Trial Balance is a List of Account balances as on a particular date. It’s the first step towards preparing of Financial Statements. Requirement To Prepare: Journal Entries for Church Company for the month of March.

Question

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Answer 1

Question

Chapter 7, Problem 1GLP

To determine

Concept Introduction:

Trial Balance is a List of Account balances as on a particular date. It’s the first step towards preparing of Financial Statements.

Requirement

To Prepare:

Journal Entries for Church Company for the month of March.

Expert Solution & Answer

Answer to Problem 1GLP

Solution:

Date	Particulars	Debit	Credit
Mar-01	Merchandise Inventory	43600
	To Accounts Payable		43600
	(Being Merchandise Inventory Purchased on credit)

Mar-02	Accounts Receivables	16800
	To Sales		16800
	(Being Goods Sold to M/s Min Cho)

Mar-02	Cost of Goods Sold	8400
	To Merchandise Inventory		8400
	(Being goods sold to Min Cho)

Mar-03	Office Supplies	1230
	To Accounts Payable		1230
	(Being Office Supplies Purchased on credit)

Mar-03	Accounts Receivables	10200
	To Sales		10200
	(Being Goods Sold to M/s Linda Witt)

Mar-03	Cost of Goods Sold	5800
	To Merchandise Inventory		5800
	(Being Goods Sold to M/s Linda Witt)

Mar-06	Cash	82000
	To Long Term Note Payable		82000
	(Being Loan Taken from bank)

Mar-09	Office Equipment	21850
	To Accounts Payable		21850
	(Being Offic Equipment purchased on credit)

Mar-10	Accounts Receivables	5600
	To Sales		5600
	(Being Goods Sold to M/s Jovita Albany)

Mar-10	Cost of Goods Sold	2900
	To Merchandise Inventory		2900
	(Being Goods Sold to M/s Jovita Albany)

Mar-12	Cash	16464
	Sales Discount	336
	To Accounts Receivables		16800
	(Being Cash received from Min Cho)

Mar-13	Accounts Payable	43600
	To Merchandise Inventory		872
	To Cash		42728
	(Being Payment made to Van Industries)

Mar-13	Cash	9996
	Sales Discount	204
	To Accounts Receivables		10200
	(Being Cash received from Linda Witt)

Mar-14	Merchandise Inventory	32625
	To Accounts Payable		32625
	(Being Merchandise Inventory Purchased on credit)

Mar-15	Sales Salary Expense	18300
	To Cash		18300
	(Being Salaries Paid)

Mar-15	Cash	34680
	To Sales		34680
	(Being Cash Sales Recorded)

Mar-15	Cost of Goods Sold	20210
	To Merchandise Inventory		20210
	(Being Cash Sales Recorded)

Mar-16	Store Supplies	1770
	To Accounts Payable		1770
	(Being Store Supplies Purchased on Credit)

Mar-17	Accounts Payable	2425
	To Merchandise Inventory		2425
	(Being Goods Returned to CD Company)

Mar-19	Accounts Payable	630
	To Office Equipment		630
	(Being Goods Returned to Spell Supply)

Mar-20	Cash	5488
	Sales Discount	112
	To Accounts Receivables		5600
	(Being Cash received from Jovita Albany)

Mar-23	Accounts Payable	30200
	To Cash		29596
	To Merchandise Inventory		604
	(Being Payment made to CD Company)

Mar-27	Accounts Receivables	14910
	To Sales		14910
	(Being Goods Sold to M/s Jovita Albany)

Mar-27	Cost of Goods Sold	7220
	To Merchandise Inventory		7220
	(Being Goods Sold to M/s Jovita Albany)

Mar-28	Accounts Receivables	4315
	To Sales		4315
	(Being Goods Sold to M/s Linda Witt)

Mar-28	Cost of Goods Sold	3280
	To Merchandise Inventory		3280
	(Being Goods Sold to M/s Linda Witt)
Mar-31	Sales Salary Expense	18300
	To Cash		18300
	(Being Salaries Paid)

Mar-31	Cash	30180
	To Sales		30180
	(Being Cash Sales Recorded)

Mar-31	Cost of Goods Sold	16820
	To Merchandise Inventory		16820
	(Being Cash Sales Recorded)

Explanation of Solution

1. Entry for the transaction will be as below:

Merchandise Inventory……………….43600

To Accounts Payable………………………………43600

Thus, Accounts Payable will be credited by Merchandise Inventory and Merchandise Inventory will be debited by Accounts Payable. Also in Subsidiary Ledger of Van Industries amount of $43600 will be credited.

2. Entry for the transaction will be as below:

Accounts Receivable…………………16800

To Sales………………………………………….16800

Cost of Goods Sold…………………..8400

To Merchandise Inventory…………………….....8400

Accounts Receivable will be debited by sales and sales will be credited by accounts payables for $16800. Cost of goods sold will be debited by Merchandise Inventory and Merchandise Inventory will be credited by Cost of goods sold for $8400. Min Cho’ Subsidiary ledger will be debited by $16800

3. Entry for the transaction will be as below:

Office Supplies……………………….1230

To Accounts Payable………………………….1230

Office Supplies will be debited with Accounts Payable as they are assets and Accounts Payable will be credited with Office Supplies as it’s a personal account for $1230.

4. Entry for the transaction will be as below:

Accounts Receivables……………………..$10200

To Sales………………………………………………………10200

Cost of Goods Sold………………………….$5800

To Merchandise Inventory……………………………….$5800

Accounts Receivable will be debited with Sales by $10200 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

5. Entry for the transaction will be as below:

Cash…………………………………..$82000

To Long Term Notes Payables…………………….$82000

Cash will be debited with long term notes payable and long term notes payable will be credited by cash for $82000

6. Entry for the transaction is as below:

Office Equipments………………………..$21850

To Accounts Payable……………………………….$21850

Office Equipment will be debited with Accounts Payable as it’s an asset and Accounts Payable will be credited with Office Equipment as it’s a personal account with $21850.

7. Entry for the transaction will be as below:

Accounts Receivables……………………..$5600

To Sales………………………………………………………$5600

Cost of Goods Sold………………………….$2900

To Merchandise Inventory……………………………….$2900

Accounts Receivable will be debited with Sales by $5600 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

8. Entry for the transaction will be as below:

Cash…………………………………..$16464

Sales Discount………………………$336

To Accounts Receivable……………………………$16800

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $16464 and $336 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

9. Entry for the transaction will be as below:

Accounts Payables……………………………..$43600

To Cash……………………………………………..$42728

To Merchandise Inventory……………………………$872

Accounts Payable will be debited by $42728 and $872 with cash and merchandise inventory respectively since it is a personal accounts. Also cash and Merchanise inventory will be credited by Accounts Payable since cash and merchandise inventory is an asset.

10. Entry for transaction is a below:

Cash…………………………………..$9996

Sales Discount………………………$204

To Accounts Receivable……………………………$10200

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $9996 and $204 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

11. Entry for the transaction will be as below:

Merchandise Inventory……………….32625

To Accounts Payable………………………………32625

Thus, Accounts Payable will be credited by Merchandise Inventory and Merchandise Inventory will be debited by Accounts Payable. Also in Subsidiary Ledger of CD Company amount of $32625 will be credited.

12. Entry for the transaction will be as below:

Sales Salary Expense……………….18300

To Cash……………………………………18300

Thus, sales salary expense will be debited by cash as it’s a nominal account and cash will be debited by sales salary expense as its an asset.

13. Entry for the transaction will be as below:

Cash…………………………………………..34680

To Sales……………………………………………..34680

Cost of Goods Sold…………………………..20210

To Merchandise Inventory…………………………..20210

Cash will be debited with Sales by $34680 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

14. Entry for the transaction will be as below:

Office Supplies……………………….1770

To Accounts Payable………………………….1770

Office Supplies will be debited with Accounts Payable as they are assets and Accounts Payable will be credited with Office Supplies as it’s a personal account for $1770.

15. Entry for the transaction will be as below:

Accounts Payable……………….2425

To Merchandise Inventory………………………………2425

Thus, Merchandise Inventory will be credited by Accounts Payable and Accounts Payables will be debited by Merchandise Inventory. Also in Subsidiary Ledger of CD Company amount of $2425 will be debited.

16. Entry for the transaction is as below:

Accounts Payable………………………..$630

To Office Equipment……………………………….$630

Office Equipment will be credited with Accounts Payable as it’s an asset and Accounts Payable will be debited with Office Equipment as it’s a personal account with $630.

17. Entry for transaction is a below:

Cash…………………………………..$5488

Sales Discount………………………$112

To Accounts Receivable……………………………$5600

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $5488 and $112 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

18. Entry for the transaction will be as below:

Accounts Payables……………………………..$30200

To Cash………………………………………………….$29596

To Merchandise Inventory………………………………$604

Accounts Payable will be debited by $29596 and $604 with cash and merchandise inventory respectively since it is a personal accounts. Also cash and Merchanise inventory will be credited by Accounts Payable since cash and merchandise inventory is an asset.

19. Entry for the transaction will be as below:

Accounts Receivables……………………..$14910

To Sales………………………………………………………$14910

Cost of Goods Sold………………………….$7220

To Merchandise Inventory……………………………….$7220

Accounts Receivable will be debited with Sales by $14910 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

20. Entry for the transaction will be as below:

Accounts Receivables……………………..$4315

To Sales………………………………………………………$4315

Cost of Goods Sold………………………….$3280

To Merchandise Inventory……………………………….$3280

Accounts Receivable will be debited with Sales by $4315 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

21. Entry for the transaction will be as below:

Sales Salary Expense……………….18300

To Cash……………………………………18300

Thus, sales salary expense will be debited by cash as it’s a nominal account and cash will be debited by sales salary expense as its an asset.

22. Entry for the transaction will be as below:

Cash…………………………………………..30180

To Sales……………………………………………..30180

Cost of Goods Sold…………………………..16820

To Merchandise Inventory…………………………..16820

Cash will be debited with Sales by $30180 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

Conclusion

Thus, Entries have been passed for above entries

.

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Answer 2

Question

Chapter 7, Problem 1GLP

To determine

Concept Introduction:

Trial Balance is a List of Account balances as on a particular date. It’s the first step towards preparing of Financial Statements.

Requirement

To Prepare:

Journal Entries for Church Company for the month of March.

Expert Solution & Answer

Answer to Problem 1GLP

Solution:

Date	Particulars	Debit	Credit
Mar-01	Merchandise Inventory	43600
	To Accounts Payable		43600
	(Being Merchandise Inventory Purchased on credit)

Mar-02	Accounts Receivables	16800
	To Sales		16800
	(Being Goods Sold to M/s Min Cho)

Mar-02	Cost of Goods Sold	8400
	To Merchandise Inventory		8400
	(Being goods sold to Min Cho)

Mar-03	Office Supplies	1230
	To Accounts Payable		1230
	(Being Office Supplies Purchased on credit)

Mar-03	Accounts Receivables	10200
	To Sales		10200
	(Being Goods Sold to M/s Linda Witt)

Mar-03	Cost of Goods Sold	5800
	To Merchandise Inventory		5800
	(Being Goods Sold to M/s Linda Witt)

Mar-06	Cash	82000
	To Long Term Note Payable		82000
	(Being Loan Taken from bank)

Mar-09	Office Equipment	21850
	To Accounts Payable		21850
	(Being Offic Equipment purchased on credit)

Mar-10	Accounts Receivables	5600
	To Sales		5600
	(Being Goods Sold to M/s Jovita Albany)

Mar-10	Cost of Goods Sold	2900
	To Merchandise Inventory		2900
	(Being Goods Sold to M/s Jovita Albany)

Mar-12	Cash	16464
	Sales Discount	336
	To Accounts Receivables		16800
	(Being Cash received from Min Cho)

Mar-13	Accounts Payable	43600
	To Merchandise Inventory		872
	To Cash		42728
	(Being Payment made to Van Industries)

Mar-13	Cash	9996
	Sales Discount	204
	To Accounts Receivables		10200
	(Being Cash received from Linda Witt)

Mar-14	Merchandise Inventory	32625
	To Accounts Payable		32625
	(Being Merchandise Inventory Purchased on credit)

Mar-15	Sales Salary Expense	18300
	To Cash		18300
	(Being Salaries Paid)

Mar-15	Cash	34680
	To Sales		34680
	(Being Cash Sales Recorded)

Mar-15	Cost of Goods Sold	20210
	To Merchandise Inventory		20210
	(Being Cash Sales Recorded)

Mar-16	Store Supplies	1770
	To Accounts Payable		1770
	(Being Store Supplies Purchased on Credit)

Mar-17	Accounts Payable	2425
	To Merchandise Inventory		2425
	(Being Goods Returned to CD Company)

Mar-19	Accounts Payable	630
	To Office Equipment		630
	(Being Goods Returned to Spell Supply)

Mar-20	Cash	5488
	Sales Discount	112
	To Accounts Receivables		5600
	(Being Cash received from Jovita Albany)

Mar-23	Accounts Payable	30200
	To Cash		29596
	To Merchandise Inventory		604
	(Being Payment made to CD Company)

Mar-27	Accounts Receivables	14910
	To Sales		14910
	(Being Goods Sold to M/s Jovita Albany)

Mar-27	Cost of Goods Sold	7220
	To Merchandise Inventory		7220
	(Being Goods Sold to M/s Jovita Albany)

Mar-28	Accounts Receivables	4315
	To Sales		4315
	(Being Goods Sold to M/s Linda Witt)

Mar-28	Cost of Goods Sold	3280
	To Merchandise Inventory		3280
	(Being Goods Sold to M/s Linda Witt)
Mar-31	Sales Salary Expense	18300
	To Cash		18300
	(Being Salaries Paid)

Mar-31	Cash	30180
	To Sales		30180
	(Being Cash Sales Recorded)

Mar-31	Cost of Goods Sold	16820
	To Merchandise Inventory		16820
	(Being Cash Sales Recorded)

Explanation of Solution

1. Entry for the transaction will be as below:

Merchandise Inventory……………….43600

To Accounts Payable………………………………43600

Thus, Accounts Payable will be credited by Merchandise Inventory and Merchandise Inventory will be debited by Accounts Payable. Also in Subsidiary Ledger of Van Industries amount of $43600 will be credited.

2. Entry for the transaction will be as below:

Accounts Receivable…………………16800

To Sales………………………………………….16800

Cost of Goods Sold…………………..8400

To Merchandise Inventory…………………….....8400

Accounts Receivable will be debited by sales and sales will be credited by accounts payables for $16800. Cost of goods sold will be debited by Merchandise Inventory and Merchandise Inventory will be credited by Cost of goods sold for $8400. Min Cho’ Subsidiary ledger will be debited by $16800

3. Entry for the transaction will be as below:

Office Supplies……………………….1230

To Accounts Payable………………………….1230

Office Supplies will be debited with Accounts Payable as they are assets and Accounts Payable will be credited with Office Supplies as it’s a personal account for $1230.

4. Entry for the transaction will be as below:

Accounts Receivables……………………..$10200

To Sales………………………………………………………10200

Cost of Goods Sold………………………….$5800

To Merchandise Inventory……………………………….$5800

Accounts Receivable will be debited with Sales by $10200 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

5. Entry for the transaction will be as below:

Cash…………………………………..$82000

To Long Term Notes Payables…………………….$82000

Cash will be debited with long term notes payable and long term notes payable will be credited by cash for $82000

6. Entry for the transaction is as below:

Office Equipments………………………..$21850

To Accounts Payable……………………………….$21850

Office Equipment will be debited with Accounts Payable as it’s an asset and Accounts Payable will be credited with Office Equipment as it’s a personal account with $21850.

7. Entry for the transaction will be as below:

Accounts Receivables……………………..$5600

To Sales………………………………………………………$5600

Cost of Goods Sold………………………….$2900

To Merchandise Inventory……………………………….$2900

Accounts Receivable will be debited with Sales by $5600 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

8. Entry for the transaction will be as below:

Cash…………………………………..$16464

Sales Discount………………………$336

To Accounts Receivable……………………………$16800

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $16464 and $336 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

9. Entry for the transaction will be as below:

Accounts Payables……………………………..$43600

To Cash……………………………………………..$42728

To Merchandise Inventory……………………………$872

Accounts Payable will be debited by $42728 and $872 with cash and merchandise inventory respectively since it is a personal accounts. Also cash and Merchanise inventory will be credited by Accounts Payable since cash and merchandise inventory is an asset.

10. Entry for transaction is a below:

Cash…………………………………..$9996

Sales Discount………………………$204

To Accounts Receivable……………………………$10200

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $9996 and $204 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

11. Entry for the transaction will be as below:

Merchandise Inventory……………….32625

To Accounts Payable………………………………32625

Thus, Accounts Payable will be credited by Merchandise Inventory and Merchandise Inventory will be debited by Accounts Payable. Also in Subsidiary Ledger of CD Company amount of $32625 will be credited.

12. Entry for the transaction will be as below:

Sales Salary Expense……………….18300

To Cash……………………………………18300

Thus, sales salary expense will be debited by cash as it’s a nominal account and cash will be debited by sales salary expense as its an asset.

13. Entry for the transaction will be as below:

Cash…………………………………………..34680

To Sales……………………………………………..34680

Cost of Goods Sold…………………………..20210

To Merchandise Inventory…………………………..20210

Cash will be debited with Sales by $34680 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

14. Entry for the transaction will be as below:

Office Supplies……………………….1770

To Accounts Payable………………………….1770

Office Supplies will be debited with Accounts Payable as they are assets and Accounts Payable will be credited with Office Supplies as it’s a personal account for $1770.

15. Entry for the transaction will be as below:

Accounts Payable……………….2425

To Merchandise Inventory………………………………2425

Thus, Merchandise Inventory will be credited by Accounts Payable and Accounts Payables will be debited by Merchandise Inventory. Also in Subsidiary Ledger of CD Company amount of $2425 will be debited.

16. Entry for the transaction is as below:

Accounts Payable………………………..$630

To Office Equipment……………………………….$630

Office Equipment will be credited with Accounts Payable as it’s an asset and Accounts Payable will be debited with Office Equipment as it’s a personal account with $630.

17. Entry for transaction is a below:

Cash…………………………………..$5488

Sales Discount………………………$112

To Accounts Receivable……………………………$5600

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $5488 and $112 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

18. Entry for the transaction will be as below:

Accounts Payables……………………………..$30200

To Cash………………………………………………….$29596

To Merchandise Inventory………………………………$604

Accounts Payable will be debited by $29596 and $604 with cash and merchandise inventory respectively since it is a personal accounts. Also cash and Merchanise inventory will be credited by Accounts Payable since cash and merchandise inventory is an asset.

19. Entry for the transaction will be as below:

Accounts Receivables……………………..$14910

To Sales………………………………………………………$14910

Cost of Goods Sold………………………….$7220

To Merchandise Inventory……………………………….$7220

Accounts Receivable will be debited with Sales by $14910 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

20. Entry for the transaction will be as below:

Accounts Receivables……………………..$4315

To Sales………………………………………………………$4315

Cost of Goods Sold………………………….$3280

To Merchandise Inventory……………………………….$3280

Accounts Receivable will be debited with Sales by $4315 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

21. Entry for the transaction will be as below:

Sales Salary Expense……………….18300

To Cash……………………………………18300

Thus, sales salary expense will be debited by cash as it’s a nominal account and cash will be debited by sales salary expense as its an asset.

22. Entry for the transaction will be as below:

Cash…………………………………………..30180

To Sales……………………………………………..30180

Cost of Goods Sold…………………………..16820

To Merchandise Inventory…………………………..16820

Cash will be debited with Sales by $30180 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

Conclusion

Thus, Entries have been passed for above entries

.

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Answer 3

Question

Chapter 7, Problem 1GLP

To determine

Concept Introduction:

Trial Balance is a List of Account balances as on a particular date. It’s the first step towards preparing of Financial Statements.

Requirement

To Prepare:

Journal Entries for Church Company for the month of March.

Expert Solution & Answer

Answer to Problem 1GLP

Solution:

Date	Particulars	Debit	Credit
Mar-01	Merchandise Inventory	43600
	To Accounts Payable		43600
	(Being Merchandise Inventory Purchased on credit)

Mar-02	Accounts Receivables	16800
	To Sales		16800
	(Being Goods Sold to M/s Min Cho)

Mar-02	Cost of Goods Sold	8400
	To Merchandise Inventory		8400
	(Being goods sold to Min Cho)

Mar-03	Office Supplies	1230
	To Accounts Payable		1230
	(Being Office Supplies Purchased on credit)

Mar-03	Accounts Receivables	10200
	To Sales		10200
	(Being Goods Sold to M/s Linda Witt)

Mar-03	Cost of Goods Sold	5800
	To Merchandise Inventory		5800
	(Being Goods Sold to M/s Linda Witt)

Mar-06	Cash	82000
	To Long Term Note Payable		82000
	(Being Loan Taken from bank)

Mar-09	Office Equipment	21850
	To Accounts Payable		21850
	(Being Offic Equipment purchased on credit)

Mar-10	Accounts Receivables	5600
	To Sales		5600
	(Being Goods Sold to M/s Jovita Albany)

Mar-10	Cost of Goods Sold	2900
	To Merchandise Inventory		2900
	(Being Goods Sold to M/s Jovita Albany)

Mar-12	Cash	16464
	Sales Discount	336
	To Accounts Receivables		16800
	(Being Cash received from Min Cho)

Mar-13	Accounts Payable	43600
	To Merchandise Inventory		872
	To Cash		42728
	(Being Payment made to Van Industries)

Mar-13	Cash	9996
	Sales Discount	204
	To Accounts Receivables		10200
	(Being Cash received from Linda Witt)

Mar-14	Merchandise Inventory	32625
	To Accounts Payable		32625
	(Being Merchandise Inventory Purchased on credit)

Mar-15	Sales Salary Expense	18300
	To Cash		18300
	(Being Salaries Paid)

Mar-15	Cash	34680
	To Sales		34680
	(Being Cash Sales Recorded)

Mar-15	Cost of Goods Sold	20210
	To Merchandise Inventory		20210
	(Being Cash Sales Recorded)

Mar-16	Store Supplies	1770
	To Accounts Payable		1770
	(Being Store Supplies Purchased on Credit)

Mar-17	Accounts Payable	2425
	To Merchandise Inventory		2425
	(Being Goods Returned to CD Company)

Mar-19	Accounts Payable	630
	To Office Equipment		630
	(Being Goods Returned to Spell Supply)

Mar-20	Cash	5488
	Sales Discount	112
	To Accounts Receivables		5600
	(Being Cash received from Jovita Albany)

Mar-23	Accounts Payable	30200
	To Cash		29596
	To Merchandise Inventory		604
	(Being Payment made to CD Company)

Mar-27	Accounts Receivables	14910
	To Sales		14910
	(Being Goods Sold to M/s Jovita Albany)

Mar-27	Cost of Goods Sold	7220
	To Merchandise Inventory		7220
	(Being Goods Sold to M/s Jovita Albany)

Mar-28	Accounts Receivables	4315
	To Sales		4315
	(Being Goods Sold to M/s Linda Witt)

Mar-28	Cost of Goods Sold	3280
	To Merchandise Inventory		3280
	(Being Goods Sold to M/s Linda Witt)
Mar-31	Sales Salary Expense	18300
	To Cash		18300
	(Being Salaries Paid)

Mar-31	Cash	30180
	To Sales		30180
	(Being Cash Sales Recorded)

Mar-31	Cost of Goods Sold	16820
	To Merchandise Inventory		16820
	(Being Cash Sales Recorded)

Explanation of Solution

1. Entry for the transaction will be as below:

Merchandise Inventory……………….43600

To Accounts Payable………………………………43600

Thus, Accounts Payable will be credited by Merchandise Inventory and Merchandise Inventory will be debited by Accounts Payable. Also in Subsidiary Ledger of Van Industries amount of $43600 will be credited.

2. Entry for the transaction will be as below:

Accounts Receivable…………………16800

To Sales………………………………………….16800

Cost of Goods Sold…………………..8400

To Merchandise Inventory…………………….....8400

Accounts Receivable will be debited by sales and sales will be credited by accounts payables for $16800. Cost of goods sold will be debited by Merchandise Inventory and Merchandise Inventory will be credited by Cost of goods sold for $8400. Min Cho’ Subsidiary ledger will be debited by $16800

3. Entry for the transaction will be as below:

Office Supplies……………………….1230

To Accounts Payable………………………….1230

Office Supplies will be debited with Accounts Payable as they are assets and Accounts Payable will be credited with Office Supplies as it’s a personal account for $1230.

4. Entry for the transaction will be as below:

Accounts Receivables……………………..$10200

To Sales………………………………………………………10200

Cost of Goods Sold………………………….$5800

To Merchandise Inventory……………………………….$5800

Accounts Receivable will be debited with Sales by $10200 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

5. Entry for the transaction will be as below:

Cash…………………………………..$82000

To Long Term Notes Payables…………………….$82000

Cash will be debited with long term notes payable and long term notes payable will be credited by cash for $82000

6. Entry for the transaction is as below:

Office Equipments………………………..$21850

To Accounts Payable……………………………….$21850

Office Equipment will be debited with Accounts Payable as it’s an asset and Accounts Payable will be credited with Office Equipment as it’s a personal account with $21850.

7. Entry for the transaction will be as below:

Accounts Receivables……………………..$5600

To Sales………………………………………………………$5600

Cost of Goods Sold………………………….$2900

To Merchandise Inventory……………………………….$2900

Accounts Receivable will be debited with Sales by $5600 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

8. Entry for the transaction will be as below:

Cash…………………………………..$16464

Sales Discount………………………$336

To Accounts Receivable……………………………$16800

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $16464 and $336 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

9. Entry for the transaction will be as below:

Accounts Payables……………………………..$43600

To Cash……………………………………………..$42728

To Merchandise Inventory……………………………$872

Accounts Payable will be debited by $42728 and $872 with cash and merchandise inventory respectively since it is a personal accounts. Also cash and Merchanise inventory will be credited by Accounts Payable since cash and merchandise inventory is an asset.

10. Entry for transaction is a below:

Cash…………………………………..$9996

Sales Discount………………………$204

To Accounts Receivable……………………………$10200

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $9996 and $204 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

11. Entry for the transaction will be as below:

Merchandise Inventory……………….32625

To Accounts Payable………………………………32625

Thus, Accounts Payable will be credited by Merchandise Inventory and Merchandise Inventory will be debited by Accounts Payable. Also in Subsidiary Ledger of CD Company amount of $32625 will be credited.

12. Entry for the transaction will be as below:

Sales Salary Expense……………….18300

To Cash……………………………………18300

Thus, sales salary expense will be debited by cash as it’s a nominal account and cash will be debited by sales salary expense as its an asset.

13. Entry for the transaction will be as below:

Cash…………………………………………..34680

To Sales……………………………………………..34680

Cost of Goods Sold…………………………..20210

To Merchandise Inventory…………………………..20210

Cash will be debited with Sales by $34680 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

14. Entry for the transaction will be as below:

Office Supplies……………………….1770

To Accounts Payable………………………….1770

Office Supplies will be debited with Accounts Payable as they are assets and Accounts Payable will be credited with Office Supplies as it’s a personal account for $1770.

15. Entry for the transaction will be as below:

Accounts Payable……………….2425

To Merchandise Inventory………………………………2425

Thus, Merchandise Inventory will be credited by Accounts Payable and Accounts Payables will be debited by Merchandise Inventory. Also in Subsidiary Ledger of CD Company amount of $2425 will be debited.

16. Entry for the transaction is as below:

Accounts Payable………………………..$630

To Office Equipment……………………………….$630

Office Equipment will be credited with Accounts Payable as it’s an asset and Accounts Payable will be debited with Office Equipment as it’s a personal account with $630.

17. Entry for transaction is a below:

Cash…………………………………..$5488

Sales Discount………………………$112

To Accounts Receivable……………………………$5600

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $5488 and $112 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

18. Entry for the transaction will be as below:

Accounts Payables……………………………..$30200

To Cash………………………………………………….$29596

To Merchandise Inventory………………………………$604

Accounts Payable will be debited by $29596 and $604 with cash and merchandise inventory respectively since it is a personal accounts. Also cash and Merchanise inventory will be credited by Accounts Payable since cash and merchandise inventory is an asset.

19. Entry for the transaction will be as below:

Accounts Receivables……………………..$14910

To Sales………………………………………………………$14910

Cost of Goods Sold………………………….$7220

To Merchandise Inventory……………………………….$7220

Accounts Receivable will be debited with Sales by $14910 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

20. Entry for the transaction will be as below:

Accounts Receivables……………………..$4315

To Sales………………………………………………………$4315

Cost of Goods Sold………………………….$3280

To Merchandise Inventory……………………………….$3280

Accounts Receivable will be debited with Sales by $4315 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

21. Entry for the transaction will be as below:

Sales Salary Expense……………….18300

To Cash……………………………………18300

Thus, sales salary expense will be debited by cash as it’s a nominal account and cash will be debited by sales salary expense as its an asset.

22. Entry for the transaction will be as below:

Cash…………………………………………..30180

To Sales……………………………………………..30180

Cost of Goods Sold…………………………..16820

To Merchandise Inventory…………………………..16820

Cash will be debited with Sales by $30180 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

Conclusion

Thus, Entries have been passed for above entries

.

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Answer 4

Question

Chapter 7, Problem 1GLP

To determine

Concept Introduction:

Trial Balance is a List of Account balances as on a particular date. It’s the first step towards preparing of Financial Statements.

Requirement

To Prepare:

Journal Entries for Church Company for the month of March.

Expert Solution & Answer

Answer to Problem 1GLP

Solution:

Date	Particulars	Debit	Credit
Mar-01	Merchandise Inventory	43600
	To Accounts Payable		43600
	(Being Merchandise Inventory Purchased on credit)

Mar-02	Accounts Receivables	16800
	To Sales		16800
	(Being Goods Sold to M/s Min Cho)

Mar-02	Cost of Goods Sold	8400
	To Merchandise Inventory		8400
	(Being goods sold to Min Cho)

Mar-03	Office Supplies	1230
	To Accounts Payable		1230
	(Being Office Supplies Purchased on credit)

Mar-03	Accounts Receivables	10200
	To Sales		10200
	(Being Goods Sold to M/s Linda Witt)

Mar-03	Cost of Goods Sold	5800
	To Merchandise Inventory		5800
	(Being Goods Sold to M/s Linda Witt)

Mar-06	Cash	82000
	To Long Term Note Payable		82000
	(Being Loan Taken from bank)

Mar-09	Office Equipment	21850
	To Accounts Payable		21850
	(Being Offic Equipment purchased on credit)

Mar-10	Accounts Receivables	5600
	To Sales		5600
	(Being Goods Sold to M/s Jovita Albany)

Mar-10	Cost of Goods Sold	2900
	To Merchandise Inventory		2900
	(Being Goods Sold to M/s Jovita Albany)

Mar-12	Cash	16464
	Sales Discount	336
	To Accounts Receivables		16800
	(Being Cash received from Min Cho)

Mar-13	Accounts Payable	43600
	To Merchandise Inventory		872
	To Cash		42728
	(Being Payment made to Van Industries)

Mar-13	Cash	9996
	Sales Discount	204
	To Accounts Receivables		10200
	(Being Cash received from Linda Witt)

Mar-14	Merchandise Inventory	32625
	To Accounts Payable		32625
	(Being Merchandise Inventory Purchased on credit)

Mar-15	Sales Salary Expense	18300
	To Cash		18300
	(Being Salaries Paid)

Mar-15	Cash	34680
	To Sales		34680
	(Being Cash Sales Recorded)

Mar-15	Cost of Goods Sold	20210
	To Merchandise Inventory		20210
	(Being Cash Sales Recorded)

Mar-16	Store Supplies	1770
	To Accounts Payable		1770
	(Being Store Supplies Purchased on Credit)

Mar-17	Accounts Payable	2425
	To Merchandise Inventory		2425
	(Being Goods Returned to CD Company)

Mar-19	Accounts Payable	630
	To Office Equipment		630
	(Being Goods Returned to Spell Supply)

Mar-20	Cash	5488
	Sales Discount	112
	To Accounts Receivables		5600
	(Being Cash received from Jovita Albany)

Mar-23	Accounts Payable	30200
	To Cash		29596
	To Merchandise Inventory		604
	(Being Payment made to CD Company)

Mar-27	Accounts Receivables	14910
	To Sales		14910
	(Being Goods Sold to M/s Jovita Albany)

Mar-27	Cost of Goods Sold	7220
	To Merchandise Inventory		7220
	(Being Goods Sold to M/s Jovita Albany)

Mar-28	Accounts Receivables	4315
	To Sales		4315
	(Being Goods Sold to M/s Linda Witt)

Mar-28	Cost of Goods Sold	3280
	To Merchandise Inventory		3280
	(Being Goods Sold to M/s Linda Witt)
Mar-31	Sales Salary Expense	18300
	To Cash		18300
	(Being Salaries Paid)

Mar-31	Cash	30180
	To Sales		30180
	(Being Cash Sales Recorded)

Mar-31	Cost of Goods Sold	16820
	To Merchandise Inventory		16820
	(Being Cash Sales Recorded)

Explanation of Solution

1. Entry for the transaction will be as below:

Merchandise Inventory……………….43600

To Accounts Payable………………………………43600

Thus, Accounts Payable will be credited by Merchandise Inventory and Merchandise Inventory will be debited by Accounts Payable. Also in Subsidiary Ledger of Van Industries amount of $43600 will be credited.

2. Entry for the transaction will be as below:

Accounts Receivable…………………16800

To Sales………………………………………….16800

Cost of Goods Sold…………………..8400

To Merchandise Inventory…………………….....8400

Accounts Receivable will be debited by sales and sales will be credited by accounts payables for $16800. Cost of goods sold will be debited by Merchandise Inventory and Merchandise Inventory will be credited by Cost of goods sold for $8400. Min Cho’ Subsidiary ledger will be debited by $16800

3. Entry for the transaction will be as below:

Office Supplies……………………….1230

To Accounts Payable………………………….1230

Office Supplies will be debited with Accounts Payable as they are assets and Accounts Payable will be credited with Office Supplies as it’s a personal account for $1230.

4. Entry for the transaction will be as below:

Accounts Receivables……………………..$10200

To Sales………………………………………………………10200

Cost of Goods Sold………………………….$5800

To Merchandise Inventory……………………………….$5800

Accounts Receivable will be debited with Sales by $10200 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

5. Entry for the transaction will be as below:

Cash…………………………………..$82000

To Long Term Notes Payables…………………….$82000

Cash will be debited with long term notes payable and long term notes payable will be credited by cash for $82000

6. Entry for the transaction is as below:

Office Equipments………………………..$21850

To Accounts Payable……………………………….$21850

Office Equipment will be debited with Accounts Payable as it’s an asset and Accounts Payable will be credited with Office Equipment as it’s a personal account with $21850.

7. Entry for the transaction will be as below:

Accounts Receivables……………………..$5600

To Sales………………………………………………………$5600

Cost of Goods Sold………………………….$2900

To Merchandise Inventory……………………………….$2900

Accounts Receivable will be debited with Sales by $5600 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

8. Entry for the transaction will be as below:

Cash…………………………………..$16464

Sales Discount………………………$336

To Accounts Receivable……………………………$16800

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $16464 and $336 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

9. Entry for the transaction will be as below:

Accounts Payables……………………………..$43600

To Cash……………………………………………..$42728

To Merchandise Inventory……………………………$872

Accounts Payable will be debited by $42728 and $872 with cash and merchandise inventory respectively since it is a personal accounts. Also cash and Merchanise inventory will be credited by Accounts Payable since cash and merchandise inventory is an asset.

10. Entry for transaction is a below:

Cash…………………………………..$9996

Sales Discount………………………$204

To Accounts Receivable……………………………$10200

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $9996 and $204 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

11. Entry for the transaction will be as below:

Merchandise Inventory……………….32625

To Accounts Payable………………………………32625

Thus, Accounts Payable will be credited by Merchandise Inventory and Merchandise Inventory will be debited by Accounts Payable. Also in Subsidiary Ledger of CD Company amount of $32625 will be credited.

12. Entry for the transaction will be as below:

Sales Salary Expense……………….18300

To Cash……………………………………18300

Thus, sales salary expense will be debited by cash as it’s a nominal account and cash will be debited by sales salary expense as its an asset.

13. Entry for the transaction will be as below:

Cash…………………………………………..34680

To Sales……………………………………………..34680

Cost of Goods Sold…………………………..20210

To Merchandise Inventory…………………………..20210

Cash will be debited with Sales by $34680 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

14. Entry for the transaction will be as below:

Office Supplies……………………….1770

To Accounts Payable………………………….1770

Office Supplies will be debited with Accounts Payable as they are assets and Accounts Payable will be credited with Office Supplies as it’s a personal account for $1770.

15. Entry for the transaction will be as below:

Accounts Payable……………….2425

To Merchandise Inventory………………………………2425

Thus, Merchandise Inventory will be credited by Accounts Payable and Accounts Payables will be debited by Merchandise Inventory. Also in Subsidiary Ledger of CD Company amount of $2425 will be debited.

16. Entry for the transaction is as below:

Accounts Payable………………………..$630

To Office Equipment……………………………….$630

Office Equipment will be credited with Accounts Payable as it’s an asset and Accounts Payable will be debited with Office Equipment as it’s a personal account with $630.

17. Entry for transaction is a below:

Cash…………………………………..$5488

Sales Discount………………………$112

To Accounts Receivable……………………………$5600

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $5488 and $112 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

18. Entry for the transaction will be as below:

Accounts Payables……………………………..$30200

To Cash………………………………………………….$29596

To Merchandise Inventory………………………………$604

Accounts Payable will be debited by $29596 and $604 with cash and merchandise inventory respectively since it is a personal accounts. Also cash and Merchanise inventory will be credited by Accounts Payable since cash and merchandise inventory is an asset.

19. Entry for the transaction will be as below:

Accounts Receivables……………………..$14910

To Sales………………………………………………………$14910

Cost of Goods Sold………………………….$7220

To Merchandise Inventory……………………………….$7220

Accounts Receivable will be debited with Sales by $14910 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

20. Entry for the transaction will be as below:

Accounts Receivables……………………..$4315

To Sales………………………………………………………$4315

Cost of Goods Sold………………………….$3280

To Merchandise Inventory……………………………….$3280

Accounts Receivable will be debited with Sales by $4315 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

21. Entry for the transaction will be as below:

Sales Salary Expense……………….18300

To Cash……………………………………18300

Thus, sales salary expense will be debited by cash as it’s a nominal account and cash will be debited by sales salary expense as its an asset.

22. Entry for the transaction will be as below:

Cash…………………………………………..30180

To Sales……………………………………………..30180

Cost of Goods Sold…………………………..16820

To Merchandise Inventory…………………………..16820

Cash will be debited with Sales by $30180 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

Conclusion

Thus, Entries have been passed for above entries

.

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Answer 5

Chapter 7, Problem 1GLP

To determine

Concept Introduction:

Trial Balance is a List of Account balances as on a particular date. It’s the first step towards preparing of Financial Statements.

Requirement

To Prepare:

Journal Entries for Church Company for the month of March.

Expert Solution & Answer

Answer to Problem 1GLP

Solution:

Date	Particulars	Debit	Credit
Mar-01	Merchandise Inventory	43600
	To Accounts Payable		43600
	(Being Merchandise Inventory Purchased on credit)

Mar-02	Accounts Receivables	16800
	To Sales		16800
	(Being Goods Sold to M/s Min Cho)

Mar-02	Cost of Goods Sold	8400
	To Merchandise Inventory		8400
	(Being goods sold to Min Cho)

Mar-03	Office Supplies	1230
	To Accounts Payable		1230
	(Being Office Supplies Purchased on credit)

Mar-03	Accounts Receivables	10200
	To Sales		10200
	(Being Goods Sold to M/s Linda Witt)

Mar-03	Cost of Goods Sold	5800
	To Merchandise Inventory		5800
	(Being Goods Sold to M/s Linda Witt)

Mar-06	Cash	82000
	To Long Term Note Payable		82000
	(Being Loan Taken from bank)

Mar-09	Office Equipment	21850
	To Accounts Payable		21850
	(Being Offic Equipment purchased on credit)

Mar-10	Accounts Receivables	5600
	To Sales		5600
	(Being Goods Sold to M/s Jovita Albany)

Mar-10	Cost of Goods Sold	2900
	To Merchandise Inventory		2900
	(Being Goods Sold to M/s Jovita Albany)

Mar-12	Cash	16464
	Sales Discount	336
	To Accounts Receivables		16800
	(Being Cash received from Min Cho)

Mar-13	Accounts Payable	43600
	To Merchandise Inventory		872
	To Cash		42728
	(Being Payment made to Van Industries)

Mar-13	Cash	9996
	Sales Discount	204
	To Accounts Receivables		10200
	(Being Cash received from Linda Witt)

Mar-14	Merchandise Inventory	32625
	To Accounts Payable		32625
	(Being Merchandise Inventory Purchased on credit)

Mar-15	Sales Salary Expense	18300
	To Cash		18300
	(Being Salaries Paid)

Mar-15	Cash	34680
	To Sales		34680
	(Being Cash Sales Recorded)

Mar-15	Cost of Goods Sold	20210
	To Merchandise Inventory		20210
	(Being Cash Sales Recorded)

Mar-16	Store Supplies	1770
	To Accounts Payable		1770
	(Being Store Supplies Purchased on Credit)

Mar-17	Accounts Payable	2425
	To Merchandise Inventory		2425
	(Being Goods Returned to CD Company)

Mar-19	Accounts Payable	630
	To Office Equipment		630
	(Being Goods Returned to Spell Supply)

Mar-20	Cash	5488
	Sales Discount	112
	To Accounts Receivables		5600
	(Being Cash received from Jovita Albany)

Mar-23	Accounts Payable	30200
	To Cash		29596
	To Merchandise Inventory		604
	(Being Payment made to CD Company)

Mar-27	Accounts Receivables	14910
	To Sales		14910
	(Being Goods Sold to M/s Jovita Albany)

Mar-27	Cost of Goods Sold	7220
	To Merchandise Inventory		7220
	(Being Goods Sold to M/s Jovita Albany)

Mar-28	Accounts Receivables	4315
	To Sales		4315
	(Being Goods Sold to M/s Linda Witt)

Mar-28	Cost of Goods Sold	3280
	To Merchandise Inventory		3280
	(Being Goods Sold to M/s Linda Witt)
Mar-31	Sales Salary Expense	18300
	To Cash		18300
	(Being Salaries Paid)

Mar-31	Cash	30180
	To Sales		30180
	(Being Cash Sales Recorded)

Mar-31	Cost of Goods Sold	16820
	To Merchandise Inventory		16820
	(Being Cash Sales Recorded)

Explanation of Solution

1. Entry for the transaction will be as below:

Merchandise Inventory……………….43600

To Accounts Payable………………………………43600

Thus, Accounts Payable will be credited by Merchandise Inventory and Merchandise Inventory will be debited by Accounts Payable. Also in Subsidiary Ledger of Van Industries amount of $43600 will be credited.

2. Entry for the transaction will be as below:

Accounts Receivable…………………16800

To Sales………………………………………….16800

Cost of Goods Sold…………………..8400

To Merchandise Inventory…………………….....8400

Accounts Receivable will be debited by sales and sales will be credited by accounts payables for $16800. Cost of goods sold will be debited by Merchandise Inventory and Merchandise Inventory will be credited by Cost of goods sold for $8400. Min Cho’ Subsidiary ledger will be debited by $16800

3. Entry for the transaction will be as below:

Office Supplies……………………….1230

To Accounts Payable………………………….1230

Office Supplies will be debited with Accounts Payable as they are assets and Accounts Payable will be credited with Office Supplies as it’s a personal account for $1230.

4. Entry for the transaction will be as below:

Accounts Receivables……………………..$10200

To Sales………………………………………………………10200

Cost of Goods Sold………………………….$5800

To Merchandise Inventory……………………………….$5800

Accounts Receivable will be debited with Sales by $10200 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

5. Entry for the transaction will be as below:

Cash…………………………………..$82000

To Long Term Notes Payables…………………….$82000

Cash will be debited with long term notes payable and long term notes payable will be credited by cash for $82000

6. Entry for the transaction is as below:

Office Equipments………………………..$21850

To Accounts Payable……………………………….$21850

Office Equipment will be debited with Accounts Payable as it’s an asset and Accounts Payable will be credited with Office Equipment as it’s a personal account with $21850.

7. Entry for the transaction will be as below:

Accounts Receivables……………………..$5600

To Sales………………………………………………………$5600

Cost of Goods Sold………………………….$2900

To Merchandise Inventory……………………………….$2900

Accounts Receivable will be debited with Sales by $5600 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

8. Entry for the transaction will be as below:

Cash…………………………………..$16464

Sales Discount………………………$336

To Accounts Receivable……………………………$16800

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $16464 and $336 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

9. Entry for the transaction will be as below:

Accounts Payables……………………………..$43600

To Cash……………………………………………..$42728

To Merchandise Inventory……………………………$872

Accounts Payable will be debited by $42728 and $872 with cash and merchandise inventory respectively since it is a personal accounts. Also cash and Merchanise inventory will be credited by Accounts Payable since cash and merchandise inventory is an asset.

10. Entry for transaction is a below:

Cash…………………………………..$9996

Sales Discount………………………$204

To Accounts Receivable……………………………$10200

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $9996 and $204 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

11. Entry for the transaction will be as below:

Merchandise Inventory……………….32625

To Accounts Payable………………………………32625

Thus, Accounts Payable will be credited by Merchandise Inventory and Merchandise Inventory will be debited by Accounts Payable. Also in Subsidiary Ledger of CD Company amount of $32625 will be credited.

12. Entry for the transaction will be as below:

Sales Salary Expense……………….18300

To Cash……………………………………18300

Thus, sales salary expense will be debited by cash as it’s a nominal account and cash will be debited by sales salary expense as its an asset.

13. Entry for the transaction will be as below:

Cash…………………………………………..34680

To Sales……………………………………………..34680

Cost of Goods Sold…………………………..20210

To Merchandise Inventory…………………………..20210

Cash will be debited with Sales by $34680 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

14. Entry for the transaction will be as below:

Office Supplies……………………….1770

To Accounts Payable………………………….1770

Office Supplies will be debited with Accounts Payable as they are assets and Accounts Payable will be credited with Office Supplies as it’s a personal account for $1770.

15. Entry for the transaction will be as below:

Accounts Payable……………….2425

To Merchandise Inventory………………………………2425

Thus, Merchandise Inventory will be credited by Accounts Payable and Accounts Payables will be debited by Merchandise Inventory. Also in Subsidiary Ledger of CD Company amount of $2425 will be debited.

16. Entry for the transaction is as below:

Accounts Payable………………………..$630

To Office Equipment……………………………….$630

Office Equipment will be credited with Accounts Payable as it’s an asset and Accounts Payable will be debited with Office Equipment as it’s a personal account with $630.

17. Entry for transaction is a below:

Cash…………………………………..$5488

Sales Discount………………………$112

To Accounts Receivable……………………………$5600

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $5488 and $112 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

18. Entry for the transaction will be as below:

Accounts Payables……………………………..$30200

To Cash………………………………………………….$29596

To Merchandise Inventory………………………………$604

Accounts Payable will be debited by $29596 and $604 with cash and merchandise inventory respectively since it is a personal accounts. Also cash and Merchanise inventory will be credited by Accounts Payable since cash and merchandise inventory is an asset.

19. Entry for the transaction will be as below:

Accounts Receivables……………………..$14910

To Sales………………………………………………………$14910

Cost of Goods Sold………………………….$7220

To Merchandise Inventory……………………………….$7220

Accounts Receivable will be debited with Sales by $14910 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

20. Entry for the transaction will be as below:

Accounts Receivables……………………..$4315

To Sales………………………………………………………$4315

Cost of Goods Sold………………………….$3280

To Merchandise Inventory……………………………….$3280

Accounts Receivable will be debited with Sales by $4315 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

21. Entry for the transaction will be as below:

Sales Salary Expense……………….18300

To Cash……………………………………18300

Thus, sales salary expense will be debited by cash as it’s a nominal account and cash will be debited by sales salary expense as its an asset.

22. Entry for the transaction will be as below:

Cash…………………………………………..30180

To Sales……………………………………………..30180

Cost of Goods Sold…………………………..16820

To Merchandise Inventory…………………………..16820

Cash will be debited with Sales by $30180 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

Conclusion

Thus, Entries have been passed for above entries

.

Answer 6

Chapter 7, Problem 1GLP

To determine

Concept Introduction:

Trial Balance is a List of Account balances as on a particular date. It’s the first step towards preparing of Financial Statements.

Requirement

To Prepare:

Journal Entries for Church Company for the month of March.

Expert Solution & Answer

Answer to Problem 1GLP

Solution:

Date	Particulars	Debit	Credit
Mar-01	Merchandise Inventory	43600
	To Accounts Payable		43600
	(Being Merchandise Inventory Purchased on credit)

Mar-02	Accounts Receivables	16800
	To Sales		16800
	(Being Goods Sold to M/s Min Cho)

Mar-02	Cost of Goods Sold	8400
	To Merchandise Inventory		8400
	(Being goods sold to Min Cho)

Mar-03	Office Supplies	1230
	To Accounts Payable		1230
	(Being Office Supplies Purchased on credit)

Mar-03	Accounts Receivables	10200
	To Sales		10200
	(Being Goods Sold to M/s Linda Witt)

Mar-03	Cost of Goods Sold	5800
	To Merchandise Inventory		5800
	(Being Goods Sold to M/s Linda Witt)

Mar-06	Cash	82000
	To Long Term Note Payable		82000
	(Being Loan Taken from bank)

Mar-09	Office Equipment	21850
	To Accounts Payable		21850
	(Being Offic Equipment purchased on credit)

Mar-10	Accounts Receivables	5600
	To Sales		5600
	(Being Goods Sold to M/s Jovita Albany)

Mar-10	Cost of Goods Sold	2900
	To Merchandise Inventory		2900
	(Being Goods Sold to M/s Jovita Albany)

Mar-12	Cash	16464
	Sales Discount	336
	To Accounts Receivables		16800
	(Being Cash received from Min Cho)

Mar-13	Accounts Payable	43600
	To Merchandise Inventory		872
	To Cash		42728
	(Being Payment made to Van Industries)

Mar-13	Cash	9996
	Sales Discount	204
	To Accounts Receivables		10200
	(Being Cash received from Linda Witt)

Mar-14	Merchandise Inventory	32625
	To Accounts Payable		32625
	(Being Merchandise Inventory Purchased on credit)

Mar-15	Sales Salary Expense	18300
	To Cash		18300
	(Being Salaries Paid)

Mar-15	Cash	34680
	To Sales		34680
	(Being Cash Sales Recorded)

Mar-15	Cost of Goods Sold	20210
	To Merchandise Inventory		20210
	(Being Cash Sales Recorded)

Mar-16	Store Supplies	1770
	To Accounts Payable		1770
	(Being Store Supplies Purchased on Credit)

Mar-17	Accounts Payable	2425
	To Merchandise Inventory		2425
	(Being Goods Returned to CD Company)

Mar-19	Accounts Payable	630
	To Office Equipment		630
	(Being Goods Returned to Spell Supply)

Mar-20	Cash	5488
	Sales Discount	112
	To Accounts Receivables		5600
	(Being Cash received from Jovita Albany)

Mar-23	Accounts Payable	30200
	To Cash		29596
	To Merchandise Inventory		604
	(Being Payment made to CD Company)

Mar-27	Accounts Receivables	14910
	To Sales		14910
	(Being Goods Sold to M/s Jovita Albany)

Mar-27	Cost of Goods Sold	7220
	To Merchandise Inventory		7220
	(Being Goods Sold to M/s Jovita Albany)

Mar-28	Accounts Receivables	4315
	To Sales		4315
	(Being Goods Sold to M/s Linda Witt)

Mar-28	Cost of Goods Sold	3280
	To Merchandise Inventory		3280
	(Being Goods Sold to M/s Linda Witt)
Mar-31	Sales Salary Expense	18300
	To Cash		18300
	(Being Salaries Paid)

Mar-31	Cash	30180
	To Sales		30180
	(Being Cash Sales Recorded)

Mar-31	Cost of Goods Sold	16820
	To Merchandise Inventory		16820
	(Being Cash Sales Recorded)

Explanation of Solution

1. Entry for the transaction will be as below:

Merchandise Inventory……………….43600

To Accounts Payable………………………………43600

Thus, Accounts Payable will be credited by Merchandise Inventory and Merchandise Inventory will be debited by Accounts Payable. Also in Subsidiary Ledger of Van Industries amount of $43600 will be credited.

2. Entry for the transaction will be as below:

Accounts Receivable…………………16800

To Sales………………………………………….16800

Cost of Goods Sold…………………..8400

To Merchandise Inventory…………………….....8400

Accounts Receivable will be debited by sales and sales will be credited by accounts payables for $16800. Cost of goods sold will be debited by Merchandise Inventory and Merchandise Inventory will be credited by Cost of goods sold for $8400. Min Cho’ Subsidiary ledger will be debited by $16800

3. Entry for the transaction will be as below:

Office Supplies……………………….1230

To Accounts Payable………………………….1230

Office Supplies will be debited with Accounts Payable as they are assets and Accounts Payable will be credited with Office Supplies as it’s a personal account for $1230.

4. Entry for the transaction will be as below:

Accounts Receivables……………………..$10200

To Sales………………………………………………………10200

Cost of Goods Sold………………………….$5800

To Merchandise Inventory……………………………….$5800

Accounts Receivable will be debited with Sales by $10200 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

5. Entry for the transaction will be as below:

Cash…………………………………..$82000

To Long Term Notes Payables…………………….$82000

Cash will be debited with long term notes payable and long term notes payable will be credited by cash for $82000

6. Entry for the transaction is as below:

Office Equipments………………………..$21850

To Accounts Payable……………………………….$21850

Office Equipment will be debited with Accounts Payable as it’s an asset and Accounts Payable will be credited with Office Equipment as it’s a personal account with $21850.

7. Entry for the transaction will be as below:

Accounts Receivables……………………..$5600

To Sales………………………………………………………$5600

Cost of Goods Sold………………………….$2900

To Merchandise Inventory……………………………….$2900

Accounts Receivable will be debited with Sales by $5600 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

8. Entry for the transaction will be as below:

Cash…………………………………..$16464

Sales Discount………………………$336

To Accounts Receivable……………………………$16800

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $16464 and $336 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

9. Entry for the transaction will be as below:

Accounts Payables……………………………..$43600

To Cash……………………………………………..$42728

To Merchandise Inventory……………………………$872

Accounts Payable will be debited by $42728 and $872 with cash and merchandise inventory respectively since it is a personal accounts. Also cash and Merchanise inventory will be credited by Accounts Payable since cash and merchandise inventory is an asset.

10. Entry for transaction is a below:

Cash…………………………………..$9996

Sales Discount………………………$204

To Accounts Receivable……………………………$10200

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $9996 and $204 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

11. Entry for the transaction will be as below:

Merchandise Inventory……………….32625

To Accounts Payable………………………………32625

Thus, Accounts Payable will be credited by Merchandise Inventory and Merchandise Inventory will be debited by Accounts Payable. Also in Subsidiary Ledger of CD Company amount of $32625 will be credited.

12. Entry for the transaction will be as below:

Sales Salary Expense……………….18300

To Cash……………………………………18300

Thus, sales salary expense will be debited by cash as it’s a nominal account and cash will be debited by sales salary expense as its an asset.

13. Entry for the transaction will be as below:

Cash…………………………………………..34680

To Sales……………………………………………..34680

Cost of Goods Sold…………………………..20210

To Merchandise Inventory…………………………..20210

Cash will be debited with Sales by $34680 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

14. Entry for the transaction will be as below:

Office Supplies……………………….1770

To Accounts Payable………………………….1770

Office Supplies will be debited with Accounts Payable as they are assets and Accounts Payable will be credited with Office Supplies as it’s a personal account for $1770.

15. Entry for the transaction will be as below:

Accounts Payable……………….2425

To Merchandise Inventory………………………………2425

Thus, Merchandise Inventory will be credited by Accounts Payable and Accounts Payables will be debited by Merchandise Inventory. Also in Subsidiary Ledger of CD Company amount of $2425 will be debited.

16. Entry for the transaction is as below:

Accounts Payable………………………..$630

To Office Equipment……………………………….$630

Office Equipment will be credited with Accounts Payable as it’s an asset and Accounts Payable will be debited with Office Equipment as it’s a personal account with $630.

17. Entry for transaction is a below:

Cash…………………………………..$5488

Sales Discount………………………$112

To Accounts Receivable……………………………$5600

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $5488 and $112 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

18. Entry for the transaction will be as below:

Accounts Payables……………………………..$30200

To Cash………………………………………………….$29596

To Merchandise Inventory………………………………$604

Accounts Payable will be debited by $29596 and $604 with cash and merchandise inventory respectively since it is a personal accounts. Also cash and Merchanise inventory will be credited by Accounts Payable since cash and merchandise inventory is an asset.

19. Entry for the transaction will be as below:

Accounts Receivables……………………..$14910

To Sales………………………………………………………$14910

Cost of Goods Sold………………………….$7220

To Merchandise Inventory……………………………….$7220

Accounts Receivable will be debited with Sales by $14910 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

20. Entry for the transaction will be as below:

Accounts Receivables……………………..$4315

To Sales………………………………………………………$4315

Cost of Goods Sold………………………….$3280

To Merchandise Inventory……………………………….$3280

Accounts Receivable will be debited with Sales by $4315 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

21. Entry for the transaction will be as below:

Sales Salary Expense……………….18300

To Cash……………………………………18300

Thus, sales salary expense will be debited by cash as it’s a nominal account and cash will be debited by sales salary expense as its an asset.

22. Entry for the transaction will be as below:

Cash…………………………………………..30180

To Sales……………………………………………..30180

Cost of Goods Sold…………………………..16820

To Merchandise Inventory…………………………..16820

Cash will be debited with Sales by $30180 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

Conclusion

Thus, Entries have been passed for above entries

.

Answer 7

Chapter 7, Problem 1GLP

To determine

Concept Introduction:

Trial Balance is a List of Account balances as on a particular date. It’s the first step towards preparing of Financial Statements.

Requirement

To Prepare:

Journal Entries for Church Company for the month of March.

Answer 8

Expert Solution & Answer

Answer to Problem 1GLP

Solution:

Date	Particulars	Debit	Credit
Mar-01	Merchandise Inventory	43600
	To Accounts Payable		43600
	(Being Merchandise Inventory Purchased on credit)

Mar-02	Accounts Receivables	16800
	To Sales		16800
	(Being Goods Sold to M/s Min Cho)

Mar-02	Cost of Goods Sold	8400
	To Merchandise Inventory		8400
	(Being goods sold to Min Cho)

Mar-03	Office Supplies	1230
	To Accounts Payable		1230
	(Being Office Supplies Purchased on credit)

Mar-03	Accounts Receivables	10200
	To Sales		10200
	(Being Goods Sold to M/s Linda Witt)

Mar-03	Cost of Goods Sold	5800
	To Merchandise Inventory		5800
	(Being Goods Sold to M/s Linda Witt)

Mar-06	Cash	82000
	To Long Term Note Payable		82000
	(Being Loan Taken from bank)

Mar-09	Office Equipment	21850
	To Accounts Payable		21850
	(Being Offic Equipment purchased on credit)

Mar-10	Accounts Receivables	5600
	To Sales		5600
	(Being Goods Sold to M/s Jovita Albany)

Mar-10	Cost of Goods Sold	2900
	To Merchandise Inventory		2900
	(Being Goods Sold to M/s Jovita Albany)

Mar-12	Cash	16464
	Sales Discount	336
	To Accounts Receivables		16800
	(Being Cash received from Min Cho)

Mar-13	Accounts Payable	43600
	To Merchandise Inventory		872
	To Cash		42728
	(Being Payment made to Van Industries)

Mar-13	Cash	9996
	Sales Discount	204
	To Accounts Receivables		10200
	(Being Cash received from Linda Witt)

Mar-14	Merchandise Inventory	32625
	To Accounts Payable		32625
	(Being Merchandise Inventory Purchased on credit)

Mar-15	Sales Salary Expense	18300
	To Cash		18300
	(Being Salaries Paid)

Mar-15	Cash	34680
	To Sales		34680
	(Being Cash Sales Recorded)

Mar-15	Cost of Goods Sold	20210
	To Merchandise Inventory		20210
	(Being Cash Sales Recorded)

Mar-16	Store Supplies	1770
	To Accounts Payable		1770
	(Being Store Supplies Purchased on Credit)

Mar-17	Accounts Payable	2425
	To Merchandise Inventory		2425
	(Being Goods Returned to CD Company)

Mar-19	Accounts Payable	630
	To Office Equipment		630
	(Being Goods Returned to Spell Supply)

Mar-20	Cash	5488
	Sales Discount	112
	To Accounts Receivables		5600
	(Being Cash received from Jovita Albany)

Mar-23	Accounts Payable	30200
	To Cash		29596
	To Merchandise Inventory		604
	(Being Payment made to CD Company)

Mar-27	Accounts Receivables	14910
	To Sales		14910
	(Being Goods Sold to M/s Jovita Albany)

Mar-27	Cost of Goods Sold	7220
	To Merchandise Inventory		7220
	(Being Goods Sold to M/s Jovita Albany)

Mar-28	Accounts Receivables	4315
	To Sales		4315
	(Being Goods Sold to M/s Linda Witt)

Mar-28	Cost of Goods Sold	3280
	To Merchandise Inventory		3280
	(Being Goods Sold to M/s Linda Witt)
Mar-31	Sales Salary Expense	18300
	To Cash		18300
	(Being Salaries Paid)

Mar-31	Cash	30180
	To Sales		30180
	(Being Cash Sales Recorded)

Mar-31	Cost of Goods Sold	16820
	To Merchandise Inventory		16820
	(Being Cash Sales Recorded)

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

1. Entry for the transaction will be as below:

Merchandise Inventory……………….43600

To Accounts Payable………………………………43600

Thus, Accounts Payable will be credited by Merchandise Inventory and Merchandise Inventory will be debited by Accounts Payable. Also in Subsidiary Ledger of Van Industries amount of $43600 will be credited.

2. Entry for the transaction will be as below:

Accounts Receivable…………………16800

To Sales………………………………………….16800

Cost of Goods Sold…………………..8400

To Merchandise Inventory…………………….....8400

Accounts Receivable will be debited by sales and sales will be credited by accounts payables for $16800. Cost of goods sold will be debited by Merchandise Inventory and Merchandise Inventory will be credited by Cost of goods sold for $8400. Min Cho’ Subsidiary ledger will be debited by $16800

3. Entry for the transaction will be as below:

Office Supplies……………………….1230

To Accounts Payable………………………….1230

Office Supplies will be debited with Accounts Payable as they are assets and Accounts Payable will be credited with Office Supplies as it’s a personal account for $1230.

4. Entry for the transaction will be as below:

Accounts Receivables……………………..$10200

To Sales………………………………………………………10200

Cost of Goods Sold………………………….$5800

To Merchandise Inventory……………………………….$5800

Accounts Receivable will be debited with Sales by $10200 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

5. Entry for the transaction will be as below:

Cash…………………………………..$82000

To Long Term Notes Payables…………………….$82000

Cash will be debited with long term notes payable and long term notes payable will be credited by cash for $82000

6. Entry for the transaction is as below:

Office Equipments………………………..$21850

To Accounts Payable……………………………….$21850

Office Equipment will be debited with Accounts Payable as it’s an asset and Accounts Payable will be credited with Office Equipment as it’s a personal account with $21850.

7. Entry for the transaction will be as below:

Accounts Receivables……………………..$5600

To Sales………………………………………………………$5600

Cost of Goods Sold………………………….$2900

To Merchandise Inventory……………………………….$2900

Accounts Receivable will be debited with Sales by $5600 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

8. Entry for the transaction will be as below:

Cash…………………………………..$16464

Sales Discount………………………$336

To Accounts Receivable……………………………$16800

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $16464 and $336 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

9. Entry for the transaction will be as below:

Accounts Payables……………………………..$43600

To Cash……………………………………………..$42728

To Merchandise Inventory……………………………$872

Accounts Payable will be debited by $42728 and $872 with cash and merchandise inventory respectively since it is a personal accounts. Also cash and Merchanise inventory will be credited by Accounts Payable since cash and merchandise inventory is an asset.

10. Entry for transaction is a below:

Cash…………………………………..$9996

Sales Discount………………………$204

To Accounts Receivable……………………………$10200

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $9996 and $204 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

11. Entry for the transaction will be as below:

Merchandise Inventory……………….32625

To Accounts Payable………………………………32625

Thus, Accounts Payable will be credited by Merchandise Inventory and Merchandise Inventory will be debited by Accounts Payable. Also in Subsidiary Ledger of CD Company amount of $32625 will be credited.

12. Entry for the transaction will be as below:

Sales Salary Expense……………….18300

To Cash……………………………………18300

Thus, sales salary expense will be debited by cash as it’s a nominal account and cash will be debited by sales salary expense as its an asset.

13. Entry for the transaction will be as below:

Cash…………………………………………..34680

To Sales……………………………………………..34680

Cost of Goods Sold…………………………..20210

To Merchandise Inventory…………………………..20210

Cash will be debited with Sales by $34680 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

14. Entry for the transaction will be as below:

Office Supplies……………………….1770

To Accounts Payable………………………….1770

Office Supplies will be debited with Accounts Payable as they are assets and Accounts Payable will be credited with Office Supplies as it’s a personal account for $1770.

15. Entry for the transaction will be as below:

Accounts Payable……………….2425

To Merchandise Inventory………………………………2425

Thus, Merchandise Inventory will be credited by Accounts Payable and Accounts Payables will be debited by Merchandise Inventory. Also in Subsidiary Ledger of CD Company amount of $2425 will be debited.

16. Entry for the transaction is as below:

Accounts Payable………………………..$630

To Office Equipment……………………………….$630

Office Equipment will be credited with Accounts Payable as it’s an asset and Accounts Payable will be debited with Office Equipment as it’s a personal account with $630.

17. Entry for transaction is a below:

Cash…………………………………..$5488

Sales Discount………………………$112

To Accounts Receivable……………………………$5600

Since only 1 Account is being credited, Accounts Receivable will be credited with Cash and Sales Discount with $5488 and $112 Respectively, While cash and Sales Discount will be debited by the same amounts with accounts Receivables.

18. Entry for the transaction will be as below:

Accounts Payables……………………………..$30200

To Cash………………………………………………….$29596

To Merchandise Inventory………………………………$604

Accounts Payable will be debited by $29596 and $604 with cash and merchandise inventory respectively since it is a personal accounts. Also cash and Merchanise inventory will be credited by Accounts Payable since cash and merchandise inventory is an asset.

19. Entry for the transaction will be as below:

Accounts Receivables……………………..$14910

To Sales………………………………………………………$14910

Cost of Goods Sold………………………….$7220

To Merchandise Inventory……………………………….$7220

Accounts Receivable will be debited with Sales by $14910 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

20. Entry for the transaction will be as below:

Accounts Receivables……………………..$4315

To Sales………………………………………………………$4315

Cost of Goods Sold………………………….$3280

To Merchandise Inventory……………………………….$3280

Accounts Receivable will be debited with Sales by $4315 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.

21. Entry for the transaction will be as below:

Sales Salary Expense……………….18300

To Cash……………………………………18300

Thus, sales salary expense will be debited by cash as it’s a nominal account and cash will be debited by sales salary expense as its an asset.

22. Entry for the transaction will be as below:

Cash…………………………………………..30180

To Sales……………………………………………..30180

Cost of Goods Sold…………………………..16820

To Merchandise Inventory…………………………..16820

Cash will be debited with Sales by $30180 as it’s a personal account and sales will be credited by accounts receivables as it’s a nominal account. Cost of goods sold will be debited by Merchandise Inventory as it’s a nominal account and Merchandise Inventory will be debited by Cost of Goods Sold as it’s an asset.