The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Record on page 10 of the journal Mar. 2 Sold merchandise on account to Equinox Co., $20,000, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,150. 3 Sold merchandise for $10,950 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,100. 4 Sold merchandise on account to Empire Co., $51,450, terms FOB shipping point, n/eom. The cost of merchandise sold was $35,420. 5 Sold merchandise for $27,900 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $18,470. 12 Received check for amount due from Equinox Co. for sale on March 2. 14 Sold merchandise to customers who used American Express cards, $12,380. The cost of merchandise sold was $9,120. 16 Sold merchandise on account to Targhee Co., $28,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $14,690. 18 Issued credit memo for $1,200 to Targhee Co. for damaged merchandise from sale on March 16 Record on page 11 of the journal 19 Sold merchandise on account to Vista Co., $8,500, terms FOB shipping point, 2/10, n/30. Added $55 to the invoice for prepaid freight. The cost of merchandise sold was $4,620. 26 Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18. 28 Received check for amount due from Vista Co. for sale of March 19. 31 Received check for amount due from Empire Co. for sale of March 4. 31 Paid Fleetwood Delivery Service $6,040 for delivery of merchandise in March to customers under shipping terms of FOB destination. Apr. 3 Paid City Bank $860 for service fees for handling MasterCard and American Express sales during March. 15 Paid $6,385 to state sales tax division for taxes owed on sales CHART OF ACCOUNTS Amsterdam Supply Co. General Ledger ASSETS 110 Cash 121 Accounts Receivable-Empire Co. 122 Accounts Receivable-Equinox Co. 123 Accounts Receivable-Targhee Co. 124 Accounts Receivable-Vista Co. 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns 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 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing REVENUE 410 Sales 610 Interest Revenue
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Record on page 10 of the journal Mar. 2 Sold merchandise on account to Equinox Co., $20,000, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,150. 3 Sold merchandise for $10,950 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,100. 4 Sold merchandise on account to Empire Co., $51,450, terms FOB shipping point, n/eom. The cost of merchandise sold was $35,420. 5 Sold merchandise for $27,900 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $18,470. 12 Received check for amount due from Equinox Co. for sale on March 2. 14 Sold merchandise to customers who used American Express cards, $12,380. The cost of merchandise sold was $9,120. 16 Sold merchandise on account to Targhee Co., $28,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $14,690. 18 Issued credit memo for $1,200 to Targhee Co. for damaged merchandise from sale on March 16 Record on page 11 of the journal 19 Sold merchandise on account to Vista Co., $8,500, terms FOB shipping point, 2/10, n/30. Added $55 to the invoice for prepaid freight. The cost of merchandise sold was $4,620. 26 Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18. 28 Received check for amount due from Vista Co. for sale of March 19. 31 Received check for amount due from Empire Co. for sale of March 4. 31 Paid Fleetwood Delivery Service $6,040 for delivery of merchandise in March to customers under shipping terms of FOB destination. Apr. 3 Paid City Bank $860 for service fees for handling MasterCard and American Express sales during March. 15 Paid $6,385 to state sales tax division for taxes owed on sales CHART OF ACCOUNTS Amsterdam Supply Co. General Ledger ASSETS 110 Cash 121 Accounts Receivable-Empire Co. 122 Accounts Receivable-Equinox Co. 123 Accounts Receivable-Targhee Co. 124 Accounts Receivable-Vista Co. 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns 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 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing REVENUE 410 Sales 610 Interest Revenue
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers:
Record on page 10 of the journal
Mar. | 2 | Sold merchandise on account to Equinox Co., $20,000, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,150. |
3 | Sold merchandise for $10,950 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,100. | |
4 | Sold merchandise on account to Empire Co., $51,450, terms FOB shipping point, n/eom. The cost of merchandise sold was $35,420. | |
5 | Sold merchandise for $27,900 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $18,470. | |
12 | Received check for amount due from Equinox Co. for sale on March 2. | |
14 | Sold merchandise to customers who used American Express cards, $12,380. The cost of merchandise sold was $9,120. | |
16 | Sold merchandise on account to Targhee Co., $28,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $14,690. | |
18 | Issued credit memo for $1,200 to Targhee Co. for damaged merchandise from sale on March 16 |
Record on page 11 of the journal
19 | Sold merchandise on account to Vista Co., $8,500, terms FOB shipping point, 2/10, n/30. Added $55 to the invoice for prepaid freight. The cost of merchandise sold was $4,620. | |
26 | Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18. | |
28 | Received check for amount due from Vista Co. for sale of March 19. | |
31 | Received check for amount due from Empire Co. for sale of March 4. | |
31 | Paid Fleetwood Delivery Service $6,040 for delivery of merchandise in March to customers under shipping terms of FOB destination. | |
Apr. | 3 | Paid City Bank $860 for service fees for handling MasterCard and American Express sales during March. |
15 | Paid $6,385 to state sales tax division for taxes owed on sales |
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amsterdam Supply Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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
Transcribed Image Text:**Journal Entry Template**
This template is designed for accounting purposes and is structured to facilitate recording business transactions in a journal format, which ultimately supports the accounting equation: Assets = Liabilities + Equity.
**1. Date**: This column is used to record the date of each transaction.
**2. Description**: This area is reserved for a brief description of the transaction or entry being recorded.
**3. Post Ref. (Posting Reference)**: This column could be used to note the ledger page number or any reference that links the journal entry to its corresponding ledger account pages.
**4. Debit**: This column is for entering the monetary amount that increases the asset or expense accounts, or decreases the liabilities, equity, or revenue accounts.
**5. Credit**: This column is for entering the monetary amount that increases the liability, equity, or revenue accounts, or decreases the assets or expense accounts.
**6. Accounting Equation**: The following categories help in balancing and ensuring that every journal entry adheres to the accounting equation:
- **Assets**: The resources owned by the business.
- **Liabilities**: The obligations or debts the business owes to external parties.
- **Equity**: The owner's interest in the business after all liabilities have been deducted from assets.
This journal includes 18 rows for recording individual transactions, providing a systematic approach to ensuring the dual entry bookkeeping principle is followed. This principle mandates that for every financial transaction, there must be corresponding and opposite entries in at least two different accounts.

Transcribed Image Text:**Journalizing Transactions for Amsterdam Supply Co.**
Below is a record of the transactions for Amsterdam Supply Co., displayed in a journal format. Each transaction is listed by date, description, debit, credit, and effects on the accounting equation (assets, liabilities, and equity). The CNOW journals automatically handle indentation for credit entries.
---
### JOURNAL
| DATE | DESCRIPTION | POST. REF. | DEBIT | CREDIT | ASSETS | LIABILITIES | EQUITY |
|--------|---------------------------------|------------|-----------|-----------|--------|-------------|--------|
| Mar. 2 | Accounts Receivable-Equinox Co. | | 20,000.00 | | ↑ | | |
| | Sales | | | 20,000.00 | | | ↑ |
| | Cost of Merchandise Sold | | 13,150.00 | | | | ↓ |
| | Merchandise Inventory | | | 13,150.00 | ↓ | | |
| Mar. 3 | Cash | | 10,950.00 | | ↑ | | |
| | Sales | | | 10,950.00 | | | ↑ |
| | Sales Tax Payable | | | | | | |
| Mar. 3 | Cost of Merchandise Sold | | 7,100.00 | | | | ↓ |
| | Merchandise Inventory | | | 7,100.00 | ↓ | | |
| Mar. 4 | Accounts Receivable-Empire Co. | | 51,450.00 | | ↑ | | |
| | Sales | | | 51,450.00 | | | ↑ |
| Mar. 4 | Cost of Merchandise Sold | | 35,420.00 | | | | ↓ |
| | Merchandise Inventory | | | 35,420.00 | ↓ | | |
| Mar. 5 | Cash | | 27,900.00 | | ↑ | | |
| | Sales
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