Question

The following were selected from among the transactions completed by Calworks Company
during April of the current year:
Apr.	2.	Purchased merchandise on account from Prescott Co., $42,000, terms FOB
		destination, 2/10, n/30.
	3.	Paid advertising expense, $50.
	4.	Sold merchandise for cash, $18,200.
	5.	Purchased merchandise on account from Stafford Co., $21,300, terms FOB
		shipping point, 2/10, n/30.
	6.	Returned $6,000 merchandise purchased on April 3 from Prescott Co.
	7.	Paid weekly salaries of employees, $150.
	9.	Paid utility bills,  $30.
	10.	Merchandise sold for cash, $1,500 was returned.  Paid cash to the customer.
	11.	Sold merchandise on account to Logan Co., $8,500, terms 1/10, n/30.
	12.	Purchased store supplies for cash, $100.
	13.	Paid Prescott Co. for account due less discount.
	14.	Sold merchandise on account to Salem Co., $60,000.
	14.	Paid weekly salaries of employees, $150.
	15.	Paid Stafford Co., on account less discount.
	17.	Paid insurance expense for April, $100.
	21.	Received cash on account from Logan Co., less discount.
	23.	Received bill for service and maintenance to be paid in May, 75.
	24.	Sold merchandise on account to Alma Co., $9,200, terms, 1/10, n/30.
	27.	The owner withdrew $600 cash for personal expenses.
	30.	Received merchandise returned by Alma Co., from sale on April 24, $1,200.

Required :

Journalized the above transactions of Calworks Company. Use the periodic inventory system.

Answer 1

Date	Accounts and Explanations	Debit	Credit
2-Apr	Purchase A/c	42,000
	Prescott Co. A/c		42,000
	(Purchase on credit)
3-Apr	Advertisement Expense A/c	50
	Cash A/c		50
	(Paid Charges)
4-Apr	Cash A/c	18,200
	Sales A/c		18,200
	(Sold goods on cash)
5-Apr	Purchase A/c	21,300
	Stafford Co.		21,300
	(Purchase on credit)
6-Apr	Prescott Co. A/c	6,000
	Purchase Return & Allowance A/c		6,000
	(Return goods)
7-Apr	Salary Expense A/c	150
	Cash A/c		150
	(Paid weekly salaries)
9-Apr	Utility Charges A/c	30
	Cash A/c		30
	(Utility charges paid)
10-Apr	Sale Return & Allowances A/c	1,500
	Cash A/c		1,500
	(Returned sold goods)
11-Apr	Logan Co.	8,500
	Sales A/c		8,500
	(Sold goods on credit)
12-Apr	Supplies Expense	100
	Cash A/c		100
	(Expense incurred)
13-Apr	Prescott Co. A/c	36,000
	Cash A/c		36,000
	(Paid after 10 days of invoice)
14-Apr	Salem Co.	60,000
	Sales A/c		60,000
	(Sold on credit)
14-Apr	Salary Expense A/c	150
	Cash A/c		150
	(Paid Salaries)
15-Apr	Stafford Co.	21,300
	Purchase Discount A/c		426
	Cash A/c		20,874
	(Paid to party less discount)
17-Apr	Insurance Expense A/c	100
	Cash A/c		100
	(Paid insurance)
21-Apr	Cash A/c	8,415
	Sales Discount A/c	85
	Logan Co.		8,500
	(Received payment)
23-Apr	Service Maintatnace Expense A/c	75
	Service Maintatnace Payable A/c		75
	(Expense Due)
24-Apr	Alma Co A/c	9,200
	Sales A/c		9,200
	(Sales on credit)
27-Apr	Drwaings A/c	600
	Cash A/c		600
	(Withdarw for personal use)
30-Apr	Sale Return & Allowances A/c	1,200
	Alma Co A/c		1,200
	(Returned sold goods)

To find the Discount on payment look on the term condition showed in question

for example 2/10,N30 is the term for prescot Co. It means if fully paid within 10 days will get 2% of the payable amount. if failed net amount will due for the 30 days.

2 is the percentage of discount

10 is the day for making payment to entitle discount.

Here prescot didnt get the discountdue to the payment is done after 10 days.

Look in the other supplier payment too.