Answered: Supplies 505 157 Equipment 726 201…

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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Selected accounts from the chart of accounts of Oriole Company are shown below. 101 Cash 401 112 Accounts Receivable 412 120 Inventory 414 126 Supplies 505 157 Equipment 726 201 Accounts Payable Sales Revenue Sales Returns and Allowances Sales Discounts Cost of Goods Sold Salaries and Wages Expense The cost of all merchandise sold was 60% of the sales price. During January, Oriole completed the following transactions. Jan. Purchased merchandise on account from Gallagher Co. $9,300. 3 4 Purchased supplies for cash $70. 4 Sold merchandise on account to Wheeler $5,260, invoice no. 371, terms 1/10, n/30. 5 Returned $300 worth of damaged goods purchased on account from Gallagher Co. on January 3. 6 Made cash sales for the week totaling $3,660. 8 Purchased merchandise on account from Phegley Co. $4,300. 9 Sold merchandise on account to Linton Corp. $7,000, invoice no. 372, terms 1/10, n/30. 11 Purchased merchandise on account from Cora Co. $3,610. 13 Paid in full Gallagher Co. on account less a 2% discount. 13 Made cash sales for the week totaling $5,310. 15 Received payment from Linton Corp. for invoice no. 372. 15 Paid semi-monthly salaries of $13,200 to employees. 17 Received payment from Wheeler for invoice no. 371. 17 Sold merchandise on account to Delaney Co. $2,330, invoice no. 373, terms 1/10, n/30. 19 Purchased equipment on account from Dozier Corp. $5,750. 20 Cash sales for the week totaled $3,370. 20 Paid in full Phegley Co. on account less a 2% discount. 23 Purchased merchandise on account from Gallagher Co. $7,880. 24 Purchased merchandise on account from Atchison Corp. $5,440. 27 Made cash sales for the week totaling $4,500. 30 Received payment from Delaney Co. for invoice no. 373. 31 Paid semi-monthly salaries of $12,840 to employees. 31 Sold merchandise on account to Wheeler $9,030, invoice no. 374, terms 1/10, n/30.

Cash Receipts Journal
Account
Date
Ref.
Cash Dr.
Sales Discounts Dr.
Accounts Receivable Cr.
Sales Revenue Cr.
Other Acc
Credited
(101)
(414)
(112)
(401)
(X
Cash Payments Journal
CP1
Date
Account Debited
Ref.
Other Accounts Dr.
Accounts Payable Dr.
Inventory Cr.
Cash Cr.
126
726
726
(X)
(201)
(120)
(101)

Mercer Company uses the following journals.
1.
Sales journal.
2.
Single-column purchases journal.
3.
Cash receipts journal.
4.
Cash payments journal.
5.
General journal.
Using the selected accounts provided:
Record and Post the January transactions in the appropriate journal noted. Foot and cross-foot all special journals. (Record entries in the order displayed in
the problem statement.)
Sales Jeurnal
SI
Accounts Receivable Dr.
Cost of Goods Sold Dr.
Date
Account Debited
Invoice No. Ref.
Sales Revenue Cr.
Inventory Cr
(112401)
(50SK120)
Purchases Journal
PI
Inventory Dr.
Date
Account Credited
Ref.
Accounts Pavable Cr.
(120201)
(Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in
the problem.)
General Journal
Date
Account Titles and Explanation
Debit
Credit
Cash Receipts Journal
Account
Date
Ref.
Cash Dr.
Sales Discounts Dr.
Accounts Receivable Cr.
Sales Revenue Cr.
Other Acc
Credited

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