Harry O'Brien operates Leather Warehouse, a leather shop that sells luggage, handbags, business cases, i other leather goods. During the month of May, the following transactions took place. The applicable sales tax rate is 6%. May 2 Sold merchandise on account to James Koffsky, $250.00, plus sales tax. 9 Sold merchandise on account to Kevin Nolon, $470.00, plus sales tax 12 James Koffsky returned $40.00 worth of merchandise purchased on May 2 for credit. 18 Sold merchandise on account to Joyce McKay, $110.00, plus sales tax 19 Sold merchandise on account to Tim Carney. $165.00, plus sales tax. 22 Received payment from James Koffsky on account. 26 Joyce McK ay was given an allowance of $30.00 when she reported damage in the merchandise purchased May 18 28 Sold merchandise on account to James Koffsky, $500.00, plus sales tax 29 Sold merchandise on account to Kevin Nolon, $230.00, plus sales tax. 31 Received payment from Joyce McKay on account. 31 Cash sales for the month were $2,600, plus sales tax
Harry O'Brien operates Leather Warehouse, a leather shop that sells luggage, handbags, business cases, i other leather goods. During the month of May, the following transactions took place. The applicable sales tax rate is 6%. May 2 Sold merchandise on account to James Koffsky, $250.00, plus sales tax. 9 Sold merchandise on account to Kevin Nolon, $470.00, plus sales tax 12 James Koffsky returned $40.00 worth of merchandise purchased on May 2 for credit. 18 Sold merchandise on account to Joyce McKay, $110.00, plus sales tax 19 Sold merchandise on account to Tim Carney. $165.00, plus sales tax. 22 Received payment from James Koffsky on account. 26 Joyce McK ay was given an allowance of $30.00 when she reported damage in the merchandise purchased May 18 28 Sold merchandise on account to James Koffsky, $500.00, plus sales tax 29 Sold merchandise on account to Kevin Nolon, $230.00, plus sales tax. 31 Received payment from Joyce McKay on account. 31 Cash sales for the month were $2,600, plus sales tax
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Harry O'Brien operates Leather Warehouse, a leather shop that sells luggage, handbags, business cases, i other leather goods. During the month of May, the following transactions took place. The applicable sales tax rate is 6%. May 2 Sold merchandise on account to James Koffsky, $250.00, plus sales tax. 9 Sold merchandise on account to Kevin Nolon, $470.00, plus sales tax 12 James Koffsky returned $40.00 worth of merchandise purchased on May 2 for credit. 18 Sold merchandise on account to Joyce McKay, $110.00, plus sales tax 19 Sold merchandise on account to Tim Carney. $165.00, plus sales tax. 22 Received payment from James Koffsky on account. 26 Joyce McK ay was given an allowance of $30.00 when she reported damage in the merchandise purchased May 18 28 Sold merchandise on account to James Koffsky, $500.00, plus sales tax 29 Sold merchandise on account to Kevin Nolon, $230.00, plus sales tax. 31 Received payment from Joyce McKay on account. 31 Cash sales for the month were $2,600, plus sales tax
Transcribed Image Text:2 (i). Journalize the above transactions. If an amount box does not require an entry, leave it
blank. If required, round answers to the nearest cent.
Page: 3
POST.
DATE
DESCRIPTIOON
DEBIT CREDIT
REF.
1 May 12
401.1
231
3
122/V
3
4 May 26
401.1
4
231
122/v
6.
2 (ii). Post the entries from the journals to the subsidiary ledgers provided. If an amount
box does not require an entry, leave it blank. If required, round answers to the nearest cent.
Enter transactions in chronological order. If your answer is zero, enter "0".
GENERAL LEDGER
ACCOUNT
ACCOUNT
Cash
101
NO.
BALANCE
POST.
DATE
ITEM
DEBIT
CREDIT
DEBIT
CREDIT
REF.
CR8
ACCOUNT
Accounts Receivable
ACCOUNT
122
NO.
BALANCE
POST.
DATE
ITEM
DEBIT
CREDIT
DEBIT
REF.
CREDIT
Previous
Transcribed Image Text:ACCOUNT
122
ACCOUNT
Accounts Receivable
NO.
BALANCE
POST.
CREDIT
DEBIT
CREDIT
DATE
ITEM
DEBIT
REF.
J3
J3
S6
CR8
ACCOUNT
ACCOUNT
Sales Tax Payable
231
NO.
BALANCE
POST.
DATE
ITEM
DEBIT
CREDIT
DEBIT
CREDIT
REF.
13
J3
S6
CR8
ACCOUNT
Sales
ACCOUNT
401
NO.
BALANCE
POST.
DATE
ITEM
DEBIT
CREDIT
REF.
DEBIT
CREDIT
S6
CR8
(Previous
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