The following were selected from among the transactions completed by Babcock Com
ID: 2715072 • Letter: T
Question
The following were selected from among the transactions completed by Babcock Company during November of the current year:
Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
must use these...
CHART OF ACCOUNTSBabcock CompanyGeneral Ledger
Nov. 3 Purchased merchandise on account from Moonlight Co., list price $94,000, trade discount 25%, terms FOB destination, 2/10, n/30. 4 Sold merchandise for cash, $37,230. The cost of the merchandise sold was $22,500. 5 Purchased merchandise on account from Papoose Creek Co., $48,450, terms FOB shipping point, 2/10, n/30, with prepaid freight of $800 added to the invoice. 6 Returned $15,000 ($20,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. 8 Sold merchandise on account to Quinn Co., $15,810 with terms n/15. The cost of the merchandise sold was $10,020. 13 Paid Moonlight Co. on account for purchase of November 3, less return of November 6. 14 Sold merchandise on VISA, $239,690. The cost of the merchandise sold was $129,230. 15 Paid Papoose Creek Co. on account for purchase of November 5. 23 Received cash on account from sale of November 8 to Quinn Co. 24 Sold merchandise on account to Rabel Co., $54,200, terms 1/10, n/30. The cost of the merchandise sold was $33,490. 28 Paid VISA service fee of $3,220. 30 Paid Quinn Co. a cash refund of $6,330 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,580.Explanation / Answer
Date Particulars Debit Credit Nov-03 Merchandise Inventory 70500 To Accounts Payable-Moonlight Co. 70500 (Purchase from Moonlight Co. on FOB Destination 2/10,n/30) Nov-04 Cash 37230 To Sales 37230 (Cash Sales Made) Nov-04 Cost of Merchandise Sold 22500 To Merchandise Inventory 22500 (Cost of Merchadise sold Realised) Nov-05 Merchandise Inventory 48450 To Cash 800 To Accounts Payable-Papoose Creek Co. 47650 (Purchase from Papoose Creek Co. on FOB Shipping Point 2/10,n/30,Paid Freight) Nov-06 Accounts Payable-Moonlight Co. 15000 To Merchandise Inventory 15000 (Being Purchase Returns) Nov-08 Accounts Receivable-Quinn Co. 15810 To Sales 15810 (Being Credit Sales made to Quinn Co. on Credit Termsn/30) Nov-08 Cost of Merchandise Sold 10020 To Merchandise Inventory 10020 (Cost of Merchadise sold Realised) Nov-13 Accounts Payable-Moonlight Co. 55500 To Cash 54390 To Merchandise Inventory 1110 (Being Cash Paid to Moonlight Co. On Account at 2/10) Nov-14 Cash 239690 To Sales 239690 (Being Sales Made on VISA) Nov-14 Cost of Merchandise Sold 129230 To Merchandise Inventory 129230 (Cost of Merchadise sold Realised) Nov-15 Accounts Payable-Papoose Creek Co. 47650 To Cash 46697 To Merchandise Inventory 953 (Being Cash Paid to Papoose Creek Co. On Account at 2/10) Nov-23 Cash 15810 To Accounts Receivable-Quinn Co. 15810 Nov-24 Accounts Receivable-Rabel Co. 54200 To Sales 54200 (Being Credit Sales made to Rabel Co. on Credit Terms 1/10,n/30) Nov-24 Cost of Merchandise Sold 33490 To Merchandise Inventory 33490 (Cost of Merchadise sold Realised) Nov-28 Credit Card Expense 3220 To Cash 3220 (Being Credit Card Expenses Paid) Nov-30 Sales 6330 To Cash 6330 (Being Cash Refund Paid for Sales Return to Quinn Co.) Nov-30 Merchandise Inventory 3580 To Cost of Goods Sold 3580 (Being Sale Returns Realised)
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