Hi, I need help making journal entries with the information below please. The co

Question

Hi, I need help making journal entries with the information below please.

The company's accounting policy is to record purchase discounts taken at time of payment to the vendor and to record sales discounts at time of receipt of the cash payment from the customer. The company uses the accrual method of accounting. The company's internal control policies requires that payments (checks) be "cut" only through A/P for which an invoice has been received from an approved vendor At November 30, 2016, the company's trial balance (TB) appeared as follows: a/c # Account Name Dr Cr. 100 105 110 115 190 195 Cash Accounts Receivable Inventory 35,000 45,000 4,200 60,000 Furniture & Equipment A/D- Furniture & Equipment Accounts Payable Wages Payable Utilities Pavable Income Taxes Payable Common Stock Retained Eamings Dividends Declared 32,000 200 1,200 300 3,640 12,000 78,370 220 230 240 310 320 330 400 405 410Sales Returns & Allowances 500 605 Depreciation Expense 610 7,500 330,000 Sales Discounts COGS Credit Card Expense 400 1,550 218,440 500 4,650 3,800 64.320 013 615 | Supplies Expense 620 625 Wages Expense Delivery Expense Utilities Expense Income Tax Expense Total 4,400

Explanation / Answer

The problem contains transactions of December 2016. They are to be recorded on accural basis. Discount on purchase and sales are entered on the date of cash receipt or payment. Journals are shown below>

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In addition following adjustment entries are passed here at the end of the month

Journal entries for transactions of December 2016 SERIAL DATE CODE ENTRIES & DESCRIPTIONS DEBIT CREDIT 1 4.12.2016 620 Wages Expenses                                        DR 2,000 220      Wages payable 2,000 (Wages invoice 965 received for the period Dec1 to Dec 4) 220 Wages payable                                            DR 3,200 100       Cash 3,200 ( Wages for period 24th Nov-25th Nov & Dec1-Dec4 paid) 2 10.12.2016 630 Utility expenses                                         Dr 325 230      Utility payable 325 (Received Invoice CON1543 from Connexus energy for Nov utilities) 230 Utility p[ayable                                           Dr 325 100       Cash 325 ( Paid utility in cash) 3 29.12.2016 110 Inventory                                                        Dr 1,400 200       Account payable 1,400 ( Purchased Merchandise from University supplies) 4 29.12.2016 110 Inventory                                                      Dr 15,000 200        Accounts payable 15,000 ( Purchased nerchandise from ACME book company 1/10,n/30 tern) 5 29.12.2016 100 Cash                                                                  DR 28,000 400      Sales 28,000 ( Sold Merchandise in cash) 500 COGS                                                                DR 18,200 110      Inventory 18,200 (Transfer cost of inventory sold to COGS) 6 29.12.2016 100 Cash                                                                  DR 11,760 610 Credit card expenses                                 DR 240 400      Sales 12,000 ( Sold goods against credit card, with card withholds of $240) 7 29.12.2016 105 Accounts receivable                                 DR 900 400     Sales 900 (Sold Somal Town Book stores with credit term 2/10, n/30) 500 COGS                                                               DR 720 115      Supplies 720 (Transferred cost of merchandise sold from Inventory to COGS) 8 29.12.2016 200 Accounts payable                                      DR 150 110      Inventory 150 (Purchased merchandise from University supplies returned) 8 29.12.2016 400 Sales                                                                DR 800 100       Cash 800 (Sold merchandise in cash now returned)   110 Inventory                                                      DR 480 500       COGS 480 (Reversal entry of cost of returned merchandise) 10 29.12.2016 115 Supplies                                                        DR 200 100         Cash 200 (Purchased office supplies and paid in cash) 11 29.12.2016 110 Inventory                                                     DR 185 100          Cash 185 ( Paid frieght in cash for Merchandise purchased included in inventory) 12 29.12.2016 200 Accounts payable                                      DR 1,250 100       Cash 1,250 (Paid University dues in full) 13 29.12.2016 200 Acounts payable                                        DR 15,000 100       Cash 14,850       Discount on purchase 150 (Paid Acme Book Co. in full with 1% discount) 14 29.12.2016 405 Sales   discount                                            DR 18 100 Cash                                                                  DR 882 105         Accounts Receivable 900 (Received from Smaltown Book stores and discount allowed) 15 29.12.2016 190 Furniture                                                      DR 2,140 200       Accounts payable 2,000 240      Tax payable 140 (Purchased Furniture of $2000 with sales tax 140 due n/30 from office Max)

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