143.Davidson, Inc. incurred the following transactions during the month of January. Record the appropriate ones in thecash receipts journal. If a transaction should not be recorded in the cash receipts journal, indicate where it should beposted.
(a)On January 3, a one-year insurance policy was purchased for $2,400. The accountnumber for prepaid insurance is 16.
(b)On January 5, Davidson received a payment on account from Pasher Industriesof $625.
(c)On January 12, Davidson made sales on account of $3,500 and sales for cash of$2,300.
The fees earned account number is 41.
(d)On January 26, Davidson received $1,250 in rent revenue from a tenant who leasesa portion of its building. The rent revenue account number is 44.
(e)On January 29, Davidson received a payment on account from Gooden, Inc. for$2,000.
?
DateAccount Credited
Post.
Ref.Other Accounts
Cr.Accounts Receivable Cr.
Cash
Dr.
144.Harris, Inc. incurred the following transactions during the month of February. Record the appropriate ones in thecash payments journal. Include posting references. If a transaction should not be recorded in the cash paymentsjournal, indicate where it should be posted.
(a)On February 3, the company purchased $650 worth of supplies on account. Thesupplies account number is 15.
(b)On February 5, Harris made a payment on account to Sanders Industries in theamount of $1,215 - check number 2214.
(c)On February 14, Harris bought a one-year insurance policy for $1,500. Theprepaid insurance account number is 14 - check number 2215
(d)On February 22, Harris paid monthly rent of $2,000. The rent expense accountnumber is 63 - check number 2216.
(e)On February 26, Harris purchased equipment making a down payment of $3,000(check number 2217) and agreeing to pay the $4,000 balance in 30 days. Theequipment account number is 18.
Date
CheckNumber
Account Debited
Post.Ref.OtherAccountsDr.
AccountsPayable Dr.
CashCr.
145.The following purchases journal headings have been suggested for Tower Tree-Trimming Service Company. Whatproblems do you see with these headings?
Date
Account Credited
Post.
Ref.
Accounts Payable Dr.Accounts Receivable
Cr.
Cash
Cr.Other Accounts Dr.