162. Plimpton Sales uses special journals to record business transactions. Plimpton sells office equipment. The company completed the following transactions a through j. Identify the journal in which each transaction should be recorded.
a.
Paid an installment on a bank loan.
b.
Purchased inventory on credit.
c.
Paid cash to a creditor.
d.
Sold equipment to a customer on credit.
e.
Sold equipment to a customer for cash.
f.
Paid employees' salaries in cash.
g.
Received payment from a customer on credit.
h.
Purchased office supplies on account.
i.
Returned inventory to creditor before payment.
j.
Sold equipment on account.
163. Jamison Company uses special journals to record transactions. All of the companies listed below supply inventory to Jamison except McGarry Co. that supplies equipment. Use the purchases journal given below to answer the following questions:a. Foot and crossfoot the journal for accuracy.
Purchases Journal
Date
Account
Date of
Invoice
Terms
PR
Accounts
Payable
Cr.
Inventory
Dr.
Office
Supplies
Other
5/3
Jones Co.
5/2
2/10, n/30
20,000
5/5
Perry Co.
5/4
18,000
5/7
McGarry Co./Equip.
5/6
n/60
36,000
5/8
Colder Co.
10,000
5/9
French Co.
12,000
b. An error was made in the journal. Identify the error and indicate how to correct it.c. When Jamison compares the general ledger Accounts Payable account to the Accounts Payable ledger, it notices that the general ledger control account is $10,000 more than the schedule of Accounts Payable. What is the most likely cause and how should it be corrected?
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here