Princess Corp. uses a Sales Journal, Purchases Journal, Cash Receipts Journal, Cash Disbursements Journal, and General Journal. The following transactions were completed by the Princess Corp. during the month of October: Oct. 3 Oct. 6 Sold merchandise for $5,500 to the South Corp. on credit, Invoice No. 1122. Sold a piece of land for $16,400 cash. The land was originally Oct. 11 Oct. 15 Oct. 21 Oct. 24 Oct. 31 purchased for $12,600. Purchased supplies for $420 cash. Issued a credit memo for $550 to West Corp. for returned merchandise. The merchandise cost $100 and was returned to inventory. Returned $330 of merchandise purchased from Min Corp. for credit on account. Paid monthly salaries of $5,400. Recorded depreciation on equipment of $1,200. Required: (a) Record the appropriate transactions in the General Journal. (b) For the transactions not recorded in the General Journal, indicate the correct journal of original entry.
Princess Corp. uses a Sales Journal, Purchases Journal, Cash Receipts Journal, Cash Disbursements Journal, and General Journal. The following transactions were completed by the Princess Corp. during the month of October: Oct. 3 Oct. 6 Sold merchandise for $5,500 to the South Corp. on credit, Invoice No. 1122. Sold a piece of land for $16,400 cash. The land was originally Oct. 11 Oct. 15 Oct. 21 Oct. 24 Oct. 31 purchased for $12,600. Purchased supplies for $420 cash. Issued a credit memo for $550 to West Corp. for returned merchandise. The merchandise cost $100 and was returned to inventory. Returned $330 of merchandise purchased from Min Corp. for credit on account. Paid monthly salaries of $5,400. Recorded depreciation on equipment of $1,200. Required: (a) Record the appropriate transactions in the General Journal. (b) For the transactions not recorded in the General Journal, indicate the correct journal of original entry.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Princess Corp. uses a Sales Journal, Purchases Journal, Cash Receipts Journal, Cash Disbursements Journal, and General Journal.
The following transactions were completed by the Princess Corp. during the month of October:
Oct. 3
Oct. 6
Sold merchandise for $5,500 to the South Corp. on credit, Invoice No. 1122.
Sold a piece of land for $16,400 cash. The land was originally
Oct. 11
Oct. 15
Oct. 21
Oct. 24
Oct. 31
purchased for $12,600.
Purchased supplies for $420 cash.
Issued a credit memo for $550 to West Corp. for returned merchandise.
The merchandise cost $100 and was returned to inventory.
Returned $330 of merchandise purchased from Min Corp. for credit on account.
Paid monthly salaries of $5,400.
Recorded depreciation on equipment of $1,200.
Required:
(a) Record the appropriate transactions in the General Journal.
(b) For the transactions not recorded in the General Journal, indicate the correct journal of original entry.
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