Shore Co. sold merchandise to Blue Star Co. on account, $30,500, terms FOB shipping point, 2/15, n/30. The cost of the goods sold is $18,450. Shore paid freight of $700.Journalize the entries for Shore and Blue Star for the sale, purchase, and payment of amount due. Refer to the appropriate company’s Chart of Accounts for the exact wording of account titles. Chart of Accounts-Shore Co. CHART OF ACCOUNTSShore Co.General Ledger ASSETS110Cash121Accounts Receivable-Blue Star Co.125Notes Receivable130Inventory140Office Supplies141Store Supplies142Prepaid Insurance180Land192Store Equipment193Accumulated Depreciation-Store Equipment194Office Equipment195Accumulated Depreciation-Office Equipment LIABILITIES210Accounts Payable218Sales Tax Payable219Customer Refunds Payable220Unearned Rent221Notes Payable EQUITY310Common Stock311Retained Earnings312Dividends313Income Summary REVENUE410Sales610Rent Revenue EXPENSES501Cost of Goods Sold521Delivery Expense522Advertising Expense524Depreciation Expense-Store Equipment525Depreciation Expense-Office Equipment531Rent Expense533Insurance Expense534Store Supplies Expense535Office Supplies Expense536Credit Card Expense539Miscellaneous Expense710Interest Expense Chart of Accounts-Blue Star Co. CHART OF ACCOUNTSBlue Star Co.General Ledger ASSETS110Cash120Accounts Receivable125Notes Receivable130Inventory140Office Supplies141Store Supplies142Prepaid Insurance180Land192Store Equipment193Accumulated Depreciation-Store Equipment194Office Equipment195Accumulated Depreciation-Office Equipment LIABILITIES211Accounts Payable-Shore Co.218Sales Tax Payable219Customer Refunds Payable220Unearned Rent221Notes Payable EQUITY310Common Stock311Retained Earnings312Dividends313Income Summary REVENUE410Sales610Rent Revenue EXPENSES501Cost of Goods Sold521Delivery Expense522Advertising Expense524Depreciation Expense-Store Equipment525Depreciation Expense-Office Equipment531Rent Expense533Insurance Expense534Store Supplies Expense535Office Supplies Expense536Credit Card Expense539Miscellaneous Expense710Interest Expense Journal-Shore Co. Journalize the entries for Shore Co. for the sale and payment of the amount due. For grading purposes, use December 31 as the date for all transactions. Refer to the appropriate company’s Chart of Accounts for exact wording of account titles.PAGE 10 JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 2 3 4 5 6 7 8 Journal-Blue Star Co. Journalize the entries for Blue Star Co. for the purchase and payment of the amount due. For grading purposes, use December 31 as the date for all transactions. Refer to the appropriate company’s Chart of Accounts for exact wording of account titles.PAGE 20 JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 2 3 4

Name: Shore Co. sold merchandise to Blue Star Co. on account, $30,500, terms
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Description: Shore Co. sold merchandise to Blue Star Co. on account, $30,500, terms FOB shipping point, 2/15, n/30. The cost of the goods sold is $18,450. Shore paid freight of $700.Journalize the entries for Shore and Blue Star for the sale, purchase, and paymen

Under FOB Shiiping terms, freight charges are payable by the buyer. Since the seller (Shore Co.) has…

Answered: Shore Co. sold merchandise to Blue Star…

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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Shore Co. sold merchandise to Blue Star Co. on account, $30,500, terms FOB shipping point, 2/15, n/30. The cost of the goods sold is $18,450. Shore paid freight of $700.

Journalize the entries for Shore and Blue Star for the sale, purchase, and payment of amount due. Refer to the appropriate company’s Chart of Accounts for the exact wording of account titles.

Chart of Accounts-Shore Co.

CHART OF ACCOUNTS

Shore Co.

General Ledger

	ASSETS
110	Cash
121	Accounts Receivable-Blue Star Co.
125	Notes Receivable
130	Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
218	Sales Tax Payable
219	Customer Refunds Payable
220	Unearned Rent
221	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales
610	Rent Revenue

	EXPENSES
501	Cost of Goods Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense

Chart of Accounts-Blue Star Co.

CHART OF ACCOUNTS

Blue Star Co.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment

	LIABILITIES
211	Accounts Payable-Shore Co.
218	Sales Tax Payable
219	Customer Refunds Payable
220	Unearned Rent
221	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary

	REVENUE
410	Sales
610	Rent Revenue

	EXPENSES
501	Cost of Goods Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense

Journal-Shore Co.

Journalize the entries for Shore Co. for the sale and payment of the amount due. For grading purposes, use December 31 as the date for all transactions. Refer to the appropriate company’s Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6
7
8

Journal-Blue Star Co.

Journalize the entries for Blue Star Co. for the purchase and payment of the amount due. For grading purposes, use December 31 as the date for all transactions. Refer to the appropriate company’s Chart of Accounts for exact wording of account titles.

PAGE 20

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4

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