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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
Transcribed Image Text: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.
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