Question

create general journal and income statement

• 1

  Purchased merchandise from Taylor Company for $10,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1.

• 2

  Sold merchandise to Lane Co. for $2,900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2.

• 3

  The cost of the merchandise sold to Lane Co. was $1,740.

• 4

  Paid $925 cash for freight charges on the purchase of July 1.

• 5

  Sold merchandise for $5,700 cash.

• 6

  The cost of the merchandise sold was $3,400.

• 7

  Purchased merchandise from Cabela Co. for $4,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.

• 8

  Returned $800 of merchandise purchased on July 9 from Cabela Co. and debited its account payable for that amount.

• 9

  Received the balance due from Lane Co. for the invoice dated July 2, net of the discount.

• 10

  Paid the balance due to Taylor Company within the discount period.

• 11

  Sold merchandise to Walker Co. for $5,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.

• 12

  The cost of the merchandise sold to Walker Co. was $3,600.

• 13

  Gave a price reduction (allowance) of $1,000 to Walker Co. for merchandise sold on July 19 and credited Walker’s accounts receivable for that amount.

• 14

  Paid Cabela Co. the balance due, net of discount.

• 15

  Received the balance due from Walker Co. for the invoice dated July 19, net of discount.

• 16

  Sold merchandise to Lane Co. for $11,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.

• 17

  The cost of the merchandise sold to Lane Co. was $6,600.

Answer 1

Sl No	Date	General Journal
		Particulars	Debit ($)	Credit ($)
1	1-Jul	Merchandise Inventory	10,000.00
		Taylor company (Accounts Payable )		10,000.00
		(Purchased merchandise from Taylor Company for $10,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1.)
2	2-Jul	Lane Co. ( Accounts Receivable)	2,900.00
		Sales		2,900.00
		(Sold merchandise to Lane Co. for $2,900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2.)
3		cost of Goods sold	1,740.00
		Merchandise Inventory		1,740.00
		(The cost of the merchandise sold to Lane Co.)
4	1-Jul	Merchandise Inventory	925.00
		cash		925.00
		(Paid $925 cash for freight charges on the purchase of July 1.)
5		Cash	5,700.00
		Sales		5,700.00
		(Sold merchandise)
6		cost of Goods sold	3,400.00
		Merchandise Inventory		3,400.00
		(cost of merchandise sold )
7	9-Jul	Merchandise Inventory	4,200.00
		cabela co (accounts Payable )		4,200.00
		(Purchased merchandise from Cabela Co. for $4,200 under credit terms )
8		cabela co (accounts Payable )	800.00
		Merchandise Inventory		800.00
		(Returned $800 of merchandise purchased on July 9 from Cabela Co)
9		cash	2,842.00
		sales discount	58.00
		Lane Co. ( Accounts Receivable)		2,900.00
		(Received the balance due from Lane Co. for the invoice dated July 2, net of the discount.)
10		Taylor Company (accounts Payable)	9,800.00
		Merchandise Inventory	200.00
		cash		10,000.00
		(Paid the balance due to Taylor Company within the discount period)
11		Walker co(Accounts receivable	5,200.00
		sales		5,200.00
		(old merchandise to Walker Co. for $5,200 under credit)
12		cost of Goods sold	3,600.00
		Merchandise Inventory		3,600.00
		(The cost of the merchandise sold to Walker Co. was $3,600.)
13		sales return and allowance	1,000.00
		Walker co(Accounts receivable		1,000.00
		(Gave a price reduction (allowance) of $1,000 to Walker Co.)
14		cabela co (accounts Payable )	4,118.00
		Merchandise Inventory	82.00
		cash		4,200.00
		(Paid Cabela Co. the balance due, net of discount)
15		cash	5,096.00
		sales discount	104.00
		Walker co(Accounts receivable		5,200.00
		(Received the balance due from Walker Co. for the invoice dated July 19, net of discount)
16		Lane Co. ( Accounts Receivable)		11,000.00
		sales			11,000.00
		(Sold merchandise to Lane Co. for $11,000 under credit terms )
17		cost of Goods sold		6,600.00
		Merchandise Inventory			6,600.00
		(The cost of the merchandise sold to Lane Co. was $6,600)