Sandhill Company’s chart of accounts includes the following selected accounts. 101 Cash 201 Accounts Payable 120 Inventory 306 Owner’s Drawings 130 Prepaid Insurance 505 Cost of Goods Sold 157 Equipment On October 1, the accounts payable ledger of Sandhill Company showed the following balances: Uggla Company $2,800, Orr Co. $2,480, Rosenthal Co. $1,720, and Clevenger Company $3,650. The October transactions involving the payment of cash were as follows. Oct. 1 Purchased merchandise, check no. 63, $340. 3 Purchased equipment, check no. 64, $840. 5 Paid Uggla Company balance due of $2,800, less 2% discount, check no. 65, $2,744.00. 10 Purchased merchandise, check no. 66, $2,210. 15 Paid Rosenthal Co. balance due of $1,720, check no. 67. 16 C. Sandhill, the owner, pays his personal insurance premium of $360, check no. 68. 19 Paid Orr Co. in full for invoice no. 610, $2,250 less 2% cash discount, check no. 69, $2,205.00. 29 Paid Clevenger Company in full for invoice no. 264, $2,450, check no. 70.
Sandhill Company’s chart of accounts includes the following selected accounts. 101 Cash 201 Accounts Payable 120 Inventory 306 Owner’s Drawings 130 Prepaid Insurance 505 Cost of Goods Sold 157 Equipment On October 1, the accounts payable ledger of Sandhill Company showed the following balances: Uggla Company $2,800, Orr Co. $2,480, Rosenthal Co. $1,720, and Clevenger Company $3,650. The October transactions involving the payment of cash were as follows. Oct. 1 Purchased merchandise, check no. 63, $340. 3 Purchased equipment, check no. 64, $840. 5 Paid Uggla Company balance due of $2,800, less 2% discount, check no. 65, $2,744.00. 10 Purchased merchandise, check no. 66, $2,210. 15 Paid Rosenthal Co. balance due of $1,720, check no. 67. 16 C. Sandhill, the owner, pays his personal insurance premium of $360, check no. 68. 19 Paid Orr Co. in full for invoice no. 610, $2,250 less 2% cash discount, check no. 69, $2,205.00. 29 Paid Clevenger Company in full for invoice no. 264, $2,450, check no. 70.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sandhill Company’s chart of accounts includes the following selected accounts.
| 101 | Cash | 201 | Accounts Payable | |||
|---|---|---|---|---|---|---|
| 120 | Inventory | 306 | Owner’s Drawings | |||
| 130 | Prepaid Insurance | 505 | Cost of Goods Sold | |||
| 157 | Equipment |
On October 1, the accounts payable ledger of Sandhill Company showed the following balances: Uggla Company $2,800, Orr Co. $2,480, Rosenthal Co. $1,720, and Clevenger Company $3,650. The October transactions involving the payment of cash were as follows.
| Oct. 1 | Purchased merchandise, check no. 63, $340. | |
|---|---|---|
| 3 | Purchased equipment, check no. 64, $840. | |
| 5 | Paid Uggla Company balance due of $2,800, less 2% discount, check no. 65, $2,744.00. | |
| 10 | Purchased merchandise, check no. 66, $2,210. | |
| 15 | Paid Rosenthal Co. balance due of $1,720, check no. 67. | |
| 16 | C. Sandhill, the owner, pays his personal insurance premium of $360, check no. 68. | |
| 19 | Paid Orr Co. in full for invoice no. 610, $2,250 less 2% cash discount, check no. 69, $2,205.00. | |
| 29 | Paid Clevenger Company in full for invoice no. 264, $2,450, check no. 70. |
Transcribed Image Text:CP1
Inventory Cr.
Cash Cr.
(120)
(101)
Transcribed Image Text:Journalize the transactions above in a four-column cash payments journal with columns for Other Accounts Dr., Accounts
Payable Dr., Inventory Cr., and Cash Cr. Foot and cross-foot the journal. (Record entries in the order displayed in the problem
statement. Round answers to O decimal places, eg. 5,275.)
Cash Payments Journal
Ck.
Date
Account Debited
Ref.
Other Accounts Dr.
Accounts Payable Dr.
No.
63
120
64
157
65
66
120
67
68
306
69
70
(X)
(201)
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