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.

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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Question

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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