Concept Introduction:
Requirement
To Prepare:

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.
Thus, Entries have been passed for above entries
.
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