The accounting system of B. Ellen includes a sales journal, a purchases journal, a cash receipts journal, a cash payments journal and a general journal. The chart of accounts shows the following titles. Sales Returns and Allowances I Discount Received 100 Cash at Bank 410 I 110 I Accounts Receivable Control 1 420 --- --- i Prepaid Insurance Office Equipment i Accounts Payable Control Loan Payable I 115 1 500 i Purchases 150 503 Purchases Returns i Discount Allowed Rent Expense Insurance Expense 570 Sundry Expenses I 201 i 510 210 550 B. Ellen, Capital I 400 1 300 560 Sales During July, the transactions were as follows (ignore GST). July' 3 I Borrowed $35,000 from a bank. ---- .-. Purchased inventory on credit from Kelly Ltd. $4400, Invoice 312, terms 1/10, n/30 18 Sold inventory on credit to Leschev Ltd, $4500, terms 2/20, n/60, invoice 532 Received a credit note from Kelly Ltd. for inventory returned due to a defective unit i purchased on 6 July, $250 12 Issued a cheque (cheque no. 977) to Kelly Ltd for balance owing on invoice 312 Sold inventory for cash, $1,575 15 ' Paid $3,150 for a 12-month insurance policy. The policy is effective from 16 July 2019. Cheque no. 978 20 ! Purchased inventory on credit from F. Nunn, $3,690, invoice 506, terms 2/10, n/30 25 Received payment from Leschev in settlement of invoice 532 1 28 ' Issued cheque for Sundry expenses $ 2,500, Cheque no. 979 -- Required Record the transactions in the appropriate journals. Indicate how the postings would be made from the journals by entering the relevant posting references.
The accounting system of B. Ellen includes a sales journal, a purchases journal, a cash receipts journal, a cash payments journal and a general journal. The chart of accounts shows the following titles. Sales Returns and Allowances I Discount Received 100 Cash at Bank 410 I 110 I Accounts Receivable Control 1 420 --- --- i Prepaid Insurance Office Equipment i Accounts Payable Control Loan Payable I 115 1 500 i Purchases 150 503 Purchases Returns i Discount Allowed Rent Expense Insurance Expense 570 Sundry Expenses I 201 i 510 210 550 B. Ellen, Capital I 400 1 300 560 Sales During July, the transactions were as follows (ignore GST). July' 3 I Borrowed $35,000 from a bank. ---- .-. Purchased inventory on credit from Kelly Ltd. $4400, Invoice 312, terms 1/10, n/30 18 Sold inventory on credit to Leschev Ltd, $4500, terms 2/20, n/60, invoice 532 Received a credit note from Kelly Ltd. for inventory returned due to a defective unit i purchased on 6 July, $250 12 Issued a cheque (cheque no. 977) to Kelly Ltd for balance owing on invoice 312 Sold inventory for cash, $1,575 15 ' Paid $3,150 for a 12-month insurance policy. The policy is effective from 16 July 2019. Cheque no. 978 20 ! Purchased inventory on credit from F. Nunn, $3,690, invoice 506, terms 2/10, n/30 25 Received payment from Leschev in settlement of invoice 532 1 28 ' Issued cheque for Sundry expenses $ 2,500, Cheque no. 979 -- Required Record the transactions in the appropriate journals. Indicate how the postings would be made from the journals by entering the relevant posting references.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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