Question
1-Jun Paid rent for June, $4000 1 pt. 3-Jun Purchased merchandise on account from ABC Company for $10000 Terms 2/10, n/30, FOB shipping point. We were billed $150 for shipping which was added to our invoice. 3 pts. 4-Jun Returned $2000 of the merchandise purchased on June 3 from ABC Company. 2 pts 6-Jun Sold $15000 of Merchandise on account to EFG Company, terms 1/20, n/30, FOB shipping point.The cost of merchandise sold was $5000 and we paid $250 for shipping which was billed and added to the customer's invoice. 3 pts. 7-Jun EFG company returned $1500 of the merchandise purchased on June 6. The cost of merchandise sold was $1000 2 pts. 8-Jun Paid Misc. Selling Expense of $500 and Misc. Administrative Expense of $100 2 pts. 9-Jun Purchased on account $350 of Store Supplies. 2 pts. 13-Jun Paid ABC Company for the purchase made on June 3rd, less the return of June 4th 3 pts. 16-Jun Purchased store supplies for $100 cash. 2 pts. 17-Jun Received cash from EFG Company for the sale of June 6, less the return of June 7th. 3 pts. 25-Jun Paid Sales Salaries Expense of $650 and Office Salaries Expense of $750 2 pts. 30-Jun Owner withdrew $500 1 pt.
Part 2 (17 points - 1/2 point for each posting from journal and balancing) Post your Journal entries to the ledgers. Be sure to balance the ledger after each entry. Ledgers Cash #110 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 40,000.00 Check Answer Cash = 38,775.00 Accounts Receivable #112 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 3,500.00 Merchandise Inventory #115 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 6,000.00 Estimated Returns Inventory #116 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 4,300.00 Store Supplies #117 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 500.00 Prepaid Insurance #119 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 300.00 Store Equipment #120 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 2,000.00 Accumulated Depreciation - Store Equipment #121 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 200.00 Accounts Payable #210 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 1,700.00 Salaries Payable #211 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. Customer Refunds Payable #212 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. 1-Jun Balance 9,000.00 Larkin, Capital #310 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 40,400.00 Larkin, Drawing #311 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 2,000.00 Sales #410 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 15,700.00 Cost of Merchandise Sold #510 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 5,000.00 Office Salaries Expense #511 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 2,000.00 Sales Salaries Expense #512 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 1,000.00 Rent Expense #513 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. Depreciation Expense #514 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 100.00 Insurance Expense #515 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. Delivery Expense #516 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. Misc. Selling Expense #517 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 200 Misc. Administrative Expense #518 Balance Date Item Post Ref. Dr. Cr. Dr. Cr. June 1 Balance 100
Explanation / Answer
1,400
Date Accounts title and Explanations Debit ($) Credit ($) June 1 Rent Expense 2,800 Cash 2,800 June 3 Merchandise Inventory (28,000 + 420) 28,420 Accounts Payable 28,420 June 4 Accounts Payable 5,600 Merchandise Inventory 5,600 June 6 Accounts Receivable 25,900 Sales 25,200 Cash 700 Cost of Merchandise Sold 14,000 Merchandise Inventory 14,000 June 7 Sales Returns and Allowances 4,200 Accounts Receivable 4,200 Merchandise Inventory 2,800 Cost of Merchandise Sold 2,800 June 8 Misc. Selling Expense 1,400 Cash 1,400 Misc. Administrative Expense 280 Cash 280 June 9 Store Supplies 980 Accounts Payable 980 June 13 Accounts Payable (28,420 - 5,600) 22,820 Cash 22,372 Merchandise Inventory (28,000-5,600)*2% 448 June 16 Store Supplies 280 Cash 280 June 17 Cash 21,280 Sales Discount (25,200 - 4,200) *2% 420 Accounts Receivable (25,900 - 4,200) 21,700 June 25 Sales Salaries Expense 1,820 Cash 1,820 Office Salaries Expense 2,100 Cash 2,100 June 30 Quixote, Drawings 1,400 Cash
1,400
