Selected accounts from the chart of accounts of Boyden Company are shown below.
ID: 2371372 • Letter: S
Question
Selected accounts from the chart of accounts of Boyden Company are shown below.101
Cash
401 Sales
112 Accounts Receivable 412 Sales Returns and Allowances
120 Merchandise Inventory 414 Sales Discounts
126 Supplies 505
Cost of Goods Sold
157 Equipment 726
Salaries Expense
201 Accounts Payable
The cost of all merchandise sold was 60% of the sales price. During January, Boyden completed the following transactions.
Jan. 3 Purchased merchandise on account from Wortham Co. $15,900.
4 Purchased supplies for cash $78.
4 Sold merchandise on account to Milam $6,910, invoice no. 371, terms 1/10, n/30.
5 Returned $300 worth of damaged goods purchased on account from Wortham Co. on January 3.
6 Made cash sales for the week totaling $3,330.
8 Purchased merchandise on account from Noyes Co. $4,800.
9 Sold merchandise on account to Connor Corp. $5,900, invoice no. 372, terms 1/10, n/30.
11 Purchased merchandise on account from Betz Co. $3,751.
13 Paid in full Wortham Co. on account less a 2% discount.
13 Made cash sales for the week totaling $6,830.
15 Received payment from Connor Corp. for invoice no. 372.
15 Paid semi-monthly salaries of $13,506 to employees.
17 Received payment from Milam for invoice no. 371.
17 Sold merchandise on account to Bullock Co. $1,740, invoice no. 373, terms 1/10, n/30.
19 Purchased equipment on account from Murphy Corp. $5,508.
20 Cash sales for the week totaled $3,100.
20 Paid in full Noyes Co. on account less a 2% discount.
23 Purchased merchandise on account from Wortham Co. $7,735.
24 Purchased merchandise on account from Forgetta Corp. $4,846.
27 Made cash sales for the week totaling $4,700.
30 Received payment from Bullock Co. for invoice no. 373.
31 Paid semi-monthly salaries of $12,499 to employees.
31 Sold merchandise on account to Milam $9,940, invoice no. 374, terms 1/10, n/30.
Boyden Company uses the following journals.
Sales journal.
Single-column purchases journal.
Cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Merchandise Inventory Cr.
Cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr., Merchandise Inventory Cr., and Cash Cr.
General journal.
Instructions
Using the selected accounts provided: Record the January transactions in the appropriate journal noted. Foot and crossfoot all special journals. (If there is no transaction, enter NA as the account and 0 for the amount.)
Sales Journal
S1
Date
Account Debited
Invoice No.
Ref.
Accounts Receivable Dr. Sales Cr.
Cost of Goods Sold Dr. Merch. Inventory Cr.
Jan. 371
P
372
P
373
P
374
P
P
P
(112)(401) (505)(120)
Purchases Journal
P1
Date
Account Credited
Ref.
Merch. Inventory Dr. Accounts Payable Cr.
Jan. P
P
P
P
P
(120)(201)
General Journal
Date Description Debit Credit
Jan.
Jan.
Cash Receipts Journal
CR1
Date
Account Credited
Ref.
Cash Dr.
Sales Discounts Dr.
Acc. Receivable Cr.
Sales Cr.
Other Accounts Cr.
Cost of Goods Sold Dr.
Merch. Inventory Cr.
Jan.
P
P
P
(101) (414) (112) (401) (X) (505)(120)
Cash Payments Journal
CP1
Date
Account Debited
Ref.
Other Accounts Dr.
Accounts Payable Dr.
Merch. Inventory Cr.
Cash Cr.
Jan. 126
P
726
P
726
(X) (201) (120) (101)
Explanation / Answer
Sales Journal Date Account Debited Invoice No. Ref Accounts Receivable Dr. Sales Cr. Cost of Goods Sold Dr. Merchandise Inventory Cr. Jan. 4 Milam 371 x 6,910 4,146 9 Conner Corp. 372 x 5,900 3,540 17 Bullock Co 373 x 1,740 1,044 31 Milam 374 x 9,940 5,964 24,490 14,694 (112)(401) (505)(120) Purchase Journal Date Account Credited Ref Merchandise Inventory Dr. Accounts Payable Cr. Jan. 3 Wortham Co. x 15,900 8 Noyes Co. x 4,800 11 Betz Co. x 3,751 23 Wortham Co. x 7,735 24 Forgetta x 4,846 37,032 (120)(201) General Journal Date Accounts and Explanations Ref Debit Credit Jan. 5 Accounts Payable Wortham Co 201 300 Merchandise Inventory 120 300 19 Equipment 157 5,508 Accounts Payable Murphy Corp 201 5,508 Cash Receipts Journal Date Account Credited Ref Cash Dr Sales Disc. Dr. Accounts Receivable Cr. Sales Cr. Other Accounts Cr. Cost of Goods Sold Dr. Merchadise Inventory Cr. Jan. 6 3,330 3,330 1,998 13 6,830 6,830 4,098 15 Connor Corp. x 5,841 59 5,900 0 17 Miliam x 6,910 6,910 0 20 3,100 3,100 1,860 27 4,700 4,700 2,820 30 Bullock Co. x 1,740 1,740 0 32,451 59 14,550 17,960 10,776 (101) (414) (112) (401) (505)(120) Cash Payments Journal Date Account Debited Ref Other Accts. Dr. Accounts Payable Dr. Merchandise Inventory Cr. Cash Cr. Jan. 4 Supplies 126 78 78 13 Wortham Co. x 15,600 312 15,288 15 Salaries Expense 726 13,506 13,506 20 Noyes Corp. x 4,800 96 4,704 31 Salaries Expense 726 12,499 12,499 26,083 20,400 408 46,075 x (201) (120) (101)
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