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E7-4 Presented below are three independent situations: 1. On March 15, 44 customers used debit cards to purchase merchandise for a total of $5,814 from Hockey Town. Hockey Town pays a $0.25 debit card fee for each transaction. 2. On June 21, Circle Creations Gallery sells a painting to Constance Furrow for $2,400. Constance uses her Visa bank credit card to pay for the purchase. The bank charges Circle Creations a 2.75% fee for all credit card transactions. On July 17, Constance receives her Visa bill and pays for this purchase. 3. On October 7, A. Ramos uses his store credit card to purchase merchandise from The Bay for $595. On November 10, Ramos receives his credit card bill from The Bay and pays for this purchase. Instructions (a) Prepare Hockey Town's journal entries for the transactions in part (1). (b) Prepare Circle Creations' journal entries for the transactions in part (2). (c) Prepare The Bay's journal entries for the transactions in part (3).

E7-4 Presented below are three independent situations: 1. On March 15, 44 customers used debit cards to purchase merchandise for a total of $5,814 from Hockey Town. Hockey Town pays a $0.25 debit card fee for each transaction. 2. On June 21, Circle Creations Gallery sells a painting to Constance Furrow for $2,400. Constance uses her Visa bank credit card to pay for the purchase. The bank charges Circle Creations a 2.75% fee for all credit card transactions. On July 17, Constance receives her Visa bill and pays for this purchase. 3. On October 7, A. Ramos uses his store credit card to purchase merchandise from The Bay for $595. On November 10, Ramos receives his credit card bill from The Bay and pays for this purchase. Instructions (a) Prepare Hockey Town's journal entries for the transactions in part (1). (b) Prepare Circle Creations' journal entries for the transactions in part (2). (c) Prepare The Bay's journal entries for the transactions in part (3).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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E7-4 Presented below are three independent situations: 1. On March 15, 44 customers used debit cards to purchase merchandise for a total of $5,814 from Hockey Town. Hockey Town pays a $0.25 debit card fee for each transaction. 2. On June 21, Circle Creations Gallery sells a painting to Constance Furrow for $2,400. Constance uses her Visa bank credit card to pay for the purchase. The bank charges Circle Creations a 2.75% fee for all credit card transactions. On July 17, Constance receives her Visa bill and pays for this purchase. 3. On October 7, A. Ramos uses his store credit card to purchase merchandise from The Bay for $595. On November 10, Ramos receives his credit card bill from The Bay and pays for this purchase. Instructions (a) Prepare Hockey Town's journal entries for the transactions in part (1). (b) Prepare Circle Creations' journal entries for the transactions in part (2). (c) Prepare The Bay's journal entries for the transactions in part (3).
Transcribed Image Text:E7-4 Presented below are three independent situations: 1. On March 15, 44 customers used debit cards to purchase merchandise for a total of $5,814 from Hockey Town. Hockey Town pays a $0.25 debit card fee for each transaction. 2. On June 21, Circle Creations Gallery sells a painting to Constance Furrow for $2,400. Constance uses her Visa bank credit card to pay for the purchase. The bank charges Circle Creations a 2.75% fee for all credit card transactions. On July 17, Constance receives her Visa bill and pays for this purchase. 3. On October 7, A. Ramos uses his store credit card to purchase merchandise from The Bay for $595. On November 10, Ramos receives his credit card bill from The Bay and pays for this purchase. Instructions (a) Prepare Hockey Town's journal entries for the transactions in part (1). (b) Prepare Circle Creations' journal entries for the transactions in part (2). (c) Prepare The Bay's journal entries for the transactions in part (3).
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