In: Accounting
Journalize the entries for the following transactions. Refer to the Chart of Accounts for exact wording of account titles. (Note: The company uses a clearinghouse to take care of all bank as well as non-bank credit cards used by its customers. )
A. | Sold merchandise for cash, $34,900. The cost of the goods sold was $24,081. |
B. | Sold merchandise on account, $267,200. The cost of the merchandise sold was $184,368. |
C. | Sold merchandise to customers who used MasterCard and VISA, $166,200. The cost of the merchandise sold was $114,678. |
D. | Sold merchandise to customers who used American Express, $68,700. The cost of the merchandise sold was $47,403. |
E. | Received an invoice from National Clearing House Credit Co. for $7,840, representing a service fee paid for processing MasterCard, VISA, and American Express sales. |
CHART OF ACCOUNTSGeneral Ledger
ASSETS | |
110 | Cash |
120 | Accounts Receivable |
125 | Notes Receivable |
130 | Inventory |
131 | Estimated Returns Inventory |
140 | Office Supplies |
141 | Store Supplies |
142 | Prepaid Insurance |
180 | Land |
192 | Store Equipment |
193 | Accumulated Depreciation-Store Equipment |
194 | Office Equipment |
195 | Accumulated Depreciation-Office Equipment |
LIABILITIES | |
210 | Accounts Payable |
216 | Salaries Payable |
218 | Sales Tax Payable |
219 | Customer Refunds Payable |
220 | Unearned Rent |
221 | Notes Payable |
EQUITY | |
310 | Common Stock |
311 | Retained Earnings |
312 | Dividends |
REVENUE | |
410 | Sales |
610 | Rent Revenue |
EXPENSES | |
510 | Cost of Goods Sold |
521 | Delivery Expense |
522 | Advertising Expense |
524 | Depreciation Expense-Store Equipment |
525 | Depreciation Expense-Office Equipment |
526 | Salaries Expense |
531 | Rent Expense |
533 | Insurance Expense |
534 | Store Supplies Expense |
535 | Office Supplies Expense |
536 | Credit Card Expense |
539 | Miscellaneous Expense |
710 | Interest Expense |
Journalize the entries for the transactions on December 31. Refer to the Chart of Accounts for exact wording of account titles.
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JOURNAL
ACCOUNTING EQUATION
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JOURNAL ENTRIES | |||
Description | Ref | Debit | Credit |
Cash | 110 | 34,900.00 | |
To Sales | 410 | 34,900.00 | |
(Being merchandise sold for cash) | |||
Cost of goods sold | 510 | 24,081.00 | |
To Inventory | 130 | 24,081.00 | |
(Being cost of goods sold) | |||
Account Receivable | 120 | 2,67,200.00 | |
To Sales | 410 | 2,67,200.00 | |
(Being goods sold on credit) | |||
Cost of goods sold | 510 | 1,84,368.00 | |
To Inventory | 130 | 1,84,368.00 | |
(Being cost of goods sold) | |||
Cash | 110 | 1,66,200.00 | |
To Sales | 410 | 1,66,200.00 | |
(Being goods sold to customer and paid cash by using Master card and VISA) | |||
Cost of goods sold | 510 | 1,14,678.00 | |
To Inventory | 130 | 1,14,678.00 | |
(Being cost of goods sold) | |||
Cash | 110 | 68,700.00 | |
To Sales | 410 | 68,700.00 | |
(Being goods sold to customer and paid cash by using American Express) | |||
Cost of goods sold | 510 | 47,403.00 | |
To Inventory | 130 | 47,403.00 | |
(Being cost of goods sold) | |||
Credit Card Expense | 536 | 7,840.00 | |
To Account Payable | 210 | 7,840.00 | |
(Being invoice received from National Clearing House, representing a service fee paid for processing Master card , VISA and American Express sales | |||
TOTAL | 9,15,370.00 | 9,15,370.00 |