Abercrombie Company uses four special journals: Purchases, Sales, Cash Receipts, and Cash Disbursements. The following transactions were incurred during August:
Abercrombie Company uses four special journals: Purchases, Sales, Cash Receipts, and Cash Disbursements. The following transactions were incurred during August:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Could you show me how to solve this please. I'm still new with all this accounting stuff.
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Abercrombie Company uses four special journals: Purchases, Sales, Cash Receipts, and Cash Disbursements. The following
transactions were incurred during August:
Aug. 1 Purchased merchandise from Able Co. for $2,000, terms 2/10, n/30.
3 Purchased merchandise from Baker Co. for $1,000, terms 1/15, n/30.
4 Sold merchandise on credit to Coe Co. for $4,000, terms 2/10, n/30,
Invoice No. 245.
8 Purchased office supplies on credit from Echo Co. for $300, terms n/30.
9 Returned merchandise costing $200 to Able Co. from August 1 purchase.
11 Paid Able Co. for the August 1 purchase, Cheque No. 758,
13 Received payment from Coe Co. for August 4 sale.
15 Paid rent expense $1,500, Cheque No. 759.
18 Received $2,300 for a $2,000 note receivable from Fox Corp.
20 Made payment in full to Baker Co. for the August 3 purchase, Cheque No.
760.
28 Recorded cash sales for the month $9,000.
29 Paid monthly telephone bill $250, Cheque No. 761.
Record the above transactions in the appropriate journals. Ignore transactions that should not be posted to the journals provided.
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