Ex. 68
Gates Company maintains four special journals and a general journal to record its transactions. Using the code below, indicate in the space provided the appropriate journal for recording the transactions listed.
CodeJournals
SSales journal
CR Cash receipts journal
CP Cash payments journal
P Single-column purchases journal
GGeneral journal
1.___Shareholders invested cash in the business in exchange for ordinary shares.
2.___Purchased store supplies on account.
3.___Sold merchandise to customer on account.
4.___Purchased a 2-year fire insurance policy for cash.
5.___Received a check from a customer as payment on account.
6.___Paid for store supplies purchased in transaction 2.
7.___Purchased merchandise on account.
8.___Issued a credit memorandum to a customer who returned defective merchandise previously sold on account.
9.___Purchased office equipment for cash.
10.__Made an adjusting entry for store supplies used during the period.
Ex. 69
Sasser Company uses a sales journal, a cash receipts journal, and a general journal to record transactions with its customers. Record the following transactions in the appropriate journals. The cost of all merchandise sold was 70% of the sales price.
July2Sold merchandise for $21,000 to B. Stine on account. Credit terms 2/10, n/30. Sales invoice No. 100.
July5Received a check for $800 from R. Hyatt in payment of his account.
July8Sold merchandise to F. Wendel for $900 cash.
July10Received a check in payment of Sales invoice No. 100 from B. Stine minus the 2% discount.
July15Sold merchandise for $9,000 to J. Nott on account. Credit terms 2/10, n/30. Sales invoice No. 101.
July18Borrowed $25,000 cash from United Bank signing a 6-month, 10% note.
July20Sold merchandise for $18,000 to C. Karn on account. Credit terms 2/10, n/30. Sales invoice No. 102.
July25Issued a credit memorandum for $600 to C. Karn as an allowance for damaged merchandise previously sold on account.
July31Received a check from J. Nott for $5,000 as payment on account.
SASSER COMPANY
Sales Journal
S1
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InvoiceAcct. Rec. Dr.COGS Dr.
DateAccount DebitedNo.Ref.Sales Revenue Cr.Inventory Cr.
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SASSER COMPANY
General Journal
G1
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DateExplanationsRef.DebitCredit
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Ex. 69(cont.)
SASSER COMPANY
Cash Receipts Journal
CR1
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SalesAccountsSalesOtherCOGS Dr.
AccountsCashDiscountsRec.RevenueAccountsInventory Cr.
DateCreditedRef.Dr.Dr.Cr.Cr.Cr.
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July31J. Nott5,0005,000
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