### Journal Entry TemplateThis template is commonly used in accounting to document credit sales and the cost of merchandise sold. Here's a detailed explanation of each section of the journal entry template presented in the image:#### Columns:1. **Date**: This column records the date of each transaction.2. **Account Titles and Explanation**: This section is used for the account names involved in the transaction and brief descriptions to explain the nature of the transaction.3. **Debit**: In this column, the amounts that are to be debited are recorded.4. **Credit**: This column records the amounts that are to be credited.#### Rows:Each transaction is recorded across several rows, with separate lines for each debit and credit entry. Transactions are grouped into pairs for clarity.##### Example Structure:- **First Transaction**: - **Line 1**: The date and account title for the debit part of the transaction along with the debit amount. - **Line 2**: The account title for the credit part of the transaction along with the credit amount. - (To record credit sale) - **Line 3**: The account title for the debit part of the corresponding cost of merchandise sold. - **Line 4**: The account title for the credit part of the corresponding cost of merchandise sold.- **Second Transaction**: - Similar to the first transaction with corresponding debit and credit entries and explanations.##### Example Breakdown:1. **Date**: - [Date of Transaction]2. **Account Titles and Explanation**: - **Line 1**: [Debit Account Title] [Explanation, e.g., Sales Revenue] - **Line 2**: [Credit Account Title] [Explanation, e.g., Accounts Receivable] - **To record credit sale** - **Line 3**: [Debit Account Title] [Explanation, e.g., Cost of Goods Sold] - **Line 4**: [Credit Account Title] [Explanation, e.g., Inventory] - **To record cost of merchandise sold**This journal entry template is useful for maintaining detailed and organized financial records of credit sales and the related costs, ensuring that the accounting equation (Assets = Liabilities + Equity) is always balanced. ### Current Attempt in ProgressSheffield’s Book Warehouse distributes hardcover books to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of May, Sheffield’s inventory consisted of books purchased for $1,700. During June, the following merchandising transactions occurred:- **June 1:** - Purchased books on account for $1,600 from Kline Publishers; FOB destination, terms 1/10, n/30. The appropriate party also made a cash payment of $60 for the freight on this date. - **June 3:** - Sold books on account to Reading Rainbow for $2,600. The cost of the books sold was $1,120. - **June 6:** - Received $200 credit for books returned to Kline Publishers. - **June 9:** - Paid Kline Publishers in full, less discount. - **June 15:** - Received payment in full from Reading Rainbow. - **June 17:** - Sold books on account to Blanco Books for $2,500. The cost of the books sold was $1,500. - **June 20:** - Purchased books on account for $1,400 from Dietz Publishers; FOB destination, terms 1/15, n/30. The appropriate party also made a cash payment of $60 for the freight on this date. - **June 24:** - Received payment in full from Blanco Books. - **June 26:** - Paid Dietz Publishers in full, less discount. - **June 28:** - Sold books on account to Reddy Bookstore for $1,200. The cost of the books sold was $750. - **June 30:** - Granted Reddy Bookstore $140 credit for books returned costing $84.**Sheffield’s Book Warehouse’s chart of accounts includes the following:**- No. 101 Cash- No. 112 Accounts Receivable- No. 120 Inventory- No. 201 Accounts Payable- No. 401 Sales Revenue- No. 412 Sales Returns and Allowances- No. 414 Sales Discounts- No. 505 Cost of Goods SoldJournalize the transactions for the month of June for Sheffield’s Book Warehouse using

Journal entry is the primary step to record transaction in the books of account. The debit and…

Sheffield's Book Warehouse distributes hardcover books to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of May, Sheffield's inventory consisted of books purchased for $1,700. During June, the following merchandising transactions occurred. June 1 3 6 9 15 17 20 24 26 28 30 Purchased books on account for $1,600 from Kline Publishers, FOB destination, terms 1/10, n/30. The appropriate party also made a cash payment of $60 for the freight on this date. Sold books on account to Reading Rainbow for $2,600. The cost of the books sold was $1,120. Received $200 credit for books returned to Kline Publishers. Paid Kline Publishers in full, less discount. Received payment in full from Reading Rainbow. Sold books on account to Blanco Books for $2,500. The cost of the books sold was $1,500. Purchased books on account for $1,400 from Dietz Publishers, FOB destination, terms 1/15, n/30. The appropriate party also made a cash payment of $60 for the freight on this date. Received payment in full from Blanco Books. Paid Dietz Publishers in full, less discount. Sold books on account to Reddy Bookstore for $1,200. The cost of the books sold was $750. Granted Reddy Bookstore $140 credit for books returned costing $84. Sheffield's Book Warehouse's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. Journalize the transactions for the month of June for Sheffield's Book Warehouse using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q