E7-7 Pherigo Co. uses special journals and a general journal. The following tran
ID: 2386661 • Letter: E
Question
E7-7
Pherigo Co. uses special journals and a general journal. The following transactions occurred during May 2010.
May 1 I. Pherigo invested $50,000 cash in the business.
2 Sold merchandise to B. Sherrick for $6,300 cash. The cost of the merchandise sold was $4,200.
3 Purchased merchandise for $7,200 from J. DeLeon using check no. 101.
14 Paid salary to H. Potter $700 by issuing check no. 102.
16 Sold merchandise on account to K. Kimbell for $900, terms n/30. The cost of the merchandise sold was $630.
22 A check of $9,000 is received from M. Moody in full for invoice 101; no discount given.
Instructions
Complete the multiple-column cash receipts journal and a multiple column cash payments journal. Record the transaction(s) for May that should be journalized in the cash receipts journal and cash payments journal. (List transactions in order of occurrence. If there is no transaction, enter NA as the account and 0 for the amount.)
(Part1)
PHERIGO CO.
Cash Receipts Journal
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.
2010
May
(Part2)
PHERIGO CO.
Cash Payments Journal
Date
Check No.
Account Debited
Ref.
Other Accounts Dr.
Accounts Payable Dr.
Cash Cr.
2010
May 101
Explanation / Answer
Cash receipt journal of Pherigo co:Date Account credited Ref Cash Sales discounts Dr Acc.receivables Cr Sles Cr Other acc,Cr Cost of goods sold Dr Merchandise inventory Cr 2-May B. Sherrick $6,300 6,300 4,200 16-May K. Kimbell 900 900 630 22-May Bank 9000 9,000
Cash payment journal: Date Check no Account Dr Ref Other acc Dr Accounts payable Dr Cash Cr 3-May 101 J.Deleon 7,200 14-May 102 H.Potter salary 11-May Pherigo 50,000 Date Check no Account Dr Ref Other acc Dr Accounts payable Dr Cash Cr 3-May 101 J.Deleon 7,200 14-May 102 H.Potter salary 11-May Pherigo 50,000 Date Account credited Ref Cash Sales discounts Dr Acc.receivables Cr Sles Cr Other acc,Cr Cost of goods sold Dr Merchandise inventory Cr 2-May B. Sherrick $6,300 6,300 4,200 16-May K. Kimbell 900 900 630 22-May Bank 9000 9,000
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