Question

Description

Mar.		1		Purchased $45,300 of merchandise from Lee Industries, invoice dated March 1, terms 2/15, n/30.
Mar.		2		Sold merchandise on credit to Gonzalez Co., Invoice No. 854, for $37,200 (cost is $22,000).
Mar.		3		Purchased $1,300 of office supplies on credit from Walker Company, invoice dated March 3, terms n/10 EOM.
Mar.		3		Sold merchandise on credit to Jose Garcia, Invoice No. 855, for $19,000 (cost is $11,400).
Mar.		6		Borrowed $98,000 cash from First Bank by signing a long-term note payable.
Mar.		9		Purchased $22,050 of office equipment on credit from Perez Supply, invoice dated March 9, terms n/10 EOM.
Mar.		10		Sold merchandise on credit to Hillary Mannion, Invoice No. 856, for $15,200 (cost is $9,100).
Mar.		12		Received payment from Gonzalez Co. for the March 2 sale less the discount.
Mar.		13		Sent Lee Industries Check No. 416 in payment of the March 1 invoice less the discount.
Mar.		13		Received payment from Jose Garcia for the March 3 sale less the discount.
Mar.		14		Purchased $46,200 of merchandise from the Hall Co., invoice dated March 13, terms 2/10, n/30.
Mar.		15		Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $21,700. Cashed the check and paid the employees.
Mar.		15		Cash sales for the first half of the month are $35,000 (cost is $21,000). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.)
Mar.		16		Purchased $2,200 of store supplies on credit from Walker Company, invoice dated March 16, terms n/10 EOM.
Mar.		17		Received a $4,200 credit memorandum from Hall Co. for the return of unsatisfactory merchandise purchased on March 14.
Mar.		19		Received a $3,310 credit memorandum from Perez Supply for office equipment received on March 9 and returned for credit.
Mar.		20		Received payment from Hillary Mannion for the sale of March 10 less the discount.
Mar.		23		Issued Check No. 418 to Hall Co. in payment of the invoice of March 13 less the March 17 return and the discount.
Mar.		27		Sold merchandise on credit to Hillary Mannion, Invoice No. 857, for $33,000 (cost is $19,800).
Mar.		28		Sold merchandise on credit to Jose Garcia, Invoice No. 858, for $11,400 (cost is $6,800).
Mar.		31		Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $21,700. Cashed the check and paid the employees.
Mar.		31		Cash sales for the last half of the month are $31,500 (cost is $18,900).

Each transaction is recorded in either a special journal, or directly in the general journal. If a transaction is to be recorded in a special journal, select "Entered in special journal"in the first account field. Otherwise, prepare the general journal entry.

Answer 1

Date	Description	Debit	Credit
1-Mar	Purchase of merchandise on Credit	Entered in Special Journal
2-Mar	Sale of merchandise on Credit	Entered in Special Journal
2-Mar	Cost of Goods Sold a/c                                                                                              Dr	$22,000
	To Merchandise Inventory a/c		$22,000
	[Sale of Goods on Credit costing $22,000]
3-Mar	Office Supplies a/c                                                                                                      Dr	$1,300
	To Walker Company a/c		$1,300
	[Purchase of Office Supplies on Credit]
3-Mar	Sale of merchandise on Credit	Entered in Special Journal
3-Mar	Cost of Goods Sold a/c                                                                                              Dr	$11,400
	To Merchandise Inventory a/c		$11,400
	[Sale of Goods on Credit costing $11,400]
6-Mar	Cash Borrowings by signing long term note payable	Entered in Special Journal
9-Mar	Office Equipment a/c                                                                                                 Dr	$22,050
	To Perez Supply a/c		$22,050
	[Purchase of Office Equipment on Credit]
10-Mar	Sale of merchandise on credit	Entered in Special Journal
10-Mar	Cost of Goods Sold a/c                                                                                              Dr	$9,100
	To Merchandise Inventory a/c		$9,100
	[Sale of Goods on Credit costing $9,100]
12-Mar	Cash receipt with regard to sale on March 2	Entered in Special Journal
13-Mar	Issue of check with regard to purchase on March 1	Entered in Special Journal
13-Mar	Cash receipt with regard to sale on March 3	Entered in Special Journal
14-Mar	Purchase of merchandise on Credit	Entered in Special Journal
15-Mar	Issue of check to payroll, encashment and payment	Entered in Special Journal
15-Mar	Cash sales	Entered in Special Journal
15-Mar	Cost of Goods Sold a/c                                                                                              Dr	$21,000
	To Merchandise Inventory a/c		$21,000
	[Sale of Goods for cash $21,000]
16-Mar	Store Supplies a/c                                                                                                        Dr	$2,200
	To Walker Company a/c		$2,200
	[Purchase of Store Supplies on credit]
17-Mar	Receipt of Credit memo with regard to purchase on March 14	Entered in Special Journal
19-Mar	Perez Supply a/c                                                                                                           Dr	$3,310
	To Office Equipment a/c		$3,310
	[Receipt of Credit memo with regard to purchase on March 9]
20-Mar	Cash receipt with regard to sale on March 10	Entered in Special Journal
23-Mar	Issue of check with regard to purchase on March 14, adjusting March 17 return]	Entered in Special Journal
27-Mar	Sale of merchandise on Credit	Entered in Special Journal
27-Mar	Cost of Goods Sold a/c                                                                                              Dr	$19,800
	To Merchandise Inventory a/c		$19,800
	[Sale of Goods on Credit costing $19,800]
28-Mar	Sale of merchandise on Credit	Entered in Special Journal
28-Mar	Cost of Goods Sold a/c                                                                                              Dr	$6,800
	To Merchandise Inventory a/c		$6,800
	[Sale of Goods on Credit costing $6,800]
31-Mar	Issue of check to payroll, encashment and payment	Entered in Special Journal
31-Mar	Cash sales	Entered in Special Journal
31-Mar	Cost of Goods Sold a/c                                                                                              Dr	$18,900
	To Merchandise Inventory a/c		$18,900
	[Sale of Goods for cash $18,900]