJ)

3. Received an invoice, stamped Purchase Invoice 84, for merchandise on account from Central Fitness for $2,150.00, less a 60% trade discount.
PJ

4. Paid $150.00 to Pitman Industries with Check No. 364 for merchandise.
CPJ

6. Wrote Check No. 365 for $1,020.00 to Pacer Equipment for Purchase Invoice 82’s payment on account.
CPJ

8. Returned $260.00 of the merchandise purchased on Purchase Invoice 84 to Central Fitness, recorded on Debit Memorandum 54.
PJ

9. Purchased $2,900.00 of merchandise on account from Trackmaster on Purchase Invoice 85, with 2/10, n/30 payment terms.
PJ

10. Paid $52.00 to myOffice for office supplies with Check No. 366.
CPJ

11. Paid the balance of Purchase Invoice 84 less Debit Memorandum 54, to Central Fitness with Check No. 367, taking advantage of the 2/10, n/30 payment terms.
CPJ

12. Wrote Check No. 368 for $290.00 to pay the monthly insurance premium.
CPJ

16. Paid Trackmaster the amount owed on Purchase Invoice 85, writing Check No. 369.
CPJ

29. Paid Meda Store Supplies for the Nov. 2 purchase of store supplies with Check No. 370.
CPJ

30. Replenished the petty cash fund by writing Check No. 371 to the custodian for $207.00. Receipts were submitted for the following: office supplies, $48.00; store supplies, $24.00; advertising, $68.00; and miscellaneous, $66.00.
CPJ

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