Record the following transactions on page 20 of the journal. 1 Paid rent for May, $5,000.   3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.   4 Paid freight on purchase of May 3, $600.   6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000. 7 Received $22,300 cash from Halstad Co. on account.   10 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.   13 Paid for merchandise purchased on May 3.   15 Paid advertising expense for last half of May, $11,000.   16 Received cash from sale of May 6. 19 Purchased merchandise for cash, $18,700.   19 Paid $33,450 to Buttons Co. on account.   20 Paid Korman Co. a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise. Record the following transactions on page 21 of the journal. 20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000.   21 For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.   21 Received $42,900 cash from Gee Co. on account.   21 Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.   24 Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000. 26 Refunded cash on sales made for cash, $800. The defective merchandise was not returned by the customer.   28 Paid sales salaries of $56,000 and office salaries of $29,000.   29 Purchased store supplies for cash, $2,400.   30 Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000. 30 Received cash from sale of May 20 plus freight paid on May 21.   31 Paid for purchase of May 21, less return of May 24. 1. B. Journalize the transactions for May, starting on Page 20 of the journal.* 2. Add the appropriate posting reference to the journal. 6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.* 6. B. Add the appropriate posting reference to the journal.   *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

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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CHART OF ACCOUNTS
Palisade Creek Co.
General Ledger
ASSETS
110 Cash
112 Accounts Receivable
115 Merchandise Inventory
117 Prepaid Insurance
118 Store Supplies
123 Store Equipment
124 Accumulated Depreciation-Store Equipment
REVENUE
410 Sales
LIABILITIES
210 Accounts Payable
211 Customer Refunds Payable
212 Salaries Payable

EQUITY

310Lynn Tolley, Capital

311Lynn Tolley, Drawing

EXPENSES
510 Cost of Merchandise Sold
520 Sales Salaries Expense
521 Advertising Expense
522 Depreciation Expense
523 Store Supplies Expense
529 Miscellaneous Selling Expense
530 Office Salaries Expense
531 Rent Expense
532 Insurance Expense
539 Miscellaneous Administrative Expense
1. B. Journalize the transactions for May, starting on Page 20 of the journal.*
2. Add the appropriate posting reference to the journal.
6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.*
6. B. Add the appropriate posting reference to the journal.
  *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
110 Cash $83,600
112 Accounts Receivable 233,900
115 Merchandise Inventory 652,400
117 Prepaid Insurance 16,800
118 Store Supplies 11,400
123 Store Equipment 569,500
124 Accumulated Depreciation-Store Equipment 56,700
210 Accounts Payable 96,600
211 Customer Refunds Payable 50,000
212 Salaries Payable
310 Lynn Tolley, Capital, June 1, 20Y6 685,300
311 Lynn Tolley, Drawing 135,000
410 Sales

5,069,000

510 Cost of Merchandise Sold 2,823,000
520 Sales Salaries Expense 664,800
521 Advertising Expense 281,000
522 Depreciation Expense
523 Store Supplies Expense
529 Miscellaneous Selling Expense 12,600
530 Office Salaries Expense 382,100
531 Rent Expense 83,700
532 Insurance Expense
539 Miscellaneous Administrative Expense 7,800
During May, the last month of the fiscal year, the following transactions were completed:
Record the following transactions on page 20 of the journal.
1 Paid rent for May, $5,000.
  3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.
  4 Paid freight on purchase of May 3, $600.
  6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.
7 Received $22,300 cash from Halstad Co. on account.
  10 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.
  13 Paid for merchandise purchased on May 3.
  15 Paid advertising expense for last half of May, $11,000.
  16 Received cash from sale of May 6.
19 Purchased merchandise for cash, $18,700.
  19 Paid $33,450 to Buttons Co. on account.
  20 Paid Korman Co. a cash refund of $5,000 for damaged merchandise from sale of May 6. Korman Co. kept the merchandise.

Record the following transactions on page 21 of the journal.

20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,000. The cost of the merchandise sold was $70,000.
  21 For the convenience of Crescent Co., paid freight on sale of May 20, $2,300.
  21 Received $42,900 cash from Gee Co. on account.
  21 Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.
  24 Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.
26 Refunded cash on sales made for cash, $800. The defective merchandise was not returned by the customer.
  28 Paid sales salaries of $56,000 and office salaries of $29,000.
  29 Purchased store supplies for cash, $2,400.
  30 Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000.
30 Received cash from sale of May 20 plus freight paid on May 21.
  31 Paid for purchase of May 21, less return of May 24.
1. B. Journalize the transactions for May, starting on Page 20 of the journal.*
2. Add the appropriate posting reference to the journal.
6. A. Journalize the adjusting entries. Record the adjusting entries on Page 22 of the journal.*
6. B. Add the appropriate posting reference to the journal.
  *Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
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