Li Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal and general journal. Prepare a cash receipts journal like the one in Exhibit 7.7. Journalize the following transactions that should be recorded in the cash receipts journal. May 1. C. Li the owner, contributed $9000 cash to the company. May 7. The company purchased $5000 of merchandise on credit from Gomez, n/30 May 9. The company sold merchandise costing $400 to E. James for $500 on credit, terms n/10 May 15. The company borrowed $1000 cash by signing a note payable to the bank. May 18. The company received $500 cash from E. James in payment of the May 9 purchase. May 24. The company sold merchandise costing $150 to B. Cox for $200 cash
Li Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal and general journal. Prepare a cash receipts journal like the one in Exhibit 7.7. Journalize the following transactions that should be recorded in the cash receipts journal.
May 1. C. Li the owner, contributed $9000 cash to the company.
May 7. The company purchased $5000 of merchandise on credit from Gomez, n/30
May 9. The company sold merchandise costing $400 to E. James for $500 on credit, terms n/10
May 15. The company borrowed $1000 cash by signing a note payable to the bank.
May 18. The company received $500 cash from E. James in payment of the May 9 purchase.
May 24. The company sold merchandise costing $150 to B. Cox for $200 cash
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