Issued Check Number 3410 to S&P Management Company in payment of the May rent for $3,850. Charge $2,996 to Rent Expense—Selling Space, and charge $854 to Rent Expense—Office Space. (Use two lines to record the transaction.) May 2 (a) Sold merchandise on credit to Hensel Company, Invoice Number 8785, for $7,500 (cost is $5,500). May 2 (b) Issued an allowance (price reduction) of $245 to Knox Company for merchandise sold on April 28. The total selling price (gross) was $4,795. May 3 Issued a refund of $826 to Peyton Products for the return of merchandise purchased on April 29. Colo's accounts payable was reduced by that amount. May 4 Purchased the following on credit from Gear Supply Company: merchandise, $37,100; store supplies, $602; and office supplies, $97. Invoice dated May 4, terms n/30. May 5 Received payment from Knox Company for the balance from the April 28 ($4,550) sale less the May 2 return and the $91 discount. May 8 Issued Check Number 3411 to Peyton Products to pay for the $7,168 of merchandise purchased on April 29 less the May 3 return and the $154 discount. May 9 Sold store supplies (noninventory) to the business next door at their cost of $392 cash. Hint: Enter “Store Supplies” only in the Account Credited column. May 10 Purchased $4,158 of office equipment on credit from Gear Supply Company, terms n/30. May 11 (a) Received payment from Hensel Company for the May 2 sale less the discount of $150. May 11 (b) Purchased $10,200 of merchandise from Garcia, Incorporated, terms 2/10, n/30. May 12 Received a(n) $938 price reduction from Gear Supply Company for the return of office equipment received on May 10. Colo debited accounts payable by that amount. May 15 (a) Issued Check Number 3412, payable to Payroll, in payment of sales salaries, $5,460, and office salaries, $3,290. May 15 (b) Cash sales for the first half of the month are $59,500 (cost is $38,480). These cash sales are recorded in the cash receipts journal on May 15. May 15 (c) Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. May 16 Sold merchandise on credit to Hensel Company, Invoice Number 8786, for $4,130 (cost is $2,030). May 17 Purchased $13,790 of merchandise from Fink Corporation, terms 2/10, n/60. May 19 Issued Check Number 3413 to Garcia, Incorporated, in payment of its May 11 purchase less the discount of $246. May 22 Sold merchandise to Lee Services, Invoice Number 8787, for $6,990 (cost is $5,130), terms 2/10, n/60. May 23 Issued Check Number 3414 to Fink Corporation in payment of its May 17 purchase less the discount of $301. May 24 Purchased the following on credit from Gear Supply Company: merchandise, $8,400; store supplies, $770; and office supplies, $560. Terms n/30. May 25 Purchased $3,360 of merchandise from Peyton Products, terms 2/10, n/30. May 26 (a) Sold merchandise on credit to Crane Corporation, Invoice Number 8788, for $14,350 (cost is $8,510). May 26 (b) Issued Check Number 3415 to Perennial Power in payment of the May electric bill, $1,311. May 29 The owner of Colo Company, Jenny Colo, used Check Number 3416 to withdraw $7,000 cash from the business for personal use. May 30 (a) Received payment from Lee Services for the May 22 sale less the discount of $151. May 30 (b) Issued Check Number 3417, payable to Payroll, in payment of sales salaries, $5,460, and office salaries, $3,290. May 31 (a) Cash sales for the last half of the month are $66,164 (cost is $42,570). These cash sales are recorded in the cash receipts journal on May 31. May 31 (b) Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. Foot and crossfoot the journals and make the month-end postings. Required: 1-a. Enter the transactions in a sales journal. 1-b. Enter the transactions in a purchases journal. 1-c. Enter the transactions in a cash receipts journal. 1-d. Enter the transactions in a cash payments journal. 1-e. Enter the transactions in a general journal. Assume a perpetual inventory system.

Issued Check Number 3410 to S&P Management Company in payment of the May rent for $3,850. Charge $2,996 to Rent Expense—Selling Space, and charge $854 to Rent Expense—Office Space. (Use two lines to record the transaction.) May 2 (a) Sold merchandise on credit to Hensel Company, Invoice Number 8785, for $7,500 (cost is $5,500). May 2 (b) Issued an allowance (price reduction) of $245 to Knox Company for merchandise sold on April 28. The total selling price (gross) was $4,795. May 3 Issued a refund of $826 to Peyton Products for the return of merchandise purchased on April 29. Colo's accounts payable was reduced by that amount. May 4 Purchased the following on credit from Gear Supply Company: merchandise, $37,100; store supplies, $602; and office supplies, $97. Invoice dated May 4, terms n/30. May 5 Received payment from Knox Company for the balance from the April 28 ($4,550) sale less the May 2 return and the $91 discount. May 8 Issued Check Number 3411 to Peyton Products to pay for the $7,168 of merchandise purchased on April 29 less the May 3 return and the $154 discount. May 9 Sold store supplies (noninventory) to the business next door at their cost of $392 cash. Hint: Enter “Store Supplies” only in the Account Credited column. May 10 Purchased $4,158 of office equipment on credit from Gear Supply Company, terms n/30. May 11 (a) Received payment from Hensel Company for the May 2 sale less the discount of $150. May 11 (b) Purchased $10,200 of merchandise from Garcia, Incorporated, terms 2/10, n/30. May 12 Received a(n) $938 price reduction from Gear Supply Company for the return of office equipment received on May 10. Colo debited accounts payable by that amount. May 15 (a) Issued Check Number 3412, payable to Payroll, in payment of sales salaries, $5,460, and office salaries, $3,290. May 15 (b) Cash sales for the first half of the month are $59,500 (cost is $38,480). These cash sales are recorded in the cash receipts journal on May 15. May 15 (c) Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. May 16 Sold merchandise on credit to Hensel Company, Invoice Number 8786, for $4,130 (cost is $2,030). May 17 Purchased $13,790 of merchandise from Fink Corporation, terms 2/10, n/60. May 19 Issued Check Number 3413 to Garcia, Incorporated, in payment of its May 11 purchase less the discount of $246. May 22 Sold merchandise to Lee Services, Invoice Number 8787, for $6,990 (cost is $5,130), terms 2/10, n/60. May 23 Issued Check Number 3414 to Fink Corporation in payment of its May 17 purchase less the discount of $301. May 24 Purchased the following on credit from Gear Supply Company: merchandise, $8,400; store supplies, $770; and office supplies, $560. Terms n/30. May 25 Purchased $3,360 of merchandise from Peyton Products, terms 2/10, n/30. May 26 (a) Sold merchandise on credit to Crane Corporation, Invoice Number 8788, for $14,350 (cost is $8,510). May 26 (b) Issued Check Number 3415 to Perennial Power in payment of the May electric bill, $1,311. May 29 The owner of Colo Company, Jenny Colo, used Check Number 3416 to withdraw $7,000 cash from the business for personal use. May 30 (a) Received payment from Lee Services for the May 22 sale less the discount of $151. May 30 (b) Issued Check Number 3417, payable to Payroll, in payment of sales salaries, $5,460, and office salaries, $3,290. May 31 (a) Cash sales for the last half of the month are $66,164 (cost is $42,570). These cash sales are recorded in the cash receipts journal on May 31. May 31 (b) Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. Foot and crossfoot the journals and make the month-end postings. Required: 1-a. Enter the transactions in a sales journal. 1-b. Enter the transactions in a purchases journal. 1-c. Enter the transactions in a cash receipts journal. 1-d. Enter the transactions in a cash payments journal. 1-e. Enter the transactions in a general journal. Assume a perpetual inventory system.

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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May 1	Issued Check Number 3410 to S&P Management Company in payment of the May rent for $3,850. Charge $2,996 to Rent Expense—Selling Space, and charge $854 to Rent Expense—Office Space. (Use two lines to record the transaction.)
May 2 (a)	Sold merchandise on credit to Hensel Company, Invoice Number 8785, for $7,500 (cost is $5,500).
May 2 (b)	Issued an allowance (price reduction) of $245 to Knox Company for merchandise sold on April 28. The total selling price (gross) was $4,795.
May 3	Issued a refund of $826 to Peyton Products for the return of merchandise purchased on April 29. Colo's accounts payable was reduced by that amount.
May 4	Purchased the following on credit from Gear Supply Company: merchandise, $37,100; store supplies, $602; and office supplies, $97. Invoice dated May 4, terms n/30.
May 5	Received payment from Knox Company for the balance from the April 28 ($4,550) sale less the May 2 return and the $91 discount.
May 8	Issued Check Number 3411 to Peyton Products to pay for the $7,168 of merchandise purchased on April 29 less the May 3 return and the $154 discount.
May 9	Sold store supplies (noninventory) to the business next door at their cost of $392 cash. Hint: Enter “Store Supplies” only in the Account Credited column.
May 10	Purchased $4,158 of office equipment on credit from Gear Supply Company, terms n/30.
May 11 (a)	Received payment from Hensel Company for the May 2 sale less the discount of $150.
May 11 (b)	Purchased $10,200 of merchandise from Garcia, Incorporated, terms 2/10, n/30.
May 12	Received a(n) $938 price reduction from Gear Supply Company for the return of office equipment received on May 10. Colo debited accounts payable by that amount.
May 15 (a)	Issued Check Number 3412, payable to Payroll, in payment of sales salaries, $5,460, and office salaries, $3,290.
May 15 (b)	Cash sales for the first half of the month are $59,500 (cost is $38,480). These cash sales are recorded in the cash receipts journal on May 15.
May 15 (c)	Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts.
May 16	Sold merchandise on credit to Hensel Company, Invoice Number 8786, for $4,130 (cost is $2,030).
May 17	Purchased $13,790 of merchandise from Fink Corporation, terms 2/10, n/60.
May 19	Issued Check Number 3413 to Garcia, Incorporated, in payment of its May 11 purchase less the discount of $246.
May 22	Sold merchandise to Lee Services, Invoice Number 8787, for $6,990 (cost is $5,130), terms 2/10, n/60.
May 23	Issued Check Number 3414 to Fink Corporation in payment of its May 17 purchase less the discount of $301.
May 24	Purchased the following on credit from Gear Supply Company: merchandise, $8,400; store supplies, $770; and office supplies, $560. Terms n/30.
May 25	Purchased $3,360 of merchandise from Peyton Products, terms 2/10, n/30.
May 26 (a)	Sold merchandise on credit to Crane Corporation, Invoice Number 8788, for $14,350 (cost is $8,510).
May 26 (b)	Issued Check Number 3415 to Perennial Power in payment of the May electric bill, $1,311.
May 29	The owner of Colo Company, Jenny Colo, used Check Number 3416 to withdraw $7,000 cash from the business for personal use.
May 30 (a)	Received payment from Lee Services for the May 22 sale less the discount of $151.
May 30 (b)	Issued Check Number 3417, payable to Payroll, in payment of sales salaries, $5,460, and office salaries, $3,290.
May 31 (a)	Cash sales for the last half of the month are $66,164 (cost is $42,570). These cash sales are recorded in the cash receipts journal on May 31.
May 31 (b)	Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. Foot and crossfoot the journals and make the month-end postings.

Required:
1-a. Enter the transactions in a sales journal.
1-b. Enter the transactions in a purchases journal.
1-c. Enter the transactions in a cash receipts journal.
1-d. Enter the transactions in a cash payments journal.
1-e. Enter the transactions in a general journal.
Assume a perpetual inventory system.

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