Journalize entries for the following related transactions of Lilly Heating & Air
ID: 2554563 • Letter: J
Question
Journalize entries for the following related transactions of Lilly Heating & Air Company. Refer to the Chart of Accounts for exact wording of account titles.
A.
Purchased $42,700 of merchandise from Schell Co. on account, terms 1/10, n/30.
B.
Paid the amount owed on the invoice within the discount period.
C.
Discovered that $8,000 of the merchandise purchased in (A) was defective and returned items, receiving credit.
D.
Purchased $6,100 of merchandise from Schell Co. on account, terms n/30.
E.
Received a refund from Schell Co. for return in (C) less the purchase in (D).
CHART OF ACCOUNTSLilly Heating & Air CompanyGeneral Ledger
ASSETS
110
Cash
120
Accounts Receivable
125
Notes Receivable
130
Inventory
140
Office Supplies
141
Store Supplies
142
Prepaid Insurance
180
Land
192
Store Equipment
193
Accumulated Depreciation-Store Equipment
194
Office Equipment
195
Accumulated Depreciation-Office Equipment
LIABILITIES
211
Accounts Payable-Schell Co.
218
Sales Tax Payable
219
Customer Refunds Payable
220
Unearned Rent
221
Notes Payable
EQUITY
310
Common Stock
311
Retained Earnings
312
Dividends
313
Income Summary
REVENUE
410
Sales
610
Rent Revenue
EXPENSES
501
Cost of Goods Sold
521
Delivery Expense
522
Advertising Expense
524
Depreciation Expense-Store Equipment
525
Depreciation Expense-Office Equipment
531
Rent Expense
533
Insurance Expense
534
Store Supplies Expense
535
Office Supplies Expense
536
Credit Card Expense
539
Miscellaneous Expense
710
Interest Expense
Journalize entries for the transactions of Lilly Heating & Air Company. Refer to the Chart of Accounts for exact wording of account titles. For grading purposes use December 31 as the date for all transactions.
Journalize entries for the transactions of Lilly Heating & Air Company. Refer to the Chart of Accounts for exact wording of account titles. For grading purposes use December 31 as the date for all transactions.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
1
2
3
4
5
6
7
8
9
10
A.
Purchased $42,700 of merchandise from Schell Co. on account, terms 1/10, n/30.
B.
Paid the amount owed on the invoice within the discount period.
C.
Discovered that $8,000 of the merchandise purchased in (A) was defective and returned items, receiving credit.
D.
Purchased $6,100 of merchandise from Schell Co. on account, terms n/30.
E.
Received a refund from Schell Co. for return in (C) less the purchase in (D).
Explanation / Answer
JOURNAL ENTRIES S.NO. ACCOUNTS TITLE AND EXPLANATIONS DEBIT $ CREDIT $ A. Inventory Dr. 42700 Accounts payable-Schell Co. 42700 B. Accounts payable-Schell Co. 42700 Cash Account 42273 Inventory Account 427 C. Accounts payable -Schell Co. Dr. 8000 Inventory 8000 D. Inventory Dr. 6100 Accounts payable-Schell Co. 6100 E. Cash Account Dr. 1900 Accounts payable -Schell Co. 1900
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.