Tropical mart made the following monthly sales: February $20,000.00 March $30,00
ID: 2596383 • Letter: T
Question
Tropical mart made the following monthly sales:
February $20,000.00
March $30,000.00
April $30,000.00
May $45,000.00
June $25,000.00
July $25,000.00
August $35,000.00
September $30,000.00
October $35,000.00
November $30,000.00
December $30,000.00
Instruction: Prepared a Journal entries for each month. Consider the following expenses in each month.
Electrical energy costs: 10% of the sales for each month
Water" Assume 2% of the sales for each month
Telephone: $100 monthly
Rent: $3,000 monthly
Inventories: monthly purchases by the 30% of the sales.
Explanation / Answer
Date Account titles Debit Credit Feb. a) Cash 20000 Sales 20000 (Sales revenue recorded) b) Purchase 6000 Cash (20000*30%) 6000 (Purchase recorded) c) Electrical energy cost (20000*10%) 2000 Water charges (20000*2%) 400 Telephone charges 100 Rent expenses 3000 Cash 5500 (Expenses accounted) Mar. a) Cash 30000 Sales 30000 (Sales revenue recorded) b) Purchase 9000 Cash (30000*30%) 9000 (Purchase recorded) c) Electrical energy cost (30000*10%) 3000 Water charges (30000*2%) 600 Telephone charges 100 Rent expenses 3000 Cash 6700 (Expenses accounted) Apr. a) Cash 30000 Sales 30000 (Sales revenue recorded) b) Purchase 9000 Cash (30000*30%) 9000 (Purchase recorded) c) Electrical energy cost (30000*10%) 3000 Water charges (30000*2%) 600 Telephone charges 100 Rent expenses 3000 Cash 6700 (Expenses accounted) May. a) Cash 45000 Sales 45000 (Sales revenue recorded) b) Purchase 13500 Cash (45000*30%) 13500 (Purchase recorded) c) Electrical energy cost (45000*10%) 4500 Water charges (45000*2%) 900 Telephone charges 100 Rent expenses 3000 Cash 8500 (Expenses accounted) June a) Cash 25000 Sales 25000 (Sales revenue recorded) b) Purchase 7500 Cash (25000*30%) 7500 (Purchase recorded) c) Electrical energy cost (25000*10%) 2500 Water charges (25000*2%) 500 Telephone charges 100 Rent expenses 3000 Cash 6100 (Expenses accounted) July a) Cash 25000 Sales 25000 (Sales revenue recorded) b) Purchase 7500 Cash (25000*30%) 7500 (Purchase recorded) c) Electrical energy cost (25000*10%) 2500 Water charges (25000*2%) 500 Telephone charges 100 Rent expenses 3000 Cash 6100 (Expenses accounted) Aug. a) Cash 35000 Sales 35000 (Sales revenue recorded) b) Purchase (35000*30%) 10500 Cash 10500 (Purchase recorded) (35000*10%) c) Electrical energy cost (35000*2%) 3500 Water charges 700 Telephone charges 100 Rent expenses 3000 Cash 7300 (Expenses accounted) Sep. a) Cash 30000 Sales 30000 (Sales revenue recorded) b) Purchase 9000 Cash (30000*30%) 9000 (Purchase recorded) c) Electrical energy cost (30000*10%) 3000 Water charges (30000*2%) 600 Telephone charges 100 Rent expenses 3000 Cash 6700 (Expenses accounted) Oct. a) Cash 35000 Sales 35000 (Sales revenue recorded) b) Purchase (35000*30%) 10500 Cash 10500 (Purchase recorded) (35000*10%) c) Electrical energy cost (35000*2%) 3500 Water charges 700 Telephone charges 100 Rent expenses 3000 Cash 7300 (Expenses accounted) Nov. a) Cash 30000 Sales 30000 (Sales revenue recorded) b) Purchase 9000 Cash (30000*30%) 9000 (Purchase recorded) c) Electrical energy cost (30000*10%) 3000 Water charges (30000*2%) 600 Telephone charges 100 Rent expenses 3000 Cash 6700 (Expenses accounted) Dec. a) Cash 30000 Sales 30000 (Sales revenue recorded) b) Purchase 9000 Cash (30000*30%) 9000 (Purchase recorded) c) Electrical energy cost (30000*10%) 3000 Water charges (30000*2%) 600 Telephone charges 100 Rent expenses 3000 Cash 6700 (Expenses accounted)
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